INFRASTRUCTURE INVESTING IN THE ENERGY SECTOR

The demand for energy is increasing in the world as the world's population expands, and technology keeps surging.This requires significant investment in the energy sector to keep pace with the increasing demand.In this chapter, we document the different forms of energy projects such as power generation and renewable energy infrastructure and how to raise funds to finance them.Some of the funding sources discussed include debt finance, equity finance, private capital, blended finance, and public private partnership finance.We also discuss the role of ESG in financing energy projects and why energy firms need to incorporate ESG practices when dealing with energy projects.In terms of ESG, we conclude that international financial institutions such as multilateral institutions and development finance institutions must critically assess energy projects’ ESGs certifications before funding them.We recommend that energy projects must have an ESG buy-in from indigenes before they are cleared to be financed.Finally, both the public and private sector must collaborate to finance energy projects since they are highly capital intensive.