The GEF solar PV portfolio : emerging experience and lessons

Abstract

Since 1991, the Global Environmental Facility has provided grant financing for 23 off-grid solar photovoltaic (PV) projects in 20 countries. The review highlighted some important issues associated with solar home systems projects that future projects should explicitly address to varying degrees, depending on the delivery model employed: technological credibility; the role of solar PV within rural electrification programs; government policies vis-�vis electricity as a basic need; household affordability and willingness to pay; marketing strategies, cost, and purveyors; concession selection and regulation; commercial creditworthiness and access to business finance; and sustainability of development finance. The review of the GEF solar PV portfolio also suggests ten emerging lessons. The report recommends future projects in the GEF portfolio focus on: 1) affordability through fee-service or consumer credit approaches; 2) use of GEF resources for non-recurring costs related to business and market development; 3) access to finance and incremental risk sharing; 4) explicit linkages to rural electrification policies and planning; and 5) commercially feasible business models that are sustainable and can be replicated.