The United States Agency for International Development (USAID) energy programs around the world work to remove market barriers that discourage investment in environmentally superior energy options. Often they need higher up-front costs. These programs focus on developing regulations that are stable and transparent enough for private investors; mobilizing private capital is difficult in unstable economies that lack market transparency and laws safeguarding property rights.

Key USAID strategies for helping countries to better organize energy markets include developing formulas for competitive auctions of state-held energy services; eliminating subsidies in the energy marketplace; restructuring tax laws; creating non-discriminatory private power purchase frameworks; developing stable, transparent regulatory frameworks through independent regulatory agencies; and enhancing regional power pools.