ABSTRACT
This chapter reviews the main implementation barriers faced by developing-country entrepreneurs attempting to advance renewable energy and energy efficiency projects, focusing in particular on gaps in development finance and development assistance. It begins by considering the risks to the global environment and social equity posed by the conventional energy path. The chapter argues that building renewable energy markets and enterprises is critical, yet many impediments to appropriate and adequate financing in developing countries exist. It describes limitations on development assistance to the energy sector and concessional lending by multilateral development banks, as well as the unique comparative advantages and limitations of financial intermediaries. The conventional energy paradigm has 'run out of gas'. The premise that the least-cost expansion of output from fossil fuels is either desirable or just unavoidable simply cannot be sustained in the light of emerging scientific evidence and the past experiences of rapidly developing countries.
