Options for and Regional Peculiarities of Investment Funding in Energy Markets

Abstract

The energy sector will require huge investments over the next decades. This chapter discusses the barriers to and constraints on attracting private investment in energy projects. The pace of private investment in the power sector is influenced by three key elements. A first crucial parameter is the investment climate. In addition to that, the regulatory framework and predictability of the projects' revenues are the two single most important boundary conditions by far for successful funding of large energy projects. This chapter finally analyzes the most important instruments for attracting investments, including national and international financial institutions, capital markets, and other sources.