28th November 2014The Department for Energy and Climate Change (DECC) has today published a CEPA report on policy risk in renewable energy investments in developing countries. Policy risk refers to policy changes by government that can affect the financial viability of projects, such as retroactive changes to feed-in tariffs. The report was commissioned by DECC last year, to assess how much of a deterrent policy risk is to private investment renewable energy projects in developing countries, and the extent to which existing insurance and guarantee instruments provide adequate mitigation against these risks to investors and lenders. Following the identification of these risks, options to facilitate greater mobilisation of private finance have been presented, building on the existing body of work on this issue.
The report can be found here.