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| <span lang="EN-GB"><font face="Arial">Sometimes pure logic or economic analysis fails to indicate that subsidies should be awarded after all: modern technologies are often cheaper in terms of life cycle costs / levelized energy costs compared to prevailing traditional technologies and services; data clearly shows that 4-7 month payback times exist for investing in modern lighting services. Yet, people are not investing on a large scale as could be expected. An explanation is that poor households already spend one third of their income on traditional energy like candles, kerosene and fuel wood and have no means to invest in modern technology, however urgently they are willing to do so. Subsidies really do make a difference, for households to invest in the modern technology and for the private sector to develop the infrastructure to deliver such technology. It is important to face and accept the basic trade-off: speed vs. sustainability. Access is long overdue and the focus should be on realizing this first, but in a sustainable manner and using minimum levels of subsidy.</font></span> | | <span lang="EN-GB"><font face="Arial">Sometimes pure logic or economic analysis fails to indicate that subsidies should be awarded after all: modern technologies are often cheaper in terms of life cycle costs / levelized energy costs compared to prevailing traditional technologies and services; data clearly shows that 4-7 month payback times exist for investing in modern lighting services. Yet, people are not investing on a large scale as could be expected. An explanation is that poor households already spend one third of their income on traditional energy like candles, kerosene and fuel wood and have no means to invest in modern technology, however urgently they are willing to do so. Subsidies really do make a difference, for households to invest in the modern technology and for the private sector to develop the infrastructure to deliver such technology. It is important to face and accept the basic trade-off: speed vs. sustainability. Access is long overdue and the focus should be on realizing this first, but in a sustainable manner and using minimum levels of subsidy.</font></span> |
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− | <span lang="EN-GB"><font face="Arial">It helps to make the subsidy support [[Transparency_as_precondition_for_reforming_subsidies|transparent]]; in most countries today, it is impossible to indicate the contribution of subsidies in the supply of grid electricity. Most likely these subsidies are huge, compounded throughout the supply chain: the generation capacity is subsidized, the fuel is subsidized or detaxed, the expansion of the transmission and distribution network is subsidized, connection fees and tariffs are subsidized, etc. Revenues from consumers do not cover the full costs of generation, transmission, distribution and bill collection.</font></span> | + | <span lang="EN-GB"><font face="Arial">It helps to make the subsidy support [[Transparency as precondition for reforming subsidies|transparent]]; in most countries today, it is impossible to indicate the contribution of subsidies in the supply of grid electricity. Most likely these subsidies are huge, compounded throughout the supply chain: the generation capacity is subsidized, the fuel is subsidized or detaxed, the expansion of the transmission and distribution network is subsidized, connection fees and tariffs are subsidized, etc. Revenues from consumers do not cover the full costs of generation, transmission, distribution and bill collection.</font></span> |
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| <span lang="EN-GB"><font face="Arial">In Rwanda</font></span>[[#_ftn1|<span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt"><span><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">[1]</span></span></span></span></span>]]<span lang="EN-GB"><font face="Arial"> the electricity Roll-out program intends to connect 250,000 new customers over the next few years and applies a beneficiary contribution of less than 10% of the real cost of connection. It is not phrased as a subsidy, but effectively it is; imagine what could have been done with this amount of money in support of finding modern energy solutions for all rural households! In Senegal</font></span>[[#_ftn2|<span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt"><span><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">[2]</span></span></span></span></span>]]<span lang="EN-GB"><font face="Arial"> several concessions have been awarded for increasing access to electricity; the average subsidy for a new connection in concession areas is about $350; alternatively, one could hand out for 5-7 free PV lanterns for the same amount.</font></span> | | <span lang="EN-GB"><font face="Arial">In Rwanda</font></span>[[#_ftn1|<span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt"><span><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">[1]</span></span></span></span></span>]]<span lang="EN-GB"><font face="Arial"> the electricity Roll-out program intends to connect 250,000 new customers over the next few years and applies a beneficiary contribution of less than 10% of the real cost of connection. It is not phrased as a subsidy, but effectively it is; imagine what could have been done with this amount of money in support of finding modern energy solutions for all rural households! In Senegal</font></span>[[#_ftn2|<span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt"><span><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">[2]</span></span></span></span></span>]]<span lang="EN-GB"><font face="Arial"> several concessions have been awarded for increasing access to electricity; the average subsidy for a new connection in concession areas is about $350; alternatively, one could hand out for 5-7 free PV lanterns for the same amount.</font></span> |
