Renewable Energy Financing and Market Design: A View and Recommendations From Development Banking Practitioners to Developing Countries

Developing nations with high growth rates of energy demand and, in many cases, aging fossil fuelbased generation capacity have a massive opportunity to rapidly grow variable renewable energy (VRE) capacity. This should ideally be done through a transparent and competitive wholesale market, which is instrumental not only for attracting competitive VRE generation but also for providing the flexible capacity essential for managing the variability of solar/wind and, thus, the security of the power system.