Providing reliable electricity is complex and expensive: large power plants can be billion-dollar investments. As a result, a growing number of cash-strapped developing countries are signing power purchase agreements with electricity providers to shift investment costs to the private sector.
CGD Policy Blogs
The US International Development Finance Corporation (DFC) is considering a change to its current ban on financing projects with a nuclear reactor, a relic holdover policy from its predecessor agency OPIC.
If the 52 poorest countries in the world—home to a rising population of 1.4 billion people—grow their economies rapidly, how much will they contribute to global carbon emissions in 2030? And how important will this be in our fight against climate change?
Amid the ongoing discussions at COP25, Arthur Baker rekindles “SkyShares"—a CGD idea that would lock in emissions reductions at the lowest possible cost and support developing countries’ poverty reduction efforts. Explore the interactive framework.
For the past 18 months, CGD has incubated the Energy for Growth Hub, a new initiative dedicated to the idea that energy should be an enabler, not a barrier, to human potential. The Hub is now ready to fly on its own.
Mobile phones provide a useful insight for energy: not that you can leapfrog a modern power system, but that most energy use happens out of sight. In fact, less than 1% of the energy needed for a smartphone is used by the phone.
Todd Moss, CGD senior fellow and executive director of the recently-launched Energy for Growth Hub, on why the Hub was created, how big the energy gap is, and why the tradeoff between residential and industrial energy isn’t really a tradeoff at all.
While energy advocates have mostly focused on the 600 million people in sub-Saharan Africa that lack access to electricity at home, the region’s power shortages are especially damaging to firms. Companies across the continent suffer from unreliable power supplies, affecting productivity, employment, and growth.
Eighteen months ago, we blogged here about Kenya’s superfast electricity connection rate. The country had grown from 27 percent to 55 percent access in just three years, putting themselves on a fast-track toward near universal access by 2020. While this lightning progress was exciting, new research suggests that aggressive expansion may come with downsides, too.
The bill, which would create a modernized US development finance institution, just passed the House. Todd Moss explains how the new agency could help the US step up energy investments.