Risks in Renewable Energy Markets in Emerging Economies

June 27, 2018

Global investment flows into renewable energy (RE) have increased rapidly, with RE investments outstripping investments in thermal energy globally in 2017. However, these investments are concentrated in select markets, particularly in the case of developing countries, with China, India, and Brazil accounting for about 80 percent of RE investment flows into developing countries in the past three years. While the business case for RE investments has become considerably more robust in a few geographies resulting in investment concentration in these regions, the deployment of RE still faces varying degrees and types of risk in most developing countries, which constrains the flow of RE investments.

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