CHAPTER 5:  PPP PROJECTS IN THE RENEWABLE ENERGY SECTOR

This chapter provides an overview of key policy issues regarding the deployment of PPPs in the renewable energy sector across the MENA region, focusing on Egypt, Jordan, Morocco and Tunisia.

Key findings include:

•  The MENA region boasts some of the world's best resource endowment for the development of renewable energy, in particular for wind and solar power.

•  Enhanced risk perceptions of the MENA region combine with non-region specific renewable energy risks to inhibit development.

•  The reform of economically-distorting energy policies, including structural separation of incumbent operators and fossil fuel subsidies, would facilitate private sector investment.

•  The stability of the tariff regime is essential to build investor confidence.

After reviewing this chapter policy makers will:

•  Be more aware of the challenges facing renewable energy development.

•  Better understand the need for a clear and consistent policy framework for renewable energy and the need for reform of the overall energy sector.

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