FINANCING NEW ENERGY IN THE WORLD

5 questions with Michael Liebriech, Head of the Bloomberg New Energy Finance
12 October 2011 (World of Renewables)

[Michael Liebreich on clean energy investment trends in the Asia Pacific:] "2010 saw Asia as a whole nearly overtake Europe to become the leading region for clean energy investment. Only the surge in rooftop solar installations in Germany prevented that from happening. In 2011, Asia will probably lead the world for investment, driven by continuing significant funding commitments in China…"

[Michael Liebreich on clean energy investment trends in the Asia Pacific:] "…Companies in South Korea and Taiwan have started to make significant investments in technology, particularly in solar, smart grid and batteries. India has woken up, with its ambitious Solar Mission. And Japan has rededicated itself to clean energy in the wake of Fukushima, passing a renewable energy feed-in tariff law… Asia is the most dynamic region right now…"

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[Michael Liebreich on key challenges in securing financing for solar and wind power projects:] "The biggest challenge is uncertainty about domestic energy policy almost everywhere in the world. Prices for clean energy have come down dramatically--solar photovoltaic equipment is 70 percent cheaper now than it was just three years ago; in Brazil, wind power developers are bidding for contracts to build projects at US$6.2 cents per kWh, below the cost of gas…"

[Michael Liebreich on key challenges in securing financing for solar and wind power projects:] "…[T]he issue is not cost any more, it's just knowing that whatever support mechanisms or regulatory frameworks there are, will stay in place long enough for investors to earn the returns they need. The experience of Spain and Czech Republic, where there were retroactive changes to the tariff regime, really destroyed mainstream investors' confidence in the sector. It was a disaster…"