- The global transition to renewable energy is likely to be financed largely by the private sector, including utility companies, corporations, project developers, and various investment funds
- One critical element of the energy transition will be decarbonization of the world’s electricity supply. The needed technology is developing rapidly and the scale of the requisite investment is manageable, but current rates of deployment remain well below what is required to avert the worst impacts of climate change.
- Challenges that inhibit decarbonization of the power sector fall into three categories: market structure that lacks appropriate
incentives to catalyze private investment in new projects, lack of public support for siting renewable energy development, and incompatible or inadequate grid infrastructure.
- Governments will play a critical role in scaling renewable energy capacity by providing regulatory frameworks and policy solutions to the challenges that are slowing down private sector investment.
- Top priorities for governments will be to establish renewable energy targets, policies, and market instruments that incentivize and de-risk green energy investments; improve planning and permitting, and address community concerns, while balancing other concerns; and invest in modern electricity grids and infrastructure.
Read the full working paper by World Resources Institute and Orsted by clicking here