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Solar-based rural electrification policy design: The Renewable Energy Service Company (RESCO) model in Fiji

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  • Dornan, M.

Abstract

Solar photovoltaic technologies have for some time been promoted as a cost effective means of rural electrification in developing countries. However, institutional structures resulting in poor maintenance have adversely affected the sustainability of past solar projects. In Fiji, the Renewable Energy Service Company (RESCO) program is the latest attempt to promote solar-based rural electrification in a fee-for-service model, aiming to remove the high upfront capital costs associated with solar technologies and using a public–private sector partnership for maintenance. This paper assesses the program using survey and interview data. Major flaws are identified, relating to incorrect treatment of principal–agent problems, information asymmetries, motivational problems, and resourcing of government agencies. General lessons for fee-for-service solar home system models emerge, including that incentives for stakeholders must take centre stage in designing and administering such programs, and that active government support and ownership are required to make programs sustainable.

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  • Dornan, M., 2011. "Solar-based rural electrification policy design: The Renewable Energy Service Company (RESCO) model in Fiji," Renewable Energy, Elsevier, vol. 36(2), pages 797-803.
    • Handle: RePEc:eee:renene:v:36:y:2011:i:2:p:797-803
    DOI: 10.1016/j.renene.2010.07.015
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    Cited by:

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    7. Hills, Jeremy M. & Μichalena, Evanthie & Chalvatzis, Konstantinos J., 2018. "Innovative technology in the Pacific: Building resilience for vulnerable communities," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 16-26.
    8. Prasad, Ravita D. & Bansal, R.C. & Raturi, Atul, 2017. "A review of Fiji's energy situation: Challenges and strategies as a small island developing state," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 278-292.
    9. Kirsty Anantharajah, 2019. "Governing Climate Finance in Fiji: Barriers, Complexity and Interconnectedness," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    10. Lammers, Katrin & Bertheau, Paul & Blechinger, Philipp, 2020. "Exploring requirements for sustainable energy supply planning with regard to climate resilience of Southeast Asian islands," Energy Policy, Elsevier, vol. 146(C).
    11. Dornan, Matthew & Shah, Kalim U., 2016. "Energy policy, aid, and the development of renewable energy resources in Small Island Developing States," Energy Policy, Elsevier, vol. 98(C), pages 759-767.
    12. Lahimer, A.A. & Alghoul, M.A. & Yousif, Fadhil & Razykov, T.M. & Amin, N. & Sopian, K., 2013. "Research and development aspects on decentralized electrification options for rural household," Renewable and Sustainable Energy Reviews, Elsevier, vol. 24(C), pages 314-324.
    13. Kebede, Kassahun Y. & Mitsufuji, Toshio, 2017. "Technological innovation system building for diffusion of renewable energy technology: A case of solar PV systems in Ethiopia," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 242-253.
    14. Levin, Todd & Thomas, Valerie M., 2014. "Utility-maximizing financial contracts for distributed rural electrification," Energy, Elsevier, vol. 69(C), pages 613-621.
    15. Hua, Jian & Shiu, Hong-Gwo, 2018. "Sustainable development of renewable energy on Wangan Island, Taiwan," Utilities Policy, Elsevier, vol. 55(C), pages 200-208.
    16. Nurcahyanto, & Simsek, Yeliz & Urmee, Tania, 2020. "Opportunities and challenges of energy service companies to promote energy efficiency programs in Indonesia," Energy, Elsevier, vol. 205(C).
    17. Khan, Imran, 2020. "Impacts of energy decentralization viewed through the lens of the energy cultures framework: Solar home systems in the developing economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    18. Matthew Dornan, 2015. "Renewable Energy Development in Small Island Developing States of the Pacific," Resources, MDPI, vol. 4(3), pages 1-17, July.
    19. Almeshqab, Fatema & Ustun, Taha Selim, 2019. "Lessons learned from rural electrification initiatives in developing countries: Insights for technical, social, financial and public policy aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 102(C), pages 35-53.
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