Renewable energyRenewable energy is power generated from infinite sources, such as wind or solar power. Conventional energy is generated from finite sources, such as natural gas or fossil oil. provision in the developing world could receive a vital boost after the announcement of a new initiative which will look at how to stimulate investment in a low-carbon future for the world’s poorest people. Gareth Thomas, International Development Minister, announced the initiative on Wednesday 16 September in a speech at the Renewable EnergyThe ability to perform work, mainly kinetic, potential, thermal energy, but also in forms of gravitational, sound, elastic and electromagnetic energy. & Energy EfficiencyUsing less energy/electricity to perform the same function. Programs designed to use electricity more efficiently - doing the same with less. Partnership (REEEP) Conference in Wilton Park.

Wilton Park - approach

Advanced Market Commitments (AMCs) for low carbon energy could be used to guarantee a viable long-term market and price for green technologies, giving the private sector the incentive to invest now.

Possible Advanced Market Commitments could include:

  • Mobilising green mini-grids – working with mobile phone operators to connect green-powered transmissionThe delivery of electricity to the retail customer's home or business through low voltage distribution lines. towers to local communities.
  • X-Prizes – these offer substantial monetary awards for developers of new technologies. X-Prizes have already been established for private space flight and green cars.
  • Renewable energy feed-in tariffs, a solar challenge fund, and other innovative measures will also be considered as part of DFID’s research.

Minister for International Development Gareth Thomas said: “The developing world’s thirst for energy is set to soar over the next few decades and so it is essential that we work to ensure this demand is met with clean, renewable energy. This new initiative seeks to offer solid incentives for the private sector to invest in technologies that offer the quickest route to a low-carbon future.”

Low carbon AMCs could follow the model set by their application in the health sector, in which they have been hugely successful in helping stimulate the development and manufacture of vaccines for developing countries. A rapid research programme will now begin in which DFID will look into which form of AMCs offer the best outcome for developing countries. This will report in early 2010.