The importance of alternative energy development calls for the application of leading government-backed plans to stimulate this sector. However, the existing political uncertainty and sometimes ineffectiveness of state support increase the risks of renewable energy (RES) projects and, as a result of that, hinder the development of this industry. Therefore, it appears highly relevant to assess the soundness of the current government-sponsored policies on renewable energy development. This paper presents the main types of specific risks that are typical for renewable energy as well as the results of quantitative assessment of the profitability factors of renewable energy projects. The paper employs an energy-specific logit-model as its main methodical approach. On the basis of the model, the calculations were carried out using Russian RES projects as a case study. The projects are included in the priority areas of the sector development and constitute main types of state support. The results and calculations reveal the risk dynamics at the stages of the life cycle of RES projects that help to evaluate the effectiveness of state measures to support the sector. The results and outcomes of this paper are of practical importance and might be used for improving the existing approach to risk assessment in the RES market as well as in the development of a concept of competition in the global energy market.
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