Clean Energy Investment Trends 2020. Mapping Project-Level Financial Performance Expectations in India

The Clean Energy Investment Trends 2020 report released by the Clean Energy Investment Trends, a joint project of the CEEW Centre for Energy Finance (CEEW-CEF) and the International Energy Agency (IEA), examines the appeal of utility-scale solar PV and onshore wind investment in India by analysing project-level equity returns over 2019 and the first half of 2020.

Further, it examines key sensitivities of returns and stumbling blocks to attracting capital stemming from issues related to policy uncertainty, financial health of state distribution companies (discoms), demand risk, and land-related constraints. These pieces of analyses are complemented by an update on key renewable energy debt financing and market trends.

• The availability and pricing of project debt finance has remained relatively stable over 2019 and the first half of 2020, with differences arising mainly due to off-taker risks.
• The market concentration of developers sanctioning new solar PV and wind capacity has remained high, edging up for solar PV in particular. A shift towards fewer, top developers reflects their greater risk-taking capacity and ability to navigate the uncertainty associated with policy, regulatory, and market changes over the period.
• The timely availability of suitable sites for setting up renewable energy projects is emerging as an additional challenge for both solar PV and wind projects.