Perspectives on project finance and renewable energy infrastructure research

Santiago Gómez-Valencia; Juan David Gonzalez-Ruiz; Nini-Johana Marín-Rodriguez

doi:10.24294/jipd.v8i7.6041

Home - JIPD - Volume 8 - Issue 7

Submit to JIPD

Journal Browser

Volume | Year

Issue

• Current lssue

View All

News and Announcements

View All

Perspectives on project finance and renewable energy infrastructure research

Santiago Gómez-Valencia

Juan David Gonzalez-Ruiz

Nini-Johana Marín-Rodriguez

Journal of Infrastructure Policy and Development 2024, 8(7), 6041; https://doi.org/10.24294/jipd.v8i7.6041

Submitted：25 Apr 2024

Accepted：29 May 2024

Published：26 Jul 2024

Download PDF(894.23KB)

Cite

XML

Abstract

This study analyzes the studies on project finance (PF) and renewable energy (RE) arena, employing a comprehensive scientometric analysis to illuminate the current research landscape, identify prominent scholars, and uncover emerging trends. Encompassing several analyses, we have charted the evolution of this domain from 1993 to March 2024 and showed the way for further research. We analyzed 80 studies selected from several databases by means scientometric tools. Despite decent citation rates, research in this relatively young field is surprisingly scarce. While geographically diverse, research leadership stems from the UK, USA, Australia, and Germany. Interestingly, a significant portion of the studies originates from broad energy and sustainability areas, highlighting a potential knowledge gap in finance and economics areas. Additionally, the prevalence of case studies points to a strong connection between theory and practice. The research also revealed prominent topics like the interplay between PF and RE, various renewable resources, infrastructure development, financial considerations, risk management, among others. While many themes exist, areas like technological advancements, diverse cost approaches, valuation methodologies, and policy considerations remain underexplored. Other results unveiled an unexpected finding: limited evidence of large-scale collaborations, with individual or small-group research efforts currently dominating the field. However, existing collaborative networks promise future advancements through the emergence of more formalized research groups, which can perform future research endeavors with a wide spectrum of unexplored topics.

Keywords

References

Agrawal, A. (2012). Risk mitigation strategies for renewable energy project financing. Strategic Planning for Energy and the Environment, 32(2), 9–20. https://doi.org/10.1080/10485236.2012.10554231

Aria, M., & Cuccurullo, C. (2017). Bibliometrix: An R-tool for comprehensive science mapping analysis. Journal of Informetrics, 11(4), 959–975. https://doi.org/10.1016/J.JOI.2017.08.007

Baker, L. (2015). The evolving role of finance in South Africa’s renewable energy sector. Geoforum, 64, 146–156. https://doi.org/10.1016/j.geoforum.2015.06.017

Baker, L. (2022). Procurement, finance and the energy transition: Between global processes and territorial realities. Environment and Planning E: Nature and Space, 5(4), 1738–1764. https://doi.org/10.1177/2514848621991121

Baker, S. H. (2015). Project finance and sustainable development in the global south. In: International Environmental Law and the Global South. Cambridge University Press. pp. 338–355. https://doi.org/10.1017/CBO9781107295414.017

Barroco, J., & Herrera, M. (2019). Clearing barriers to project finance for renewable energy in developing countries: A Philippines case study. Energy Policy, 135. https://doi.org/10.1016/j.enpol.2019.111008

Bature, A., Melville, L., Mizanur Rahman, K., et al. (2018). An investigation into the effects of risks and risk management of bioenergy projects. E3S Web of Conferences, 61, 0006. https://doi.org/10.1051/e3sconf/20186100006

Benavides-Franco, J., Gómez, J. M., & Pérez-Uribe, M. A. (2023). Determinants of Project Finance success for renewable energy. Renewable Energy, 211, 188–201. https://doi.org/10.1016/j.renene.2023.04.031

Bloomberg, N. E. F. (2024). Energy Transition Investment Trends 2024. Available online: https://about.bnef.com/energy-transition-investment/ (accessed on 25 March 2024).

