Designing sustainable subsidies to accelerate universal energy access
Building on previous work, Kuungana Advisory has recently been working with Tearfund, a UK-based relief and development agency, to analyse the role of subsidies in accelerating progress on energy access. The paper analyses a wide-range of previous schemes, covering different geographies, technologies, and parts of the energy value chain, to understand what has worked in the past and what has.
The paper finds that many subsidy schemes, in particular those targeted at off-grid solutions, have not been able to sustain results. Critically, the paper evaluates these schemes through the lens of market design, identifying characteristics that might help to achieve sustainable results in the future.
The full paper is available below.