For the two-thousand million people in the developing world who currently have no access to basic electrical services, PV presents the opportunity for a giant leap forward and a much needed improvement in living standards. For the PV services industry, the developing world represents an enormous new business opportunity.

At first glance, this might appear to be the basis for further cynical exploitation of the world's poor by powerful companies from the industrialized world. But for those gathered in Sun Valley the best, indeed only, way of tapping this potential market was seen to be through mutually profitable joint ventures with developing country partners. This avoids one of the major drawbacks of short-term donor programmes, which - while offering temporary support in one specific location - do not address the underlying problem for poor infrastructure within the recipient country. Joint venture partnerships provide real prospects and incentive for replication, which lead to more widespread and longer lasting social and economic advantages for the recipient country.

Larry Crowley, Director of Strategic Planning for the conference's host utility, Idaho Power Company, drew attention to the growing commitment of national governments and international finance organizations to meet the welfare needs of the world's poor, through rural electrification programmes. He proposed that the business opportunities, for energy service organizations that are able to display the appropriate competencies, lie in being able to satisfy the investment criteria of the lending organizations and so gain access to the support need to kick-start the business. Programmes such as the World Bank's 'Solar Initiative' and the proposed Global Environment Facility (GEF) PV 'Green Carrot' are intended to serve as a form of subsidy to initiate the PV market in developing countries. It would then be down to the partners to ensure that the venture realizes its full potential and achieves sustained profitability.

Dennis Anderson, senior advisor of the Industry and Energy Department within the World Bank, confirmed the availability of significant financing for renewables. But indicated that a critical component of accessing the international investment funds is the preliminary groundwork. Site surveys, testing, pilot demonstrations, etc. will generally be required to demonstrate project feasibility prior to approaching the financiers for full-scale support. This is where the right venture partnership can have a critical influence. The initial investment in terms of personnel time, expertise and capital outlay is large and the risks should not be overlooked. But if successful, these are greatly outweighed by the potential profits. The GEF has funds of USD 2 billion, and up to USD 400 million could well be available for renewable energy projects in the developing worlds. Anderson reiterated the vital role for PV and other renewables in meeting the growing energy demand of many developing countries and stressed the importance of environmental sustainability in energy supply. Citing India as an example, he ventured that 75 GW, which the country currently needs could be supplied entirely by photovoltaics, for instance in solar farms. There would be several benefits of a large-scale solar farm programme: firstly, the market need would be satisfied and secondly the PV system cost reduction that would arise with the vastly increased production volumes could open the door to other markets. Perhaps most importantly, would be the positive effects that such a program would have on the infrastructure within the country itself.

Charles Feinstein, senior environmental specialist within the World Bank's Global Environment Facility, stressed the importance of infrastructure development. The GEF is examining various mechanisms to address this need and has proposed the 'Green Carrot' initiative for ventures that will enhance developing countries and assist development of the PV market. The initiative, which is still awaiting approval, would theoretically serve three projects of up to USD 15-20 million each. The projects would necessarily be located in the developing world, but the competitive tender process would be open to international consortia.

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