The Government of India has set ambitious renewable energy targets for 2022, in order to achieve its climate goals and enhance energy security. Given India’s budget constraints, a cost-effective policy path will be crucial to achieving these targets. One way to reduce the cost of government support needed to achieve its renewable energy targets is through the tariffs it uses to procure renewable energy.
India has ambitious renewable energy targets for 2022, but because of the government’s limited budget, a cost-effective policy path is crucial to achieving those targets.
The Government of India has ambitious renewable energy targets, but limited financial resources to meet those targets.
Renewable energy financing in emerging economies faces particularly daunting challenges, but there are creative policy solutions that could potentially reduce the cost of renewable energy support by as much as 30%.
In this policy brief, authors look at two potential solutions: