Analyzing the factors that affect the renewable energy PPP market: A comparative analysis between developing and developed countries

Abstract

Over the past few years, an increase in energy demand has been observed along with the required additional energy supply. These are some of the major challenges that governments are facing at a global level. The dependence on fossil fuels for energy generation is one of the main reasons behind global warming and the increased levels of pollution. Additionally, the limited reserve of fossil fuels means that it is not a sustainable source of energy that can be relied upon indefinitely. As a result, various governments around the world have sought renewable energy to provide a clean and sustainable source of energy. However, the main problem facing renewable energy projects is the upfront cost needed for them. Thus, governments have sought partnerships with the private sector to take advantage of their expertise and their financing. As a result, renewable energy projects have become commonly delivered as public-private partnerships (PPPs). This study reports on the renewable energy PPP market globally through a detailed literature review and questionnaire. The responses of 86 experts were collected and classified based on whether their experience was in developed or developing countries. The results showed that the main barriers affecting renewable energy PPPs globally are political and regulatory barriers. While the experts highlighted that the public sector cannot appropriately identify, value, or transfer risks, the private sector was highlighted as an efficient party in dealing with risks. In addition, the analysis contrasted renewable energy PPP market in developed and developed countries.

Keywords

• renewable energy
• public-private partnership
• barriers
• key success factors
• comparative analysis
• developing countries
• developed countries