Study on innovative financing mechanisms for renewable energy projects in North Africa

Abstract

The energy mixes of African countries are progressively including renewable energy contributions, which have significantly increased, given the technological maturity and advances in recent years. However, the development of renewable energies requires the implementation of coherent institutional, regulatory and incentive frameworks and involves significant funding due to the additional costs of the required initial capital investment for the technology. The development of renewable energy is also dependent on the ability of countries to formulate and implement projects and operate facilities, which are often regarded as a key element of the quality and sustainability of results. In this context, it is important that countries be able to implement transparent incentive frameworks to achieve the necessary visibility and attract private operators to invest in the sector. For this purpose, the energy pricing issues and the reduction of hydrocarbons subsidies should be studied in consideration of socio-political specificities and constraints of the countries.