Unlock the Policy door to achieve ‘Well below 2 cents’
The key to successfully accomplishing the mission:
PUTTING DEMAND BACK AT THE CORE
Transitioning to a new renewable-based energy regime is probably one of the most difficult policy decisions a government can make, particularly in developed economies that have a strong dependency on energy.
To deliver the New Energy Regime we need clarity, to move fast in the right direction.
The fossil fuel energy system is intrinsically oligopolistic. The supply side has dominated the market and mobilised huge amounts of public resources to maintain a high level of profit and political influence.
The renewable energy system is, on the contrary, essentially decentralised and much closer to demand. It naturally empowers people. Putting demand back at the core requires clear policies and symbolic political messages.
WHAT WE DID
TWI has supported the creation of the International Solar Alliance (ISA) by the governments of India and France, potentially including all countries with territories between the tropics.
In the ISA Paris Declaration of 30 November 2015, it proposed a symbolic target of ‘USD 1,000 billion’ of investment in these countries by 2030, to send a clear message to the international community, business and investors.
ISA’s Affordable Finance at Scale programme
WHAT WE DID
TWI has helped the nascent ISA to put together one of its first two programmes, Affordable Finance at Scale.
It also developed the concept of Common Procurement Rules which inspired new cross-border policy initiatives such as the Lomé Initiative in Western Africa.
what would you do?
Achieving a ‘well below 2 cts’ target can only happen if cash is available at the right price, in the right quantity, for the right tenure, in the right location.
Scaling solar power deployment requires the simplification and automatisation of transactions. After having radically decreased the cost of renewable power, we need to focus on the reduction of soft costs.
The obvious challenge is to shift the affordable institutional trillions to the new energy system, starting with renewable power generation but followed closely by energy management and storage.
Creating a systemic approach and developing collective solutions to set up a new market framework.
Because uncertainty cannot be evaluated and priced, what we need is a leap of faith: the necessary strong commitment we need to make when everything is a blur, to federate all the stakeholders.
Sustainable energies are generally misunderstood and underestimated. A simple and federative narrative is necessary to change people’s perception and gather everyone around a common goal.
Essentially decentralised and close to demand, the renewable energy system empowers people. It requires clear policies and symbolic political messages.
Our final report
This 200 pages report provides a summary of nearly four years of work carried out by TWI to accelerate the transition to affordable, reliable, sustainable and modern energy for all, starting with solar power.