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Renewable and Sustainable Energy Reviews 58 (2016) 477–490

Contents lists available at ScienceDirect

Renewable and Sustainable Energy Reviews


journal homepage: www.elsevier.com/locate/rser

Review of barriers to the dissemination of decentralized renewable


energy systems
Mohammed Yaqoot a,n, Parag Diwan a, Tara C. Kandpal b
a
University of Petroleum and Energy Studies, Bidholi, Dehradun 248007, India
b
Centre for Energy Studies, Indian Institute of Technology Delhi, New Delhi 110016, India

art ic l e i nf o a b s t r a c t

Article history: This paper reviews the available literature dealing with the barriers to the dissemination of decentralized
Received 19 May 2015 renewable energy systems. Decentralized renewable energy systems may face a range of technical,
Received in revised form economic, institutional, socio-cultural and environmental barrier to their dissemination. In the paper,
21 October 2015
barriers impeding the dissemination of decentralized renewable energy systems have been identified
Accepted 21 December 2015
and assessed. In addition, appropriate remedial measures and corresponding responsibility centers as
reported in the literature have also been discussed.
Keywords: Inappropriateness of technology, unavailability of skilled manpower for maintenance, unavailability of
Barrier spare parts, high cost, lack of access to credit, poor purchasing power and other spending priorities, unfair
Dissemination
energy pricing, lack of information or awareness, and lack of adequate training on operation and main-
Decentralized renewable energy system
tenance of decentralized renewable energy systems are found to be the most critical barriers. Long-term
conducive policies, appropriate regulatory framework, financial incentives (capital subsidies and soft loans)
to users, technology and skill development, internalization of externalities in the cost of energy, with-
drawal of subsidies presently being given to fossil fuels, development of specialized institutions, coop-
eration with international agencies, participation of local community and awareness generation have been
recommended for increased dissemination of decentralized renewable energy systems.
& 2015 Elsevier Ltd. All rights reserved.

Contents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478
2. Identification and classification of barriers to the dissemination of DRESs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478
2.1. Technical barriers and remedial measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478
2.1.1. Resource availability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478
2.1.2. Technology – design, installation and performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478
2.1.3. Skill requirement for design and development, manufacturing, installation, operation and maintenance . . . . . . . . . . . . . . . . . 479
2.1.4. Potential remedial measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479
2.2. Economic barriers and remedial measures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479
2.2.1. Cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480
2.2.2. Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480
2.2.3. Potential remedial measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482
2.3. Institutional barriers and remedial measures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482
2.3.1. Policy and regulatory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483
2.3.2. Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483
2.3.3. Administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483
2.3.4. Potential remedial measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483
2.4. Socio-cultural barriers and remedial measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 484
2.4.1. Societal structure, norms and value system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 484
2.4.2. Awareness and risk perception . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485

n
Corresponding author. Tel.: þ 91 963 441 3977; fax: þ 91 135 277 6090.
E-mail address: myaqoot@gmail.com (M. Yaqoot).

http://dx.doi.org/10.1016/j.rser.2015.12.224
1364-0321/& 2015 Elsevier Ltd. All rights reserved.
478 M. Yaqoot et al. / Renewable and Sustainable Energy Reviews 58 (2016) 477–490

2.4.3. Behavioral or lifestyle issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485


2.4.4. Potential remedial measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485
2.5. Environmental barriers and remedial measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486
2.5.1. Potential remedial measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486
3. Mapping of critical barriers for individual DRES and trend assessment of evolution of barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486
4. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488

