Abstract
This chapter provides a review of financing mechanisms used for energy access in general and off-grid electrification in particular. It reviews the literature on the subject and tries to find answers to issues like whether the funding has been adequate, whether sufficient funding for the future is likely to be available, whether states should take the lead or leave it to the private sector and so on. It also looks at the innovative approaches used in funding and indicates whether small-scale projects can benefit from such initiatives. The chapter finds that in general the state has played an important role in funding infrastructure investments in both developed and developing countries. But many developing countries faced difficulties financially and neglected this for a long time. The gap has been somewhat filled by international donor agencies but their scale of operation so far has been selective and limited and cannot ensure adequate funding for the future. The innovative mechanisms are also unfriendly towards small-scale projects and therefore, do not really provide much hope. The challenge of mobilising finance and ensuring its appropriate delivery and use remains a major issue and would require a co-ordinated effort of all relevant stakeholders.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
IEA (2011) indicates that in the absence of new policy interventions 1 billion people will still lack electricity access by 2030 while 2.7 billion will not have access to clean cooking energies by 2030.
- 2.
This report was released ahead of a high-level conference on Energy for All: Financing access for the poor in Olso organised by the Government of Norway and the International Energy Agency on 10 October 2011.
- 3.
Tirpak and Adams (2008) reported $490 billion for 1997–2005.
- 4.
97Â % if secondary transactions are considered.
- 5.
EnDev is a joint programme of the Dutch and German governments to enhance access of energy in developing countries. EnDev aims to provide access to 5 million people in rural areas and is being implemented by GTZ and SannterNovem. The programme started in 2005 and has undertaken 23 projects covering cooking energy, lighting, energy for productive use and for social infrastructure. More information is available at http://www.senternovem.nl/energising_development/general_information/index.asp.
- 6.
References
AfDB. (2008). Clean energy investment framework for Africa: Role of the African development bank group, operation policies and compliance department. Tunis: African Development Bank.
AfDB. (2008). Clean energy investment framework for Africa: The role of the African development bank. Tunis: African Development Bank.
AfDB. (2010). Financing of sustainable energy solution, Tunis: African Development Bank. (see http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/C-10%20Note%203%20English%20%28final%29_for%20posting.pdf).
AGF. (2010). Report of the secretary general’s high level advisory group on climate change financing. New York: United Nations (http://www.un.org/wcm/webdav/site/climatechange/shared/Documents/AGF_reports/AGF%20Report.pdf).
ASER. (2007). Costing for national electricity interventions to increase access to energy, health services and education. Senegal final report, agence senegalaise d’electrification rurale, Washington: World Bank.
Barnes, D. F., Singh, B., & Shi, X. (2010). Modernising energy services for the poor: A world bank investment review—Fiscal 2000–2008, World bank energy sector management program. Washington: World Bank.
Bazilian, M., Nussbaumer, P., Haites, E., Levi, M., Howells, M., & Yumdella, K. K. (2010). Understanding the scale of investment for universal energy access. Geopolitics of Energy, 32(4), 21–42.
Bazilian, M., Nussbaumer, P., Gualberti, G., Haites, E., Levi, M., Siegel, J., et al. (2011). Informing the financing universal energy access: An assessment of current financial flows. The Electricity Journal, 24(7), 57–82.
Bazilian, M., Nussbaumer, P., Rogner, H. H., Brew-Hammond, A., Foster, V., Pachauri, S., et al. (2012). Energy access scenarios to 2030 for the power sector in sub-saharan Africa. Utilities Policy, 20(1), 1–16.
Behrens, A., Nunez Ferrer, J., Carraro, M., Lahn, G., & Dreblow, E. (2011). Access to energy in developing countries. Brussels: European Parliament.
Bloomberg New Energy Finance. (2011). Scaling PPP for energy access and climate finance. The Boathouse Sessions, New York, London.
Cabraal, A., Cosgrove-Davies, M., & Schaffer, L. (1996). Best practices for photovoltaic household electrification: Lessons from experiences in selected countries. Washington: World Bank.
CIF. (2011). Annual Report 2011, Climate Investment Funds, The World Bank Group, Washington D.C.
Delina, L. (2011). Clean energy financing at Asian development bank. Energy for Sustainable Development, 15(2), 195–199.
GEF. (2012). Behind the numbers: A closer look at GEF achievements. Washington: The global environment facility, GEF secretariat.
Glemarec, Y. (2012). Financing off-grid sustainable energy access for the poor. Energy policy (in press).
