Strong governance and utility performance are widely recognized as prerequisites for the private sector to invest in energy. USAID’s programs that support business-friendly policy, regulatory, and market regimes expand the number of viable markets for U.S. businesses and complement the Department of State, Department of Commerce, and U.S. Trade and Development Agency trade promotion efforts.

Emerging energy markets provide a massive opportunity for investment and leadership from U.S. institutions focused on clean energy. According to the IMF, most of the $2 trillion in annual investments that will be needed to transition in developing country energy sectors will have to come from the private sector, not the public sector, where funds can be scarce. U.S. exports of power generation, transmission, and distribution infrastructure to USAID energy sector-assisted countries totaled $2.5 billion in 2021—but much more is needed.

U.S. energy companies and experts have an opportunity to lead the way in meeting these growth needs by expanding into markets abroad—and are uniquely positioned to fill this gap with ample expertise, knowledge, and technologies that can help diversify energy sources and improve energy efficiency across the globe. With the continued support of USAID’s energy programs—the investment, employment, and leadership opportunities abroad in clean energy represent a robust market for the U.S. private sector.

How USAID Creates Investment Opportunities for American Business

• Supporting energy sector privatization efforts–enabling major U.S. investments in generation, transmission, and distribution.
• Mobilizing private investment overseas by supporting and designing renewable energy auctions that U.S. energy firms can and do bid on.
• Designing strong regulations and reforms for the energy sector, which pave the way for new technologies and innovations to be introduced to market.
• Providing expertise and technical assistance to American businesses and partner country stakeholders.
• Working with in-country power distributors to forecast energy demand and plan new investment–which gives investors confidence in their decision about when, where, and how to invest.

Colombia Renewable Energy Auctions

USAID supported Colombia with two renewable energy auctions recently, which have attracted more than $2 billion in private sector investment, including over $250 million from U.S. energy firms. Over the past ten years, USAID programs have helped our partners deliver 276,000 megawatts (MW) of renewable capacity across more than 45 countries and mobilized more than $330 billion of private investment in new generation.

U.S.-Africa Clean Tech Energy Network

USAID, through a collaboration between Power Africa and Prosper Africa, recently engaged more than 100 U.S. companies among Power Africa’s private sector partners on the new U.S.-Africa Clean Tech Energy Network activity. Through this effort, USAID advised them on market intelligence, shared trade and investment opportunities, provided transaction advisory services, and assisted those interested with fundraising, to facilitate a two-way ecosystem to unlock innovation and advance bankable deals for U.S. Cleantech companies.

Privatization in Nearly 20 Countries

USAID has supported energy sector privatization efforts in nearly 20 countries, which has benefited U.S. companies including General Electric (GE) and the AES corporation by supplying equipment and buying utilities.