Design and Performance of Policy Instruments to Promote the Development of Renewable Energy : Emerging Experience in Selected Developing Countries

This report summarizes the results of a
recent review of the emerging experience with the design and
implementation of policy instruments to promote the
development of renewable energy (RE) in a sample of six
representative developing countries and transition economies
('developing countries') (World Bank 2010). The
review focused mainly on price- and quantity-setting
policies, but it also covered fiscal and financial
incentives, as well as relevant market facilitation
measures. The lessons learned were taken from the rapidly
growing literature and reports that analyze and discuss RE
policy instruments in the context of different types of
power market structures. The analysis considered all types
of grid-connected RE options except large hydropower: wind
(on-shore and off-shore), solar (photovoltaic and
concentrated solar power), small hydropower (SHP) (with
capacities below 30 megawatts), biomass, bioelectricity
(cogeneration), landfill gas, and geothermal. The six
countries selected for the review included Brazil, India,
Indonesia, Nicaragua, Sri Lanka, and Turkey.