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