Gualberti, G., Bazilian, M., Haites, E., & Carvalho, M. G. (2012). Development finance for universal energy access. Milan: Fondazione ENI Enrico Mattei.
IEA. (2011). Energy for all: Financing access for the poor, Special early excerpt of the World Energy Outlook 2011. International Energy Agency, Paris.
Lipp, J. (2001). Micro-financing solar power: The Sri Lankan SEEDs model. Refocus, October, pp. 18–21.
Mainali, B., & Silveira, S. (2011). Financing off-grid electrification: Country case Nepal. Energy, 36(4), 2194–2201.
Miller, D., & Hope. C. (2000). Learning to lend for off-grid solar power: Policy lessons from World Bank loans to India, Indonesia and Sri Lanka. Energy Policy, 28(2):87–105.
Moner-Girona, M. (2009). A new tailored scheme for the support of renewable energies in developing countries. Energy Policy, 37(5), 2037–2041.
Monroy, C. R., & Hernandez, A. S. S. (2005). Main issues concerning the financing and sustainability of electrification projects in rural areas: International survey results. Energy for Sustainable Development, 9(2), 17–25.
Monroy, C. R., & Hernandez, A. S. S. (2008). Strengthening financial innovation in energy supply projects for rural exploitations in developing countries. Renewable and Sustainable Energy Reviews, 12(7), 1928–1943.
Morris, E., & Kirubi, G. (2009). Bringing small-scale finance to the poor for modern energy services: What is the role of government? Experiences from Burkina Faso, Kenya, Nepal and Tanzania. UNDP, New York.
Morris, E., Winiecki, J., Chowdhary, S., & Cortiglia, K. (2007). Using microfinance to expand access to energy services: Summary of findings. Washington: The SEEP Network.
Ortiz, B., Vetter, M., Golz, S., & Bopp, G. (2007). Concepts for hybrid PV village grids to make their operation a local business, 22nd European photovoltaic solar energy conference and exhibition, 3–7 September, Milan.
Radulovic, V. (2005). Are new institutional economics enough? Promoting photovoltaics in India’s agricultural sector. Energy Policy, 33, 1883–1899.
Reiche, K., Covarrubias, A., & Martinot, E. (2000). Off-grid rural electrification in developing countries. World Power, pp. 52–60.
Simon, G., Bumpus, A. G., & Mann, P. (2012). Win-win scenarios at the climate-development interface: Challenges and opportunities for stove replacement programmes through carbon finance. Global Environmental Change, 22(1), 275–287.
Sonntag-O’Brien, V., & Usher, E. (2004). Mobilising finance for renewable energies. Thematic background paper 05, International Conference for Renewable Energies, Bonn.
Tirpak, D., & Adams, H. (2008). Bilateral and multilateral financial assistance for the energy sector of developing countries. Climate Policy, 8(2), 135–151.
UNDP. (2008). Financing options for renewable energy: Country experiences. Thailand: UNDP Regional Centre in Bangkok.
UNDP. (2009). Charting a new low-carbon route to development. New York: United Nations Development Programme.
UNDP. (2011). Towards an energy plus approach for the poor: A review of good practices and lessons learnt from Asia and the Pacific. New York: UNDP.
UNEP. (2012). Financing renewable energy in developing countries: Drivers and barriers for private finance in Sub-saharan Africa. Geneva: United Nations Environment Programme Finance Initiative.
Wang, X. (1998). The best practices for off-grid solar energy: A case study on China, Yale University.
Woerlen, C. (2011). Meta-evaluation of climate mitigation evaluations. Washington: GEF Evaluations Office.
World Bank. (2008). Designing sustainable off-grid rural electrification projects: principles, Washington: World Bank.
World Bank. (2011). The State and Trends of the Carbon Market, World Bank, Washington D.C.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2013 Springer-Verlag London
About this chapter
Cite this chapter
Bhattacharyya, S.C. (2013). Financing Electrification and Off-Grid Electricity Access Systems. In: Bhattacharyya, S. (eds) Rural Electrification Through Decentralised Off-grid Systems in Developing Countries. Green Energy and Technology. Springer, London. https://doi.org/10.1007/978-1-4471-4673-5_9
Download citation
DOI: https://doi.org/10.1007/978-1-4471-4673-5_9
Published:
Publisher Name: Springer, London
Print ISBN: 978-1-4471-4672-8
Online ISBN: 978-1-4471-4673-5
eBook Packages: EnergyEnergy (R0)