Smart Financing in the DRE Sector – The Building Blocks to Financing Rural Electrification

The document identifies decentralised renewable energy (DRE) as the most cost-effective option for over half of the electricity connections needed by 2030 in emerging markets. To scale this, it proposes three 'building blocks': increasing public investment to leverage private capital, establishing stable political and regulatory frameworks to mitigate investment risks, and creating an enabling environment through capacity building and innovation. The author highlights a partnership with AISER Benin as an example of concrete market development activity.

• Decentralised renewable energy (DRE) is considered the most economical choice for more than 50% of the connections required to reach sustainable electricity for all in emerging markets by 2030.
• To scale DRE, public investment must be significantly increased and structured to attract or 'crowd in' private sector investment.
• Private investment requires a stable political and regulatory environment where the power sector is designed to incentivise capital and mitigate DRE-related risks.
• Market catalysis requires an enabling environment consisting of capacity building, innovation, and business partnerships, exemplified by ARE's Memorandum of Understanding with AISER Benin to develop the DRE market in Benin.

APA

Lecoque, D. (2021). Smart Financing in the DRE Sector – The Building Blocks to Financing Rural Electrification. Alliance for Renewable Electrification. https://renewelec.org/smart-financing-in-the-dre-sector-the-building-blocks-to-financing-rural-electrification/

Chicago

Lecoque, David. Smart Financing in the DRE Sector – The Building Blocks to Financing Rural Electrification. Alliance for Renewable Electrification, 2021. https://renewelec.org/smart-financing-in-the-dre-sector-the-building-blocks-to-financing-rural-electrification/.

Wikipedia

{{cite press release |last1=Lecoque |first1=David |title=Smart Financing in the DRE Sector – The Building Blocks to Financing Rural Electrification |publisher=Alliance for Renewable Electrification |date=26 April 2021 |url=https://renewelec.org/smart-financing-in-the-dre-sector-the-building-blocks-to-financing-rural-electrification/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{lecoque2021smart, author = {Lecoque, David}, title = {{Smart Financing in the DRE Sector – The Building Blocks to Financing Rural Electrification}}, publisher = {Alliance for Renewable Electrification}, year = {2021}, month = apr, url = {https://renewelec.org/smart-financing-in-the-dre-sector-the-building-blocks-to-financing-rural-electrification/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }