This method of financial support can enable the development of infrastructure projects through the use of public benefits, funds, loans, as well as other financing options.  These various financing options provide a means for allocating the capital necessary for the implementation of renewable energy projects.

 Public investment policies have been implemented in over 45 countries, both at the national and sub-national levels, for providing financial support to renewable energy development.  These policies are found in both developing and developed countries.  A detailed list of countries can be found here.

Success Story

The India Renewable Energy Development Agency (IREDA) has funded projects valued at over USD 1 billion since its inception in 1987.  As a government owned corporation under the control of the Ministry of New and Renewable Energy (MNRE) IREDA provides funding options for renewable energy infrastructure development projects ranging in size from USD 200,000 to USD 25 million.  Through its lending policies funds are available to cover up to 80 per cent of the total investment cost of these projects.   IREDA has funded projects developing a multitude of RE technologies.  By lending as well as encouraging investment and working with other partners in the international community, such as the World Bank, IREDA has contributed to the development of the Renewables sector in India. 

Source: IREDA

Further Reading

Public Finance Mechanisms to Mobilise Investment in Climate Change Mitigation (UNEP)