Power sector investment needs: in a selection of developing countries being partners in Norwegian development cooperation

Power sector investment needs: in a selection of developing countries being partners in Norwegian development cooperation

Energy needs and investment patterns in numerous developing countries

This paper presents the findings of a study on the investment needs of the power sector in a selection of developing countries. The aim of the study was to identify possible areas for further development assistance from Norway.

The paper outlines the history of infrastructural development in many of the world’s least developed countries (LDCs), with particular reference to the management of the energy sector. An illustration of the energy needs and investment patterns domestically and regionally is presented, detailing characteristics such as energy type and investment source.

Some key findings include:

  • the distribution of investments by region is skewed - most of the investments with private participation in power sector development in emerging markets took place in Latin America and East Asia and the Pacific
  • the Sub-Sahara region attracted only 3 percent of total investments with private sector participation during the 20 year period
  • for some of the countries in Africa plans of hydropower development have been substituted by more expensive thermal alternatives - this may have resulted from a combination of shortage of investment funds during recent years, notably a lack of options for capital from international agencies
  • the future investment needs in the power sector of the sample countries of this study for the 15 year period 2005 to 2020 is at least USD 60 billion of which more than ¾ is in Vietnam - this translates to an average investment need of USD 4 billion per year.

The paper also presents a number of internet links with power sector information.