provides a step-by-step guide to creating a ¡®virtuous cycle¡¯ that will propel the energy transition in developing countries by overcoming obstacles and attracting private investment. Each step reinforces the next, creating results that build momentum.
STEP 1: It starts with the government defining their commitment to long-term decarbonization and transition to clean energy.
STEP 2: Establishing supportive policies and regulations that create a supportive environment for private sector operators and investors.
STEP 3: Creating robust institutions and utilities with funding to equip ministries, regulators, and sector planners.
Steps one, two and three build momentum and send a strong signal to international financiers that risks have been mitigated, enabling private investment to flow.
STEP 4: Building a positive track record through a pipeline of bankable energy projects.
STEP 5: Ensuring transparent, competitive, and predictable procurement processes to attract international investors.
STEP 6: Utilizing positive results to strengthen national resolve, boost consumer interest, and attract even more private sector involvement as the cycle becomes self-perpetuating. Success breeds success.