A 10-point plan to scale up renewable energy in the Global South

Sam Fankhauser, Cameron Hepburn, Stephanie Hirmer, Tonny Kukeera, Dhruv Singh, Ingrid Sundvor, Philipp Trotter and Pu Yang

Climate Policy, 2025, vol. 25, issue 6, 938-946

Abstract: The parties to the Paris Agreement have a new ambition: Tripling renewable energy capacity by 2030. We investigate this pledge from the point of view of renewable energy operators in developing countries, where future energy needs are largest. We identify the key risks and barriers operators face. As renewable energy technology has matured, these risks have evolved. Operators are now much more concerned about market (e.g. tariff levels), macroeconomic (e.g. exchange rates) and governance (e.g. administrative hurdles) risks than technology risks per se. We put forward 10 concrete, actionable measures to accelerate renewable energy deployment. The measures are well understood, and if they are scaled up determinedly the 2030 target is achievable.As renewable energy moves from pioneer application to global roll out, its risk profile is evolving. Concerns about the business environment (market, macroeconomic and governance risks) now dominate technology risks.The expertise of national and international project developers, and their ability to identify, structure, build and operate projects is key to scaling up renewables. But project operators require a conducive business environment to be effective.Governments and regulators must provide more supportive regulation on issues like planning, licensing and grid access. They can also stimulate demand through well-structured renewables auctions.Development agencies must provide risk mitigation and finance, if necessary on concessional terms.All parties need to engage proactively with local communities.

Date: 2025
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DOI: 10.1080/14693062.2024.2418948

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