Renewables have reached meaningful parity with conventional energy sources in many parts of the world. The timing is extremely opportune and presents a historic coincidence because just now many fast-developing countries in Asia, Latin America, the Middle East and Africa are getting ready to design and build the energy system that will carry them through the next phase of their economic growth. We now have the opportunity to nudge them towards creating a modern, renewables-based energy system before traditional path dependencies set it. This will be a central element in fighting global climate change.
However, most developing countries lack the institutional and business framework to grasp this opportunity in a rapid manner. Their challenges are often similar: low contractual security, high cost of debt, weak grids, and erratic, non-transparent politics. Even more importantly, many developing countries follow very statist economic and industrial policies. They have little knowledge about how to create functioning markets – which is exactly what is needed at this point, where renewables and energy efficiency technologies step out of their protected niche to offer mainstream energy solutions.
I want to build the “Green Market Architects” that can provide excellent, directly usable toolkits for regulators, for entrepreneurs and for investors to drive an energy transition, especially in developing countries. Ideas, suggestions, support – are all very welcome.