in neighboring countries, a popular uprising in 2014 that forced President Compaoré into exile, a military coup attempt in September 2015 in the midst of the country’s political transition, and a terrorist attack in Ouagadougou in 2016. The country long struggled to meet fast-growing power demand due to a shortage of installed capacity, poor availability of existing power plants, and fluctuations of import volumes during the peak demand season (February–June). The combination of dependence on imported fuel for power generation, oil price fluctuations, and a lack of cost-reflective tariffs adversely affected the sector’s financial performance between 2011 and 2015. In 2022, the country transitioned to a type of SBM structure as a 30MW solar IPP, the first IPP in the country, became operational selling to the VIU. The project was entirely developed, financed and built by a private company which will also operate and maintain the plant.

**_VIU to SBM through wind IPPs - Djibouti:_** Djibouti, strategically located at the convergence of the Red Sea and the Gulf of Aden, faces challenges in meeting its electricity needs due to limited natural resources. Less than half its population (42 percent) have access to electricity and the country relies heavily on electricity imports from Ethiopia and aging fossil fuel generators. Despite its abundant wind, sun, and geothermal potential, the country struggled to attract foreign private investment, often citing the lack of electricity as the primary constraint. In April 2020, the Multilateral Investment Guarantee Agency (MIGA) provided $91.6 million in guarantees to two international investors, Africa Finance Corporation and Climate Investor One. These investors were part of a public-private consortium that developed the groundbreaking 58.9 MW Ghoubet wind farm, Djibouti's first IPP. The plant became operational in September 2023. With the operationalization of this IPP, Djibouti transitioned to an SBM type market structure from the VIU structure it had operated under since 1960. It is also the latest example of solar and wind IPPs prominence in initiating countries’ transition out of VIU structures.

_Table 4: First privately owned IPP entrant's technology by decade_

|**First privately**<br>**owned IPP**<br>**entry**|**Coal**|**Gas**|**Oil**<br>**(HFO or**<br>**diesel)**|**Hydropower**|**Wind**|**Solar**|**Biomass**|**Geothermal**|**Battery**|**TOTAL**|
|---|---|---|---|---|---|---|---|---|---|---|
|Pre-1991|1|2|3|4|0|0|0|0|0|10|
|1991-2000|11|10|10|12|2|1|3|0|0|49|
|2001-2010|4|16|13|7|4|1|1|1|0|47|
|2011-2020|0|12|5|2|7|8|4|0|0|38|
|2021-2024|0|0|0|0|1|6|0|0|1|8|
|Currently under<br>construction or<br>preparation|0|0|0|2|2|15|0|0|0|19|

Source: (Akcura 2024)

**_IPPs as catalysts for the wholesale market - Türkiye_** : As markets progress to advanced structures such as wholesale markets, merchant schemes for renewable energy can also be the trigger for the development of a spot market. In the last two decades Türkiye’s electricity sector has transitioned to a competitive wholesale market, as the government adopted market-based reforms with private sector participation, which has delivered improvements in sector outcomes. Until the 1980s Türkiye’s energy sector was dominated by a state owned vertically integrated company, the Turkish Electricity Authority. Following legislative reforms in 1984, the first IPPs were introduced to combat shortfalls of electricity generation. However, these plants were seen as very expensive and required public guarantees from the Treasury. The government launched

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