Difference between revisions of "PicoPV Policy: Issues and Options"

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Policy options to promote a dynamic development of the PicoPV market should entail the full range of typical instruments of ODA in the energy sector, all geared towards two objectives:<br>  
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Policy options to promote a dynamic development of the PicoPV market should entail the full range of typical instruments of ODA in the energy sector, all geared towards two objectives:<br>
  
 
*speed up the market penetration lest large (low income) market segments remain excluded for an undesirable interim period due to market inefficiencies or rationale private sector pricing strategies (cream skimming) and/or
 
*speed up the market penetration lest large (low income) market segments remain excluded for an undesirable interim period due to market inefficiencies or rationale private sector pricing strategies (cream skimming) and/or
  
*protect consumers from “lemons” so as to avoid welfare losses – i.e. prevent that markets are flooded with low quality short lifetime products due to information asymmetries to the disadvantage of consumers (which would be especially devastating to the poorest users targeted by some of the PicoPV lamps).<ref name="Difference">GTZ. 2010. What difference can a PicoPV system make? Early findings on small Photovoltaic systems - an emerging low- cost energy technology for developing countries</ref><br>
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*protect consumers from “lemons” so as to avoid welfare losses – i.e. prevent that markets are flooded with low quality short lifetime products due to information asymmetries to the disadvantage of consumers (which would be especially devastating to the poorest users targeted by some of the PicoPV lamps).<ref name="Difference">GTZ. 2010. What difference can a PicoPV system make? Early findings on small Photovoltaic systems - an emerging low- cost energy technology for developing countries:[[Media:Gtz picopv booklet.pdf|Gtz picopv booklet]]</ref><br>
  
 
== Regulatory measures  ==
 
== Regulatory measures  ==
  
The main task of regulatory measures would be to protect customers (and markets) from the effects of market inefficiencies.<br>This relates mainly to information asymmetries, but also to inefficient taxes and customs.<br>  
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The main task of regulatory measures would be to protect customers (and markets) from the effects of market inefficiencies.<br>This relates mainly to information asymmetries, but also to inefficient taxes and customs.<br>
  
 
Typical tasks would be to:  
 
Typical tasks would be to:  
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*Inform all national stakeholders about global product quality and key quality issues  
 
*Inform all national stakeholders about global product quality and key quality issues  
 
*Define national specs  
 
*Define national specs  
*Develop a quality Label (regulation by information). This is an important aspect, because a lot of products still fail to achieve quality standards, expected from a mass produced system <ref>Lighting Africa. 2010. Solar Lighting for the Base of the Pyramid - Overview of an Emerging Market -</ref>.<br>  
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*Develop a quality Label (regulation by information). This is an important aspect, because a lot of products still fail to achieve quality standards, expected from a mass produced system <ref>Lighting Africa. 2010. Solar Lighting for the Base of the Pyramid - Overview of an Emerging Market -</ref>.<br>
 
*Develop local testing abilities.  
 
*Develop local testing abilities.  
 
*Delegate “PV regulation” to decentralized entities  
 
*Delegate “PV regulation” to decentralized entities  
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Clearly, the most controversial discussion will be whether to subsidize PicoPV products or not.  
 
Clearly, the most controversial discussion will be whether to subsidize PicoPV products or not.  
  
Facts of [[Subsidies|subsidies in general are]] already discussed for several products. Further information about subsidies of&nbsp;Solar Home Systems, which can be applied for PicoPV systems as well,&nbsp;and examples of different countries&nbsp;can be read up [http://energypedia.info/index.php/Subsidies_for_Solar_Home_Systems here].<br>  
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Facts of [[Subsidies|subsidies in general are]] already discussed for several products. Further information about subsidies of&nbsp;Solar Home Systems, which can be applied for PicoPV systems as well,&nbsp;and examples of different countries&nbsp;can be read up [http://energypedia.info/index.php/Subsidies_for_Solar_Home_Systems here].<br>
  
 
One example of subsidies applied for PicoPV systems can be read up under: [[Subsidies for PicoPV Bangladesh|Subsidies for solar lanterns in Bangladesh]]  
 
One example of subsidies applied for PicoPV systems can be read up under: [[Subsidies for PicoPV Bangladesh|Subsidies for solar lanterns in Bangladesh]]  
  
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<references />  
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<references />
  
 
[[Category:Solar]] [[Category:PicoPV]]
 
[[Category:Solar]] [[Category:PicoPV]]

Revision as of 09:47, 14 March 2011

Policy options to promote a dynamic development of the PicoPV market should entail the full range of typical instruments of ODA in the energy sector, all geared towards two objectives:

  • speed up the market penetration lest large (low income) market segments remain excluded for an undesirable interim period due to market inefficiencies or rationale private sector pricing strategies (cream skimming) and/or
  • protect consumers from “lemons” so as to avoid welfare losses – i.e. prevent that markets are flooded with low quality short lifetime products due to information asymmetries to the disadvantage of consumers (which would be especially devastating to the poorest users targeted by some of the PicoPV lamps).[1]

Regulatory measures

The main task of regulatory measures would be to protect customers (and markets) from the effects of market inefficiencies.
This relates mainly to information asymmetries, but also to inefficient taxes and customs.

Typical tasks would be to:

  • Inform all national stakeholders about global product quality and key quality issues
  • Define national specs
  • Develop a quality Label (regulation by information). This is an important aspect, because a lot of products still fail to achieve quality standards, expected from a mass produced system [2].
  • Develop local testing abilities.
  • Delegate “PV regulation” to decentralized entities
  • Align import duties on different solar equipment[1]

Subsidies

Clearly, the most controversial discussion will be whether to subsidize PicoPV products or not.

Facts of subsidies in general are already discussed for several products. Further information about subsidies of Solar Home Systems, which can be applied for PicoPV systems as well, and examples of different countries can be read up here.

One example of subsidies applied for PicoPV systems can be read up under: Subsidies for solar lanterns in Bangladesh


  1. 1.0 1.1 GTZ. 2010. What difference can a PicoPV system make? Early findings on small Photovoltaic systems - an emerging low- cost energy technology for developing countries:Gtz picopv booklet
  2. Lighting Africa. 2010. Solar Lighting for the Base of the Pyramid - Overview of an Emerging Market -