Identifying best practices in public-private partnerships in renewable energy

Abstract

Public-Private Partnerships (PPP) have emerged as a means to develop physical and social infrastructure assets in developing countries. PPPs enable governments to attract private sector investment in public infrastructure services, which would supplement public resources or release them for other public needs. They also allow governments to utilize the efficiency and expertise of the private sector in providing public services which have been traditionally delivered by the public sector. There has been an increased focus on developing alternatives to fossil fuels in recent times for sustainable development, which has put the spotlight on renewable energy sources. Renewable energy sources have largely been developed in the advanced economies, with emerging markets lagging behind. A possible reason could be that despite the rapid reduction in the cost of generating renewable energy in the past few years, the cost is still higher compared to the cost of conventional energy sources such as coal and natural gas. Increased private sector participation in the sector through the PPP mode may help to improve technologies and reduce costs in emerging markets, as has been the case in many developed countries. The aim of this thesis is to study some of the successful PPPs implemented in the renewable energy sector in emerging markets and identify best practices that have contributed to the success of these arrangements. These findings can be used as leamings for similar renewable energy programs in developing countries worldwide. Keywords: public-private partnerships, PPP, renewable energy, emerging markets, developing countries, South Africa, India, public policy, REIPPP, Charanka solar park, Gujarat, solar energy, solar parks, rooftop solar.