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Scale up to phase down: World Bank's roadmap to finance energy transition in developing countries

Energy Evolution

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Challenges and Strategies for Energy Transition in Developing Countries

This chapter examines the financial hurdles faced by low and middle-income countries in their energy transitions, highlighting their higher costs of capital and the need for strategic investment shifts. It discusses the current investments versus the required levels to meet climate goals, emphasizing the dilemma of fossil fuel reliance creating a poverty trap. The chapter also presents a six-step virtuous cycle aimed at facilitating renewable energy development, with a case study from India showcasing successful strategies in solar energy expansion.

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