Do public-private partnerships benefit the end-user in rural energy provision? : A Case Study of Bangladesh Solar Home Systems Programme

Abstract

Access to sustainable rural energy requires significant financial and technological investments in the rural areas of developing countries. Public-private partnerships are one of the key financial mechanisms to realise the Sustainable Development Goal (SDG) 7 objective, enabling governments to overcome the barriers of drawing finance and know-how towards rural energy projects. The Bangladeshi Solar Home Systems (SHS) programme was successfully established through a public-private partnership (PPP) model, resulting in the programme becoming the most extensive off-grid solar programme globally. The PPP model succeeded in securing USD 696 million in financing, and at the height of success, more than 12.5 per cent of the people in Bangladesh enjoyed renewable energy access through the SHS programme. Establishing the PPP as a successful delivery mechanism to disseminate further energy access, but do these PPP agreements facilitate an enabling environment required to sustain long-term energy provision in rural communities? This paper discusses the SHS case and highlights some of the lessons learned for long-term energy provision to the rural areas of the Global South. The case of Bangladesh underpins the importance of including the socio-economic profiles of the stakeholders in the planning and implementation of energy projects to ensure the long-term provision of energy. Additionally, the government must hold a strong central position in the guiding long-term energy policy vision. Without the inclusion of such factors, the obtainment of sustainable energy can fall short.