Financing the future infrastructure of sustainable energy systems

Reinhard Haas; Amela Ajanovic; Jasmine Ramsebner; Theresia Perger; Jaroslav Knápek; Jan W. Bleyl; Reinhard Haas; Amela Ajanovic; Jasmine Ramsebner; Theresia Perger; Jaroslav Knápek; Jan W. Bleyl

doi:10.3934/GF.2021006

Green Finance

2021, Volume 3, Issue 1: 90-118. doi: 10.3934/GF.2021006

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Financing the future infrastructure of sustainable energy systems

1.
Energy Economics Group, TU Wien, A-1040 Vienna, Austria
2.
Faculty of Electrical Engineering, Czech Technical University in Prague, Prague, Czech Republic
3.
Energetic Solutions, 8020 Graz, Lendkai 29, Austria

Received: 01 December 2020 Accepted: 24 March 2021 Published: 31 March 2021
JEL Codes: G15, C40

The development of suitable financing models plays an important role for long-term investments in green energy infrastructures necessary to achieve energy and climate targets. In this context, it is important to state that people do not demand energy per se, but energy services such as mobility, heating, cooking and lighting. These services are provided by a combination of different energy carriers and technologies. In this paper, the focus lies on the optimal financing of innovative technologies from the society's point-of-view. Therefore, long-term financing models of new energy solutions play a key role in three core areas: (ⅰ) investments in renewable energy technologies, e.g., large solar thermal, PV, wind power systems, (ⅱ) investments in new network infrastructure for electricity, district heating, hydrogen, charging stations for battery electric vehicles, etc.; (ⅲ) investments in energy efficiency. In this paper we observe that there is practically no degree of freedom in the market regarding choice of financing parameters such as interest rate and depreciation time. In real life, all long-term investments, e.g., in the area of electricity or district heating networks, are located in a strictly regulated environment.
- energy service,
- infrastructure,
- energy efficiency,
- green bonds,
- renewable energy,
- risk
Citation: Reinhard Haas, Amela Ajanovic, Jasmine Ramsebner, Theresia Perger, Jaroslav Knápek, Jan W. Bleyl. Financing the future infrastructure of sustainable energy systems[J]. Green Finance, 2021, 3(1): 90-118. doi: 10.3934/GF.2021006

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Abstract

The development of suitable financing models plays an important role for long-term investments in green energy infrastructures necessary to achieve energy and climate targets. In this context, it is important to state that people do not demand energy per se, but energy services such as mobility, heating, cooking and lighting. These services are provided by a combination of different energy carriers and technologies. In this paper, the focus lies on the optimal financing of innovative technologies from the society's point-of-view. Therefore, long-term financing models of new energy solutions play a key role in three core areas: (ⅰ) investments in renewable energy technologies, e.g., large solar thermal, PV, wind power systems, (ⅱ) investments in new network infrastructure for electricity, district heating, hydrogen, charging stations for battery electric vehicles, etc.; (ⅲ) investments in energy efficiency. In this paper we observe that there is practically no degree of freedom in the market regarding choice of financing parameters such as interest rate and depreciation time. In real life, all long-term investments, e.g., in the area of electricity or district heating networks, are located in a strictly regulated environment.

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