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) issued a call to action in April 2020 to protect the decentralised renewable energy (DRE) sector from the impacts of the COVID-19 pandemic. The report argues that the sector is critical for achieving universal electricity by 2030 and proposes a series of financial, policy, and technical interventions to prevent sector collapse and accelerate sustainable electrification.
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. This instability is driven by reduced customer liquidity due to lockdowns, a dramatic decrease in new sales, restricted sales agent operations, and slowed access to capital.
- The DRE sector is essential for meeting global energy goals; between 2010 and 2017, over 920 million people gained electricity access, with the DRE sector currently serving more than 420 million people. The IEA estimates DRE systems will be the most cost-effective way to provide the 840 million additional connections needed for universal electricity by 2030, particularly in Sub-Saharan Africa where they are expected to provide over two-thirds of new connections.
- ARE proposes the creation 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. This fund would aim to protect local jobs and essential services, with a specific focus on the rapid electrification of rural health facilities.
- The report recommends a 'Rural Electrification Stimulus Plan' to bridge the investment gap and achieve SDG7. This plan would pool public, private, and philanthropic funding to de-risk DRE projects through smart grants, concessional loans for capital expenditure, and risk mitigation tools, while suggesting that fossil fuel subsidy reform be used to free up necessary funds.
- Governments are urged to officially recognize the DRE sector as an 'essential service' to allow staff to move freely during lockdowns to maintain grids and service customers. The report cites the state administration in Jharkhand, India, as a positive example for declaring the services of ARE Member Mlinda as an essential service.
- To address immediate knowledge gaps during the health crisis, ARE calls for increased technical assistance for DRE companies, specifically focusing on risk mitigation plans, crisis management and resilience planning, 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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