Solar-Based Rural Electrification Policy Design: The Renewable Energy Service Company (RESCO) Model in Fiji

15 Pages Posted: 29 May 2012

See all articles by Matthew Dornan

Matthew Dornan

Australian National University (ANU) - Crawford School of Public Policy

Date Written: May 29, 2012

Abstract

Solar photovoltaic technologies have for some time been promoted as a cost effective means of rural electrification in developing countries. However, institutional structures resulting in poor maintenance have adversely affected the sustainability of past solar projects. In Fiji, the Renewable Energy Service Company (RESCO) program is the latest attempt to promote solar-based rural electrification in a fee-for service model, aiming to remove the high upfront capital costs associated with solar technologies and using a public private sector partnership for maintenance. This paper assesses the program using survey and interview data. Major flaws are identified, relating to incorrect treatment of principal-agent problems, information asymmetries, motivational problems, and resourcing of government agencies. General lessons for fee-for-service solar home system models emerge, including that incentives for stakeholders must take centre stage in designing and administering such programs, and that active government support and ownership are required to make programs sustainable.

Keywords: SHS, Solar home systems, Solar, Rural electrification, Fiji, Small island developing states (SIDS)

JEL Classification: Q42, Q48

Suggested Citation

Dornan, Matthew, Solar-Based Rural Electrification Policy Design: The Renewable Energy Service Company (RESCO) Model in Fiji (May 29, 2012). Available at SSRN: https://ssrn.com/abstract=2067856 or http://dx.doi.org/10.2139/ssrn.2067856

Matthew Dornan (Contact Author)

Australian National University (ANU) - Crawford School of Public Policy ( email )

7 Liversidge Street
Lennox Crossing
Canberra, Australian Capital Territory ACT 0200
Australia

HOME PAGE: http://crawford.anu.edu.au/crawford_people/content/staff/mdornan.php

Register to save articles to
your library

Register

Paper statistics

Downloads
161
rank
180,856
Abstract Views
849
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information