Main issues concerning the financing and sustainability of electrification projects in rural areas: international survey results

This article concludes that financial sustainability of renewable projects is mainly considered by experts from a demand-side point of view. Micro-financing schemes and the development of productive initiatives are the two main factors that have significant influence in sustainability of energy projects. When considering different alternatives for financing renewable projects from an upstream point of view, renewable energy funds are considered the most suitable financial instrument by 72% of respondents. Kyoto flexibility mechanisms have a high potential to contribute to deployment ofrenewables in developing countries, although differences are found among groups of respondents. These are the main conclusions obtained through the research conducted by the Universidad Politécnica de Madrid (UPM) at the end of 2004 with the objective of identifying and evaluating different proposals for financing and organising energy projects in rural areas of developing countries.