Link the
newly built sites to a market in order to commercialise the energy sale
for amortization.
The 2nd
component of RforD consists of organizing the connection of the new
power stations to a local/ national grid, negotiating the price for
clean energy supplied to the grid, supervising loan payback and regular
maintenance, and after all in motivating power station owners to reinvest
power sale profits in local infrastructure. When local capacity to pay
for energy is not sufficient electricity end-use options are promoted
and the surplus is sold at a fair price.
In the
case of off-grid areas, local mini-grids are established providing electricity
to rural villages surrounding the production site.
By commercialising
RE sales, we aim at making the whole process of electrification of poor
rural areas with clean energy financially sustainable. RE development
on large scale is only possible if it is not dependent on development
aid per se. However, grants are needed at the beginning to kick off
the process.