Clean energy investment trends: evolving landscape for grid-connected renewable energy projects in India

India’s firm commitment towards the global clean energy transition is evident from its renewable energy (RE) deployment targets as well as the policy measures taken to facilitate RE deployment and its integration at higher shares. However, the achievement of India’s RE ambitions is contingent upon policy signals translating into actual investment decisions at the scale and pace envisioned by policy makers and industry actors. It is imperative that the policy measures implemented by government actors and /regulators effectively address the risks faced by developers and financiers,and do so in a manner that would also promote a cost-effective transition to a more flexible power system. At the same time, financiers and developers will need to respond to policy signals by committing the necessary capital and bringing the projects to market. Given the complexity and rapid evolution of the Indian market, a cross-cutting evaluation that regularly takes stock of current renewable energy financing and market trends, and that lays the ground for good policy advice is crucial for India to achieve its clean energy transition goals. In order to monitor and analyse the concerted action towards fulfilling India’s RE ambitions, the Council on Energy, Environment and Water (CEEW) and the International Energy Agency (IEA) have undertaken a joint project to assess clean energy investment trends, with a focus on renewables and the power sector. This project seeks to provide stakeholders a practical guide for understanding the current clean energy investment environment in India and how the evolution of regulations and risks are impacting where finance is flowing (and where it is not). The results of this investigation would provide policy makers with insights to better manage risks and address regulatory challenges going forward.

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