Böttcher, J. (2020). Project finance of a renewable energy project. In: Green Banking: Realizing Renewable Energy Projects. De Gruyter. pp. 177–222. https://doi.org/10.1515/9783110607888-006

Braeckman, J. P., Markkanen, S., & Seega, N. (2022). Financiers’ perceptions of risk in relation to large hydropower projects. Environmental Research: Infrastructure and Sustainability, 2(1). https://doi.org/10.1088/2634-4505/ac4e70

Culnan, M. J. (1987). Mapping the Intellectual Structure of MIS, 1980–1985: A Co-Citation Analysis. MIS Quarterly, 11(3), 341. https://doi.org/10.2307/248680

Duffy, A., Hand, M., Wiser, R., et al. (2020). Land-based wind energy cost trends in Germany, Denmark, Ireland, Norway, Sweden and the United States. Applied Energy, 277, 114777. https://doi.org/10.1016/j.apenergy.2020.114777

Dwivedi, R., Nerur, S., & Balijepally, V. (2023). Exploring artificial intelligence and big data scholarship in information systems: A citation, bibliographic coupling, and co-word analysis. International Journal of Information Management Data Insights, 3

Emodi, N. V, Wade, B., Rekker, S., & Greig, C. (2022). A systematic review of barriers to greenfield investment in decarbonisation solutions. Renewable and Sustainable Energy Reviews, 165. https://doi.org/10.1016/j.rser.2022.112586

Firouzi, A., & Meshkani, A. (2021). Risk-based optimization of the debt service schedule in renewable energy project finance. Utilities Policy, 70. https://doi.org/10.1016/j.jup.2021.101197

Frisari, G., & Stadelmann, M. (2015). De-risking concentrated solar power in emerging markets: The role of policies and international finance institutions. Energy Policy, 82(1), 12–22. https://doi.org/10.1016/j.enpol.2015.02.011

Garcia-Bernabeu, A., Mayor-Vitoria, F., Bravo, M., & Pla-Santamaria, D. (2019). Financial risk management in renewable energy projects: A multicriteria approach. Journal of Management Information and Decision Sciences, 22(4), 360–371.

Gatti, S. (2018). Introduction to the Theory and Practice of Project Finance. In: Project Finance in Theory and Practice. Elsevier. pp. 1–42. https://doi.org/10.1016/B978-0-12-811401-8.00001-5

Global Infrastructure Hub. (2018). Global Infrastructure Outlook: Investment forecasts for Energy. Available online: https://outlook.gihub.org/sectors/energy (accessed on 25 March 2024).

Gohdes, N., Simshauser, P., & Wilson, C. (2022). Renewable entry costs, project finance and the role of revenue quality in Australia’s National Electricity Market. Energy Economics, 114. https://doi.org/10.1016/j.eneco.2022.106312

Gohdes, N., Simshauser, P., & Wilson, C. (2023). Renewable investments, hybridised markets and the energy crisis: Optimising the CfD-merchant revenue mix. Energy Economics, 125. https://doi.org/10.1016/j.eneco.2023.106824

Gonzalez-Ruiz, J. D., Arboleda, A., Botero, S., & Rojo, J. (2019). Investment valuation model for sustainable infrastructure systems. Engineering, Construction and Architectural Management, 26(5), 850–884. https://doi.org/10.1108/ECAM-03-2018-0095

Gonzalez‐Ruiz, J. D., Marín‐Rodríguez, N. J., & Weber, O. (2024). New insights on social finance research in the sustainable development context. Business Strategy & Development, 7(1). https://doi.org/10.1002/bsd2.342

González-Ruiz, J. D., Mejía-Escobar, J. C., Rojo-Suárez, J., & Alonso-Conde, A. B. (2023). Green Bonds for Renewable Energy in Latin America and the Caribbean. The Energy Journal, 44(5), 45–66. https://doi.org/10.5547/01956574.44.4.jgon

Haghani, M. (2023). What makes an informative and publication-worthy scientometric analysis of literature: A guide for authors, reviewers and editors. Transportation Research Interdisciplinary Perspectives, 22, 100956. https://doi.org/10.1016/J.TRIP.2023.

