Dramatic reductions in the cost of distributed renewables and battery storage, coupled with rapid innovation in smart grids and connectivity, are opening new pathways for an energy transition in developing countries to deliver on the Sustainable Development Goal 7. At the same time, this energy transition will transform the power sector, redefining the role of utilities and challenging existing power systems.
For developing-country utilities, this is both a daunting challenge and an imperative to deliver on the urgent goals of universal access and full decarbonization. Utilities that adapt will deliver better service and be more resilient; those that do not face systemic risks.
The World Bank Group, through ESMAP, is uniquely positioned to support client countries and their utilities to design and adopt new business models and regulatory frameworks that harness the deployment of digital and decentralized technologies, leverage the value of data, and allow the emergence of new service providers in the energy sector.