Demand-side subsidies for off-grid solar power

Roundtable broadcast date: June 9

Duration 90 minutes

09:00 GMT | 10:00 am London | 10:00 am Lagos | 11:00 am Johannesburg | 12h00 Nairobi

One of the biggest obstacles facing the millions of people in Africa who do not have access to energy is the cost of electricity.

There are different ways that organizations, donors, governments and utilities are trying to address this problem, but there seems to be a consensus emerging around the positive effect of subsidies on the demand side.

Off-grid renewable energy systems are transforming the way secure and affordable electricity is delivered to rural communities around the world. They play a role in breaking a cycle of fuel poverty that is stifling the socio-economic progress of hundreds of millions of people. But the best will in the world doesn’t get the person’s access if they don’t have the money to pay. And, it doesn’t make sense for a developer to build the electrical system or sell a product, if they can’t make money doing it.

A demand-side subsidy increases the purchasing power of the tenant or potential buyer of the solar system, although trying to find the exact way to give that person access to such a subsidy differs. From one country to another.

Innovative funding models to fill this gap are just one of the issues examined by the Household Solar Funders Group. The Group relies on the Scaling Off Grid Energy initiative founded by the United States Agency for International Development, the Office of Foreign, Commonwealth and Development Affairs, the African Development Bank and the Shell Foundation to coordinate the activities of donors in the sector.

Group coordinator Wim Jonker Klunne said the group specifically brings together donors working in the solar home sector in Africa. “Through coordination and collaboration among members, we try to ensure the best possible impact of the funds deployed. Contributions from actors on the ground are crucial in this regard and will ensure that all HSFG actions are aligned with other initiatives. ”

“We need to look for ways to close the accessibility gap through targeted subsidies, while ensuring that the energy supplied is used for productive purposes, as this is the best way to ensure economic development. », He explained.

Jonker Klunne to convene panel discussion at Enlit Africa digital event to discuss What do we need to drive demand declines forward?

MODERATOR: Wim Jonker Klunne, coordinator, Household Solar Funders Group

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About Lois Mendez

Lois Mendez

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