Around 2010, solar module prices dropped 80 percent. This was a game-changer for the sector. In many countries, it opened the doors to massive new solar investment. But in other places — primarily low and middle-income countries (LMICs) — the drop in prices was not enough. Even with cheaper technology, the concerns were substantial: perceived political risks, financing challenges, and questions about technical reliability. Around this time, I began my long tenure at USAID and saw firsthand that the plummeting cost of solar did not automatically reach emerging markets. Ministers of renewable energy still told me that solar was too expensive. Utility executives were worried about reliability. Investors feared they would not get paid back. The list of fears went on and on, despite the desperate need for cheap and clean electricity everywhere. Then, in 2014, I began working on our first solar auction — a competitive process where governments or utilities announce how much power (in megawatts) they want built, and private developers win the contract by bidding the lowest price to deliver it (similar to an eBay auction, but in reverse). We specifically provided support to utilities and governments to plan for, design, and run their auctions, evaluate bids, and close deals.
The post What the Solar Sector Taught Me About Scaling Bus Electrification first appeared on Institute for Transportation and Development Policy.
