India

Energizing Finance: Understanding the Landscape 2018

November, 2018

The Energizing Finance series is the first and only in-depth attempt to capture multiple years of data on investment for the two key areas of energy access: electrification and clean cooking. It focuses on public and private finance commitments in 20 developing countries – known as the high-impact countries – that together account for nearly 80% of those living without access to sustainable energy.
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Energizing Finance 2018 (Full Report)(4.8 MB)
Energizing Finance 2018 (Executive Summary)(1.6 MB)

Drivers and Challenges for Rooftop Solar Loans to Small and Medium Enterprises in India

October, 2018

In this report, we assess the viability of the CAPEX loan model, a similar model to the existing CAPEX cash model, where the customer makes the upfront payment to finance the solar assets. This payment is, however, financed by a mix of the customer’s own equity and a commercial loan taken directly by the customer ...
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Drivers and Challenges for Rooftop Solar Loans to Small and Medium Enterprises in India(674.9 kb)

Credit Support Pathways for Rooftop Solar Projects in India

October, 2018

India, under the Intended Nationally Determined Contribution (INDC), has set an ambitious target to achieve installed capacity of 175GW of renewable energy by 2022, including 100GW of solar power. Of that, the government aims for 60 GW to be utility-scale solar, and the rest to be rooftop solar. Though India has made significant progress ...
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Credit Support Pathways for Rooftop Solar Projects in India(1.1 MB)

Transitional Foreign Exchange Debt Platform: Paths to Enable Foreign Currency Debt to the Rooftop Solar Sector in India

June, 2018

Low access to debt capital remains one of the key barriers to achieving the Indian government’s target of 40GW of rooftop solar installations by 2022. Foreign capital can help bridge the gap in debt availability for rooftop solar, however, foreign currency debt exposes rooftop solar project sponsors to the risk of foreign exchange rate fluctuation...
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Transitional Foreign Exchange Debt Platform_Paths to Enable Foreign Currency Debt to the Rooftop Solar Sector in India(1.5 MB)

An Assessment of India’s Energy Choices

May, 2018

A four-report series that looks at the future of renewable energy in India along different economic dimensions, including the social costs, macroeconomic impacts, environmental impacts, financial risk, and flexibility considerations.
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Foreword(92.3 kb)
Financial Performance and Risk Perception(1.1 MB)
What it Means for the Economy, Jobs, and Energy Security_Executive Summary(157.2 kb)
What it Means for the Economy, Jobs, and Energy Security_Technical Report(2.1 MB)
Managing India’s Renewable Energy Integration through Flexibility(1.4 MB)

Addressing Off-Taker Risk in Renewable Projects in India: A Framework for Designing a Payment Security Mechanism as a Credit Enhancement Device

May, 2018

One of the most important risks to the Indian renewable energy sector is the counterparty credit risk, associated with the risk of state-owned utilities delaying or defaulting on their contractual payments to power producers, adding as much as 1.07% of additional risk premium to the cost of debt for renewable energy projects (CPI, 2018), and also limiting the availability of capital.
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A-Framework-for-Designing-a-Payment-Security-Mechanism-as-a-Credit-Enhancement-Device(864.9 kb)

Getting to India’s Renewable Energy Targets: A Business Case for Institutional Investment

March, 2018

This study finds that while the renewable energy sector in India offers an attractive investment opportunity that is well matched with the needs of institutional investors, there are still barriers to investment. 
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Getting-to-Indias-Renewable-Energy-Targets-A-Business-Case-for-Institutional-Investment(963.4 kb)

Scaling up Rooftop Solar Power in India: The Potential of Solar Municipal Bonds

February, 2018

A new model for municipal financing for rooftop solar, via issuance of municipal bonds, has the potential to increase debt availability for rooftop solar project developers and lower rooftop solar costs up to 12% in Indian cities.
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Scaling up Rooftop Solar Power in India – The Potential of Solar Municipal Bonds(955.5 kb)

Decarbonization of Indian Railways: Assessing Balancing Costs and Policy Risks

April, 2017

Complete decarbonization of the electricity demand of Indian Railways (IR) – transitioning from the current, largely fossil-fuel based energy mix to clean energy like solar and wind power – is likely to have multiple benefits. These include support in achieving India’s clean energy targets, enhancing India’s energy security, and reducing IR’s operational costs.
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Decarbonization of Indian Railways_Assessing Balancing Costs and Policy Risks(2.0 MB)

Reaching India’s Renewable Energy Targets: The Role of Institutional Investors

December, 2016

India has ambitious renewable energy targets of 175GW by 2022. In order to meet this target, the renewable energy sector in India will require $189 billion in additional investment, including $57 billion in equity, and $132 billion in debt. The potential amount of investment in the renewable energy sector in India is more than double the investment required. However, the amount of investment expected falls short of the investment required, by 29% for equity and 27% for debt. Institutional investors show significant potential to help fill this financing gap.
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Reaching India’s Renewable Energy Targets: The Role of Institutional Investors(1.3 MB)

The Drivers and Challenges of Third Party Financing for Rooftop Solar Power in India

September, 2016

In order to expand the rooftop solar industry in India, there is a need to develop policy solutions, business models, and financing instruments which can address these barriers. One promising solution to manage these barriers is the third party financing model. However, the third party financing model would first need to overcome certain challenges. This report explores the driving factors and challenges to the third party financing model, and proposes a series of recommendations for policy changes and financial instruments which could address these challenges.
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The Drivers and Challenges of Third Party Financing for Rooftop Solar Power in India(753.3 kb)

