Our latest discussion paper ‘Discussion Paper: How End-User Subsidies Can Help Achieve Universal Energy Access’ aims to inform the discussion on how end-user subsidies for off-grid solar solutions fit within the ‘toolkit’ of public financing solutions to accelerate energy access. It has been compiled following interviews with 25 GOGLA members.
The prevailing view of the companies interviewed for this paper is that end-user subsidies will be needed to reach the poorest households with clean energy access. This is a shift in the sector’s view compared to June 2015 – when the last Industry Position on subsidies was released by GOGLA on behalf of its members. However, despite this change in view, interviewees still shared concerns around the design and implementation of end-user subsidies. Such initiatives must be carefully approached to ensure they minimise the risk of negative market distortion and complement the growth of long-term, sustainable markets.
Stakeholders need to address these concerns together, and strong commitment is necessary from governments, development partners, investors, NGOs, and private sector companies to effectively unlock their impact.