Position Paper
How to Unlock Pipelines of Bankable Renewable Energy Projects in Emerging Markets and Developing Countries?
Executive
Summary
This latest position paper delves into the critical and intricate task of boosting renewable energy in Emerging Markets and Developing Countries (EMDCs). The comprehensive analysis identifies the primary challenge not as a lack of funding but as a need for more viable, bankable projects ready for investment.
The paper emphasizes the necessity of government intervention in creating a stable, conducive environment for private investment. Key recommendations include establishing a robust regulatory framework, ensuring transparent procurement processes, and implementing specific risk mitigation strategies to attract private investments. This strategic approach aligns with the Paris Agreement targets and calls for a coordinated effort among governments, Multilateral Development Banks, and other development partners.
The paper serves as a roadmap for EMDCs to navigate the complexities of transitioning to renewable energy sources, outlining the steps necessary to build a sustainable pipeline of renewable energy projects.
Key Messages
The energy transition will require a major scale-up in the deployment of renewable energy with both public and private finance playing critical roles.
Scarcity of financing is not an impediment to renewable energy deployment, but the limited availability of bankable projects is.
Developing a pipeline of bankable projects requires coordinated interventions by governments targeting unique barriers and risks within a country.
Governments, with the support of development partners, could prioritize the interventions to create the enabling environment necessary to unlock a pipeline of bankable renewable energy projects.
Implementing the interventions may require coordinated development partners’ support and concessional financing to ensure that high development impact investments can materialize.
A successful pilot does not make for a sustainable pipeline.
Development partners can also provide innovative financing solutions to tackle risks that cannot be covered by existing instruments.
While the “billions to trillions” concept is attractive, making it a reality proves challenging.
Global Presence
Together SRMI partners are working across 100 countries to advance sustainable energy transition