Large hydropower in low-income countries: securing investment for the low-carbon transition

Considerable private sector investment in electricity projects in low-income countries is directed at small-scale variable renewable electricity projects. This type of investment is positive, but can cause problems for electricity networks if sufficient resources are not available to support the simultaneous development of technologies that provide stable renewable baseload generation, flexibility, storage and system services. The paper reveals an imbalance between the relatively low attractiveness of hydropower as an investment option (compared with other renewables) and expectations of growing future demand, highlighting the need for improved remuneration mechanisms to account for flexibility, storage and system services.

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Large hydropower in low-income countries: securing investment for the low-carbon transition

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