Improve regulatory frameworks to accelerate investment in emerging market and developing economies
Despite being regions with anticipated rapid growth in demand for energy services, EMDEs are falling behind in modernising their electricity grids to support the energy transition. This lack of investment can result in significant system losses, inefficient consumption of fossil fuels, and frequent power outages.
As a priority, regulators should address the weak financial situation of distribution companies and implement effective investment frameworks such as performance-based regulation. Developing least-cost system plans and improving network tariff designs are also essential steps. Additionally, efforts should be made to reduce operational and commercial losses. International co-operation can also provide additional financial and technical support, including concessional capital, private-sector capital and inflows from international markets.