Abstract

The Asia Alternative Energy Program (ASTAE) is a World Bank-donor initiative to support renewable energy and end energy efficiency investments in Asia. This article summarizes ASTAE's review of Solar Home System program experience in Indonesia, Sri Lanka, the Philippines and the Dominican Republic. Successful photovoltaic (PV) market development for rural electrification requires removal of financial and institutional barriers. The authors emphasize the need to overcome the initial cost barrier of Solar Home Systems, establish responsive and sustainable infrastructure and ensure quality products and services. This article also identifies the economic niche for PV use in comparison to traditional options, such as kerosene lanterns and extension of the grid. Major obstacles to the diffusion of off-grid electrication via PV are discussed, along with recommended solutions and best practices. The authors have sought to apply these recommendations in design of the World Bank-assisted Sri Lanka Energy Services Delivery Project and the Solar Home Systems Project in Indonesia. © 1998 John Wiley & Sons, Ltd.

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