The UNDP's Derisking Renewable Energy Investment framework assists policymakers to quantitatively compare the impact of different public instruments to promote renewable energy in developing countries. The framework is structured in four stages: (i) risk environment, (ii) public instruments, (iii) levelised cost and (iv) evaluation.
This report expands the framework to private-sector models for solar-battery mini-grids. The report sets out a theory of change, introduces key concepts/tools and methodological steps, and includes two illustrative case studies in Uttar Pradesh (India) and Kenya. The report demonstrates how targeted derisking measures can result in significant reductions in tariffs, and daily energy spend, for end-users.
The report is accompanied by a financial Excel tool on mini-grid sizing and levelised costs.