Survey of sustainability in rural energy supply projects. Results of the survey| By | Rodríguez Monroy, C., San Segundo Hernández, A. School of Industrial Engineering, Department of Business Administration, Universidad Politécnica de Madrid, Spain | | Download (click on the image) |  | | Description | In November 2004 we launched a survey of sustainability in rural energy projects in developing countries and after analysing all the answers received we have finished this important element of our research.
At present we want to share with you the main results of the survey. The survey, which received 185 responses from 69 countries, is part of a wider research that is been conducted in the Department of Business Administration at the Industrial Engineering School of the University and covers aspects related to financing energy projects and cooperation in energy supply. The main conclusions and results of the survey are available here. Key findings include:
- Financial sustainability and Demand-side focus are the most relevant parameters to be enhanced when considering long term sustainability of electrification projects. In particular 85% of respondents estimate that Financial sustainability is the leading issue to address in this kind of projects
- Financial innovation and Private sector involvement are the two main topics that have the potential to increase renewable dissemination in developing countries. If sustainability is also considered, Public-private partnerships are the leading strategies to follow although innovation in the ways of financing is also a very relevant topic
- NGOs seem to be the best performers in past renewable electrification projects, while Private sector it is the most criticized agent. Providing proper Local assistance and Demand-side approach are the two main skills needed to increase the impact of NGOs electrification projects. On the contrary, Lack of profitability and Poor regulatory frameworks are the two main concerns that justify lack of appropriate involvement of private sector in rural electrification projects. 71% of respondents consider that Lack of profitability is the main cause that justify the inadequate private sector involvement in this kind of projects
- Financial sustainability of renewable projects is mainly considered from a demand-side point of view: existence of Microfinancing schemes and the development of Productive initiatives are the two main topics that have significant influence in financial viability of renewable projects
- Renewable energy funds are considered as the most suitable financial instrument to deal with renewable rural electrification projects by a 72% of respondents. Project finance is the second preferred option. The percentage of respondents that didn't know some opportunities for financing renewable electrification projects was still very important.
- Leasing and Commercial loans are not considered very suitable by most of respondents when approaching down-side financing, being Revolving funds the most appropriate instrument
- 53% of respondents consider that Flexibility Kyoto Mechanisms have high potential to contribute to renewable deployment in developing countries. Europe and North-America's respondents are much more sceptical about Corporate Social Responsibility
- Finally almost 70% of respondents consider that Institutional support, Local empowerment and Innovative financing have a High or Very High potential to increase resource mobilisation to finance renewable projects
Attached you will find the file containing details of the main conclusions and results of the survey. Only an English version is available. We encouraged to you to share the knowledge by disseminating this paper indicating as reference:
Full reference
Rodríguez Monroy, C., San Segundo Hernández, A. 2005. "Survey of sustainability in rural energy supply projects. Results of the survey". School of Industrial Engineering. Department of Business Administration. Universidad Politécnica de Madrid. Spain. March.
| | File size | 439 kB | | Date | 19-03-2005 at 07h42 | |
|
