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Unlocking the Energy Transition with Financially Sustainable Electricity Utilities in Key G20 Countries

Shruti Sharma (International Institute for Sustainable Development (IISD)), Tracy Ledger (Public Affairs Research Institute (PARI)), Tara Laan (International Institute for Sustainable Development (IISD)), Anas Rahman (International Institute for Sustainable Development (IISD)), Chido Muzondo (Strategy at COP28)
This Policy Brief was first published in https://t20ind.org

Abstract

In 2022, G20 leaders acknowledged the need to rapidly transform and diversify energy systems while implementing the Paris Agreement on climate change.1 The expansion of renewable electricity generation can help address these goals but will require substantial investment. In around half of the G20’s emerging economies, state- owned electricity utilities are hampered from making such investments by crippling debt brought on by below-cost retail pricing. This policy brief provides case studies on the impact of electricity subsidies in India and South Africa, and the reforms needed to improve energy access, financial viability, and long-term sustainability. The G20 can support financially viable utilities in emerging economies and their transition to clean energy by (1) sharing best practices on reform, (2) agreeing on timelines for decarbonisation, (3) transferring technology, (4) facilitating investment, and (5) agreeing on standards for transparency.

Authors

Shruti Sharma (International Institute for Sustainable Development (IISD)), Tracy Ledger (Public Affairs Research Institute (PARI)), Tara Laan (International Institute for Sustainable Development (IISD)), Anas Rahman (International Institute for Sustainable Development (IISD)), Chido Muzondo (Strategy at COP28)

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