Best Policy Practices

Best Policy Practices
RERED-Project
Sri Lanka
In Sri Lanka, the government is removing
barriers to renewable energy, and more.
International financial institutions are
involved, too.
Name of the programme: Renewable Energy for Rural Economic
Development (RERED) Project
Lead institution: Government of Sri Lanka
Other institutions and stakeholders involved: World Bank,
the Global Environment Facility (GEF), local governments
Timeframe: 2002-2007 | Status: Ongoing
Policy and main objectives: The Central Government is in
charge of the whole project. The main objectives are to reduce
atmospheric carbon emissions by removing barriers to
and reducing implementation costs for renewable energy, and
to promote and improve energy efficiency. Additionally, the private
sector and local communities are involved in order to foster
rural economic development.
The project targets include (a) provision of electricity access
to 100,000 rural households through solar home systems
and off-grid electricity connections via independent mini-grids
powered by micro-hydro, wind and biomass generators; and
(b) electrification of 1,000 small and medium-sized rural enterprises
through renewable energy resources. Funding under the
project is channelled through participating credit institutions
(PCI) to individual investments. Grant funds are also available
from the GEF for selected technical assistance activities. Provincial-level
governments also participate in the project by providing
a matching grant to residents of the provinces who purchase
or connect to renewable energy technologies.
The amount of a grant varies; for instance, the price per
watt peak (Wp) of a solar unit is USD 70 with a capacity of
41 Wp to 60 Wp.
Results achieved: Off-grid projects completed include the electrification
of 66,267 rural homes through solar home systems
and 3,036 homes through 72 village hydro projects.
Link: www.energyservices.lk/
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