''Wilton Park, 16.09.2009
Written by: DFID/ REEEP International Secretariat''

Renewable energy provision in the developing world could receive a vital boost after the announcement of a new initiative which will look at how to stimulate investment in a low-carbon future for the world’s poorest people. Gareth Thomas, International Development Minister, announced the initiative on Wednesday 16 September in a speech at the Renewable Energy & Energy Efficiency Partnership (REEEP) Conference in Wilton Park.

Advanced Market Commitments (AMCs) for low carbon energy could be used to guarantee a viable long-term market and price for green technologies, giving the private sector the incentive to invest now. Possible AMCs could include:
  • Mobilising green mini-grids - working with mobile phone operators to connect green-powered transmission towers to local communities.
  • X-Prizes - these offer substantial monetary awards for developers of new technologies. X-Prizes have already been established for private space flight and green cars.
  • Renewable energy feed-in tariffs, a solar challenge fund, and other innovative measures will also be considered as part of DFID’s research.

Minister for International Development Gareth Thomas said: “The developing world’s thirst for energy is set to soar over the next few decades and so it is essential that we work to ensure this demand is met with clean, renewable energy. This new initiative seeks to offer solid incentives for the private sector to invest in technologies that offer the quickest route to a low-carbon future.”

Low carbon AMCs could follow the model set by their application in the health sector, in which they have been hugely successful in helping stimulate the development and manufacture of vaccines for developing countries. A rapid research programme will now begin in which DFID will look into which form of AMCs offer the best outcome for developing countries. This will report in early 2010.

See the original article here

For the text of the full speech on the DFID website click here