Private equity and capital raising strategies: A framework for financing large-scale energy infrastructure projects in developing economie

Olakojo Yusuff Ogunsola 1, *, Yetunde Adenike Adebayo 2, Ikiomoworio Nicholas Dienagha 3, Nwakamma Ninduwezuor-Ehiobu 4 and Zamathula Sikhakhane Nwokediegwu 5

1 University of Chicago, Booth School of Business, USA.
2 Independent Researcher, UK.
3 Shell Petroleum Development Company, Lagos Nigeria.
4 Independent Researcher, Canada.
5 Independent Researcher, Durban, South Africa.
 
Review
International Journal of Scholarly Research in Multidisciplinary Studies, 2023, 02(02), 086-093.
Article DOI: 10.56781/ijsrms.2023.2.2.0062
Publication history: 
Received on 29 April 2023; revised on 17 June 2023; accepted on 20 June 2023
 
Abstract: 
Financing large-scale energy infrastructure in developing economies remains a critical challenge due to limited access to capital, high risk perceptions, and regulatory complexities. This paper explores the role of private equity as a transformative funding mechanism, emphasizing its potential to bridge the financial gap while aligning with global sustainability objectives. It provides a comprehensive analysis of diverse capital-raising strategies, including the use of innovative instruments such as green bonds and public-private partnerships, and highlights the importance of robust regulatory frameworks in fostering investor confidence. A strategic framework tailored to the unique needs of developing regions is proposed, integrating financial innovation, stakeholder collaboration, and governance mechanisms to enhance project feasibility and attract long-term investments. Practical recommendations are offered for policymakers, investors, and project developers to foster sustainable, scalable, and inclusive energy infrastructure. The insights presented aim to catalyze a shift toward resilient energy systems, driving economic growth and social development in resource-constrained settings.
 
Keywords: 
Private equity; Energy infrastructure; Developing economies; Green bonds; Public-private partnerships; Sustainable financing
 
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