State of Transition
How state-owned power companies can drive energy transition in emerging economies
State-owned power companies (SPCs) can play a critical role in clean energy transition, particularly in emerging markets and developing economies. This report includes case studies from a major SPC in each of India, Indonesia, South Africa, and Viet Nam. Each SPC has made strides in a specific element of energy transition that inform the recommendations for other SPCs, governments, and the international community.
Key Messages
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The energy transition creates important opportunities for SPCs in emerging economies to diversify their business models and advance broader national goals of energy security, electrification, and socio-economic development.
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Governments need to support SPC efforts in energy transition, including through enabling visionary SPC leadership, developing the required legal frameworks, and shifting public financial support from fossil fuels to clean energy.
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SPCs need to collaboratively develop energy transition plans that include just transition principles from the outset, are context specific, align with national objectives, and address international and domestic financing solutions.
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SPCs in emerging economies are often saddled with large debt and difficulties in mobilizing capital. The international finance community should partner with SPCs to design new, innovative options for fast fund disbursement in return for demonstrable progress on decarbonization.
The report investigates how SPCs can lead in energy transition initiatives. To date, discussions on this role have favoured developed economy examples. The report aims to address this gap by analyzing the dynamics of decarbonization facing four of the world’s largest SPCs (outside of China), focusing each case study on one specific element of energy transition. The case studies are: 1) Eskom in South Africa on just energy transition initiatives, 2) NTPC in India on deployment of renewable energy, 3) Vietnam Electricity (EVN) in Viet Nam integrating renewable energy generation, and 4) Perusahaan Listrik Negara (PLN) in Indonesia on early retirement of coal power plants.
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