Securing finance in an energy transition

PSH projects need to be built at tremendous speed and scale; however, one of the biggest challenges cited is financing. High initial capital costs and uncertain financial returns make it difficult to make the projects bankable in both developing and developed markets. In addition, governments have competing needs (political, economic, and fiscal considerations), and often limited finance for the large-scale projects needed for net zero in the power sector.

This is especially the case for projects in regions where the cost of borrowing is high and electricity access is still limited. Innovation in public and private finance is needed while also providing governments with the tools to increase their energy independence.  

This session will explore the evolving role of project financing, which may include different models of support, off-taker agreements, and the use of innovative debt models. Attendees will hear about risks (including bankability and finance related risks), how these can be mitigated, and hear directly from expert speakers about their experiences in developing pumped hydro projects.

Session objectives

• Understand the drivers of finance actors in lending/investing, and what might stand in the way of them doing so
• Map the landscape of finance, who has money to lend or invest, and the sort of deals they are looking to make
• What makes financing PSH different to other transactions, and what developers can do to make their projects more attractive to those with the money