Decarbonization of Indian Railways

March, 2017

One key sector of the Indian economy that could set a strategic example for decarbonization and meeting India’s 2030 targets under the Paris Agreement is the rail transport system, and specifically Indian Railways (IR), India’s national railway service. In this report, we have identified different potential pathways to decarbonization of IR by 2030 and examined their cost-effectiveness and feasibility.
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Decarbonization of Indian Railways_full report(789.0 kb)

Reaching India’s Renewable Energy Targets Cost-Effectively: A Foreign Exchange Hedging Facility

June, 2015

India has ambitious renewable energy targets for 2022, but because of the government’s limited budget, a cost-effective policy path is crucial to achieving those targets. Achieving India’s renewable energy targets cost-effectively faces two key barriers – a shortage of debt and inferior terms of debt.
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Reaching India’s Renewable Energy Targets: A Foreign Exchange Hedging Facility _ Executive Summary(163.2 kb)
Reaching India’s Renewable Energy Targets: A Foreign Exchange Hedging Facility_Technical Paper(653.2 kb)
Reaching India’s Renewable Energy Targets Cost-Effectively – A Foreign Exchange Hedging Facility_slide deck(869.2 kb)

Reaching India’s Renewable Energy Targets: Effective Project Allocation Mechanisms

May, 2015

The Government of India has set ambitious renewable energy targets for 2022, in order to achieve its climate goals and enhance energy security. Given India’s budget constraints, a cost-effective policy path will be crucial to achieving these targets. One way to reduce the cost of government support needed to achieve its renewable energy targets is through the tariffs it uses to procure renewable energy.
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Reaching India’s Renewable Energy Targets: Effective Project Allocation Mechanisms_full report(1.0 MB)

Reaching India’s Renewable Energy Targets Cost-Effectively

April, 2015

The Government of India has ambitious renewable energy targets, but limited financial resources to meet those targets. CPI examines how much it would cost the government to reach its renewable energy targets, by comparing the levelized cost of electricity from renewable energy to a baseline fossil fuel in absence of any subsidies – whether explicit or implicit; estimating the total cost of support for renewable energy under accelerated depreciation, which is the most cost-effective of existing policies; and investigating federal policy options to make this support even more cost-effective.
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Reaching India’s Renewable Energy Targets Cost-Effectively(1.3 MB)
Reaching India’s Renewable Energy Targets Cost-Effectively _ Slide Deck(540.6 kb)

Moving to a Low-Carbon Economy

October, 2014

With the right policies, the transition to a low-carbon energy system consistent with avoiding the most damaging effects of climate change could free up trillions of dollars over the next 20 years to invest in better economic growth.
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Regional Fact Sheets: Moving to a Low-Carbon Economy(87.0 kb)
Moving to a Low-Carbon Economy: The Financial Impact of the Low-Carbon Transition(715.1 kb)
Moving to a Low-Carbon Economy: The Impacts of Policy Pathways on Fossil Fuel Asset Values(2.3 MB)

Solving India’s Renewable Energy Financing Challenge: Instruments to Provide Low-cost, Long-term Debt

April, 2014

In this paper, we explore financing instruments, used in other regions as well as those that were recently introduced in India in other contexts that have the potential to provide and/or facilitate low-cost, long-term debt for renewable energy in India.
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Instruments to Provide Low-Cost Long-Term Debt – Slides(719.3 kb)
Instruments to Provide Low-cost, Long-term Debt(1.2 MB)

Solving India’s Renewable Energy Financing Challenge: Which Federal Policies can be Most Effective?

March, 2014

The Government of India has set ambitious targets for renewable energy — a doubling of existing renewable energy capacity to 55,000 MW by 2017. However, unsubsidized renewable energy is still 52-129% more expensive than conventional power, and requires policy support.
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Which Federal Policies can be Most Effective – Full Study(1.2 MB)
Which Federal Policies can be Most Effective – Slide Deck(1.5 MB)

San Giorgio Group Case Study: The Role of Public Finance in CSP – Rajasthan Sun Technique 100MW CSP plant, India

March, 2014

The 100MW Rajasthan Sun Technique CSP plant is not only the first linear Fresnel CSP plant in India and the largest in the world, it is also one of the cheapest large-scale CSP plants ever built. This case study finds that while Indian solar policy was essential to build this innovative plant it was not enough for India to deploy CSP plants at the desired level and speed.
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SGG Case Study The Role of Public Finance in CSP – Rajasthan Sun Technique, India(679.7 kb)

Finance Mechanisms for Lowering the Cost of Renewable Energy in Rapidly Developing Countries

January, 2014

Renewable energy financing in emerging economies faces particularly daunting challenges, but there are creative policy solutions that could potentially reduce the cost of renewable energy support by as much as 30%.
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Finance Mechanisms for Lowering the Cost of Clean Energy in Rapidly Developing Countries(795.6 kb)
Finance Mechanisms for Renewable Energy in Emerging Economies – Slide Deck(964.5 kb)

The Policy Climate

April, 2013

In The Policy Climate, we offer an overview of policy issues relevant to climate change across the world. We find that the implementation of policy relevant to climate change, and its impact, accelerated markedly over the last decade, despite the slow pace of international climate negotiations.
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The Policy Climate(5.2 MB)

Meeting India’s Renewable Energy Targets: The Financing Challenge

December, 2012

The cost and terms of the debt available in India to finance wind and solar projects is a major problem, increasing the cost of renewable energy by up to a third compared to similar projects in the U.S. and Europe.
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Meeting India's Renewable Targets – The Financing Challenge(884.0 kb)

Falling Short: An Evaluation of the Indian Renewable Certificate Market

December, 2012

We evaluate the effectiveness of Indian REC markets against eight government objectives and find that this program is not likely to achieve government objectives.
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Falling Short- An Evaluation of the Indian Renewable Certificate Market(565.7 kb)