cover image: Designing Responsible End-User Subsidies for Energy Access : A Toolkit Featuring Case Studies for the Design of Subsidies in Off-Grid Solar and Clean Cooking (English)

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Designing Responsible End-User Subsidies for Energy Access : A Toolkit Featuring Case Studies for the Design of Subsidies in Off-Grid Solar and Clean Cooking (English)

15 Jul 2024

This toolkit provides a framework to design responsible subsidies, building on lessons learned, considering different contexts and objectives, and balancing tradeoffs. The way a subsidy is designed will have an impact on the cost to the government, the speed of rollout, the number of people reached and its scalability, as well as the market-distortion and political risks discussed above. The toolkit provides recommendations on how to inform the subsidy design, options to set specific parameters (targeting, subsidy level, delivery, verification, exit or adjustment), as well as guidelines for communication about subsidies. It also provides recommendations on monitoring, evaluation, and adaptation mechanisms. This toolkit is primarily focused on subsidies for the purchase of off-grid solar products and clean cookstoves; it is limited in its application to fuel or electricity subsidies. Off-grid solar electrification is making the most progress through the selling of devices to end users (on cash or credit through mechanisms such as Pay-As-You Go). This toolkit draws primarily from the experience of subsidizing such sales and is therefore most applicable for the design of subsidies for product purchase. The report however acknowledges the importance of emerging Fee-for Service or Electricity-as-a-Service models, and most of the recommendations in this toolkit are also suitable for these models. However, they are not cited as prominently. Similarly, this toolkit is most applicable to subsidies for the purchase of improved and clean cooking devices. Less so for subsidies for fuels, such as liquefied petroleum gas (LPG), or the electricity consumed by electric cooking devices.
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Authors

World Bank

Disclosure Date
2024/07/16
Disclosure Status
Disclosed
Doc Name
Designing Responsible End-User Subsidies for Energy Access : A Toolkit Featuring Case Studies for the Design of Subsidies in Off-Grid Solar and Clean Cooking
Pages
94
Product Line
Advisory Services & Analytics
Published in
United States of America
Rel Proj ID
1W-Programmatic Asa For Electricity Access -- P174361
TF No/Name
TF0B8021-Electricity Access Program Supervision,TF0C3699-Financial Innovation For Energy Access - FY21-24 - Own-managed - 3,TF0C3703-Off-Grid Solar Scale-Up - FY21-24 - Own-Managed 3,TF0C3704-Improving Livelihoods through Productive Use of Electricity 3,TF0C3705-Improving Livelihoods and Human Capital - Own Managed 3,TF0C3706-Leaving No One Behind - FY21-24 - Own-managed 3,TF0C3724-Mini Grid Facility - FY21-24 Own-Managed - 3,TF0C4531-Clean Cooking Fund - FY21-24 Own-Managed - 3,TF0C4532-Global Electrification Platform (GEP) - FY21 - 24 - Own-managed II,TF0C4560-Integrated Electrification Strategies & Planning - FY21-24 - Own-manage
Unit Owning
ESMAP2 (IEES2)
Version Type
Final
Volume No
1

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