Energy investment horizon according to the IEA

The fight against climate change has become the focus of the energy sector’s development. The objective of zero emissions by 2050 is central to the world’s energy strategy. However, not all countries are beginning this process from the same starting point. In the coming decades, most of the world’s emissions will originate in countries with current emerging economies, that is, they undergo an industrialization / urbanisation / electrification process as they grow. In its report dated June 2021, the IEA focuses its analysis on the need to encourage investment in clean energies in these countries and recommends a number of incentivization mechanisms.

We, at the HES, would like to make our readers aware of this relevant IEA report and share with you its main conclusions.

Energy transition requires a huge amount of investment. In the case of developing countries (emerging economies), the needs are proportionally larger, and the economic effort is far beyond their means. These emerging economies are home to two thirds of the world’s population, while only one third of global energy investment is allocated to them. This figure drops to 20% when it comes to investment in clean energies.

In its report, the IEA analyses three different scenarios depending on the development of the energy targets:

  • Zero Net Emissions Scenario (ZNE): where all countries reach the zero CO2 emissions target by 2050, with developed economies reaching it before this date.
  • Sustainable Development Scenario (SDS): this scenario foresees universal access to energy in 2030, zero emissions target in 2050 for developed countries, 2060 for China and 2070 for EMDEs (Emerging Markets and Developed Economies).
  • STEPS (Stated Policies Scenario): this scenario is a baseline scenario and does not reach the 2050 target. It points to the baseline situation, the initial framework, and current conditions and policies, including the impact of Covid-19. This scenario provides an assessment of the direction current global energy systems are heading to and allows for a comparison with the ZNE and the SDS.

Based on these scenarios, the IEA provides an overview of the investment needed in emerging economy countries so as to reach these scenarios between 2026 and 2030.

According to the scenarios put forward by the IEA, investment in EMDEs must increase significantly to meet climate targets. Investment in clean energy generation will be paramount. However, larger investments in electricity infrastructure will also be needed as its current state will not allow for the electrification of clean generation technologies. Energy efficiency will be, as in the rest of the world, an essential vector for the desired change. By way of example, the SDS scenario will require approximately a three-fold investment in renewable energies and electricity grids. Meanwhile, decreasing investment in oil, slightly increasing investment in natural gas (which has a large room for improvement in terms of efficiency and environmental impact) and investing in low-carbon fuels will also be required.

Furthermore, and depending on the area of investment, the IEA points to a number of key factors for these investment programmes to become successful:

  • Investments in renewables will concentrate most resources. The effectiveness of the investments will depend on the choice of source (solar or wind) according to local resources, the level of development of the country’s supply chains, cost of land and level of transmission infrastructure, etc.

The development of renewable generation will be particularly difficult in countries where the economy is based on the export of fossil fuels. Given their privileged access to this energy source, most of these countries do not have any policies to promote renewables. The IEA highlights the role that extraction companies (many of them owners of renewable resources) must play in the transformation of these countries.

  • Electricity grids are the backbone of the future of energy. Investing in them will also be very important. New grids must not only adjust to the growth in demand (with increasing electrification of the population) but also be prepared for the integration of renewables.

Most of these countries currently have obsolete infrastructures, managed as state-owned utilities, financed by governments, and operated as vertically integrated monopolies.

In order to attract private investment towards these initiatives, new regulation will be necessary. The IEA recommends models such as BOOT (Build, Own, Operate and Transfer). Under this development model, a private company is granted a concession for a period of time, allowing it to both invest in and finance the grid extension. The company will operate it for 20-25 years and then transfer it back to the granting authority.

In this area, the promotion of “Smart grids” is also recommended, as it can enable the electrification of unconnected areas. In this context, it is recommended that a regulatory framework be created to order decentralised development, allowing for the future integration of these type of grids.

  • Energy efficiency and fossil fuel substitution. In rapid energy transitions – as is the case here – improvements in the use of fossil fuels should not be underestimated. Investment in this area should focus on improving the efficiency of their technologies and reducing emissions.

One recommended option for the gradual substitution of fossil fuels is low-carbon fuels. Investing in these fuels should first consider local conditions to assess the feasibility of projects. Technologies based on biogas production, hydrogen or biodiesel production using hydrogen-treated vegetable oil (HVO), etc. are recommended.

It is clear that energy transformation is a key factor in the fight against climate change. Energy change in emerging countries is essential to achieve global targets. Investment needs in these countries are enormous and disproportionate to their resources. This leads us to the need of creating real solidarity between rich and developing countries. Finally, the efficient way to undertake these investments will be via private initiative (subsidised by way of development policies).

