Government roles in energy infrastructure investments

The host government typically plays a large role in energy investments across the value chain. At a minimum, the host government is responsible for instituting a legal and regulatory framework necessary to create a suitable environment for investment. Due to differing investment characteristics between upstream and midstream investments, this framework is often not uniform throughout the value chain. At the upstream level, host governments must enact a policy that promotes efficient and timely development of natural resources, while at the same time preserving the state’s rights to the economic value of its natural resources. At the midstream level, encouraging investment through an appropriate regulatory framework is even more important, as midstream projects often entail more complex commercial structures and derive value not only from commodity sales but also from service fees and tariffs.

Sustainable Development Goals:

Affordable and Clean Energy