Study on innovative financing mechanisms for renewable energy projects in North Africa
The energy mixes of African countries are progressively including renewable energy contributions, which have significantly increased, given the technological maturity and advances in recent years. However, the development of renewable energies requires the implementation of coherent institutional, regulatory and incentive frameworks and involves significant funding due to the additional costs of the required initial capital investment for the technology (including wind power, solar thermal and photovoltaic). The conventional electricity subsidy and the scale of investment reflect the high production costs of renewable electricity for the economy and consumers.
The development of renewable energy is also dependent on the ability of countries to formulate and implement projects and operate facilities, which are often regarded as a key element of the quality and sustainability of results.