Private Sector Consultations

In recognition of the importance of the commercial sector, the Energy+ Partnership has already launched a series of global private sector consultations with representatives of enterprises of various sizes (both small- to medium-sized enterprises and larger corporations) and relevant private sector actors (renewable energy manufacturers, financial service providers, etc.).

These consultations have identified some of the main obstacles and opportunities for scaling up energy access through the use of renewables and improved energy efficiency (as advocated by the Energy+ approach). Key factors here are strong governance, effective regulatory frameworks and competent institutions that minimise the political and economic risks.

Energy+ has engaged in a highly constructive dialogue on investments in renewable energy with the private sector in the US, Kenya, China and India. These consultations have been facilitated by the Energy+ Technical Working Group and conducted by the consultancy Garten Rothkopf. To create a dialogue with the private sector in developing countries on this matter is something of a milestone, and it paves the way for further collaboration.

On the basis of these consultations, four broad areas of Energy+ support are emerging:

• Support work with national energy and climate strategies
• Gathering and distributing the information necessary to make investment decisions and create successful projects
• Development of a regulatory framework for investments and contracts
• Creating innovative and alternative financing models

Participants at these consultations identified several challenges for investments in renewable energy in developing countries. The most conspicuous challenges were a lack of access to capital, challenging policy conditions and a lack of regulatory frameworks to support commercial investments. The participants also discussed possible roles for Energy+. It emerged that there is a strong need for Energy+ to encourage and support the development of supportive regulatory regimes, to support a favourable policy environment and to enable information-sharing and communication between the public and private sectors.

Summaries and briefs from the private sector consultations, including a comparison of polling results:

• Washington (Nov 2011)
• Nairobi (March 2012)
• Rio (June 2012)
• Guangzhou (Oct 2012)
• New Delhi (Nov 2012)
• Polling Results Comparison

 

This report from the Technical Working Group analyses insights from consultations with the private sector regarding renewable energy in developing countries. The report reviews the responses collected in the four Energy+ business consultations and compares them with five different business models used to discuss the businesses’ investment cycle and with 12 recent surveys and studies that address the issue of how to mobilize private-sector investment in energy access (EA), renewable energy (RE) and energy efficiency (EE), including perspectives from business organizations, energy agencies and energy experts.

The purposes of this exercise are (a) to map what the business sector says about barriers to private investment in EA, RE and EE in developing countries; and (b) to compare these findings with what Energy+ is doing so far, in order to identify additional areas or approaches that Energy+ may be interested in pursuing.