Abstract
Access to modern energy is a social and economic priority to rural population and policy-makers because of its direct socio economic and environmental benefits, as well as the indirect benefits of energy as an important input factor to growth and the Sustainable Development Goals. In this sense, renewable technologies offer the option to provide access to sustainable energy services and foster economic development. However, there are many barriers to the widespread diffusion of renewable energy technologies in the rural environment. One of the main barriers is financial, as many rural families have little expendable capital and lack access to credit on one hand and entrepreneurs face challenges due to the small size and risky nature of the projects arising from their remoteness, limited demand and poor consumer base on the other. Therefore, schemes for financing off-grid electrification are just as important as technological innovations.
This chapter reviews existing support mechanisms and incentives for off-grid photovoltaic deployment in developing countries, particularly combining market, energy use, and socio-economic elements. Additionally, it analyses the progress and adaptation of the support mechanisms depending on the degree of failure in the past, and suggest new solutions for promoting sustainable energy options for remote rural areas in developing countries.
(This is an update of M. Moner-Girona, S. Szabo, S. Rolland, 1.07—Finance Mechanisms and Incentives for Photovoltaic Technologies in Developing Countries, In Comprehensive Renewable Energy, edited by Ali Sayigh, Elsevier LTD, 2012, https://doi.org/10.1016/B978-0-08-087872-0.00148-7.)