| Abstract: | Remote rural communities in developing countries are at a similar economic stage of development as was the developed world more than 100 years ago when electricity was used for more than 50 years for lighting and radio only. Not until people could afford refrigerators did electricity demand grow. Without direct capital subsidies by governments and cross subsidies by utilities the developed world would not be as developed as it currently is and certainly not those communities outside major cities and towns. Many rural areas in the developed world would be in a similar energy plight to those currently in the developing world! There currently is no technology that can meet a subsidy free energy supply anywhere in remote rural communities. The least cost option to meet the basic energy needs for the remote developing world is a properly designed solar system (systems designed up to an availability level not down to a price). To supply the one billion people without access to electricity would cost about US$112 billion (2005 $) in total subsidies using solar. But this will be less than the US$450 billion (2005) subsidy to meet their basic lighting needs using diesel energy.The user pays principle might work for McDonalds but 20 years working in developing countries has clearly demonstrated that there is something dramatically wrong with the current economic paradigms where basic infrastructure is required. It should not be the Private Sector that funds the development of remote rural lighting, they have demonstrated that they can only deliver too little too late, but the Public sector through their existing utilities with government direct subsidies if another generation is not to be lost to development. To demonstrate the need for a paradigm shift, over the past 20 years I have implemented and installed solar projects worth more than US$100million in many developing countries, but none with their utilities or energy departments. All the projects have been with rural development authorities that recognised the immediate need of their constituents and were not at all fussed by the concept of subsidisation. They actually know what it was like on the ground. Something that many energy authorities and utilities I fear have no idea about. |
