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GSR 2015 - Policy Developments

106 05 DISTRIBUTED RENEWABLE ENERGY FOR ENERGY ACCESS TABLE 4. DISTRIBUTED RENEWABLE ENERGY FOR PRODUCTIVE ENERGY SERVICES AND ECONOMIC DEVELOPMENT ENERGY SERVICE TECHNOLOGY NEW INCOME OPPORTUNITIES IMPROVEMENT OF EXISTING ACTIVITIES ADDITIONAL BENEFITS Lighting Smaller-scale solar PV, stand-alone lighting systems; pico-wind, biodiesel, and micro- and pico-hydro stations; biodiesel engines Street lighting enables night-time stalls and entertainment Later closing of restaurants, cafés, and shops; education and reading; manufacturing at night time Creating opportunity for night-time activities, increased safety, and enhanced socialisation Cooking Cleaner biomass cookstoves, biogas, solar cookers Sales and distribution of commercial modern fuels and stoves Cleaner and more cost-effective cooking Time saved in wood collection, cooking, and pot cleaning; improved health Cooling/ refrigeration Larger-scale solar PV and wind, biodiesel, and micro- and pico- hydro stations; biodiesel engines New markets for refrigerated products, e.g., milk, cheese, yoghurt and curd; fresh instead of dried fish Less waste of agricultural and fishery products, more income creation, safe storage of medications Reduced time and energy spent keeping goods fresh; lives saved with medications Heating Solar thermal water heaters, biogas, biomass Process heat for new industrial processes and other activities such as agro-processing Improved comfort in homes, commercial buildings Time saved in collecting wood for heating Information and communication technologies (mobile phones, radios) Solar PV, pico-wind Internet cafés, mobile phone charging, radio stations Enabled access to real-time market prices Reduced travel time and expense associated with communication, banking, and bill paying Irrigation Diesel pumping systems fuelled with biofuel, micro-hydro, solar PV, wind Growing more / new kinds of crops Better yields on existing land compared with rain-fed agriculture Less time spent watering crops Agro-processing Biodiesel pumps, micro-hydro, micro- grids, solar dryers Adding value by refining agricultural products Increased throughput and lower costs Less time spent manually grinding, pounding, drying, etc. Mechanical energy Biodiesel pumps, micro-hydro Enabling welding and metalwork Improved quality and speed of carpentry Time saved by mechanisation of repetitive designs n POLICY DEVELOPMENTS Because the expansion of energy access cannot be done through grid extension alone, policymakers are supporting DRE with a variety of specific policies, regulations, and targets. To date, most policy frameworks developed for improving energy access have emphasised electrification, with less of a focus on clean cooking, heating, and cooling.49 Brazil, China, India, and South Africa have taken the lead in developing large-scale, off-grid renewable energy programmes that are making significant inroads into addressing the dual challenges of energy access and sustainability.50 An important factor in the success of renewable energy initiatives in these countries has been their inclusion in broader long-term rural elec- trification programmes that are supported politically and backed by substantial and sustained public resource allocations.51 The most popular policy tools involve energy market mechanisms, which seek to harness the power of market competition among project developers to spur development. Peru, for instance, was one of the first countries to prepare and implement a DRE reverse auction, where those offering the lowest price win contracts. The auction was prepared in 2013, and a contract was awarded in late 2014 for the provision of 500,000 off-grid solar PV systems through a 15-year contract that includes construction, installation, operation, maintenance, and any replacements required.52 In 2014, some countries established or were in the process of forming their own ministries or departments related to DRE. For example, the Bangladesh Renewable Energy Policy of 2014 created a Sustainable and Renewable Energy Development Authority (SREDA).53 Chad also was in the process of creating an autonomous agency to regulate developments related to energy access and to promote investment in the DRE sector.54 Other countries initiated new programmes to expand energy access to rural and remote regions. Chile launched the Energy Access Fund in 2014 to finance small-scale renewable energy

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