Renewable Energy (RE) covers a large spectrum of technologies and energy services. Generally, RE can be classified in two
main categories, depending on cost of production : those below EUR 10 c/kWh (wind, hydropower, geothermal and some bio-mass
related technologies) and those above EUR 15 c/kWh : solar (concentrated solar power – CSP or photovoltaic), small biomass
power generation, as well as other technologies still under research and development such as ocean energy. Public support
to the development of RE needs to be tailored to the degree of maturity and the economy of each technology, as well as
the scale and grid or off-grid nature of the projects.
The massive development of RE is key both to energy security and to reduce greenhouse gas emissions. Some studies point
out the sector could be a major driver of green jobs. In order to scale up RE investment in a competitive environment
where fossil energy remains largely underpriced, RE technologies require not only financial incentives but also public
policies, regulations and mechanisms (feed in tariffs, support to project development, awareness raising, etc…) which are
not always easy to design and implement particularly in developing country contexts.
As a club of major development financial institutions, IDFC has strong expertise and financial capacity to work on the promotion of RE. According to the report on “Mapping of Green Finance Delivered by IDFC Members in 2015”, IDFC committed in 2014 more than USD 19 bn to support RE programs, i.e. about 20% of the club’s total commitments in the area of green finance.