Inderscience Publishers

The need for financial innovation in electricity supply. Leading issues for sustainability of electrification in developing areas

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Lack of access to an adequate, affordable and environmentally friendly energy supply is a severe constraint for development. Financial sustainability and demand-side focus of projects are the most relevant parameters to consider for long-term sustainability of electrification projects according to the research conducted among experts by the Universidad Politecnica de Madrid in Spain (UPM) at the end of year 2004. The article concludes that micro-financing schemes and the development of productive initiatives linked to the electricity supply are the two main topics that have significant influence in the sustainability of renewable projects.

Keywords: rural electrification, innovative financing, renewable technologies, sustainability, developing countries, financial innovation, electricity supply, energy supply, sustainable development, microfinance, renewable energy

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