Companies in developing countries are poorly equipped to meet the growing energy demand, according to a World Bank report. Only 40% of them can cover their operating costs and debt, compromising the overall energy transition. These difficulties are particularly pronounced in low-income countries, where high costs and low tariffs perpetuate chronic underperformance. This situation discourages the necessary investments to modernize infrastructure and integrate more renewable energy, threatening the goal of universal access to clean and reliable electricity.
The World Bank emphasizes the importance of determined public policies, effective regulations, and long-term financing to stabilize and improve the viability of electricity companies. Private investors must be encouraged by favorable environments and risk-reduction mechanisms. To ensure the success of the energy transition, it is crucial that electricity companies adopt better business practices and modern technologies, while benefiting from financial support to offset the high costs of this transition.