Regulatory and policy options to encourage development of ...
Regulatory and policy options to encourage development of ...
Regulatory and policy options to encourage development of ...
- No tags were found...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
MODULE 9: RENEWABLE ENERGY: REGULATORY AND POLICY OPTIONSpage 9.141SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICASupport Mechanisms Applicable inthe Short Term (6)Encouraging local private participation inrenewable energy <strong>development</strong>• Local private inves<strong>to</strong>rs can own <strong>and</strong> operate small <strong>to</strong> medium scaleentities in the power sec<strong>to</strong>r• Either on their own or with foreign partners• Appropriate <strong>policy</strong> <strong>and</strong> financial incentives such as:– Enactment <strong>of</strong> lower entry requirements– Tax holidays– Lighter regulation <strong>of</strong> Initial Public Offers (IPOs)Module 9SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICASupport Mechanisms Applicable inthe Short Term (7)Providing Subsidies <strong>to</strong> Rural Investments• Rural electrification provides local benefits but has high capital cost• Dem<strong>and</strong>/usage <strong>of</strong> electricity in rural areas is low• For a reasonable return on investment, the capital cost <strong>of</strong> ruralelectrification needs <strong>to</strong> be covered in part or fully by subsidies• Usually grants financed by donors through rural electrification funds• Used <strong>to</strong> finance rural electrification concessions (e.g. Ug<strong>and</strong>a)Module 9