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Powerful Partnerships: Why Public and Private Partnerships in Energy are a Win-Win

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In 2015, the Paris climate agreement brought the nations of the world together to collectively reduce greenhouse emissions. Though that international agreement was vital, most of the real work has been, and is, done at the local and national levels.

Since the 2015 agreement, governments have attempted to devise effective policies and strategies that will reduce greenhouse gas emissions and promote clean energy, but it hasn’t been easy.

In recent years, more and more governments have sought outside assistance to achieve these ambitious climate change goals, adding to the already growing popularity of public-private partnerships around the world. So, what makes these partnerships a good solution for everyone?

Here are a few of the pain points public-private partnerships can solve.


  1. Documenting Responsibilities

    If decision makers and owners aren’t clear, the project suffers. Public-private partnerships address this by requiring project owners to document and negotiate performance standards, responsibilities, etc. in a transparent/realistic manner.

  2. Optimizing Resources

    Project owners sometimes suffer from inadequate internal resources to ensure progress. Public-private partnerships address this challenge by ensuring responsibilities are delegated to highly capable/well-resourced teams.

  3. Creating Discipline in Execution

    Large projects often suffer from competing time frames, objectives and responsibilities. Public-private partnerships provide clarity on all three by defining and aligning contractual obligations.

  4. Aligning with Strategy

    Projects not backed by a strong, strategic commitment can lose support over time. Conversely, public-private partnerships are vetted with a high degree of public visibility, resulting in an alignment of commitments that, in most cases, will not be broken.

What does it all mean?

Public-private partnerships cannot tackle all the challenges, but a growing body of evidence suggests that they can indeed solve many operational issues that cause projects to run off-schedule and over budget.

Don’t expect the popularity of these public-private partnerships to wane. Success stories are everywhere, in just about every type of business, including right here in energy, where the momentum shows no signs of stopping.


Learn more about the power of collaboration, and how Direct Energy Business is teaming up with local and national governments to achieve huge climate change goals. Download the full report now!

governments achieving sustainability goals

 

Sources
https://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/the-rising-advantage-of-public-private-partnerships

Posted: May 08, 2018

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