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− | <span lang="EN-GB"><font face="Arial">Only a [[Transparency_as_precondition_for_reforming_subsidies|transparent ]]cost and price structure lays the basis for continued discussion and optimization of the support given, the more so since subsidies always remain the outcome of a political process. Although this process cannot or should not be stopped, the subsidies it awards should be made transparent so that beneficiaries and non-beneficiaries alike understand where the support went.</font></span> | + | <span lang="EN-GB"><font face="Arial">Only a [[Transparency as precondition for reforming subsidies|transparent cost]] and price structure lays the basis for continued discussion and optimization of the support given, the more so since subsidies always remain the outcome of a political process. Although this process cannot or should not be stopped, the subsidies it awards should be made transparent so that beneficiaries and non-beneficiaries alike understand where the support went.</font></span> |
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| <span lang="EN-GB"><font face="Arial"></font></span><u>Source</u>: Robert vd Plas, Florian Ziegler in "EnDev Discussion Paper April 2010: Electricity Access for All - Illussions and Solutions" | | <span lang="EN-GB"><font face="Arial"></font></span><u>Source</u>: Robert vd Plas, Florian Ziegler in "EnDev Discussion Paper April 2010: Electricity Access for All - Illussions and Solutions" |
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| [[#_ftnref2|<span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif'"><span><span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif'">[2]</span></span></span></span></span>]]<span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif'"> Lighting Africa Country Study (work in progress)</span> | | [[#_ftnref2|<span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif'"><span><span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif'">[2]</span></span></span></span></span>]]<span lang="EN-US" style="font-size: 9pt; font-family: 'arial','sans-serif'"> Lighting Africa Country Study (work in progress)</span> |
| </div></div> | | </div></div> |
− | <br> | + | <br> |
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| = Typology = | | = Typology = |
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| .... | | .... |
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| = Transparency = | | = Transparency = |
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| '''Transparency as a foundation for reform''' | | '''Transparency as a foundation for reform''' |
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− | <br> | + | <br> |
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| <u>Transparency can influence reform in at least four ways (Hale, 2008):</u> | | <u>Transparency can influence reform in at least four ways (Hale, 2008):</u> |
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| 4. by promoting self-reflection within the organization or government, compelling actors to comply with their own standards and norms. | | 4. by promoting self-reflection within the organization or government, compelling actors to comply with their own standards and norms. |
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− | <br> | + | <br> |
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− | In considering the extent to which improving transparency could assist reform, the key consideration appears to be one of ensuring its relevance. For transparency to be useful, information users and providers must desire disclosure of the information and see how such transparency can help meet their objectives. Improved information about fossil-fuel subsidies, in particular, can help governments meet their reform objectives. At the simplest level, information about the subsidy and its effects facilitates an assessment of its costs and benefits and, therefore, of the implications of reform. Making this information publicly available increases awareness of the effects of existing policies and allows public input to decision-making (Wolfe and Helmer, 2007). Many governments understand the economic, social and environmental problems created by subsidies, but are under political pressure to maintain them. Transparency can expose those winners and losers created by subsidies and therefore help to broaden support for reform (Victor, 2009).... Read more: [http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf] | + | In considering the extent to which improving transparency could assist reform, the key consideration appears to be one of ensuring its relevance. For transparency to be useful, information users and providers must desire disclosure of the information and see how such transparency can help meet their objectives. Improved information about fossil-fuel subsidies, in particular, can help governments meet their reform objectives. At the simplest level, information about the subsidy and its effects facilitates an assessment of its costs and benefits and, therefore, of the implications of reform. Making this information publicly available increases awareness of the effects of existing policies and allows public input to decision-making (Wolfe and Helmer, 2007). Many governments understand the economic, social and environmental problems created by subsidies, but are under political pressure to maintain them. Transparency can expose those winners and losers created by subsidies and therefore help to broaden support for reform (Victor, 2009).... Read more: [http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf] |
