Promoting Renewable Energy Investment Through Legislation and Policy: Review of Impact and Best Practices

Abstract

Private investment is key to increasing the use of renewable energy, but such investment is inevitably regulated by law. This paper considers the extent to which the legal frameworks in three different developing countries may encourage or discourage investment, with the aim of identifying best practice and areas of potential difficulty. The energy-related policies and legislation of South Africa, Jamaica and the Philippines are assessed to determine the extent to which the legal frameworks encourage or enable private sector investment, including CDM investment, in sustainable energy resources. It therefore focuses in particular on policies and legislation that promote renewable energy investment, as well as those that could discourage such investment. National energy policies and plans, favourable fiscal regimes and other investment-friendly provisions, and their potential impact on investment flows are analysed, and lessons and best practice examples are identified.

Keywords: renewable energy investment, renewable energy legislation, renewable energy policy