EN/240

WORKSHOP ON ENTREPRENEUR DEVELOPMENT/CREDIT MECHANISMS FOR RENEWABLE ENERGY APPLICATIONS TO MEET IN NEW DELHI, 15-17 SEPTEMBER

11 September 1997


Press Release
EN/240


WORKSHOP ON ENTREPRENEUR DEVELOPMENT/CREDIT MECHANISMS FOR RENEWABLE ENERGY APPLICATIONS TO MEET IN NEW DELHI, 15-17 SEPTEMBER

19970911 NEW YORK, 11 September (DESA) -- The United Nations Department of Economic and Social Affairs (DESA) together with the Indian Renewable Energy Development Agency are organizing a workshop on entrepreneur development and credit mechanisms for the commercialization of renewable energy applications. The programme of the meeting, which includes three days of technical presentations and discussions, will take place in New Delhi, India, from 15 to 17 September. The workshop will be attended by a range of participants from approximately 15 countries, representing governments, non-governmental organizations, industrial associations and community groups. Representatives from international organizations and development banks will also participate.

The purpose of the meeting is to promote the commercialization of renewable energy systems. It will examine the role of entrepreneurs and market intermediaries in the diffusion of renewable energy applications, discuss ways and means of engendering community and women's involvement in the management of decentralized energy systems and analyse innovative credit arrangements that have been employed to facilitate the marketing of renewable energy applications. Another objective of the workshop is to promote the wider-scale application of renewable energy systems through increased access to credit, energy technologies and the promotion of local manufacture, maintenance and service capabilities. The workshop also aims to discuss strategies for mobilization of capital from the private sector. This calls for building partnerships involving different entities, which in turn could leverage additional resources.

One of the problems in current approaches to national energy planning, including rural energy in developing countries, is that they are largely supply-oriented. Studies undertaken in several countries have pointed out that this approach entails huge capital costs and that the entire burden falls on governments and electric utilities to mobilize the needed resources. An example is the case of rural electrification through extension of the electrical grid, where costs are high for small loads and only a small fraction of the population avail themselves of such facilities. Thus, alternative, market-based approaches involving private-sector participation need to be explored. Such approaches are expected to contribute to more efficient energy systems and lead to sustainability in the long run.

The advent of decentralized energy options for rural energy services provides new opportunities for promoting people-centred development. These

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options have not been addressed adequately in terms of the necessary institutional and human resource capabilities, except for pilot projects in some countries. New studies are under way to analyse the issues involved and to contribute to the development of appropriate new strategies, as well as to defining the enabling environment. The adoption of such a strategy is likely to start shifting a significant part of the onus of energy services in rural areas to local communities and energy entrepreneurs. Experience has shown that rural populations are capable of taking charge of their own development - - given assistance in start-up when such development calls for new technology. The crucial vector lies in the elaboration of new forms of public/private partnerships. The synergy created with other programmes for the development of rural energy services is necessary, as the same constraints of empowerment and autonomy arise in all areas, such as water supply, sanitation, health care and communications.

Analysis is providing insights into the extent to which commercialization strategies are addressing critical issues with respect to institutional and regulatory frameworks, financial incentives and energy pricing strategies. The results of the analysis of various issues involved can become inputs for investment decisions and lending operations of such financial institutions as the multilateral development banks. Building capacity at the national and local levels to address these issues is an important consideration for many countries. This workshop will attempt, among other things, to analyse the experiences that such countries as India, China and others have gained and the steps that they have already taken to build the requisite capacity in the area of rural energy.

The working language for the meeting will be English.

Please address any inquiries to: Mr. Kui-Nang Mak, Chief, Energy Management Branch of the Department of Economic and Social Affairs, tel: 212-963-8798; fax: 212-963-4340.

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For information media. Not an official record.