It remains to be clarified how to attract the necessary capital to these countries to carry out this massive energy transformation. Even more so when considering the limited legal certainty in some of them and that, in any case, most of them do not have regulatory policies and legal frameworks to encourage this investment.

In short, the task is clearly defined. All that remains is its implementation. The future of our world depends to a large extent on our ability to implement these policies.

Guillermo Llanos

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Each month, one of our experts publishes an article describing his view on a specific topic of the constant changes taking place in the energy market, with special focus on the French market.

Profesional Experience & Education

Diego graduated in Political Economy at King’s College University (London – 2021). He started his professional career in a family business in Madrid as an operations manager. Diego then studied a Master in Management and Master in Computer Science at IE University (Madrid – 2022), during which he participated as an Information Technology (IT) intern in a startup. In May 2023, Diego joined the HES team as an intern specialised in programming models. In his first project, he developed a software tool for modelling the unavailability of the French nuclear fleet. Afterwards, Diego has also participated in the development of new software tools for modelling price curves, generation asset performance and other topics related to the energy market. 

Diego Marroquin

Junior Consultant

Haya Energy-6

Profesional Experience

Céline joined Haya Energy Solutions in November 2021 as marketing and administration manager. She had a first professional experience in the tourism sector as a social media manager. At HES, her activities are focused on the development of the company’s visibility at European level through: commercial actions, content marketing and development of brand strategy. Céline is also involved in the management of the company’s communication: optimisation of the website (WordPress & Elementor), LinkedIn, publication of the monthly newsletter and the organisation of conferences. Céline participates in energy projects with the clients and acts as coordinator and project manager. Finally, she is in charge of administration (accounting, expenses management, invoicing).   


Céline graduated in Spanish and English Philology at La Sorbonne (France – 2018) and holds a Master’s degree in Project Management and Cultural Tourism (Clermont-Ferrand/ Buenos Aires – 2021). 

Céline Haya Sauvage

Marketing Responsible

Céline Sauvage

Investment Advice

“Decarbonization of the Energy and Transport sectors is arguably today’s main economic driver for the industry.”

Profesional Experience

His career started in civil engineering as a Project Manager in France, Martinique and Australia. Afterwards, he became the General Manager of a subsidiary in Venezuela. In 1992, he established Dalkia in Germany (district heating, cogeneration, and partnerships) and represented Véolia in Thailand. In 2000, he opened the commercial office of Endesa in France to take advantage of the liberalized retail market. From 2006, as a development Manager at Endesa France, he led Endesa’s plan for Combined Cycle generation in France and developed the wind and PV portfolio of Snet at the same time. Philippe Boulanger worked for 3 years at E.ON’s headquarters coordinating the company´s activities in France. He was strongly involved in the French hydro concession renewal project. As a Senior Vice President – Project Director at Solvay Energy Services from April 2012 to February 2014 he was in charge of the H2/Power to gas and European direct market access deployment projects. Philippe has been an HES expert since 2014.


Philippe Boulanger holds engineering degrees both from the Ecole Polytechnique and the Ecole Nationale des Ponts & Chaussées (France) and has a combined experience of more than 25 years in energy and infrastructure. In addition to English, Mr. Boulanger is fluent in French, German & Spanish.

Philippe Boulanger

Electricity Expert


“The world is changing. New investors pay particular attention to the energy sector while historical actors adapt their position to the market.”

Profesional Experience

Antonio started his career in the electricity sector in 1991 working as a member of the General Manager’s team at Sevillana de Electricidad (Spain). In 1997, he was appointed head of commercial regulation at Endesa Distribución. In 2000, he joined the mergers and acquisitions (M&A) department of Endesa Europe. He was appointed Managing Director of Endesa Power Trading Ltd (UK) in 2003. A year later, he became responsible for energy management at SNET (France). In 2008, he was appointed Managing Director of SNET (France). In 2009, he became Director of Corporate Development at E.ON France. In 2011, he founded Haya Energy Solutions (HES), a consulting firm focused on optimising the energy management of consumers, producers and retailers of gas and electricity. From 2015 to 2018, Antonio combined the consulting activity at HES with the general management of 2 production facilities in France (2 CCGTs x 410MW), owned by KKR. At the end of 2018, he joined Asterion Industrial Partners, an infrastructure investment fund, as an operating partner. Antonio currently devotes most of his efforts to the Asterion Portfolio, while advising through HES companies in the energy sector in France, Italy, Germany, UK and Spain. 


Antonio graduated from the Escuela Técnica Superior de Ingenieros of Seville (Spain) and holds an MBA degree from Deusto University (Spain). 

Antonio Haya