Solar home systems, productive use equipment, mini grids, and other decentralized renewable technologies transform the lives and livelihoods of those living in energy poverty, and have provided first time access to millions of low income and rural households. Yet even before the COVID-19 pandemic, estimates projected that hundreds of millions of people would still be unable to afford off-grid solar solutions by 2030. The impact of COVID-19 has pushed a further 70 million people into extreme poverty, intensifying this “affordability gap”.
End-user subsidies, which directly reduce costs for consumers, have the potential to address the affordability challenge and enable energy access for the most vulnerable communities. However, for them to be as effective as possible, they must be considered alongside other enablers, such as supportive fiscal policy and supply side subsidies. In addition, as end-user subsidies are complex and create the risk of market distortion – which can hamper other energy access efforts – they need to be designed very carefully.
This event will explore the ‘smart’ design of end-user subsidies to address this complexity and uncover solutions. It will have a particular focus on stand alone solar technologies.
At the event, participants will:
For further background on end-user subsides, supply side subsidies and smart subsidy design, please click HERE.