Climate Action 2011-2012

62 climateactionprogramme.org
bigger systems without any subsidies, for instance in Laos
(Sunlabob) or The Gambia (NICE International). Of
course public money and subsidies play a fundamental,
and unavoidable, role in accelerating energy access and in
supporting these systems, but it is worth mentioning that
off-grid renewables are not only clean and sustainable, they
are also economically sound.
Renewables represent the most local, flexible, adaptable,
easy to scale up, to operate and to maintain sources of
energy, capable of turning natural burdens (e.g. deserts)
into opportunities. And they are available. The potential
for RE in the regions where energy is the most needed
is immense. Sub-Saharan Africa has tremendous natural
advantages. Some experts estimate the continent’s potential
for power generation from renewables is more than 200,000
TWh/year, including more than 30,000 TWh/year rated
as competitive in the short term. In Asia, some countries
receive some of the highest solar irradiations in the world,
whereas others already have important experience in wind,
biomass or small hydro.
Finally, there is growing evidence that investment in
small and medium scale renewable energy systems may have
more impact in improving energy services for the majority
of developing countries’ population. Therefore, emphasis
should be given to small and medium scale renewables more
than any other.
How aRe we to tRansFoRm
potential into economic
success?
So if renewables offer immediate cost-competitive solutions,
especially for rural areas, why are they not more widespread?
First of all, in developing countries worldwide there is a
problem of education and information about renewables,
at every level. Governments still do not believe in RE
technologies, banks do not understand the financial
structures of RE projects and do not lend to them, even
villagers sometimes consider these technologies to be second
class. These educational and information barriers are the
first ones to address on a large scale to support widespread
deployment of RE. There is no lack of success stories
and experience, hence powerful dissemination is key. In
parallel, capacities of each stakeholder concerned need to
be consolidated on topics such as project development,
financing, operation and maintenance.
The second point is linked to the previous one: energy
policies remain short-sighted in many countries, and without
coherent strategy. “In most countries, policies and regulations
currently tend to emphasise short-term costs and supply,
rather than the long-term benefits of clean technologies”
(Athena Ronquillo-Ballesteros, in the REN21 forum,
www.ren21.net). Many countries keep focusing on grid
extension, urban electrification or on large hydro, gas or
coal power plants without any long-term strategy or with
sustainability (including of supply) as primary concern. Such
reasoning has high economic costs (power shortages, losses for
the economic sector) and underlines the need for diversified
electricity generation capacities especially in rural areas,
where off-grid technologies can now bring reliable electricity.
Suitable policies supporting RE projects are still rare and often
not applied and, as in other economic sectors, uncertainties
tend to delay projects, especially in a sector where investments
need to be made over long periods of time.
RE off-grid and mini-grid methods often offer the most
competitive solutions, but translating this potential into
success remains challenging. The deployment of hybrid
mini-grids, for instance, involves complex financial and
organisational questions. The bottlenecks are not in the
technologies, but in the financing, management, business
models, sustainable operations and maintenance (O&M)
and socio-economic conditions. However, here too, positive
experiences exist and answers adapted to every situation
can be formulated either with stand-alone solutions (e.g.
SHS with micro-credit or fees for service) or mini-grids
(e.g. different business models, capital subsidies and cost
recovery tariffs etc.). Countries need to use this experience
and must target the local economic growth that is the only
way to ensure the revenue generation that will support the
long term O&M of the power systems. Therefore a proactive
approach regarding productive uses of electricity, especially,
but not only, piggy-backed onto an existing developed
network, should be encouraged as an integral part of any
rural electrification programme.
More detail on these subjects can be found in Renewable
Energies for Africa: Potential, Markets and Strategies, REN21,
2010 (www.ren21.net); and Productive Uses of Electricity to
Increase the Impact of Rural Electrification Programs (2008)
and other technical papers, ESMAP (www.esmap.org).
Simon Rolland is Secretary General of ARE. He has worked for ARE
for the past five years. He is responsible for the policy sector and
outreach of the association. ARE has become a pioneer in the field of
sustainable development, and Simon an expert in the emerging offgrid
markets in developing countries.
The Alliance for Rural Electrification (ARE) is the only
international business association in the world focusing on the
provision and the promotion of small scale renewable energy
solutions for rural electrification in developing countries. ARE serves
as an international platform for sharing the knowledge and experience
of the private sector interested in operating in developing countries.
Based on their experience, it develops technological, political and
financial recommendations, which are made available for policymakers
and other actors in the field of rural electrification.
Alliance for Rural Electrification
Renewable Energy House, Rue d’Arlon 63-65
1040 Brussels, Belgium
Tel: +32 2 400 10 52 | Fax: +32 2 400 10 10
Email: s.rolland@ruralelec.org | Web: www.ruralelec.org