Public and private actors can help increase the local production of renewable energy and thus help reduce the carbon footprint of a city. The public sector can lead the way by seeking to install and apply renewable energy solutions wherever economically justified. This can include (i) the introduction of solar/photovoltaic panels for existing and new public buildings or other built structures, (ii) the use of solar panels to fuel public installations such as street lights or ticketing machines, and (iii) active use of biomass or biogas solutions for energy purposes. For example, this can include gas capture from solid waste or wastewater facilities. The benefits of such installations are not only their reduction of energy consumption and the related carbon emissions and energy expenditure, but also that they raise awareness and underpin other initiatives aimed at encouraging private actors to engage in renewable energy generation. Another benefit of renewable energy solutions, such as clean cooking and street lighting, is that they often improve women’s health and safety

Another possible policy instrument to encourage private actors to install renewable energy solutions is the city’s control over planning permits for new buildings and for large building alterations. For example, a city can insist on specific renewable energy components being included as a condition of obtaining building works permits. Alternatively, the city can, as a minimum, require that renewable energy alternatives are analysed when project proposals are being developed. Another measure could be to include solar panel mandates for certain parts of the building stock. For example, Seoul has introduced solar mandates for new multiple-unit dwellings and commercial buildings to accelerate the deployment of solar panels.^[1]

While solar panels can be introduced for self-consumption purposes, this can be further incentivised if it is combined with smart meters or net metering mechanisms. This approach could include further incentives through favourable feed-in tariffs for the energy sold back to the grid by private households or private companies.

Setting up a municipal energy agency has also proven to be a cost-effective way to promote renewable energy in a city. For example, the city of Barcelona has set up the Barcelona Energy Agency to meet its environmental and energy commitments. The agency currently supplies 20,000 users in public and private buildings with renewable energy.^[2]

The private sector is the primary provider of capital for renewable energy solutions worldwide. To leverage private investment, city governments can adopt a third-party ownership model, by which the city government enters into a contractual agreement with a private developer, who provides the upfront investment for the solar power system. This model can allow the city to install solar power with no upfront capital costs and no impact on its balance sheet. Third-party ownership models are better suited to larger-scale projects because the legal and due diligence costs for investors can be high. The two core models of third-party ownership are power purchase agreements or lease arrangements.

Private companies can also initiate small and medium-sized renewables projects or participate in the clean technologies value chain, from equipment manufacturing to retail and maintenance. To increase private-sector participation, local authorities can deploy models such as PPPs, concessions and service contracts, as well as provide SMEs with technical assistance or business advisory services.

It is worth noting that women are under-represented in the renewable energy sector. According to a survey of 90 private renewable energy companies from more than 40 countries, women only account for 32 per cent of full-time employment in the industry. Lack of STEM background, discouraging workplace policies, and lack of training opportunities are among the barriers that hinder women from entry, retention or advancement in the sector.^[4] Therefore, cities should integrate inclusive procurement considerations into the partnership with private contractors to mainstream gender perspectives through gender-sensitive policies and practices like equal opportunities, gender audits and gender targets.