The Promotion of Renewable Energies in Developing Countries

The main aim of this policy-support document is to attract policy-makers attention in renewable energies deployment, offering to energy and development stakeholders an alternative subsidy-scheme to support electrification in a village-scale mini-grid based on the good performance of the renewable electricity generation. Market support mechanisms are required to stimulate the deployment of most renewable energy technologies becoming already competitive with existing energy technology options for off-grid areas. Historically the promotion of renewable energy technologies (RET) in isolated areas has involved international donors or government subsidising the initial capacity investment. Instead, in Europe the renewable electricity generation support scheme, the Feed-in Tariff (FiT), has been a successful mechanism to increase the deployment of renewables in the country's electricity grid. The basis of the FiT mechanism involve the obligation on the part of an electricity utility to purchase electricity generated by renewable energy producers at a tariff determined by public authorities and guaranteed for a specific period.