Renewable Energy in Developing Countries - Government Policies

Government Policies

Relatively few developing countries have adopted the public policies needed for the widespread development of renewable energy technologies and markets, which have been dominated by Europe, Japan, and North America. The exceptions include countries like Brazil, which has built the world’s leading biofuels industry, China, India, which are leaders in developing decentralized renewable sources such as small hydro, small wind, biogas, and solar water heating. However, policies like feed in tariff are applied. Besides, with the Kyoto Protocol, the program called the Clean Development Mechanism (CDM) that allows for industrialized nations to invest in projects that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries.

Developing-country Governments need to steer resources mobilized for large-scale investments into new production sectors and new technologies. Some argue that policies should base on active industrial policies, combining large scale investments and active policy interventions. There is a need of subsidizing these type of energy to make them affordable to the major part