The energy demand in many emerging markets is increasing significantly as a result of strong economic growth and rising social standards. This growth also addresses several challenges enhancing energy security by improving energy efficiency as well as meeting overall energy generation capacity needs, supported by a stabilised energy grid and by focusing on clean energy and reducing greenhouse gas emissions. An increasing private sector involvement and governmental support in the development and financing of clean energy investments leeds to sustainable success.
In order to overcome those challenges many developing countries are taking steps focusing more on clean energy development from domestic renewable resources such as wind, hydro, geothermal, biomass and solar and are also concentrating on improving energy efficiency primarily in industry and buildings.
As part of ongoing projects SAM has analyzed several industrial, commercial and residential sectors as well as municipalities showing huge potential for energy efficiency investments in emerging markets. Despite huge potential energy efficiency investments face significant barriers such as lack of awareness and energy efficiency financing know how. Usually there are very limited financial resources and no proper lending facilities available for energy efficiency projects.