Hirsch, J. E. (2005). An index to quantify an individual’s scientific research output. Proceedings of the National Academy of Sciences, 102(46), 16569–16572. https://doi.org/10.1073/pnas.0507655102

IEA. (2024). Electricity 2024—Analysis and forecast to 2026. Available online: https://www.iea.org/reports/electricity-2024 (accessed on 25 March 2024).

In, S. Y., Manav, B., Venereau, C. M. A., et al. (2022). Climate-related financial risk assessment on energy infrastructure investments. Renewable and Sustainable Energy Reviews, 167. https://doi.org/10.1016/j.rser.2022.112689

Kahn, E. (1996). The production tax credit for wind turbine powerplants is an ineffective incentive. Energy Policy, 24(5), 427–435. https://doi.org/10.1016/0301-4215(96)00014-6

Kann, S. (2009). Overcoming barriers to wind project finance in Australia. Energy Policy, 37(8), 3139–3148. https://doi.org/10.1016/j.enpol.2009.04.006

Kayser, D. (2013). Recent research in project finance a commented bibliography. Procedia Computer Science, 17, 729–736. https://doi.org/10.1016/j.procs.2013.05.094

Kayser, D. (2016). Solar photovoltaic projects in China: High investment risks and the need for institutional response. Applied Energy, 174, 144–152. https://doi.org/10.1016/j.apenergy.2016.04.089

Korom, P. (2019). A bibliometric visualization of the economics and sociology of wealth inequality: A world apart? Scientometrics, 118(3), 849–868. https://doi.org/10.1007/s11192-018-03000-z

Kumari, A., & Singh, M. P. (2023). A journey of social sustainability in organization during MDG & SDG period: A bibliometric analysis. Socio-Economic Planning Sciences, 88, 101668. https://doi.org/10.1016/j.seps.2023.101668

Li, H., Wu, M., Wang, Y., & Zeng, A. (2022). Bibliographic coupling networks reveal the advantage of diversification in scientific projects. Journal of Informetrics, 16(3), 101321. https://doi.org/10.1016/j.joi.2022.101321

Lundan, S., & Leymann, G. (2021). Investing in sustainable infrastructure: new directions for international business research. Transnational Corporations, 28(3), 147–157. https://doi.org/10.18356/2076099x-28-3-7

May, N. (2017). The impact of wind power support schemes on technology choices. Energy Economics, 65, 343–354. https://doi.org/10.1016/j.eneco.2017.05.017

Middleton Jr., G. L., & McBurney, C. M. (1993). New energy policy act’s “green tax” package will benefit project finance. Strategic Planning for Energy and the Environment, 12(4), 23–27.

Miller, L., & Carriveau, R. (2018). A review of energy storage financing—Learning from and partnering with the renewable energy industry. Journal of Energy Storage, 19, 311–319. https://doi.org/10.1016/j.est.2018.08.007

Mills, S. J. (1993). Project finance for alternative energy. IEE Conference Publication, 385, 207–211.

Mohamadi, F. (2021). Introduction to project finance in renewable energy infrastructure: Including public-private investments and non-mature markets. In: Introduction to Project Finance in Renewable Energy Infrastructure: Including Public-Private Investme

Mora, E. B., Spelling, J., van der Weijde, A. H., & Pavageau, E. M. (2019). The effects of mean wind speed uncertainty on project finance debt sizing for offshore wind farms. Applied Energy, 252, 113419. https://doi.org/10.1016/j.apenergy.2019.113419

Nelson, J. (2020). Australia’s National Electricity Market: Financing the transition. Electricity Journal, 33(9). https://doi.org/10.1016/j.tej.2020.106834

Nickerson, T. A., Hathaway, B. J., Smith, T. M., & Davidson, J. H. (2015). Economic assessment of solar and conventional biomass gasification technologies: Financial and policy implications under feedstock and product gas price uncertainty. Biomass and Bi

Ozturk, O. (2021). Bibliometric review of resource dependence theory literature: an overview. Management Review Quarterly, 71(3), 525–552. https://doi.org/10.1007/S11301-020-00192-8/TABLES/8

Öztürk, O., Kocaman, R., & Kanbach, D. K. (2024). How to design bibliometric research: An overview and a framework proposal. Review of Managerial Science. https://doi.org/10.1007/s11846-024-00738-0

Pranckutė, R. (2021). Web of Science (WoS) and Scopus: The Titans of Bibliographic Information in Today’s Academic World. Publications, 9(1), 12. https://doi.org/10.3390/publications9010012

Rafique, M. M., Rehman, S., & Alhems, L. M. (2018). Developing zero energy and sustainable villages—A case study for communities of the future. Renewable Energy, 127, 565–574. https://doi.org/10.1016/j.renene.2018.04.087

Rickman, J., Larosa, F., & Ameli, N. (2022). The internal dynamics of fast-growing wind finance markets. Journal of Cleaner Production, 375. https://doi.org/10.1016/j.jclepro.2022.134129

Shiau, W. L., Wang, X., & Zheng, F. (2023). What are the trend and core knowledge of information security? A citation and co-citation analysis. Information & Management, 60(3), 103774. https://doi.org/10.1016/j.im.2023.103774

Spasenic, Z., Makajic-Nikolic, D., & Benkovic, S. (2022a). Integrated FTA-risk matrix model for risk analysis of a mini hydropower plant’s project finance. Energy for Sustainable Development, 70, 511–523. https://doi.org/10.1016/j.esd.2022.08.024

Spasenic, Z., Makajic-Nikolic, D., & Benkovic, S. (2022b). Risk assessment of financing renewable energy projects: A case study of financing a small hydropower plant project in Serbia. Energy Reports, 8, 8437–8450. https://doi.org/10.1016/j.egyr.2022.06.0

Spasenic, Z., Milosavjevic, M., & Milanovic, N. (2022). Project financing of renewable energy projects a bibliometric analysis and future research agenda. Fresenius Environmental Bulletin, 31, 7844–7851.

Srivastava, V. (2023). Project Finance for Green Renewable Energy Assets: Does It Solve the Higher Cost of Capital Conundrum? Journal of Structured Finance, 28(4), 59–69. https://doi.org/10.3905/jsf.2022.1.148

Steffen, B. (2018). The importance of project finance for renewable energy projects. Energy Economics, 69, 280–294. https://doi.org/10.1016/j.eneco.2017.11.006

Tseng, Y. C., Lee, Y. M., & Liao, S. J. (2017). An integrated assessment framework of offshore wind power projects applying equator principles and social life cycle assessment. Sustainability (Switzerland), 9(10). https://doi.org/10.3390/su9101822

Vázquez-Vázquez, M., Alonso-Conde, A. B., & Rojo-Suárez, J. (2021). Are the purchase prices of solar energy projects under development consistent with cost of capital forecasts? Infrastructures, 6(7). https://doi.org/10.3390/infrastructures6070095

van Eck, N. J., & Waltman, L. (2020). VOSviewer manual. In: Leiden: Univeristeit Leiden. Universiteit Leiden.

Weber, B., Staub-Bisang, M., & Alfen, H. W. (2016). Infrastructure as an asset class: Investment strategy, sustainability, project finance and PPP. In: Infrastructure as an Asset Class: Investment Strategy, Sustainability, Project Finance and PPP. John Wiley & Sons, Ltd. https://doi.org/10.1002/9781119226574

Zhang, M., Wang, X., Chen, X., et al. (2022). A Scientometric Analysis and Visualization Discovery of Enhanced Recovery After Surgery. Frontiers in Surgery, 9. https://doi.org/10.3389/fsurg.2022.894083

Zhu, J., & Liu, W. (2020). A tale of two databases: the use of Web of Science and Scopus in academic papers. Scientometrics, 123(1), 321–335. https://doi.org/10.1007/s11192-020-03387-8

Previous
article in this issue

Next
article in this issue