i Clean Energy Investment Trends KANIKA CHAWLA, MICHAEL WALDRON ARJUN DUTT, MANU AGGARWAL, ALBERTO TORIL, AND YOKO NOBUOKA Report | June 2018 EVOLVING LANDSCAPE FOR GRID-CONNECTED RENEWABLE ENERGY PROJECTS IN INDIAClean Energy Investment Trends Evolving Landscape for Grid-Connected Renewable Energy Projects in India iiiii KANIKA CHAWLA, MICHAEL WALDRON, ARJUN DUTT, MANU AGGARWAL, ALBERTO TORIL, AND YOKO NOBUOKA EVOLVING LANDSCAPE FOR GRID-CONNECTED RENEWABLE ENERGY PROJECTS IN INDIA Clean Energy Investment Trends CEEW - IEA Report June 2018 ceew.inClean Energy Investment Trends Evolving Landscape for Grid-Connected Renewable Energy Projects in India iv Copyright 2018 Council on Energy, Environment and Water CEEW and Organisation for Economic Cooperation and Development OECD/International Energy Agency IEA.This work is available under the Creative Commons Attribution- NonCommercial-NoDerivatives 3.0 IGO license CC BY-NC-ND 3.0 IGO https//creativecommons.org/licenses/by-nc-nd/3.0/igo/. 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CEEW and the IEA make no representation or warranty, express or implied, in respect of the report’s contents including its completeness or accuracy and shall not be responsible for any use of, or reliance on, the report. For further ination, please contact kanika. chawlaceew.in and michael.waldroniea.org.The views expressed in this report are those of the authors and do not necessarily reflect the views and policies of the Council on Energy, Environment and Water. Citation Kanika Chawla, Michael Waldron, Arjun Dutt, Manu Aggarwal, Alberto Toril, and Yoko Nobuoka 2018 Clean Energy Investment Trends Evolving Landscape for Grid-Connected Renewable Energy Projects in India CEEW- and OECD/IEA New Delhi. Cover image Plsv Peer reviewers Findings of this report have been peer-reviewed as part of the IEA World Energy Investment 2018 Report, as well as through multiple consultations with market participants. Publication team Alina Sen CEEW, Mihir Shah CEEW, Malini Sood, Twig Designs, and Friends Digital.Organisations Council on Energy, Environment and Water The Council on Energy, Environment and Water http//ceew.in/ is one of South Asia’s leading not- for-profit policy research institutions. The Council uses data, integrated analysis, and strategic outreach to explain-and change-the use, reuse, and misuse of resources. It prides itself on the independence of its high-quality research, develops partnerships with public and private institutions, and engages with the wider public. In 2018, CEEW has once again been featured across nine categories in the ‘2017 Global Go To Think Tank Index Report’. It has also been consistently ranked among the world’s top climate change think tanks. Follow us on TwitterCEEWIndia for the latest updates. International Energy Agency The International Energy Agency IEA, an autonomous agency, was established in November 1974. Its primary mandate was–and is–two-fold to promote energy security amongst its member countries through collective response to physical disruptions in oil supply and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 29-member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. Council on Energy, Environment and Water Sanskrit Bhawan, A-10, Qutab Institutional Area Aruna Asaf Ali Marg, New Delhi – 110067, India International Energy Agency 31-35 rue de la Fdration 75739 Paris Cedex 15 FranceClean Energy Investment Trends Evolving Landscape for Grid-Connected Renewable Energy Projects in India vivii The Council on Energy, Environment and Water CEEW is one of South Asia’s leading not- for-profit policy research institutions. The Council uses data, integrated analysis, and strategic outreach to explain-and change-the use, reuse, and misuse of resources. The Council addresses pressing global challenges through an integrated and internationally focused approach. It prides itself on the independence of its high-quality research, develops partnerships with public and private institutions, and engages with the wider public. In 2018, CEEW once again featured across nine categories in the ‘2017 Global Go To Think Tank Index Report’, including being ranked as South Asia’s top think tank 14 thglobally with an annual operating budget of less than USD 5 million for the fifth year in a row. In 2016, CEEW was also ranked second in India, fourth outside Europe and North America, and 20 thglobally out of 240 think tanks as per the ICCG Climate Think Tank’s standardised rankings. In 2013 and 2014, CEEW was rated as India’s top climate change think tank as per the ICCG standardised rankings. In over seven years of operations, The Council has engaged in more than 180 research projects, published well over 110 peer-reviewed books, policy reports and papers, advised governments around the world over 400 times, engaged with industry to encourage investments in clean technologies and improve efficiency in resource use, promoted bilateral and multilateral initiatives between governments on more than 50 occasions, helped state governments with water and irrigation res, and organised more than 210 seminars and conferences. The Council’s major projects on energy policy include India’s largest energy access survey ACCESS; the first independent assessment of India’s solar mission; the Clean Energy Access Network CLEAN of hundreds of decentralised clean energy firms; India’s green industrial policy; the 125 million India-U.S. Joint Clean Energy R developing the strategy for and supporting activities related to the International Solar Alliance; modelling long-term energy scenarios; energy subsidies re; energy storage technologies; India’s 2030 renewable energy roadmap; clean energy subsidies for the Rio20 Summit; clean energy innovations for rural economy; community energy; and renewable energy jobs, finance and skills. The Council’s major projects on climate, environment and resource security include advising and contributing to climate negotiations COP-23 in Bonn, especially on the ulating guidelines of the Paris Agreement rule-book; pathways for achieving