Assessing the vulnerability of the Indian renewable energy market: A quantile modeling approach

Abstract

Stabilizing the renewable energy market is a critical factor for India’s energy transition, and policymakers are striving to achieve this. However, the persisting policy voids in India’s energy policy scenario are restricting the renewable energy market in India from reaching its true potential. This is reflected in the reduction in renewable energy investment and generation scenario, which is subsequently affecting the renewable energy market in India. Taking the example of hydroelectricity generation, this study has made an attempt to analyze how it is impacted by geopolitical risk, oil price uncertainty, and inflation. The study has used monthly data from April 1997 to September 2024. The methods used in the study are cross-quantile correlation, quantile-on-quantile regression, and wavelet coherence. The results show that while oil price uncertainty and geopolitical risk restrict hydroelectricity generation, inflation boosts it. Suitable implications are drawn from the study outcomes. Show more