The aim ofthe paper is to analyze the bankability of PPAs from the perspective of banks involved in PPA transactions. In particular, it is shown how different risk categories like credit risk, including political risk, or market price risk influence the debt sizing process and its effects on PPA pricing in order tofully understand why a PPA transaction mainly depends on the financing structure of the RE asset.

In thispaper we discuss the following topics:

• the access to project financing of renewable energy projects outside subsidies
• the importance of the off-taker’s creditworthiness for the overall bankability of renewable energy projects
• the debt sizing process of renewable energy projects

To show the interdependency between a PPA and project financing, we conduct a study basedon three parts. First, we implement a financial model that shows the strong connection between PPA pricing and the debt sizing. Second, we analyze credit ratings and credit default swap spreads of different off-taker types and detect that electricity end-consumers like corporates can be a good alternative to the traditional utility off-taking the energy output. Finally, we conduct a survey among international banks having an exposure in global PPA markets.

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