Strengthening financial innovation in energy supply projects for rural communities in developing countries

Abstract

Sustainable energy supply models are needed to achieve the Millennium Development Goals established by the United Nations for 2015. However, sustainability of agricultural development in rural areas is a prerequisite to achieve the objective of halving the proportion of people who live in poverty, and productivity of such development is closely related to energy supply. This article analyses the results of a survey of experts, suggesting that there may be a good chance to innovate in the financing of agricultural electrification projects in developing countries. The experts' opinion suggests that new sources of financing could be mobilised and oriented towards the promotion of sustainable initiatives in developing countries. Financial mechanisms should be adapted to the characteristics of decentralised systems of energy production with renewable sources or with mixed technologies, in order to overcome barriers derived from the high initial price of the applications, and to the specific conditions of the agricultural sector. The participation of funds from the beneficiaries and the incorporation of beneficiaries into the initial phases of project organisation would allow for the development of productive solutions with a higher potential to generate resources and to articulate sustainable proposals.