The Role Of Public Private Partnerships In Large Scale Renewable Energy Projects

Public-private partnerships (PPPs) in renewable energy offer an opportunity for the public and private sectors to pool resources and share risks to complete utility-scale projects that would not be feasible otherwise. Though documented in other countries, PPPs are not widely used in the United States to their full potential, as such, research on renewable energy PPPs in the United States is lacking. As attention to PPPs grows with the national interest in renewable energy, determining factors that help predict success of such partnerships—as well as defining what a successful partnership is—becomes important to practitioners in the public and private sectors that are interested in implementing PPPs for future renewable energy projects. Drawing from primary (interviews) and secondary (reports, news articles) sources, this article discusses a comprehensive definition of PPPs in the context of renewable energy, offers a framework for predicting the success of a partnership, and contributes to the evolution of the term “success”.

Given the chronic power shortages faced by numerous developing countries, and the need everywhere to keep pace with demand, understanding the drivers of public private partnerships (PPPs) in energy is critical. While many private electricity projects have been delayed and financing costs have increased, the impact of the global financial crisis was less severe than that of previous crises that originated in developing countries. This resilience stems from developing countries’ need to expand generation capacity, electricity sector reforms and better regulatory frameworks, and short-term solutions (such as rental power plants). The study reports the evidence from statistical analysis and a sample of case studies selected based. It proposes a novel analytical approach to model PPPs, using a two-stage procedure based on Heckman’s sample selection distinguishing between those factors that determine whether private investment in energy takes place, and those that influence the volume of investment. The results of the analysis provide the following conclusions: • Both general governance and regulatory instrument primarily affect investors’ decisions to enter the various power sector markets, not the subsequent level of investment – indicating that investors seem to be adequately protected against risks. • Support mechanisms, like feed-in tariffs, are crucial for attracting investors in renewable generation, but they do not succeed in displacing fossil fuel investment and they could play a bigger role in affecting the level of investment in renewables. • There is a significant trade-off between effectiveness and efficiency of alternative instruments for deploying renewables. Feed-in tariffs tended to be quite effective but to be set on the high side, reducing incentives to cut costs and posing significant strains on already stripped national budgets. Competitive auctions, on the other hand have tended to be efficient but initially low and not always the most effective instrument. • Countries can scale up renewables following different paths. For Brazil, the move from feed-in tariffs to auctions enabled it to both reduce costs and deploy additional capacity. Peru followed in Brazil’s path, opting for auctions instead of introducing feed-in tariffs. On the other hand, China’s move from competitive tenders to feed-in tariffs allowed for discovery effects to determine the right level of prices to attract private investment in renewables.

Public-Private Partnerships for Infrastructure and Business Funding is ideal for scholars and practitioners who work in the field of public policy design and implementation, finance and banking, and economic development.

This timely book addresses contemporary and future dynamics of collaboration combining public, private, and nongovernmental resources at a time when global concerns Ð ranging from economic insecurity to environmental threats to chronic diseases Ð cannot be solved by single sectors. David Maurrasse reveals that government alone cannot adequately address the myriad challenges of our complex times. Therefore, while the idea of collaboration is increasingly popular, such efforts are difficult to implement. The author expertly analyzes the strengths, weaknesses and potential of cross sector partnerships, transcending the public/private paradigm by integrating the social sector into its framework. A number of diverse case studies from across the globe are presented alongside strategies, opportunities and future challenges for strengthening partnerships. The book captures current thinking and approaches to partnerships leveraging the public, private, and social sectors to address pressing contemporary issues and stimulate innovation. As such, it will prove an invaluable reference tool for not only academics, students and researchers in the fields of public sector economics, public policy and business and management, but also for practitioners and policymakers involved in the review of specific manifestations of cross sector partnerships.

Although state and federal financial incentives have made solar energy more cost effective in California, there still are real or perceived barriers to developing large scale, wide spread solar deployment. The City of San Francisco is looking to overcome these barriers in order to attract and support the solar industry, both as an economic development and an environmental goal. This report will analyze the economic, institutional and policy issues that impact San Francisco 's opportunity to achieve its solar development goals, and assess the barriers that have limited the City's success to date. The report examines how these barriers may be overcome by three new proposed initiatives that would use public/private partnerships to deploy large scale solar projects. It will then consider what economic development opportunity they might stimulate for the solar industry. Finally, it will offer recommendations to the City of San Francisco on using these public/private partnerships to implement local, renewable power on a large scale.

'The authors advance our understanding of the role of non-state actors in global governance. Not only do they empirically investigate the role of public–private – type 2 – partnerships systematically, they also critically consider their role in mitigating global governance deficits and their accountability in global governance.' – Peter M. Haas, University of Massachusetts Amherst, US The 2002 World Summit on Sustainable Development in Johannesburg is remembered mainly for the promotion of a novel form of global governance: the so-called 'partnerships for sustainable development'. This book provides a first authoritative assessment of partnerships for sustainable development, ten years after the Johannesburg Summit. The extensive research builds on a unique Global Sustainability Partnerships Database and a series of in-depth qualitative case studies. Key questions studied in this book include the overall effectiveness and influence of partnerships, their geographical, functional and organizational scope, and their legitimacy. This unique book systematically investigates the questions of emergence, influence and legitimacy, which will prove invaluable for scholars and students interested in global environmental governance and sustainability, public–private partnerships, sustainability at the UN level and environmental governance beyond international agreements and policies.

