The Distributed Funds for Distributed Renewable Energy rundown by the proponent organization articulates the importance of public finance institutions to support the remote off-grid and micro-grid renewable energy projects.
The decentralized energy resources industry has been advancing continuously for the past seven years. Specifically, the prepay domestic solar systems. The challenge for these programs is that financial aid is only available for multinationals, and little or none to the locals.
These corporate entities have headquarters in Europe or North America. The reason for this is that the lead investors are from these regions. This statement implies that there is profit retention in these countries instead of draining into Africa.
Oil Change International’s senior advisor, Thuli Makama, expounds that this coronavirus period is crucial for the forecasted projects for Africa, especially about decentralized renewable energy, to gain roots into the deep-seated rural areas. He hopes that this will be the programs’ main agenda while the European countries are focusing on reviving the economy from the inevitable pandemic.
Makama reiterates that these funds are vital in the implementation of the locally acquired renewable energy projects instead of pumping the money into foreign companies.
The press release of this event also covers data highlighting how international public funds intended for projects in Africa are shifting their course to finance energy and climate change initiatives. Of these funds, approximately 2% has successfully landed into the energy access projects for renewables in the past six years. On the other hand, fossil fuel projects have received over 3.5 times the financial aid they needed in comparison to renewables in two years.
Bronwen Tucker of Oil Change International outlines that micro-grid and off-grid renewable energy is cost-effective and reliable compared to renewables on the grid and fossil fuels off the grid.
Tucker further states that the development of a locally-owned decentralized renewable energy system will be essential for the African economy. He says the coronavirus pandemic has laid back the efforts of developing a reliable energy system that is untenable by global market shocks and natural calamities. The development of this system would have cushioned Africa while it prepares to implement its climate change initiatives.
Generally, the press release highlights the long-awaited action by the international public finance institutions to cut off support for fossils and channel it into the renewables.
Finally, other recommendations in the statement support the entrant decentralized renewable energy systems. The corporates agree that funds should go towards the renewable energy sector for Africans rather than tackling climate change in areas with enough resources to strategize their moves.