The power generation sector lies at the heart of the transition needed to meet the goals of the Paris Agreement, as it underpins economy-wide electrification and decarbonization efforts. Renewable energy technologies are key to this systemic transformation, but grid congestion and modernization issues need to be addressed, storage and baseload considerations are critical and existing fossil fuel plants will need to be retrofitted.

This briefing note for banks identifies a number of barriers which are hindering the deployment of these decarbonization levers. It presents key policies that can address these barriers and aims to support dialogue to advance policies that stimulate markets and spur capital deployment to accelerate the decarbonization of the power generation sector, as well as providing concrete policy examples.