The Role of Policy in Scaling Private Sector NDC Finance Wednesday, June 12th, 2019

Rules for Private Sector Engagement in NDC Finance The private sector considers the RISKS vs the RETURN (profit) for specific investment opportunities: Attracting the private sector into NDC finance requires RETURNS that are adjusted for RISK

Low Carbon Investment Opportunities often do not offer an attractive Risk Adjusted Return

Making Markets: Policy Matters

Despite steep declines in the cost of clean energy, important barriers to investors remain, especially in sub-investment grade countries. Regulatory Policy Fiscal Policy (*) indicates that the intensity has been qualitatively determined (N/A) indicates data not available

Procuring Renewable Energy in dynamic markets: Understanding Good Enabling Environments Key Market Attributes for Corporate Procurement Direct Power Purchase Agreements (PPAs): This enables producers to sell green power directly to consumers “Wheeling”: Wheeling enables project developers and offtakers to “rent” space on the grid to move electrons from the producer to the consumer Cost-leveling mechanism or policy(ies): e.g. Feed in Tariff, Avoided Cost Tariffs, Tax Incentives “Self Generation” and Net Metering: Enables on-site, behind the meter generation, e.g. rooftop solar So what makes a good regulatory and enabling environment for renewable energy?

Current RE Procurement Policies India Indonesia Philippines Vietnam Wheeling FiT &/or Tendering Avoided Cost Tariff Behind the meter/Net Metering Direct PPAs Tax Incentives Source: Allotrope Partners, 2016

How Can Policy Makers Facilitate Investment?