Emerging Financing Mechanisms for Renewable Energy Investments

Cost of electricity generation from renewable energy sources (RES) has reached a value that can compete with fossil energy sources and these sources have become one of the important solutions that can be used in the transition to low carbon economy. With the increasing use of RES, a significant contribution can be made to the Paris Agreement's goal of keeping global warming below 2 degrees C. In recent years the increase in RES investments has revealed different financing options for RES investments. The use of crowdfunding, green bond and green loan which are new financial mechanisms used in the financing of RES investments, financing mechanisms has increased in recent years. This new financing instruments in Turkey is also on the rise in recent years and RES investments are financed by using these instruments. By using these financial mechanisms, financing opportunities of RES investments have been diversified. In order to increase the use of crowdfunding in renewable energy investments, crowdfunding platforms specific to this area should be established. Making the external opinion practice a legal obligation for green bonds will increase investor's interest in green bonds and confidence in the bond issuer. In addition to the facilities available for green loans, tax incentives should be provided.