ABSTRACT
This chapter continues the analysis of renewable energy investment and technology transfer by focusing on the circumstances in category 3 of Table 5.1. Under this category, renewable energy technology is likely to be in great demand because of a lack of a centralized grid. However, foreign direct investment is made difficult by the existence of a regulatory bureaucracy that may enforce horizontal rather than vertical forms of integration and technology transfer. This strong government intervention may, none the less, make state-led renewable energy ventures or incentives more common.
