Key Issues

The development of grid-connected renewable energy systems in developing countries requires the creation of a favorable investment climate that provides long-term stable tariffs and a regulatory framework for independent power producers with open grid access and fair transmission charges.  Experience has shown that the following key issues must be addressed in any country in order to create a favorable climate for investment in cost-beneficial and sustainable renewable energy grid-connected power systems.

	Ensuring a Legal Frameworkfor Independent Power Producers
	Determining the Economic Value of Renewable Energy by accounting for environmental externalities and diversification value
	Designing Renewable Energy Policy Instruments such as mandated market policies and financial incentive policies
	Enabling Long-term Financing through Standard Power Purchase Agreements, Tariff Setting Procedures and Partial Risk Guarantees
	Adopting Technical Standards for grid interconnection and fair transmission charges
	Understanding Intermittency and Grid Stability Impacts
	Supporting capacity building for market development and financing