1. Introduction regions of the world have been discussed along with few examples
to present a panoramic view of the barrier. In subsequent sub-
In view of energy security and climate change concerns, govern- sections, the impact of sub-barriers on the dissemination of var-
ments and policymakers are promoting increased dissemination1 of ious DRESs in different regions of the world have been discussed
renewable energy technologies. Increased share of renewable energy with several examples to support the narrative. In addition, for
in the overall energy mix of countries would help the cause of sus- each barrier and its sub-barriers, the remedial measures recom-
tainable development. Renewable energy systems are broadly classi- mended to overcome them have been discussed that may help the
fied into two categories: i) centralized renewable energy system; ii) policymakers to frame policies for accelerated diffusion of DRESs
decentralized renewable energy system (DRES). DRESs such as solar in various parts of the world.
lantern, solar home system, family-type biogas plants, improved bio-
mass cookstoves, etc. have been disseminated worldwide for imp- 2.1. Technical barriers and remedial measures
roving access to energy of the rural households [2]. DRES is also an
appropriate option for electrification of remote households located in Technical or technological barriers to DRESs generally include
difficult terrains (islands and hills) that may not be technically and barriers associated with resource, technology and skill attributes
financially feasible through grid extension [3]. Large-scale diffusion of the system that prevent the utilization from reaching its theo-
and utilization of relatively newer technologies such as DRESs face retical potential [6]. Technical barrier has been widely reported as
barriers. These barriers may put DRESs at a technical, economic, reg- a critical barrier affecting the diffusion of DRESs [5,7–48]. Tech-
ulatory or institutional disadvantage in comparison to conventional nical barriers include sub-barriers pertaining to the following: (a)
energy systems [4]. Sometimes, the barriers may have inter-linkages resource availability; (b) technology – design, installation and
that can have cascading impact on the diffusion of DRESs [4]. Hence, to performance; (c) skill requirement for design and development,
accelerate the diffusion of DRESs, it is vital to understand the barriers manufacturing, installation, operation and maintenance. A brief
and their inter-linkages. This would enable the policymakers and the summary of the published literature reporting different aspects of
implementing agencies to formulate plans and implement them in a technical barriers affecting the adoption of DRESs is presented in
more effective manner. the following paragraphs.
Based on a review of published literature on barriers and rele-
vant aspects, this paper identifies the barriers to the dissemination 2.1.1. Resource availability
of DRESs and classifies them based on their characteristics. It also Renewable energy resources (particularly solar and wind) are
suggests remedial measures to overcome them for enhanced dif- intermittent and/or variable in nature. Other renewable energy
fusion of DRESs. sources such as biomass and hydro may be inadequate at times to
support capacity utilization of respective technologies at eco-
nomical levels. Because of this intermittency and/or inadequacy,
2. Identification and classification of barriers to the dis- resource availability has been cited widely as an important barrier
semination of DRESs [12,17,20,24,28,34,35,43–45,49–54]. For example, a study has
concluded that lack of resource availability is an important barrier
A barrier to the dissemination of a DRES may be defined as a to the diffusion of DRESs such as family-type biogas plant, box-
factor that negatively affects its adoption and subsequent utiliza- type solar cooker, domestic solar water-heater, and solar photo-
tion which hampers its widespread diffusion [5]. Barriers to the voltaic lantern in India [49]. In Turkey, uncertainty with respect to
dissemination of DRESs may often include technical, economic, solar resource availability is reported to be hampering the adop-
institutional, socio-cultural or environmental aspects. In this study, tion of solar water heaters [34]. Similarly, resource availability
barriers pertinent to the diffusion of DRESs have been identified. In issues such as seasonal fluctuation of wind have been reported as
addition, relevant research papers have been cited to highlight the barriers to diffusion of wind installations in the Dodecanese
impact of barriers on the diffusion of various DRESs across dif- islands (Greece) [35]. Thus, it can be inferred that inadequacy and
ferent regions of the world (Appendix). The identified barriers intermittency associated with renewable energy make resource
have been classified under five broad categories depending on the availability an important factor to be considered for the dis-
characteristics of the barrier: technical, economic, institutional, semination of DRESs.
socio-cultural and environmental (Table 1). The following sections
present a discussion on the categories and subcategories of bar- 2.1.2. Technology – design, installation and performance
riers. For each barrier, all the sub-barriers that have reportedly Generally, solar, wind and biomass powered renewable energy
affected the dissemination of one or more DRESs at different technologies suffer from lower energy flux (energy output per unit
floor area) as compared to fossil fuel fired technologies [34].
1
Additionally, the intermittent nature of renewable energy sources
Some authors restrict the term ‘diffusion’ to the spontaneous unplanned
necessitates usage of energy storage devices to improve the energy
spread of ideas or innovation and use the concept of ‘dissemination’ for diffusion
that is directed and managed. However, several studies have used them inter- dispatch ability of concerned renewable energy technologies
changeably [1]. In this study, these terms have been used interchangeably. (RETs) which further puts them at a disadvantage [34,35,41,43,50].
M. Yaqoot et al. / Renewable and Sustainable Energy Reviews 58 (2016) 477–490 479

