Today’s emerging clean-energy economy means that traditional power markets are facing numerous adaptation challenges, while less developed countries are technological leapfrogging. Through fostering private sector participation in innovative power infrastructure investment and service provision, PPIAF accompanies the associated evolution of traditional power utilities by helping them rethink their business model.
PPIAF targets upstream energy sector reforms to systematically embed clean energy activities and develop smart-grid solutions that cut across renewable energy integration, energy access, and efficiency.
Through its partnership with the Energy Sector Management Assistance Program (ESMAP), we seek to further support countries’ institutional and regulatory frameworks, energy policy, strategies, and action plans. These provide incentives and are conducive to private sector participation in both grid-connected and off-grid renewable energy and storage solutions.
Our Subnational Technical Assistance (SNTA) program has helped energy utilities improve their creditworthiness so they can access commercial financing without sovereign guarantees. SNTA is involved in numerous financial management and utility creditworthiness initiatives across developing countries to improve the financial viability of the power sector.
PPIAF also promotes the establishment of regional energy markets. For example, in South-East Asia PPIAF helped Laos (already a net producer of clean renewable energy) and Thailand (a net importer) set up the base for sustainable energy development region-wide. A similar initiative is currently underway in the Economic Community of West African States (ECOWAS). These regional power integration activities include the strengthening of integrated water resources management in the hydropower sector.
Enabling private sector solutions and commercial financing for energy efficiency programs is a topic that PPIAF is progressively helping to mainstream across its client countries. Indeed, by supporting the creation of markets for energy efficiency services and technologies, PPIAF can address the critical demand-side aspect of the energy sector.
Whether through supporting solar auction programs, promoting performance-based contracts for reducing energy consumption of water utilities, or supporting e-mobility programs through PPPs, PPIAF is committed to enabling best-practice energy solutions across all sectors.