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Policy measures to promote the widespread utilization of renewable energy technologies for electricity generation in the Maldives

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  • van Alphen, Klaas
  • Kunz, Huden S.
  • Hekkert, Marko P.

Abstract

This study adopts a stakeholder-based approach to understand the size and nature of the market and financial barriers to the widespread utilization of renewable energy technologies (RETs) in the Maldives. In light of these barriers and the interests of relevant stakeholders, this study evaluates different policy options in terms of their suitability to develop a domestic market for RETs in the Maldives. Evaluating the different policy instruments, it was found that pricing laws that regulate market access are more suitable than quota systems, provided that the current subsidies for conventional energy are removed or shifted towards RETs. As for the other financial incentives, rebates on investments and low-interest loans should be provided to RET project developers to overcome the high initial project costs. In addition to these measures, the limited institutional capacity suggests that policy support should also focus on enabling the steady development of regional institutions rather than on supporting individual RET projects. These institutions should enable islands in each atoll to take advantage of efficient management and access to financial capital. This will allow the development of sustained renewable energy projects that, in turn, will result in increased renewable capacity and decreased costs.

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  • van Alphen, Klaas & Kunz, Huden S. & Hekkert, Marko P., 2008. "Policy measures to promote the widespread utilization of renewable energy technologies for electricity generation in the Maldives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(7), pages 1959-1973, September.
    • Handle: RePEc:eee:rensus:v:12:y:2008:i:7:p:1959-1973
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