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This paper is an enquiry into the role of State policies in influencing wind installed capacity. The paper studies the impact of policies on deployment of wind potential across the States of India over two decades. Aggregate indices are computed for each of the seven wind resourceful States of India indicating attractiveness for installed capacity of wind energy. For computing the indices, four policies, Feed-in-Tariff, Renewable Purchase Obligation, Banking facility, and Wheeling charges are considered. Panel data techniques are then employed to investigate the impact of the policy differences on wind potential deployment over the 19 year period (1993–2012) after controlling for three State-specific factors. The controlling factors include per-capita income of the State, power deficit, and ratio of installed capacity of wind to geographic potential indicating unmet capacity. The results show that that policy index positively impacts wind deployment whether control variables are included or not. Moreover, the control factors like the per-capita income of the State and unmet capacity have positive influence over the investment in wind energy. [ABSTRACT FROM AUTHOR]

Renewable energy can play a strategic role in India in meeting the country’s growing energy demands, as well as combating climate change. Policymakers have recognized this potential and over the last decade have intensified their efforts towards creating a conducive regulatory and policy framework. Policy instruments such as renewable obligations, feed-in-tariffs and generation based incentives have specially aided the transformation towards large scale generation, enabling higher efficiency and lower costs of generation. However, financing has emerged as a significant barrier for sustaining the momentum gained in recent years. Given this background this paper provides an overview on the evolution of large scale generation and the consequent changes in financing requirements. It further reviews the emerging trends and barriers in the financing landscape and analyses the impact of policy performance in this context. Finally, it considers the design of a national renewable finance framework complete with targeted finance push instruments that can complement existing demand pull policies in facilitating investment. [ABSTRACT FROM AUTHOR]