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Scaling Up to Phase Down: The Virtuous Cycle

The Virtuous Cycle

Scaling Up to Phase Down provides a step-by-step guide to creating a ‘virtuous cycle’ that will propel the energy transition in developing countries by overcoming obstacles and attracting private investment. Each step reinforces the next, creating results that build momentum.  

STEP 1: It starts with the government defining their commitment to long-term decarbonization and transition to clean energy.  

STEP 2: Establishing supportive policies and regulations that create a supportive environment for private sector operators and investors.  

STEP 3: Creating robust institutions and utilities with funding to equip ministries, regulators, and sector planners.  

Steps one, two and three build momentum and send a strong signal to international financiers that risks have been mitigated, enabling private investment to flow.

STEP 4: Building a positive track record through a pipeline of bankable energy projects.  

STEP 5: Ensuring transparent, competitive, and predictable procurement processes to attract international investors.   

STEP 6: Utilizing positive results to strengthen national resolve, boost consumer interest, and attract even more private sector involvement as the cycle becomes self-perpetuating. Success breeds success.