| Development in practice - Rural energy and development |
|Chapter three - Emerging practices and policies|
The transition to modern fuels and the sustainable provision and use of biofuels will both depend on the quality of the enabling conditions for development. When human resource programs are in place and enabling conditions for investment are favorable policies to extend energy services to those without them, whether rural or urban. are much more likely to succeed. Under such circumstances the markets for energy will be stronger, and suppliers of electricity. photovoltaic (PV) sets. liquid petroleum gas (LPG). kerosene, wood stoves. biofuels, and so forth will have better financial returns both to investment and to labor Such situations give rise to a "virtuous circle," because with increased rewards, efforts to expand services further will grow. Thus development policies can accomplish a great deal independently of policies that focus directly on the rural energy problem, though both types of' policies are necessary.
There are five general principles that experience has shown to be relevant to the provision of both modern and traditional fuels. namely:
• Enabling people to choose alternative forms of energy
• Avoiding unnecessary subsidies
• Addressing market failures
• Emphasizing participation and institutional development
• Recognizing the central role of enabling conditions.
We consider these before examining the specifics of policies toward each type of energy.