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− | <br><br> | + | <br><br> |
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| '''<span lang="EN-US" style="font-family: 'arial','sans-serif'">Global Subsidies Initiative (GSI) - "The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies"</span>'''<span lang="EN-US" style="font-family: 'arial','sans-serif'"> The Global Subsidies Initiative (GSI) releases the publication of Jennifer Ellis’ paper “The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies.” This is the second paper to be published in the series Untold Billions: Fossil-fuel subsidies, their impacts and the path to reform. Subsidies are powerful instruments and when granted to fossil fuels, which are at the heart of all modern economies, subsidies have impacts throughout the economy, society and environment. Understanding the complex trade-offs between the different impacts of subsidy reform is a challenge for any government considering phasing out fossil-fuel subsidies. In this report, Jennifer Ellis provides a detailed literature review, focusing on the six modeling studies in the last 20 years that have attempted to analyze global impacts of subsidies for all fuels. The studies mostly considered effects on greenhouse gas emissions and gross domestic product, but very little of the work has considered other environmental impacts or social impacts. The paper highlights a number of areas where further research should be undertaken but concludes that there is already enough evidence to demonstrate the significant environmental and economic benefits of phasing out fossil-fuel subsidies, and recommends that policy-makers do not delay in beginning the reform process.<o:p></o:p></span> | | '''<span lang="EN-US" style="font-family: 'arial','sans-serif'">Global Subsidies Initiative (GSI) - "The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies"</span>'''<span lang="EN-US" style="font-family: 'arial','sans-serif'"> The Global Subsidies Initiative (GSI) releases the publication of Jennifer Ellis’ paper “The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies.” This is the second paper to be published in the series Untold Billions: Fossil-fuel subsidies, their impacts and the path to reform. Subsidies are powerful instruments and when granted to fossil fuels, which are at the heart of all modern economies, subsidies have impacts throughout the economy, society and environment. Understanding the complex trade-offs between the different impacts of subsidy reform is a challenge for any government considering phasing out fossil-fuel subsidies. In this report, Jennifer Ellis provides a detailed literature review, focusing on the six modeling studies in the last 20 years that have attempted to analyze global impacts of subsidies for all fuels. The studies mostly considered effects on greenhouse gas emissions and gross domestic product, but very little of the work has considered other environmental impacts or social impacts. The paper highlights a number of areas where further research should be undertaken but concludes that there is already enough evidence to demonstrate the significant environmental and economic benefits of phasing out fossil-fuel subsidies, and recommends that policy-makers do not delay in beginning the reform process.<o:p></o:p></span> |
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| <span lang="EN-US" style="font-family: 'arial','sans-serif'">'''IMF Note - Petroleum Product Subsidies: Costly, Inequitable, and Rising''' Petroleum product subsidies have again started to rise with the rebound in international prices. This note reviews recent developments in subsidy levels and argues that it is necessary to reform the policy framework for setting petroleum product prices in order to reduce the fiscal burden of these subsidies and to address climate change. In 2003, global consumer subsidies for petroleum products totaled nearly $60 billion. '''Read more:''' </span><span style="font-family: 'arial','sans-serif'">[http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf <span lang="EN-US">http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf</span>]<o:p></o:p></span> | | <span lang="EN-US" style="font-family: 'arial','sans-serif'">'''IMF Note - Petroleum Product Subsidies: Costly, Inequitable, and Rising''' Petroleum product subsidies have again started to rise with the rebound in international prices. This note reviews recent developments in subsidy levels and argues that it is necessary to reform the policy framework for setting petroleum product prices in order to reduce the fiscal burden of these subsidies and to address climate change. In 2003, global consumer subsidies for petroleum products totaled nearly $60 billion. '''Read more:''' </span><span style="font-family: 'arial','sans-serif'">[http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf <span lang="EN-US">http://www.imf.org/external/pubs/ft/spn/2010/spn1005.pdf</span>]<o:p></o:p></span> |
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| = Subsidies for Solar Home System Promotion = | | = Subsidies for Solar Home System Promotion = |
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| *Support local assembly through technology transfer measures | | *Support local assembly through technology transfer measures |
