Factors such as specific user needs, different technological options and different economic and institutional conditions call for individual solutions. The GIZ has accumulated years of experience and has systematically developed expertise in the dissemination of grid-connected RE technologies as well as decentralised systems for rural energy supply.

Our advisory services cover two levels:

• Supporting sector policies to create appropriate conditions and incentive systems. Consequently commercial dissemination and technological transfer can be stimulated while reducing market barriers.
• Supporting private stakeholders aiming at the creation of self-sustaining markets.

Depending on national conditions, the GIZ pursues one of two distinct dissemination concepts:

• Government programmes principally designed to supply rural areas. State-organised dissemination programmes focus on improving the social infrastructure and better satisfying individual needs. Photovoltaic systems generally provide cost-efficient solutions for clinics, schools and water supply schemes in remote areas.
• Market-orientated dissemination concepts for rural areas: Effective market driven supply concepts require interplay between various groups, like suppliers, investors, financial service providers, etc.

RE systems are one of several technology options available for rural electrification and will be considered if they represent the lowest-cost option, which in remote areas is often the case. As a consequence of technical progress and massive cost reductions, such RE systems are often the most attractive option, especially in remote areas. As such, they are an attractive supplement and sometimes alternative to traditional solutions like the expansion of electricity grids and the use of diesel generators.

To improve the living conditions of people in rural areas, a high number of decentralised energy supply systems must be installed and operated. To this end close cooperation with the private sector is indispensable.

The lack of information is quite often a major obstacle. Providers are not aware of what users require; and potential customers defer buying because they lack the relevant product information. Targeted information campaigns are therefore an important element of our projects and they contribute to overcoming these market barriers. Specifically developed financial services enable a larger number of users to overcome the hurdle of high initial costs.

Investing in grid-connected electrical systems based on renewable energies represents quite a risk for project developers. It is practically impossible to determine the potential of a site without expensive studies. This problem affects private and public investors alike. Feasibility studies – conducted together with the private sector – can help to make these risks more predictable. Often private companies can be persuaded to invest in, or become users of RE systems.

The involvement of companies from industrialised countries in the dissemination of RE solutions in developing countries not only serves their business interests, but also complies with the objectives of German development cooperation. Ensuring that our projects achieve a wide impact is only possible if interesting opportunities for both local and international businesses are created. This shows the scope for mutually beneficial co-operation between the private and the public sector.