Evidence and gaps in evidence on the principle political economy constraints and opportunities to successful investment in clean energy in Asia

Evidence and gaps in evidence on the principle political economy constraints and opportunities to successful investment in clean energy in Asia

This rapid desk based study is commissioned by DFID. DFID is interested to identify evidence of factors that are deterring investment in renewable energy (RE) in most developing countries in Asia. In our understanding, DFID proposes to use this evidence, along with information on the opportunities and risks in this sector, to commission more indepth studies in the future. These different studies will support the scoping of the potential establishment of one or more investment platforms through which DFID could deploy investment capital in order to catalyse private investment in south and central Asia. It’s been proposed that the platform(s) should focus on clean energy, inclusive agribusiness and financial services.

This rapid study has been conducted based on the review of existing literature and related databases. As mandated, the study adopts a political economy assessment framework. Asia is the general focus. However, examples, wherever applicable, have been drawn only from a selected set of Asian nations. China and India have generally not been considered in this study. It is found that although most countries in developing Asia have RE potentials and plans for mainstreaming renewables in their energy systems, they have mostly under performed with regard to attracting investments and capacity build up in the RE sector. Given the existing scenario, these

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