This chapter will primarily focus on addressing the rural electrification needs which remain unfulfilled which were discussed in chapter 1 previously, through incorporating market mechanisms to create viable and sustainable business models to propagate solar decentralized solutions towards providing grid quality electricity. The significant nature of both the unelectrified and underelectrified portions of the rural population remain an impediment to growth and inadvertently suppresses their energy demand, which thereby stunts their quality of life and prevents them from pulling themselves out of their predicament. As highlighted in chapter 1 and chapter 2, the awareness towards these problems have seen the light of day as governments attempt to utilize solar solutions to bring electricity to those unserved by the grid while using this new technology to shore up and improve the quality and access to electricity by creating localized energy generation which is autonomous from the central grid. Efforts are also underway to use this technology to stabilize the grid by virtue of the solar potential which is abundant in Southeast Asia and due to the relatively low operating cost.
3.1.1 Rural electricity business models
Currently in Southeast Asia primarily in India the prevalent provider of electricity in these rural communities has been the government through its subsidiaries. As mentioned in Chapter 2, the generation model differs whereby in some countries the state utility provides electricity, albeit intermittently, while in some countries it allows a private entity to provide the services either under its license or through a government framework. This private operators are usually either Independent power producers(IPPs),an Energy service company(ESCOs) or private grid operators , who either recoup their costs entirely from the electricity tariff or are partially reimbursed by the government depending on the country involved, as we...
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