3.1 Government Interventions
Government interventions as a business environment parameter for SPIS look at policies, rules, and regulations that govern the irrigation and solar sectors in a country.
Together they provide a complete picture of the strength and breadth of government support and the actions taken to turn that support into reality. Typically, government policies and regulations vary from country to country, but can be assessed in terms of:
- promotion of renewable energy systems specifically solar,
- programs promoting irrigation devices and in particular SPIS and
- presence of relevant government bodies that are providing support to the sector.
An important indicator for an effective policy and regulatory environment for SPIS is the existence of programs to implement and support the frameworks in place. For instance, if the programs have an indicative or projected budget and target, it signals the government‘s commitment to implementing the policies. Additionally, the presence of government bodies to keep track of the progress in implementation and adherence to standards are good indications of the implementation of policies and regulations.
By way of example, contrast country X that has a clause in their Energy Act on the country adopting renewable sources of energy including solar to country Y that has the same clause but has also developed Solar PV regulations, has set standards for equipment and has designed a subsidy program to promote adoption of SPIS among small scale farmers. Country Y is seen to have a better environment for the promotion and adoption of SPIS.
- Determine the regulatory landscape of a region and its appetite to SPIS
- Data on government regulations and policies in solar and irrigation equipment
- List of government programs that promote SPIS
- List of government bodies involved in solar and/or irrigation
- World Bank’s Regulatory indicators for sustainable energy (RISE) help in comparing national policy and regulatory frameworks for sustainable energy
- National and local governments
- Energy and irrigation ministries
Some of the policies may cut across different government ministries. For example, a policy on trade may remove custom duty on solar. This would still be a government intervention but focused on finance. This is covered in the financing parameter of the business environment module.