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.
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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.
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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
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