Research On The Design And Pricing Of The Financing Product For Renewable Energy Project Based On Carbon Trading

In recent years,environmental pollution and energy shortage have become increasingly prominent,and low-carbon and green development has become a global trend and direction.Renewable energy helps to solve the contradiction between environmental pollution and economic development and is an important means to reduce carbon emissions.The characteristics of large initial investment scale and long fund recovery period of renewable energy project make it difficult to finance,so it is urgent to explore new market-based financing channels.At present,carbon trading markets at home and abroad are increasingly active,which brings new opportunities for financing renewable energy projects.However,in the process of participating in carbon emission trading,the drastic fluctuation of carbon emission price makes the income of renewable energy projects have great uncertainty.Once the negative fluctuation of carbon emission price will cause high loss to the project and lay hidden trouble to the sustainable operation of the project.Therefore,this paper embeds interest clauses with certain flexibility in financing products,and dynamically adjusts interest payments according to different changes in carbon emission right prices,so as to achieve the purpose of transferring risks.Domestic and foreign scholars have conducted extensive studies on renewable energy project financing and carbon emission trading,but there are relatively few studies on terms design and pricing of specific innovative financing products.This paper first sorts out the relevant research on renewable energy financing and carbon financial products.Aiming at the current situation of the shortage of renewable energy project construction funds,this paper designs a price-linked financing product,which can be divided into the following steps:Firstly,this paper reviews the research related to renewable energy project financing,carbon emission price and carbon financial products,and explains the concepts of carbon emission trading and structured products.Secondly,on the basis of the analysis of the financing needs of renewable energy projects,the article designs the terms of financing products,and uses fractional Black-Scholes model to analyze the product value in detail.Finally,the model parameters of a wind power project in North China were set to calculate the product price,and the sensitivity of some important terms to the value of financing products was investigated.The main contributions of this paper are as follows: First,it provides a market-oriented financing approach to solve the financing difficulties of renewable energy projects,and designs price-related financing products by using existing fixed income products and financial derivatives to raise project construction funds and control the risks in the operation process of the project.Second,the interest payment of the issuer is linked to the change of carbon emission right price.When the carbon emission right price fluctuates negatively and the income of renewable energy projects is lower than expected,the interest is written down to absorb the loss,so as to share the income risk with investors.When the price of carbon emission right fluctuates in a positive way and the project income exceeds the expectation,investors can obtain higher interest income by adding the interest write-off clause,and then share the excess income with the issuer.The above methods are conducive to the formation of "risk sharing-revenue sharing" incentive compatible situation between issuers and investors.Third,the use of fractional Brownian motion features of carbon emission rights price change process,using a structured pricing theory and option pricing model for financing product pricing,and the case and analyses the corresponding numerical simulation,the results showed that the associative financing product price can be used to effective control of risks on project profits.