This report discusses the risks constraining renewable energy (RE) investments in Indonesia. Part of a series, which assesses barriers to the flow of capital into RE markets in emerging economies, it focuses on solar and wind energy, which are the major drivers of global RE investments.

This report analyses the risk perceptions of debt financiers towards solar photovoltaic (PV) and wind projects from 2014 to 2018. It also examines recent developments impacting the pace of capacity addition in India.

India is undergoing a major energy transition. However, constraints on access to capital — both in terms of adequacy and affordability — are impeding the pace and efficiency of this transition.

In July 2018, the Government of India imposed a two-year safeguard duty on solar cells and modules, in an attempt to protect domestic manufacturing. This policy brief discusses the impact of that duty on the business prospects of manufacturers.

This report analyses how the interplay between risks, policies, and market developments has shaped renewable energy capacity addition in India, and identifies gaps that need to be addressed. As of 2017, India has the world’s fourth largest installed wind capacity and the sixth largest installed solar capacity.

In order to accelerate the global transition to clean energy, it is important to systematically identify the risks associated with RE deployment and address these risks through a combination of policy and market-based interventions.

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.