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Success and failure in the political economy of solar electrification: Lessons from World Bank Solar Home System (SHS) projects in Sri Lanka and Indonesia

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  • Sovacool, Benjamin K.

Abstract

This study contrasts two national solar home system (SHS) programs that relied on the same World Bank approach, but reached dramatically different results. The Energy Services Delivery Project (ESDP) in Sri Lanka was an exemplary renewable energy access program, successfully installing 21,000 off-grid SHSs alongside grid-connected mini-hydro capacity and off-grid village hydroelectric systems. It reached all of its targets ahead of schedule and below cost. By contrast, the Indonesia Solar Home System Project (ISHSP), which ran from 1997 to 2003, sought to reach one million rural Indonesians through the sales and installation of 200,000 SHSs. However, by project closing in 2003, less than five percent of the original sales target, or only 8054 units, had been installed. The ESDP and ISHSP were the World Bank's first foray into a “market-based renewable energy services provision model.” Based on original research interviews and field observation, the article finds that contrasting the two programs—one a success, the other a failure—offers lessons for energy and development practitioners, namely that effective programs are those that select appropriate technology, often with input from households themselves; they promote community participation and ownership; and they have robust marketing, demonstration, and promotion activities.

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  • Sovacool, Benjamin K., 2018. "Success and failure in the political economy of solar electrification: Lessons from World Bank Solar Home System (SHS) projects in Sri Lanka and Indonesia," Energy Policy, Elsevier, vol. 123(C), pages 482-493.
    • Handle: RePEc:eee:enepol:v:123:y:2018:i:c:p:482-493
    DOI: 10.1016/j.enpol.2018.09.024
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    1. Miller, Damian & Hope, Chris, 2000. "Learning to lend for off-grid solar power: policy lessons from World Bank loans to India, Indonesia, and Sri Lanka," Energy Policy, Elsevier, vol. 28(2), pages 87-105, February.
    2. Martinot, E. & Cabraal, A. & Mathur, S., 2001. "World Bank/GEF solar home system projects: experiences and lessons learned 1993-2000," Renewable and Sustainable Energy Reviews, Elsevier, vol. 5(1), pages 39-57, March.
    3. Chaurey, Akanksha & Krithika, P.R. & Palit, Debajit & Rakesh, Smita & Sovacool, Benjamin K., 2012. "New partnerships and business models for facilitating energy access," Energy Policy, Elsevier, vol. 47(S1), pages 48-55.
    4. World Bank, 2015. "The World Bank Annual Report 2015," World Bank Publications - Books, The World Bank Group, number 22550.
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    4. Amin, Sakib Bin & Chowdhury, Mainul Islam & Jamasb, Tooraj & Khan, Farhan & Nepal, Rabindra, 2023. "Green Energy Finance and Gender Disparity: The Case of Mountain Areas in Bangladesh," Working Papers 2-2023, Copenhagen Business School, Department of Economics.
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    8. Davide Mazzoni, 2019. "Digitalization for Energy Access in Sub-Saharan Africa : Challenges, Opportunities and Potential Business Models," Working Papers 2019.02, Fondazione Eni Enrico Mattei.
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