A roadmap for the new power generation

Friday, 22 January 2016 00:00 - - {{hitsCtrl.values.hits}}

Industry estimates show that non-OECD countries will have to double their investments in electricity by 2040 to keep pace with demand. A new report from the World Economic Forum, released today, offers solutions to improve investment attractiveness of the power sector that would help to bridge this critical investment gap, as the countries face increased competition for capital necessary to invest in power infrastructure.

According to the International Energy Agency (IEA), meeting the electricity demands of consumers and businesses in non-OECD Countries will require $13 trillion investments by 2040 – outspending OECD markets by a factor of 2 to 1. The report outlines recommendations for fast-growing economies to attract more private investments to the power sector in order to achieve their social and economic objectives, including universal access to reliable, affordable power and environment sustainability. “From 2000-2014, non-OECD countries invested on a par with OECD countries – about $240 billion annually. But given the amount of electricity infrastructure that needs to be built in fast-growing countries to serve growing demand, fast-growing countries will not only have to double their investments but also ensure that these funds are used to develop all parts of the value chain so that none is left stranded or underdeveloped,” said Roberto Bocca, Head of the Energy Industries of the World Economic Forum. The report analyses best practices in improving investment attractiveness of the power sector and outlines eight recommendations for fast-growing countries.