The Problem 400 million Indians and 1.6 billion worldwide lack access to the electricity grid. They are already spending $50+ billion per year on lousy solutions such as kerosene fuel for small lanterns. The good news is that effective decentralized energy solutions already exist such as household solar energy systems and community-scale solar “microgrids”. The problem is that these clean energy technologies involve significant up-front costs and therefore must be financed. Consumers have a proven willingness to pay for energy services but investors are needed to finance the upfront CAPEX.
Community-based energy services
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ObjectiveCross-sectoral enablerTechnology
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Publication dateObjectiveSectorsApproach
Lack of access to electricity is seen as a major constraint to economic growth and increased welfare in developing countries. In this report, the authors conducted a review of the evidence that investments in electricity-generating capacity have benefits for poor people, and what factors influence that relationship. The review analyzes a large and diverse range of literature dealing with the poverty impacts of increased generation capacity.