| 18 Aug 2009 |
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Islamic Financial Institutions Urged to Protect Emerging Economies from Energy Crisis
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Renewable energy experts iQuansys are lobbying regional development banks the Asian Development Bank, the Islamic Development BankIslamic Development Bank
and sovereign wealth funds to join in partnership with them to generate a comprehensive energy policy for emerging economies. They claim that what is required is a complete review of the challenges and opportunities presented by the mitigation of climate change. Already, secular institutions such as the EU commission are undertaking projects to see how to take advantage of the positive economic benefits that renewable energy can bring. "We are submitting proposals for a decentralized power generation methodology and centralised investment policy. The scheme will reduce risk and raise returns for investors. " says iQuansys CEO Alicia Blackett. Such a scheme would see the creation of a centralized pool of money used to finance development in renewable energy generation and developing methodologies for sustainable living within communities.
Moreover, the iQuansys board are providing research that proves that Islamic Finance is better placed to take advantage of the improvement in the capacity factor of renewables - the percentage of time that a plant is operational. "The fact that the sun doesn't shine for twenty-four hours a day and the wind doesn't always blow at the correct wind speed means that the plant isn't always operational. But progress has been made in this area." explains Alicia Blackett.
In secular finance, much of the initial financing for renewable projects has been dominated by interest payments which can make up to 80% of financing costs. This is in part due to the risk free rate - the return an investor gets by simply doing nothing - and the historical low level of the capacity factor. This has discouraged investors from long-term commitments to the project. However, the capacity levels of renewable plants have increased dramatically and the operating costs have remained far lower than that of their carbon based counterparts meaning that investors who stay in for the long-term will see better returns. "We see an exciting future for investors in renewable energy and feel that the development banks and sovereign wealth funds have the capacity to make long term commitments to it. They will probably gain the most by achieving all of their objectives; bringing economic growth, employment and stability to the region."
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About iQuansys Ltd:
iQuansys Ltd advises its clients on and invests in the technologies such as renewable energy, biotechnology and software under Shariah rules. Importantly, it leverages these products within infrastructure projects and the commercial marketplace to produce successful joint ventures. We are currently seeking investors for infrastructure projects and technology funds.
Contact Information:
Address: suite 145
3 Edgar Buildings
George Street
Bath
BA1 2FJ
England
UK
Phone no: ++ 44 800 756 6652
www.iquansys.com
email: info@iquansys.com
© Press Release 2009
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