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Financing large scale wind and solar projects—A review of emerging experiences in the Indian context

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  • Umamaheswaran, Swarnalakshmi
  • Rajiv, Seth

Abstract

Renewable energy can play a strategic role in India in meeting the country’s growing energy demands, as well as combating climate change. Policymakers have recognized this potential and over the last decade have intensified their efforts towards creating a conducive regulatory and policy framework. Policy instruments such as renewable obligations, feed-in-tariffs and generation based incentives have specially aided the transformation towards large scale generation, enabling higher efficiency and lower costs of generation. However, financing has emerged as a significant barrier for sustaining the momentum gained in recent years. Given this background this paper provides an overview on the evolution of large scale generation and the consequent changes in financing requirements. It further reviews the emerging trends and barriers in the financing landscape and analyses the impact of policy performance in this context. Finally, it considers the design of a national renewable finance framework complete with targeted finance push instruments that can complement existing demand pull policies in facilitating investment.

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  • Umamaheswaran, Swarnalakshmi & Rajiv, Seth, 2015. "Financing large scale wind and solar projects—A review of emerging experiences in the Indian context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 166-177.
    • Handle: RePEc:eee:rensus:v:48:y:2015:i:c:p:166-177
    DOI: 10.1016/j.rser.2015.02.054
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    7. Gopal K. Sarangi, 2018. "Green Energy Finance in India: Challenges and Solutions," Working Papers id:12897, eSocialSciences.
    8. Luthra, Sunil & Govindan, Kannan & Kharb, Ravinder K. & Mangla, Sachin Kumar, 2016. "Evaluating the enablers in solar power developments in the current scenario using fuzzy DEMATEL: An Indian perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 379-397.

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