doi:10.1016/S1364-0321(00)00007-1 | How to Cite or Link Using DOI Copyright © 2000 Elsevier Science Ltd. All rights reserved. |
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Abstract
Twelve projects provide energy services to off-grid rural households in developing countries by enhancing markets for solar home systems and by removing barriers to their dissemination. Project approaches are reviewed, along with early implementation experience and lessons suggested by experience. Most projects incorporate the following features: pilot private-sector and NGO delivery models; pilot consumer credit delivery mechanisms; pay first-cost subsidies and offer affordable system sizes; support policy development and capacity; develop codes and standards and establish certification, testing, and enforcement institutions; and conduct consumer awareness and marketing programs. Most projects are just beginning implementation; a few are almost completed. Lessons from early experience suggest that: solar home system delivery firms face a myriad of difficulties operating in rural areas; credit risk is a serious concern of both financiers and dealers and makes credit sales particularly challenging; technical performance of systems is becoming well-proven; customers desire a range of component options and service levels and can benefit from even small systems; projects must recognize the link between rural electric-grid extension and solar home system demand; and marketing campaigns can be extremely costly and time consuming in rural areas. Challenges are to demonstrate sustainable and replicable business models, develop regulatory models for energy-service concessions, and integrate rural electrification policy with solar home system delivery.
Article Outline
1 Eric Martinot conducted the work herein as an Associate of the Stockholm Environment Institute, Boston. He currently works for the Global Environment Facility. Anil Cabraal is a Senior Renewable Energy Specialist in the World Bank's Asia Alternative Energy Program. Subodh Mathur is a consultant to the World Bank and its Africa Rural and Renewable Energy Initiative. Views expressed are solely those of the authors and do not necessarily reflect official views of the World Bank or its client countries.
Corresponding author. Tel.: +1-202-473-0169; fax: +1-202-522-3240; email: emartinot@worldbank.org