INDCs and mid-century strategies for decarbonisation; assessing global climate risks; heat-health action plans for Indian cities; assessing India’s adaptation gap; low-carbon rural development; environmental clearances; modelling HFC emissions; business case for phasing down HFCs; assessing India’s critical minerals; geo-engineering governance; climate finance; nuclear power and low-carbon pathways; electric rail transport; monitoring air quality; business case for energy efficiency and emissions reductions; India’s first report on global governance, ted to the National Security Adviser; foreign policy implications for resource security; India’s power sector res; resource nexus, and strategic industries and technologies; and Maharashtra-Guangdong partnership on sustainability. The Council’s major projects on water governance and security include the 584-page National Water Resources Framework Study for India’s 12th Five Y ear Plan; irrigation re for Bihar; Swachh Bharat; supporting India’s National Water Mission; collective action for water security; mapping India’s traditional water bodies; modelling water-energy nexus; circular economy of water; participatory irrigation management in South Asia; domestic water conflicts; modelling decision-making at the basin-level; rainwater harvesting; and multi-stakeholder initiatives for urban water management. About CEEWClean Energy Investment Trends Evolving Landscape for Grid-Connected Renewable Energy Projects in India viii The International Energy Agency IEA, an autonomous agency, was established in November 1974. Its primary mandate was-and is-two-fold to promote energy security amongst its member countries through collective response to physical disruptions in oil supply and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 29-member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency’s aims include the following objectives - Secure member countries’ access to reliable and ample supplies of all s of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. - Promote sustainable energy policies that spur economic growth and environmental protection in a global context - particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. - Improve transparency of international markets through collection and analysis of energy data. - Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. - Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. About IEAix Michael is an Energy Investment Analyst and project manager in the Economics and Investment Office of the International Energy Agency. He is currently the project co-manager and one of the lead authors of the IEA World Energy Investment report, which assesses investment trends across the energy sector. He was previously the project manager and a lead author of the IEA’s Medium-Term Renewable Energy Market Report, which analyses market trends of renewables in the electricity, transport and heat sectors. At the IEA he has also worked as an oil demand and biofuels analyst. Prior to joining the IEA, Mr Waldron worked as a senior energy markets analyst at Lehman Brothers in New York and London. Mr Waldron obtained his Masters in International Energy Policy changing market conditions and tax regimes and their impact on renewable energy; managing CEEW’s periodic surveys on RE jobs; and convening a high-level working group on renewable energy finance comprising investors, developers and manufacturers. She is actively engaged with private and public enterprises within and outside India to design and develop new financial de-risking instruments and new financial institutions, such as green banks. Her research has been used within government, by electricity regulators, and by international agencies and strategic philanthropies. She is actively engaged in The Council’s Women in Sustainability initiative. Kanika has also undertaken extensive research on the International Solar Alliance. Prior to CEEW, she worked at the REN21 Secretariat in Paris, and was one of the authors of REN21’s Global Status Reports on Renewable Energy. She also previously worked with GIZ on sustainability reporting standards for industry. Kanika holds an M.Sc. in Economics and Development Economics from the University of Nottingham and an undergraduate honours degree in Economics from Miranda House, University of Delhi.Clean Energy Investment Trends Evolving Landscape for Grid-Connected Renewable Energy Projects in India x ARJUN DUTT arjun.duttceew.in MANU AGGARWAL manu.aggarwalceew.in ALBERTO TORIL CASTRO alberto.toriliea.org Arjun is a Programme Associate at CEEW. Arjun holds a keen interest in finance, renewable energy, public policy, and technology. At The Council, his research is geared towards enhancing the flow of affordable finance to the renewable energy sector. This includes the analysis of risks constraining renewable energy investments, particularly in underserved market segments, and the development of suitable interventions aimed at de-risking the renewable energy sector. He is actively engaged with an array of public and private sector stakeholders to design and develop specialised institutional mechanisms such as green banks as well as financial instruments aimed at risk mitigation. Arjun holds an undergraduate degree in Electronics and Communication Engineering from the Delhi College of Engineering and an M.B.A. from the Management Development Institute, Gurgaon. Manu is a climate and energy expert and works on the efficient allocation of risks and well-functioning markets to minimise resource wastage. He has a keen interest in leveraging actuarial and risk science, and big data to improve governance and deepen markets. His current research interests lie at the intersection of development policy, finance, technology, and institutions. At The Council, Manu’s work involves designing market-transative insurance products, and restructuring regulatory and commercial contracts to de-risk renewables. Besides India, he is also assessing risks in the emerging economies of Asia and Africa. Manu leads The Council’s work on the non- UNFCCC negotia