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Cost of Capital for Indian Renewable Energy Projects: A Review of Methodologies, Risk Drivers, and Policy Evolution
India’s renewable energy sector faces financing challenges that could undermine its 2030 targets, prompting this review of cost of capital dynamics across utility-scale solar and wind projects to address gaps in understanding how financing costs evolve with market maturation and policy intervention. We synthesize evidence from six estimation methodologies, analyse risk drivers through four comprehensive […]
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Do Firms Benefit from Carbon Risk Management? Evidence from the Credit Default Swaps Market
This paper contributes to existing climate finance literature by examining how firms’ proactive management of carbon risks affects market assessment of their credit risk. Using two quasiexogenous events involving the 2015 Paris Climate Agreement and the staggered implementation of U.S. state climate adaptation plans, we find that stronger carbon risk management is associated with significantly […]
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Did accelerated depreciation result in lower generation efficiencies for wind plants in India: An empirical analysis
India ranks fifth in wind energy installations in the world; with an installed wind capacity is 22 GW at the end of 2014. This has been made possible by a combination of federal financial incentives and state-level feed in tariffs. The federal policies are accelerated depreciation, which allows for higher depreciations in earlier years; and […]
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Cost-effective policies for reaching India’s 2022 renewable targets
India has ambitious renewable energy targets by 2022: 100 GW of solar and 60 GW of wind. Both of these technologies are perceived to be more costly than conventional, fossil-fuel, power; and, therefore, require policy support. Using representative, project-level cash flow models, we examine two related questions: First, what would be the cost of policy […]