Clean Energy Finance and Investment Roadmap: Unlocking capital for offshore wind, Virtual webinar, OECD Paris, 4 March 2022

1. Friday, 4th March 2022 | 2:30 – 5:30 pm (IST)
Clean Energy Finance and Investment (CEFI) Roadmap for India
Workshop I on Offshore Wind
Poonam Sandhu
NRDC
psandhu@nrdc.org
John Dulac
OECD
john.dulac@oecd.org

2. Clean Energy Finance and
Investment Roadmap
Workshop I: UNLOCKING CAPITAL FOR OFFSHORE WIND
2
4 March 2022
John Dulac,
OECD
&
Poonam Sandhu,
NRDC

3. • Enabling the energy transition
requires considerable capital for
clean energy
• Targeted use of public, climate
and development finance can
enable a pipeline of bankable &
investor-ready projects
• A roadmap can prioritise actions
to mobilise stakeholders and
crowd-in private capital
3
CEFI Roadmap context
USD 300b+
needed to finance India’s
clean energy targets to 2030
~3x
increase over current
investment levels

4. The Roadmap process is designed to:
• bring together stakeholders through a series of
consultations and three workshops
• assess critical barriers and prioritise solutions to
improve clean energy finance and investment
(Workshop I)
• deliberate financial tools and investment vehicles to
raise capital at suitable scales (Workshop II)
• agree on recommendations & steps forward for
actions to unlock finance and investment over the
next 3-5 years (Workshop III)
4
CEFI Roadmap context

5. 5
Workshop I
Today’s discussions will:
• recap key considerations and input from stakeholder consultations
• aim to identify solutions to overcome barriers to clean energy finance and investment
• prioritise actions to enable a pipeline of projects in line with 2030 ambitions
• Additional stakeholder consultations to follow Workshop I and build upon targeted solutions
• Workshop II will subsequently look to tailor investment vehicles and deliberate sources of
financing to deliver on these solutions

6. 6
Recap: stakeholder consultations
On early market development/risks:
1. clear policy needed with roadmap/timing to scale + expected level of support
2. progress on data and mapping but more needed
3. PPA concerns and risks with revenue stability require clear picture on support/de-risking
4. co-ordination of actors (e.g. ministries, donors, finance) critical given scale of capital needed

7. 7
Recap: stakeholder consultations
On scaling up additions (particularly while first projects being finalised):
1. parallel need for infrastructure (e.g. ports, yards, transmission) to avoid future delays/losses
2. volume for domestic manufacturing/supply chain with possible skill/capacity building
3. access to finance & cost of debt may be a challenge for smaller actors, e.g. local supply chain
4. solutions/vehicles to meet suitable financial scale (e.g. ~USD 2-3b/GW * 30GW)

8. 8
Poll on priorities: first projects
Group poll: what are the top 3 issues you see as a critical priority for the 1st GW:
1) Clarity on targets & capacity pipeline (including where and when)
2) Data & mapping
3) Regulatory conditions (e.g. technical standards, import duties, local content requirement, GST)
4) Clarity on contracts (e.g. PPA conditions/sanctity) and tariff regime, revenue support, etc
5) Domestic manufacturing capacity, including policy issues like PLI
6) Infrastructure development (e.g. ports, yards and transmission)
7) Available finance (e.g. access, hedging cost, available instruments, etc.)

9. 9
Poll on priorities: first projects
Results - group poll: what are the top 3 issues you see as a critical priority for the 1st GW:

10. 10
Poll on priorities: pipeline to 2030
Group poll: what are the top 3 issues you see as a critical priority to scale up to 30 GW:
1) Clarity on targets & capacity pipeline (including where and when)
2) Data & mapping
3) Regulatory conditions (e.g. technical standards, import duties, local content requirement, GST)
4) Clarity on contracts (e.g. PPA conditions/sanctity) and tariff regime, revenue support, etc
5) Domestic manufacturing capacity, including policy issues like PLI
6) Infrastructure development (e.g. ports, yards and transmission)
7) Available finance (e.g. access, hedging cost, available instruments, etc.)

11. 11
Poll on priorities: pipeline to 2030
Results - group poll: what are the top 3 issues you see as a critical priority to scale up to 30 GW:

12. 12
Discussion: finance & investment
Questions to group
1) What level of investment is needed (e.g. manufacturing capacity and port infrastructure) to
scale offshore wind development – and who/how to finance this?
2) Are current financing models (e.g. for onshore wind and solar) sufficient? Are new investment
vehicles needed (e.g. to draw in institutional investors)?
3) What support / guarantees (e.g. offtake guarantee or viability gap fund) are needed to de-risk
early investments?
4) Where can international support (e.g. technical assistance, development/climate finance, tech
transfer) improve finance and investment in offshore wind? Is blended finance needed, and if
so, how can this be applied to support robust market development?