Securing finance in an energy transition

Pumped storage projects need to be built at tremendous speed and scale; however, one of the biggest challenges cited is financing. High initial capital costs and uncertain financial returns make it difficult to make the projects bankable in both developing and developed markets. In addition, governments have competing needs (political, economic and fiscal considerations) and often limited finance for large-scale projects. This is especially the case for projects in regions where the cost of borrowing is high and electricity access is still limited. Innovation in public and private finance is needed while also providing governments with the tools to increase their energy independence. This session will explore the evolving role of project financing, which may include different models of support, off-taker agreements and the use of innovative debt models. Attendees will hear about risks (including bankability and finance related risks), how these can be mitigated, and expert speaker experiences in developing pumped hydro projects.