Influences on decarbonisation project financing in practice: The case of Australia
Financing has been identified as a crucial enabler for decarbonisation, but there is broad recognition that current financial flows appear insufficient to achieve the well below 2° C aspiration as set out in the Paris Agreement. This research extends on research uncovering barriers to decarbonisation project financing, with a focus on understanding influences on financing in Australian variable renewable energy context. Nine semi-structured interviews were completed across a purposive sample of experienced renewable energy investors. Interviews were manually coded to construct conceptual abstractions that were tied directly to the data. Analysis of the data identified six key influences that act to shape the risk-return paradigm that drives VRE investor decision making, complemented by four binary logistical conditions for financing to take place, acting together in a ‘systems’ fashion. Recommendations for policy makers and other stakeholders were identified, including strategies to reduce revenue uncertainty in the Australian market to improve the risk-return paradigm for renewable energy investors.