Lessons for Modernizing Energy Access Finance, Part 2 – Balancing Competition and Subsidy: Assessing Mini-Grid Incentive Programs in Sub-Saharan Africa
This policy brief summarizes a review of 20 mini-grid incentive programs in sub-Saharan Africa, 17 of which are still being implemented. The programs analyzed primarily used one of two mechanisms to stimulate investment: auction programs and results-based financing (RBF) programs.
Rural Investment: Building a Natural Climate Solutions Policy Agenda that Works for Rural America and the Climate
This report outlines a menu of policy ideas capable of both garnering the necessary support from rural America and helping the U.S. reach its climate goals through natural climate solutions.
Lessons for Modernizing Energy Access Finance, Part 1: What the Electrification Experiences of Seven Countries Tell Us about the Future of Connection Costs, Subsidies, and Integrated Planning
This brief explores the successful rural electrification experiences of seven case countries—Brazil, Chile, Laos, Peru, South Africa, Thailand, and Tunisia—looking specifically at the cost of connections and how subsidies and public financing were deployed to address the affordability challenge and facilitate energy access.
As electricity companies in low- and middle-income countries move deeper into rural regions, the cost of new connections generally increases while the electricity demanded by these new customers remains lower than urban and peri-urban customers. This is a challenging dynamic for utilities looking to sustain their financial health as well as for governments tasked with engineering viable strategies for achieving universal electrification.