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− | <br>Source: [http://www.energypedia.info/index.php/file:Gtz_financing_of_shs_in_dc_1.pdf GTZ: FINANCING OF SOLAR HOME SYSTEMS IN DEVELOPING COUNTRIES, THE ROLE OF FINANCING IN THE DISSEMINATION PROCESS, Volume I: Main Report, Updated edition 2001, Eschborn, March 2001.] | + | <br>Source: [[:file:Gtz_financing_of_shs_in_dc_1.pdf|GTZ: FINANCING OF SOLAR HOME SYSTEMS IN DEVELOPING COUNTRIES, THE ROLE OF FINANCING IN THE DISSEMINATION PROCESS, Volume I: Main Report, Updated edition 2001, Eschborn, March 2001.]] |
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| == Approaches == | | == Approaches == |
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| In reality, various strategies are often combined. | | In reality, various strategies are often combined. |
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− | <br> | + | <br> |
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| == SHS Dissemination and Subsidies within different Projects == | | == SHS Dissemination and Subsidies within different Projects == |
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− | {| cellspacing="0" cellpadding="2" width="90%" border="2" | + | {| width="90%" cellspacing="0" cellpadding="2" border="2" |
| |- | | |- |
− | | align="center" bgcolor="#ffff99" | '''Sales Models''' | + | | bgcolor="#ffff99" align="center" | '''Sales Models''' |
− | | align="center" bgcolor="#ffff99" | | + | | bgcolor="#ffff99" align="center" | |
− | | align="center" bgcolor="#ffff99" colspan="7" | '''Subsidies''' | + | | bgcolor="#ffff99" align="center" colspan="7" | '''Subsidies''' |
| |- | | |- |
− | | align="center" bgcolor="#ffff99" | '''Type''' | + | | bgcolor="#ffff99" align="center" | '''Type''' |
− | | align="center" bgcolor="#ffff99" | '''Country and Project Examples''' | + | | bgcolor="#ffff99" align="center" | '''Country and Project Examples''' |
| | bgcolor="#ffff99" | '''1. Buy down grant''' | | | bgcolor="#ffff99" | '''1. Buy down grant''' |
| | bgcolor="#ffff99" | '''2. Start up subsidy''' | | | bgcolor="#ffff99" | '''2. Start up subsidy''' |
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| | bgcolor="#ffff99" rowspan="3" | '''1. Cash sales or<br>dealer credit''' | | | bgcolor="#ffff99" rowspan="3" | '''1. Cash sales or<br>dealer credit''' |
| | '''EnDev Nicaragua''' | | | '''EnDev Nicaragua''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
| | align="center" | | | | align="center" | |
| | align="center" | | | | align="center" | |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
| | align="center" | | | | align="center" | |
| | align="center" | | | | align="center" | |
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| | '''EnDev Uganda''' | | | '''EnDev Uganda''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
| | align="center" | | | | align="center" | |
| | align="center" | | | | align="center" | |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
| | align="center" | | | | align="center" | |
| | align="center" | | | | align="center" | |
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| | '''GTZ Tansania''' | | | '''GTZ Tansania''' |
| | align="center" | | | | align="center" | |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
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| | bgcolor="#ffff99" rowspan="2" | '''2. ‚One hand model<br>Credit and service from one source''' | | | bgcolor="#ffff99" rowspan="2" | '''2. ‚One hand model<br>Credit and service from one source''' |
| | '''EnDev Bangladesh I''' | | | '''EnDev Bangladesh I''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
| | align="center" | | | | align="center" | |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
| | align="center" | | | | align="center" | |
| |- | | |- |
| | '''EnDev Bangladesh II''' | | | '''EnDev Bangladesh II''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
| | align="center" | | | | align="center" | |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
| | align="center" | | | | align="center" | |
| |- | | |- |
| | bgcolor="#ffff99" rowspan="2" | '''3. ‚Two hand model<br>Credit and service separated''' | | | bgcolor="#ffff99" rowspan="2" | '''3. ‚Two hand model<br>Credit and service separated''' |
| | '''EnDev Honduras''' | | | '''EnDev Honduras''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
| | align="center" | | | | align="center" | |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
| | align="center" | | | | align="center" | |
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| | '''Sri Lanka RERED''' | | | '''Sri Lanka RERED''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
| | align="center" | | | | align="center" | |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
− | | align="center" bgcolor="#ccffcc" | '''X''' | + | | bgcolor="#ccffcc" align="center" | '''X''' |
| | align="center" | | | | align="center" | |
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| | align="center" | | | | align="center" | |
| |- | | |- |
− | | align="center" bgcolor="#ccffff" | '''Fee for Service Models''' | + | | bgcolor="#ccffff" align="center" | '''Fee for Service Models''' |
| | bgcolor="#ccffff" | | | | bgcolor="#ccffff" | |
− | | align="center" bgcolor="#ccffff" colspan="7" | '''Subsidies''' | + | | bgcolor="#ccffff" align="center" colspan="7" | '''Subsidies''' |
| |- | | |- |
− | | align="center" bgcolor="#ccffff" | '''Type''' | + | | bgcolor="#ccffff" align="center" | '''Type''' |
− | | align="center" bgcolor="#ccffff" | '''Country and Project Examples''' | + | | bgcolor="#ccffff" align="center" | '''Country and Project Examples''' |
| | bgcolor="#ccffff" | '''1. Buy down grant''' | | | bgcolor="#ccffff" | '''1. Buy down grant''' |
| | bgcolor="#ccffff" | '''2. Start up subsidy''' | | | bgcolor="#ccffff" | '''2. Start up subsidy''' |