Investment in infrastructure can be a driving force of the economic recovery in the aftermath of the COVID-19 pandemic in the context of shrinking fiscal space. Public-private partnerships (PPP) bring a promise of efficiency when carefully designed and managed, to avoid creating unnecessary fiscal risks. But fiscal illusions prevent an understanding the sources of fiscal risks, which arise in all infrastructure projects, and that in PPPs present specific characteristics that need to be addressed. PPP contracts are also affected by implicit fiscal risks when they are poorly designed, particularly when a government signs a PPP contract for a project with no financial sustainability. This paper reviews the advantages and inconveniences of PPPs, discusses the fiscal illusions affecting them, identifies a diversity of fiscal risks, and presents the essentials of PPP fiscal risk management.

What is project finance? What makes project or structured finance so relevant for large renewable energy infrastructure? Which vocabulary do I need to know in order to speak the same language during meetings with lawyers, investors, bankers and engineers? These questions and many more are answered throughout this book, offering real world examples to bridge the gap between theory and practice. The book details the role of each stakeholder in the development of renewable energy projects, the interconnection between all the agreements, the financial process from fundraising to financial close, the processes of due diligence, risk analysis, project investment valuation and much more. It also provides with an introduction to Portfolio Management using renewable energy assets and an explanation of the role of Climate Finance in green energy investments. The commented glossary enables readers to unpick the jargon used in project finance for renewable energy, and the numerous creative figures and comprehensive tables aid with understanding. Offering a complete picture of the discipline, Introduction to Project Finance in Renewable Energy Infrastructure will be of value to professionals, engineers and academics alike interested in understanding the process and components of project finance in renewable energy infrastructures, in both private and public-private contexts.

Voluntary sustainability standards (VSS) and other private governance instruments (e.g., Fair Trade, Forest Stewardship Council, Fair Wear Foundation, GLOBALGAP) are increasingly regulating global production processes and economic activities. VSS verify the compliance of products or production processes with sustainability standards. The importance of voluntary sustainability standards is now widely recognized. After being operational for more than two decades, they have established themselves as private governance instruments. This recognition is also exemplified by their integration in public regulatory approaches. Governments and international organizations are partnering with voluntary sustainability standards to pursue sustainable development policies. We witness the integration of VSS in the regulatory approaches of local and national governments in countries around the world, the integration of VSS in trade policies, the emergence of public–private initiatives to govern global supply chains, and the inclusion of private initiatives in experimentalist governance regimes. This Special Issue seeks to bring together research on the interface between private and public governance. We welcome contributions which analyze specific case studies on the emergence and development of these private–public interactions, the design of public–private governance, the effectiveness of these governance arrangements, and critical perspectives on the possibilities and limitations of such public–private forms of governance. We welcome multi-disciplinary perspectives including contributions from economics, political science, law, sociology, geography, and anthropology. Papers selected for this Special Issue are subject to a peer review procedure with the aim of rapid and wide dissemination of research results, developments, and applications.

The conservation of cultural heritage requires the involvement of multiple actors from across the public, private, and nongovernmental, or third, sectors, not only to initiate and carry out conservation but also to sustain heritage places. The conservation of the historic urban environment poses specific and urgent challenges that require a multidisciplinary approach in which conservation actions are embedded within economic, social, and environmental development strategies. Increasingly, the private and third sectors are playing a pivotal role in these processes. Public-private partnerships (PPPs) are contractual arrangements in which the private and/or third sector assists in delivering a public facility or service by providing funding or operating leadership. The third sector, which may include heritage-related NGOs, as well as people living near a heritage site, is of particular relevance to PPPs used for heritage conservation. This publication focuses specifically on the use of PPPs for historic buildings and historic urban areas, and is targeted to those working in the cultural heritage sector. It draws on existing literature, which it aims to make more accessible to those interested in cultural heritage conservation. While providing information on the basic concepts of public-private partnerships and the roles and responsibilities of the partners in a PPP, this is not a guide to the use of PPPs. It discusses the types of PPPs that have been used to conserve historic buildings and historic urban areas, provides specific examples of where and how they have been used, and demonstrates ways in which PPP mechanisms have met conservation goals. This publication also makes some limited observations on the aims of PPPs drawn from the literature, from published case studies, and from a few further case study investigations. This publication draws on English-language works produced between 1992 and 2012, but concentrates on the more recent literature. Much of this material is from the Australia, the United Kingdom, and other European nations that have been the most active in conducting PPPs for heritage resources and in publishing information about these projects. This overview includes an extensive bibliography and provides some suggestions of topics for further research.