Distributed generation makes great sense in rural areas that are not yet connected to the grid, as well as on islands in which conventional energy technologies are expensive. Besides these micro-grids, the development of C&I solar and residential solar is on the rise as well, spurred by favorable policies that stimulate decentralized energy generation.
Solar PV offers almost endless possibilities for distributed generation. In order for the possibilities to be realized, projects need funding. Funding is proving to be the most important bottleneck for DG projects.
Adriaan van Loon, Project Manager at Solarplaza, was joined by Elio Muller, CEO at Solar Axiom, Fernando Alvarado, CEO at Sustainable Energy Central America, and Per van Swaay, Senior VP at TCX, to address the key issues that hinder the financing of solar DG projects in LAC, such as:
- Currency Risks
- Dealing with uncredible off-takers
- Making a stable return on an unstable energy source
- Lack of scale to make DG projects bankable
- Local regulatory resistance