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| <br>For further information on subsidies for SHS within EnDev, see the [[Subsidies for Solar Home Systems|study conducted by SiNERGi]] for EnDev (in German). | | <br>For further information on subsidies for SHS within EnDev, see the [[Subsidies for Solar Home Systems|study conducted by SiNERGi]] for EnDev (in German). |
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− | <br> | + | <br> |
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− | <br> | + | <br> |
− |
| + | |
| + | <br> |
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| = Further Reading = | | = Further Reading = |
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| #[http://energypedia.info/extensions/FCKeditor/fckeditor/editor/Overview%20Subsidies%20EnDev <font color="#002bb8">EnDev subsidies Overview</font>] | | #[http://energypedia.info/extensions/FCKeditor/fckeditor/editor/Overview%20Subsidies%20EnDev <font color="#002bb8">EnDev subsidies Overview</font>] |
| #Detailed article on [[Subsidies for Solar Home Systems|<font color="#002bb8">Subsidies for Solar Home Systems</font>]] in various countries | | #Detailed article on [[Subsidies for Solar Home Systems|<font color="#002bb8">Subsidies for Solar Home Systems</font>]] in various countries |
− | #Mirco Gaul's (SiNERGi) study on [http://www.energypedia.info/index.php/File:Stove_subsidies-gtz-2009.pdf <font color="#002bb8">''Subsidy schemes for the dissemination of improved stoves''</font>]gives a brief overview of the current state of approaches and strategies for the promotion of improved stoves as implemented by EnDev projects in Bolivia, Burkina Faso, Ethiopia and Mali | + | #Mirco Gaul's (SiNERGi) study on [[:file:Stove_subsidies-gtz-2009.pdf|<font color="#002bb8">''Subsidy schemes for the dissemination of improved stoves''</font>]]gives a brief overview of the current state of approaches and strategies for the promotion of improved stoves as implemented by EnDev projects in Bolivia, Burkina Faso, Ethiopia and Mali |
| #paper by Kenneth P. Thomas: [http://www.iisd.org/publications/pub.aspx?pno=1069 <font color="#002bb8">Assessing Sustainable Development Impacts of Investment Incentives: A Checklist</font>], IISD, 2009 | | #paper by Kenneth P. Thomas: [http://www.iisd.org/publications/pub.aspx?pno=1069 <font color="#002bb8">Assessing Sustainable Development Impacts of Investment Incentives: A Checklist</font>], IISD, 2009 |
| #ASTAE: Best Practices for Photovoltaic Household Electrification Programs, World Bank, Washington DC, 1996 | | #ASTAE: Best Practices for Photovoltaic Household Electrification Programs, World Bank, Washington DC, 1996 |
....
1. by institutionalizing public discourse: the act of disclosure starts a dialogue between the discloser and interested parties;
2. by compelling actors to tell the truth, making it difficult for discourse to be manipulated by one “loud,” deceitful actor;
3. by cutting through the flood of information and often contradictory claims to focus attention on facts;
4. by promoting self-reflection within the organization or government, compelling actors to comply with their own standards and norms.
In considering the extent to which improving transparency could assist reform, the key consideration appears to be one of ensuring its relevance. For transparency to be useful, information users and providers must desire disclosure of the information and see how such transparency can help meet their objectives. Improved information about fossil-fuel subsidies, in particular, can help governments meet their reform objectives. At the simplest level, information about the subsidy and its effects facilitates an assessment of its costs and benefits and, therefore, of the implications of reform. Making this information publicly available increases awareness of the effects of existing policies and allows public input to decision-making (Wolfe and Helmer, 2007). Many governments understand the economic, social and environmental problems created by subsidies, but are under political pressure to maintain them. Transparency can expose those winners and losers created by subsidies and therefore help to broaden support for reform (Victor, 2009).... Read more: http://www.globalsubsidies.org/files/assets/transparency_ffs.pdf
Hence, the core of the discussion on subsidies boils down to the question whether SHS serve economic development or other public policy objectives. If this question is answered in the affirmative, the alleged violations of free market principles often criticised by opponents of subsidisation appear in a different light. However, the claim of contributing to the achievement of general welfare objectives has important impacts on the design of projects: SHS projects should be designed as but one component of a larger programme aiming at a variety of development objectives like power sector reform, rural electrification, and rural development.
There are direct and indirect subsidies to be found in all projects supported governmentally and internationally, and at all levels. Subsidies are quite often undisclosed, and therefore not transparent enough to be clearly recognised as such by those who would benefit, and those who have the political authority to decide in favour. This leads to SHS financing programmes that are not able to fulfil the standards of finance sector conformity and long-term sustainability. In the partly controversial discussion going on about subsidies, the view that SHS can be propagated with the help of subsidies, as long as they are transparent, serve public interest and do not distort the market, seems to be gaining ground.
A variety of approaches and strategies of direct and indirect subsidies for SHS are used at different levels:
In reality, various strategies are often combined.