Pacific SIDS Project Finance Capacity Building Workshop

Investment pathways in renewable energy are still in need of further streamlining to achieve 2030 and 2050 targets. Enhancing the capacities of developers, banks, and financial institutions, about the practical aspects of project financing is needed to increase the number of projects that are able to secure financing, build project appraising capacity, and create a conducive policy environment for renewable energy (RE) project investment. IRENA provides tailored technical assistance and financing matchmaking at project intervention level, to reduce the challenges local developers face to reach project’s commercial feasibility, and to build a robust pipeline of investors and scalable RE projects. Among other initiatives such as the SIDS Lighthouses Initiative, IRENA aims to support Small Island Developing States in bridging existing gaps in RE project financing, including the use of local financing to help accelerate RE deployment in the Pacific SIDS region.

The workshop contributed in enhancing the capacities of local stakeholders in SIDS in structuring renewable energy project financing deals, and eventually led to increase local engagement within the renewable energy financing environment and increase the number of projects that are financed in SIDS. The target audience were renewable energy project developers, project advisors, financial institutions interested in funding renewable energy projects, as well as government ministries with responsibility for renewable energy development.

The training workshop was divided into two parts, focusing on theoretical and practical aspects of project finance. It emphasized the key risks, security, and structuring facets involved in reaching financial close. These learnings were followed by simulated case studies, where participants were given an opportunity to test what they have learnt and to see how different decisions could affect the financing dynamics. The workshop also highlighted IRENA’s different project facilitation initiatives available to member countries. The workshop additionally featured project pitches by developers, aiming to enhance the proposals and render them investment-ready, while providing the audience with practical insights based on concrete elements. The workshop concluded with a visit to a renewable energy plant in operation.