Policy background paper, incentives for the use of renewable energy : the experience in Brazil, Cyprus, India, the Philippines, and California

While the promotion program in California was generic in nature, in the four developing countries they were technology-specific: India"s program initially promoted biogas digesters and now includes solar water heaters and improved cooking stoves; Brazil promoted the use of ethanol over gasoline; the Philippines promoted geothermal resources for electric power generation and biomass fuels; and in Cyprus, the private sector developed and promoted solar water heaters with little government intervention. The body of the paper uses these experiences to analyze indepth the conditions that influence the response of energy consumers and producers to renewable energy promotion programs. A final section summarizes key lessons learned - programs that neglect consumers" needs usually backfire, promotion must not race ahead of technology"s capacity to deliver consistent performance, granting subsidies may encourage producers to rely on them, and governments must develop overall energy policies - and presents issues for further discussion at the roundtable.