De-risking Mechanisms for Energy Investment in Displacement Settings

Traditional delivery models for renewable energy solutions often face significant barriers due to high upfront costs. In the humanitarian sector specifically, the early termination clause in humanitarian contracts leads developers to set premium pricing to offset termination risk, effectively undercutting the financial case to transition. To address these challenges, the humanitarian sector has been developing innovative financing mechanisms and new evidence to support renewable energy adoption. These innovations enable the private sector to play a crucial role in delivering sustainable energy solutions in displacement settings, addressing both humanitarian needs and climate goals.

The session will explore how derisking mechanisms can unlock sustainable delivery models for electrification, featuring the latest evidence and experiences from the activities, projects and programmes delivered by the partners of the Global Platform for Action on Sustainable Energy in Displacement Settings (GPA). It will also present near-term ambitions and good practice examples from key humanitarian and development agencies working on clean energy.