Sustainable Pathways to Energy Transition in the CAREC Region – A Governance Perspective

Limited progress with the evolution of competitive energy markets in the CAREC region and the evident need to rejuvenate or build the associated institutional and regulatory frameworks from a low base might continue to deter investments into the region’s energy transition. The means to creating a more favorable investment climate across the region could include the advancement of stronger regional coordination to try and exploit economies of scale and scope, and the rollout of stable governance frameworks to facilitate such coordination. Effective management of demand and supply patterns could lead to enhancing efficiencies of asset use while minimizing market and regulatory risks faced by prospective investors. This research has defined policy objectives and identified opportunities for regional cooperation to optimize the use of renewable energy (RE) resources and grid networks, to better balance demand and supply across the region and across time zones and bridge gaps in the governance structures to try and achieve such objectives.