CALL TO ACTION ROADMAP FOR THE DECENTRALISED RENEWABLES SECTOR TO SURVIVE AND FLOURISH IN THE WAKE OF THE COVID-19 CRISIS
Summary
The Alliance for Rural Electrification (ARE) warns that the COVID-19 pandemic threatens the survival of the decentralised renewable energy (DRE) sector, with many companies facing liquidity crises and only 3-6 months of survival capacity. To mitigate this, the report proposes the creation of a 'Global DRE Relief Fund' providing grants and low-interest loans (up to 3%), the implementation of a 'Rural Electrification Stimulus Plan' to close the investment gap for SDG7, and the official recognition of DRE as an 'essential service' to allow staff movement during lockdowns. It also calls for the reform of fossil fuel subsidies to fund these transitions and the provision of technical assistance for crisis management and risk analysis.
Key insights
- The COVID-19 pandemic has created a critical liquidity crisis for decentralised renewable energy (DRE) companies, with surveys indicating that most can only survive for 3 to 6 months under current disruption levels.
- The report proposes the establishment of a 'Global Decentralised Renewable Energy Relief Fund' to provide grants or concessionary loans with interest rates up to 3% and minimum payback periods of four years.
- To achieve universal electricity by 2030, the report advocates for a 'Rural Electrification Stimulus Plan' that pools private, public, and philanthropic funding to de-risk investments and mobilise local banks.
- The DRE sector is identified as a least-cost solution for the majority of the 840 million additional connections needed for universal electricity by 2030, with over two-thirds of additional connections in Sub-Saharan Africa expected to come from DRE systems.
- The report urges governments to designate the DRE sector as an 'essential service' to allow personnel to maintain grids and serve customers during lockdowns, citing the state administration in Jharkhand, India, as a positive example.
- The document suggests that reforming fossil fuel subsidies could provide the necessary funding to support the DRE sector while improving government balance sheets and reducing emissions.
- There is a call for increased technical assistance for DRE companies, specifically focusing on risk scenario analysis, crisis management, and health and hygiene training for field staff.
Cite the original document
- APA
- Medici, A. (2020). CALL TO ACTION ROADMAP FOR THE DECENTRALISED RENEWABLES SECTOR TO SURVIVE AND FLOURISH IN THE WAKE OF THE COVID-19 CRISIS. Alliance for Renewable Electrification. https://www.renewelec.org/wp-content/uploads/2023/11/2020-06-26-ARE-COVID-19-Response-Call-to-Action-EN.pdf
- Chicago
- Medici, Alessandro. CALL TO ACTION ROADMAP FOR THE DECENTRALISED RENEWABLES SECTOR TO SURVIVE AND FLOURISH IN THE WAKE OF THE COVID-19 CRISIS. Alliance for Renewable Electrification, 2020. https://www.renewelec.org/wp-content/uploads/2023/11/2020-06-26-ARE-COVID-19-Response-Call-to-Action-EN.pdf.
- Wikipedia
- {{cite report |last1=Medici |first1=Alessandro |title=CALL TO ACTION ROADMAP FOR THE DECENTRALISED RENEWABLES SECTOR TO SURVIVE AND FLOURISH IN THE WAKE OF THE COVID-19 CRISIS |publisher=Alliance for Renewable Electrification |date=April 2020 |url=https://www.renewelec.org/wp-content/uploads/2023/11/2020-06-26-ARE-COVID-19-Response-Call-to-Action-EN.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{medici2020call, author = {Medici, Alessandro}, title = {{CALL TO ACTION ROADMAP FOR THE DECENTRALISED RENEWABLES SECTOR TO SURVIVE AND FLOURISH IN THE WAKE OF THE COVID-19 CRISIS}}, institution = {Alliance for Renewable Electrification}, year = {2020}, month = apr, url = {https://www.renewelec.org/wp-content/uploads/2023/11/2020-06-26-ARE-COVID-19-Response-Call-to-Action-EN.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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