Advisor / Coach The Private Financing Advisory Network Trincity, Tunapuna-Piarco, Trinidad and Tobago
Background, Description, Delivery and Learning Objective Access to affordable and reliable energy is a significant challenge in many countries in Latin America and the Caribbean (LAC), exacerbated by the disruptions caused by climate change and the economic impacts of the COVID-19 pandemic. The implementation of renewable energy generation projects, such as solar, geothermal, wind, and hydro, can provide a clean and reliable source of energy while reducing carbon emissions. However, financing solar distributed energy resources (DER) in LAC can be challenging, requiring support from all sectors of the economy, and especially that of financial institutions.
This paper explores the use of Solar Power Purchase Agreements (SPPAs), Certificates of Emissions Reduction (CERs), and Renewable Energy Credits (RECs) as mechanisms for financing solar DER projects in LAC. SPPAs, CERs, and RECs are revenue streams that can be generated by solar DER projects in the region and traded in various markets, providing a source of capital for project developers and investors.
In conclusion, the leveraging of SPPAs, CERs, and RECs provides a viable mechanism for financing solar DER projects in LAC, promoting sustainable economic development in the region.
