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Several case studies showed that due to the financial emphasis, actors shaping reforms are mainly technocrats and politicians from energy agencies and finance ministries whereas representatives for environmental and rural development authorities are almost excluded (Dubash 2002). Economic liberalization and integration therefore seem to be the primary drivers of power sector reforms. In this context it could be understood that renewable energies then would work properly just by putting them on the market without any interventions. But as Mallon (2006) states, markets are good servants but poor masters and the government has the responsibility to establish the market conditions. Because economies of scale still favor fossil fuels, policymakers need to intervene in energy markets to accelerate the dispersion of renewable energies. Economies must encourage competition in their energy markets through effective policy measures to draw domestic and foreign investments. Reducing fossil fuel subsidies is a significant issue. “Reducing or eliminating subsidies provides internal revenues for investment, improves the prospects of attracting direct foreign investment, and improves the financial capacity of governments to pursue other development objectives” (Johansson & Goldemberg, 2002, p.57). Furthermore, external costs as global carbon emissions could be decreased (Larsen & Shah 1992). But there are many more options for governments to intervene and harness the benefits of renewable energies. The critical role is to use legislation and market dynamics to leverage private sector investments into renewable power projects and industries (Mallon 2006). Recent studies (Dubasch 2002; Johansson & Goldemberg 2002; Mallon 2006) suggest that the best solution for developing nations for policy change and strengthening reforms must balance financial, social and environmental sustainability, all together starting with the initiating process. Achieving financial stability has to go along simultaneously with an active promotion of public benefits shifting them closer to the mainstream of political concerns. Once reforms have been undertaken it is difficult to retrofit them (Dubash 2002). The White Paper of ISES (2005) is stating 5 categories of relevant policy mechanisms for a promotion of renewable energies in the developing world: • Regulations governing market and electric grid access as well as quotas mandating capacity and generation (e.g. feed in tariffs, pricing systems) Implementation of Solar Energy in Developing Countries 11PDF Image | CARIBBEAN RENEWABLE ENERGY DEVELOPMENT PROGRAMME
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