Published on Dec 23, 2014
The entire global energy system is undergoing profound and rapid change. But while energy policy research often focuses on the economics of energy production, it can often ignore or assume away the importance of both finance and management. Finance questions extend beyond the cost of capital and to topics such as scaleable financing structures (e.g. ‘green’ bonds, yieldcos), capital recycling and refinancing, yield expectations/asset characteristics, portfolio construction, investor engagement, divestment, and capacity bottlenecks (e.g expertise, balance sheet capacity). While management questions might encompass issues such as how incumbent utilities can adapt to energy market transformations, the challenges of scaling renewable energy companies, operational efficiency, and how companies interact with and shape public policy.
Michael Liebreich, Chairman of the Advisory Board for Bloomberg New Energy Finance, covers some of these issues, linking together developments in energy economics with parallel and inter-related changes in energy finance and management.