IEEE Power & Energy Magazine - July/August 2014 - 45

history shows that countries with high import tariffs on
renewable energy technologies can have a detrimental effect
on the maturing of this emerging market. yet recent developments have revealed an increase in interest from developing countries in positively engaging in the renewable energy
sector-a reason for optimism. changing import tariffs on
photovoltaic-related technology, for example, is a step easily
implemented by national governments to reduce the cost of
photovoltaic systems.
governments should also do everything in their power
to support the development of a self-sustainable renewable industry, an absolutely essential step in creating a
sturdy supply chain. Such measures could include market
preparation along with capacity-building efforts such as
research and development support, education, and favoring joint ventures with advanced companies to ensure
technology transfer.
obviously, there are manifold opportunities to improve
markets for clean energies and to make them truly self-sustainable. as detailed below, there are many ambitious entrepreneurs who have already made the leap of faith and seen
the light at the end of the tunnel of energy poverty.

Innovation Includes Technology
and Business Models
renewable energy can be a cost-effective means of supplying affordable and reliable power to rural communities. but
such projects require capacity building at every point of the
project chain and with all affected stakeholders. capacitybuilding work, from project inception to the operation of
the system and the organization of the local social structures, needs to be factored into the cost and time frame of
project development up front to ensure the sustainability of
the project.
there are various models of ownership, each with its
own strengths and weaknesses. the best form of ownership will vary from community to community and must
take into account the model best suited to local stakeholders. When compared with 100% diesel-based systems, the
lower operating costs of renewable energy systems improve
the ability of rural communities to cover their operation
and management costs. Some form of subsidy will most
of the time be needed, however, to cover at least part of
the capital costs for the foreseeable future. but this amount
will steadily decrease as technology costs decrease and
experience increases.

Case Studies: Private-Sector Perspectives
Several case studies are presented below as examples of
how renewable energy can bring small but significant
changes to rural communities. they demonstrate how
the latest innovations and affordable rural electrification
solutions are able to serve market needs by offering a
competitive range of products with breakeven periods of
as little as two years.
july/august 2014

figure 3. A solar system from SolarNow (photo courtesy of
SolarNow).

Case Study 1: Dialing for Solar in Tanzania
The Company

Mobisol is a german-based social enterprise working on the
african subcontinent to combine solar energy with microfinance mobile payments and remote monitoring covered by a
comprehensive service package. it offers low-income customers
in developing nations quality ShSs that are clean alternatives to
unhealthy, environmentally harmful, and expensive fossil fuels.
The Challenge

in the semiurban and rural off-grid areas of tanzania, electricity is needed mainly to illuminate homes, charge mobile
phones, power household appliances, and run small businesses. the solution of implementing off-grid energy systems entails two main problems, however: a lack of efficient
micropayment methods and the inability to offer the long-term
loans needed to purchase a quality system complete with aftersales services.
Opportunities for Renewables

tanzania's recent reforms in the power sector created a more
positive climate for larger-scale employment of privately
funded off-grid electrification schemes. the arusha region
was identified as a good potential market due to contacts that
already existed with a local partner, Kakute ltd.
Renewable Solution

the enterprise's pay-as-you-go system circumvents the initial investment hurdle for customers who previously could
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