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Clean Energy Ministerial 4 (CEM4)

17–18 April 2013, New Delhi, India

Renewables Policy and Finance

Overview

The recent economic downturn in many parts of the globe presents a challenge to the growth of renewable energy (RE) deployment. In some cases, fiscal austerity has resulted in RE subsidies being rolled back, leaving investors and project developers facing uncertainty and higher risk. Policymakers are challenged to provide investors with stable and transparent policies or, where that is not possible, flexible policies that address fiscal challenges while still offering sufficient incentive to encourage investment. Emerging economies face these challenges in the context of the huge investment required to build out their energy infrastructure while also tapping into identified or emerging RE resource potentials. In the current environment, optimal policies would adjust to new developments in technologies, resources, and financial markets.

This session will discuss factors that impact growth in RE financing, including project risks, risk mitigation strategies, and flexible policy design. Policymakers, project developers, and financiers will discuss the cost-effectiveness of policies and how decision makers can balance short-term financing decisions with long-term planning to take advantage of identified RE resource potentials. Discussions could also focus on enhancing the creditworthiness of government owned off-takers and facilitating low cost debt availability. Other topics could include the role of resource assessments, equipment performance (and warranties in wake of exits/bankruptcies of manufacturers), and project management and execution delays.

View the pre-read presentation

Discussion Topics

  • What types of robust, long-lasting, and flexible policies will aid both policy makers and the finance community in adapting to a changing and evolving energy environment?
  • How can decision makers balance short-term financing decisions with long-term policy planning to take advantage of identified RE resource potentials?
  • How can the creditworthiness of government-owned off-takers be enhanced?
  • What can governments do to encourage wider availability of low cost debt?
  • What role can entrepreneurs play in terms of finance and achieving scale? 
  • How can adequate rates of return be ensured to increase entrepreneurial and private sector investment?