Evolving Risk Perceptions for India’s Grid-Connected Renewable Power Projects
Summary
The Council on Energy, Environment and Water (CEEW) and the International Energy Agency (IEA) jointly published the Clean Energy Investment Trends 2019 report, focusing on the evolving risk perceptions in India's grid-connected renewable power projects. The report tracks risk perceptions of debt financiers towards solar photovoltaic (PV) and wind projects from 2014 to 2018 and recent developments affecting project capacity additions.
Key Metrics and Findings
- Investment Growth: Over the past five years, investment in India’s renewable power sector has doubled, reaching nearly USD 20 billion in 2018, surpassing capital expenditure in the thermal power sector.
- Policy and Market Trends: The report highlights how policy measures and market trends influence investment flows. It evaluates key metrics related to debt financing and capital structure to assess risk perceptions.
- Thermal Projects Comparison: The study includes an analysis of thermal projects alongside renewables to compare relative risk perceptions.
- Safeguard Duties Impact: The imposition of safeguard duties on imported solar PV cells and modules is analyzed for its impact on project awards.
- Solar Park Model Challenges: The report addresses emerging challenges facing the solar park model, a significant driver of solar capacity deployment in India’s energy transition.
Context and Stakeholders
The report aims to provide a practical guide for policymakers, industry actors, and financiers to understand how risk and regulation interact, thereby shaping investment flows. Insights from the analyses can inform future policy actions aimed at enhancing investment in the renewable energy sector.
Authors and Editors
- Authors: Arjun Dutt, Lucila Arboleya, and Barath Mahadevan
- Series Editors: Kanika Chawla and Michael Waldron
Contact Information
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Disclaimer
This report reflects the views of the IEA Secretariat and authors affiliated with the CEEW but does not necessarily reflect the views of the IEA’s Member countries or the Council on Energy, Environment and Water. The report does not constitute professional advice and should not be relied upon for specific issues or situations.
