In rural areas of developing countries, the distinction of electricity markets and low-temperature markets is not yet helpful. In the absence of grid electricity, a wide variety of energy technologies and sources is used for services such as lighting or driving appliances, which in urban areas are entirely served by electricity. Traditional fuels like fuel wood, charcoal and a number of agricultural residues are still the dominant energy source in the rural and peri-urban energy supply of developing countries. As these fuels are - at least in principle - renewable energy sources, they are today still the quantitatively most important renewable energy technology (RET). The REN21 Global Status Reports dedicate a specific section to this technologically heterogeneous field, which constitutes a major development challenge.

For areas out of reach of grid electricity, a specific energy policy is required. The low quality of the energy services in rural and peri-urban areas automatically limits the quality of other technical and social infrastructure. Therefore, the energy issue is closely related to the poverty issue which the Millennium Development Goals (MDG) seek to reduce significantly. There are calls, sustained by the Millennium Project, of including energy supply objectives to the MDGs. Currently, the objective of giving access to modern energy is the consensus objective, because modern forms of energy, such as electricity and gas, can significantly improve the quality and opportunities of life in these areas. At the same time, traditional fuel use has to be rendered sustainable and benign to people's health. Rural energy policies need to consider the rural energy needs in an integrated manner.

The REN21 issue paper Energy for Development illustrates with many case studies the important role of RET in meeting the MDGs. Improved biomass cook stoves, biogas, biomass gasification and electricity in mini or stand-alone systems, based on small hydropower, wind, PV and hybrid supply are the RETs to be expanded, making use of local resources in terms of energy, intelligence, and labour. Cost, subsidy and institutional issues are as difficult as necessary to be solved. They are, however, not specific to RET, but to all rural energy programmes. Financing from internal sources, public-private partnerships, and international finance institutions is available,  incremental cost financing from the Global Environment Facility (GEF). Technical support is offered through bilateral cooperation.

The Global Network on Energy for Sustainable Development (GNESD) has recently published another experience-based report filled with insights on the question of poverty reduction: Can Renewable Energy Make a Real Contribution? For rural electrification in mini-grids or stand-alone systems, the World Bank has assembled her experience in the RE Tool Kit.