Transforming on-grid renewable energy markets: a review of UNDP-GEF support for feed-in tariffs and related price and market-access instruments
This report is part of the United Nations Development Programme’s Global Environment Facility’s (UNDP-GEF) efforts to codify and share lessons learnt from how scarce public resources can be used to catalyse larger private financial flows for renewable energy. It provides an overview of UNDP-GEF projects in 14 developing countries which are supporting the development of national renewable energy policies based around feed-in tariffs and related instruments. In these activities UNDP-GEF assists developing countries to assess key risks and barriers to technology diffusion and then to identify a mix of policy and financial de-risking measures to remove these barriers and drive investment. This approach is illustrated through three case studies in Uruguay, Mauritius and Kazakhstan. The report finds that a key challenge for policy makers is to create the conditions to make renewable energy attractive to investors and utilities without jeopardising the attainment of other development goals.