Demand Side Subsidy Framework and Consumer Financing for Renewable Energy Affordability

Energy access is a key development, and off-grid solutions (OGS) are being deployed to close the energy access gap in line with the sustainable development goals (SDG) 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all. However, achieving SDG 7 will depend on energy affordability. In Nigeria, a majority of the unconnected or underserved populations are in rural areas – where income levels are low and most live below the poverty line. Therefore, it is pertinent that demand-side subsidies (DSS) are considered for the off-grid solutions.

This report discusses Nigeria’s energy access situation and the concept of Demand side-subsidies for off-grids solutions, including its advantages and disadvantages. DSS will reduce the cost of Renewable Energy (RE) solutions for low income end-users, thus increasing the electrification rate and encouraging the adoption of RE technologies towards meeting SDG 7.

Download the Demand Side Subsidy Framework and Consumer Financing for Renewable Energy Affordability