Derisking Renewable Energy Investment

Updated 27 Mar 2014

Derisking Renewable Energy Investment (DREI) introduces an innovative framework to assist policymakers to quantitatively compare the impact of different public instruments to promote renewable energy. The report identifies the need to reduce the high financing costs for renewable energy in developing countries as an important task for policymakers acting today. The framework is structured in four stages: (i) risk environment, (ii) public instruments, (iii) levelised cost and (iv) evaluation. To illustrate how the framework can support decision-making in practice, the report presents findings from illustrative case studies in four developing countries. It then draws on these results to discuss possible directions for enhancing public interventions to scale-up renewable energy investment.

The framework is accompanied by a financial tool for policymakers in Microsoft Excel.

This report builds on two earlier publications: Transforming On-Grid Renewable Energy Markets, which synthesises UNDP’s experiences with renewable energy market transformation projects, and GET FiT Plus, a research partnership with Deutsche Bank on feed-in tariffs.

 

The following materials are available for download:

 

   ·  Report and financial tool: The original report (full report, executive summary, key concept note) and the latest

      version of the financial tool are available for download on this current page (top right hand corner).

 

   ·  Case study exercise: UNDP has developed a case study exercise using the financial tool. The case study

      exercise materials can be downloaded here.

 

UNDP welcomes enquiries and suggestions regarding the framework and financial tool. For further information, please contact oliver.waissbein@undp.org

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