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Energy is at the heart of widespread social, economic, and climate problems. Energy must be at the heart of the solution. Without access to clean, reliable, and efficient energy services, the poor are deprived of the most basic opportunities for economic development and improved living standards. Clearly, energy demand and supply patterns both must be altered. This is a major challenge that demands comprehensive and sustainable solutions. In this context, the importance of renewable energy (RE) is beyond dispute. Clean energy technologies are vital to alleviating poverty, expanding rural development, and maintaining environmental quality. The productive use of renewable energy in rural areas helps raise incomes and improve health, providing power to pump water for irrigation, to process crops and power cottage industries, to light homes, schools, and hospitals—all services of premier importance and immeasurable impact in the remote rural areas. Renewable energy technologies can also play crucial roles in employment and economic growth. They are more labor-intensive than conventional technologies for the same energy output (Pachauri, R. 2009)— but at the same time renewable energy technologies (RETs) employ both local and decentralized workers. For an investment in RETs of US$ 1 million over10 years: Wind energy generates 5.70 person- years of employment. Solar photovoltaics generate 5.65 person-years. The coal industry generates 3.96 person-years. Most renewable energy resources are virtually untapped in the developing world. Their local and distributed nature means investments in transmission grids are largely unnecessary. This is a cost-saving advantage developed countries do not enjoy, as their centralized energy grids are less appropriate for distributed energy applications. The main barrier to the widespread use of renewable energy is the high up-front cost, particularly for installing equipment, particularly given the limited economic resources of the people most in need of the technology—most often the rural poor. Strengthening capacity building, promoting enabling environments, developing policy frameworks, and improving demands for RETs can help mitigate steep transaction costs and underdeveloped markets to some degree. However, significantly decarbonizing power production will require considerably more investment in renewable energy, of which at least 75 percent should be directed to non-OECD countries (IEA 2009). INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE 3PDF Image | INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE
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