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A new tailored scheme for the support of renewable energies in developing countries

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  • Moner-Girona, Magda

Abstract

Historically the promotion of renewable energy technologies in isolated areas has involved international donors or governments subsidising the initial capital investment. This paper proposes an alternative support mechanism for remote villages based on the generation of renewable electricity. This communication presents an evaluation of the Renewable Energy Premium Tariff (RPT) scheme, a locally adapted variation of the Feed-in Tariff tailored for decentralised grids of developing countries. The RPT scheme stimulates the deployment of renewable energy technologies by paying for renewable electricity generated. A good-quality performance is secured since the support is given based on the electricity produced by renewables, not for the initial capital investment. The mechanism has been designed to provide a cost-effective scheme for the introduction of renewable energy technologies to remote villages, to provide sustainable and affordable electricity to local users, to make renewable energy projects attractive to policy-makers, and concurrently decrease financial risk to attract private sector investment.

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  • Moner-Girona, Magda, 2009. "A new tailored scheme for the support of renewable energies in developing countries," Energy Policy, Elsevier, vol. 37(5), pages 2037-2041, May.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:5:p:2037-2041
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    References listed on IDEAS

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    1. Cabraal, A. & Cosgrove-Davies, M. & Schaeffer, L., 1996. "Best Practices for Photovoltaic Household Electrification Programs: Lessons from Experiences in Selected Countries," Papers 324, World Bank - Technical Papers.
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    1. Szabó, S. & Bódis, K. & Huld, T. & Moner-Girona, M., 2013. "Sustainable energy planning: Leapfrogging the energy poverty gap in Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 500-509.
    2. Moner-Girona, M. & Ghanadan, R. & Solano-Peralta, M. & Kougias, I. & Bódis, K. & Huld, T. & Szabó, S., 2016. "Adaptation of Feed-in Tariff for remote mini-grids: Tanzania as an illustrative case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 306-318.
    3. Iskin, Ibrahim & Daim, Tugrul & Kayakutlu, Gulgun & Altuntas, Mehmet, 2012. "Exploring renewable energy pricing with analytic network process — Comparing a developed and a developing economy," Energy Economics, Elsevier, vol. 34(4), pages 882-891.
    4. Gottschamer, L. & Zhang, Q., 2016. "Interactions of factors impacting implementation and sustainability of renewable energy sourced electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 164-174.
    5. Gonocruz, Ruth Anne Tanlioco & Yoshida, Yoshikuni & Ozawa, Akito & Aguirre, Rodolfo A. & Maguindayao, Edward Joseph H., 2023. "Impacts of agrivoltaics in rural electrification and decarbonization in the Philippines," Applied Energy, Elsevier, vol. 350(C).
    6. Bissiri, M. & Moura, P. & Figueiredo, N.C. & Silva, P.P., 2020. "Towards a renewables-based future for West African States: A review of power systems planning approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    7. Schillebeeckx, Simon J.D. & Parikh, Priti & Bansal, Rahul & George, Gerard, 2012. "An integrated framework for rural electrification: Adopting a user-centric approach to business model development," Energy Policy, Elsevier, vol. 48(C), pages 687-697.
    8. Hernández-Escobedo, Q. & Fernández-García, A. & Manzano-Agugliaro, F., 2017. "Solar resource assessment for rural electrification and industrial development in the Yucatan Peninsula (Mexico)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 1550-1561.
    9. Solano-Peralta, Mauricio & Moner-Girona, Magda & van Sark, Wilfried G.J.H.M. & Vallvè, Xavier, 2009. ""Tropicalisation" of Feed-in Tariffs: A custom-made support scheme for hybrid PV/diesel systems in isolated regions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2279-2294, December.
    10. Huenteler, Joern, 2014. "International support for feed-in tariffs in developing countries—A review and analysis of proposed mechanisms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 857-873.
    11. Morgan Bazilian & Patrick Nussbaumer & Giorgio Gualberti & Erik Haites & Michael Levi & Judy Siegel & Daniel M. Kammen & Joergen Fenhann, 2011. "Informing the Financing of Universal Energy Access: An Assessment of Current Flows," Working Papers 2011.56, Fondazione Eni Enrico Mattei.
    12. Vagliasindi, Maria, 2012. "The role of policy driven incentives to attract PPPs in renewable-based energy in developing countries : a cross-country analysis," Policy Research Working Paper Series 6120, The World Bank.
    13. Bhattacharyya, Subhes C., 2013. "Financing energy access and off-grid electrification: A review of status, options and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 462-472.
    14. Thiam, Djiby Racine, 2011. "An energy pricing scheme for the diffusion of decentralized renewable technology investment in developing countries," Energy Policy, Elsevier, vol. 39(7), pages 4284-4297, July.

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