Renewable power has significant potential to reduce the cost of electricity in rural and island settings across the developing world. In areas distant from main power grids, regional isolated grids – often referred to as mini-grids – are often the main source of electricity to industry and households. Power generation usually relies on diesel fuel, often imported over long distances. Yet genera­ting costs can be reduced by hybridising these mini-grids with solar photo­vol­taic (PV) or other renewable power sources.

In the absence of specific guidelines from the UNFCCC on how to develop NAMAs, implementing organizations, donors, and host countries have been formulating NAMAs in a trial-and-error basis. By extracting lessons from these experiences, the previous version of this guidebook introduced basic elements of NAMAs and also different approaches for NAMA-related decisions.

This report provides the results of a review of the evidence that investments in electricity-generating capacity have benefits for poor people, and what factors influence that relationship. The review begins by elucidating a theory to break down the causal chain between additional renewable electricity generation capacity and poverty impacts in four stages or links, which can be formulated as four research questions: (1) What is the link between increased renewable electricity capacity and higher availability and reliability of supply?