© 2018 by Environmental Energy Institute

Innovative Energy Systems Market Development

Energy System architectures are changing rapidly.  Markets must evolve for system success.

Increasingly, energy system architectures are comprised of renewable energy generators and energy storage assets.  These non-traditional elements have required evolution of energy markets.  The renewable energy and energy storage sectors face the challenge of the requirement of high upfront investments.  In addition to high capital costs, these sectors are relatively new and with that carries an association of risk.  Parties in the renewable energy and energy storage industries are seeking financial innovations to expand availability and lower the upfront costs.  While many financing mechanisms have been proposed and some successfully implemented, the replicability of these warrants further investigation.  This project evaluates innovative mechanisms such as corporate power purchase agreements, formation of energy co-operatives, carbon revenue bonds, and crowdfunding. As climate policies come into effect, incentives expire, and demand continues to increase, financial innovation will be key to responding to energy challenges with renewable solutions.