Table 1 2.1.3. Skill requirement for design and development, manufacturing,


Classification of barriers to the diffusion of DRES. installation, operation and maintenance
Availability of skilled workers is critical to the successful dis-
Barrier Sub-barriers
semination of renewable energy technologies [51]. Lack of avail-
Technical Resource availability; technology (design, installation and ability of skilled workers for design and development, manu-
performance); skill requirement for design and development, facturing, installation, operation and maintenance services has
manufacturing, installation, operation and maintenance been often cited as a barrier to the diffusion of DRESs
Economic Cost; market structure; energy pricing; incentives; purchasing
power and spending priorities; financial issues; awareness
[6,7,9,18,23,25,28,29,33,43–47,58,60,64,66–69,73–80]. A study has
and risk perception discussed the negative impact of dearth of skilled workers for
Institutional Policy and regulatory; infrastructure (institutions for research, installation, operation and maintenance on the diffusion of DRESs
design and after sales services); administrative [4]. Similarly, lack of experience and awareness in technology and
Socio-cultural Societal structure; norms and value system; awareness and
management of DRESs has reportedly acted as barriers to its dif-
risk perception; behavioral or lifestyle issues
Environmental Resources (land and water); pollution; esthetics fusion in ASEAN countries [69]. Lack of trained technicians has
been reportedly hindering the growth of wind installations in
Turkey [34]. For the diffusion of DRESs in Lebanon, non-existence
of local manufacturers has been reported as a barrier [63]. A
Several studies have cited inappropriateness of technology or researcher has deliberated that, in cross-cultural technology
poor design as a significant technical barrier to the adoption of transfer of sustainable energy systems it is important to address
DRESs [7,24,47,49,53,55–59]. For example, it has been reported knowledge and skill barriers [12]. Communication and training
that failures due to application of too complex designs in early barriers due to language difference between field staff and local
projects, lack of standardization and poor reliability are significant people have reportedly resulted in poor transfer of skills leading to
barriers to wind energy development in Tamil Nadu and Andhra the failure of solar battery charging programmes in Northern
Pradesh, India [13]. Likewise, with poor design as a technical Thailand [22]. In addition, lack of knowledge of renewable energy
barrier, wind turbines have had limited success in Tanzania [60]. In technology operation and management has also been listed as a
addition to its primary function of cooking, traditional biomass barrier by few studies [17,39,81]. Hence, it can be inferred that
cookstoves may also satisfy other perceived needs of the users skill related barriers are detrimental to the dissemination
such as lighting, space heating, pest control, etc. [7]. However, the of DRESs.
diffusion of improved biomass cookstoves that has higher thermal
2.1.4. Potential remedial measures
efficiency than traditional biomass cookstoves, face the following
Several remedial measures have been suggested by researchers
barriers: inadequate satisfaction of perceived needs; inflexibility of
to overcome technical barriers to the diffusion of DRESs. Table 2
the stove with respect to number and size of pots; and need for
presents some of the suggested remedial measures to overcome
careful maintenance [10]. Also, faulty design and improper
technical barriers. In addition, appropriate responsibility centers
installation of residential solar water heaters have been cited as
that are expected to support and/or implement the suggested
barriers to their diffusion in USA [9].
remedial measures are also listed in Table 2. It may be noted that
Installation and maintenance issues with respect to DRESs have
most of the remedial measures suggested to overcome technical
also been highlighted as barriers in several studies [5,22,61]. For
barriers to the diffusion of DRESs point towards the establishment
example, frequent need for repair and maintenance of biogas
of appropriate institutional set-ups for: (a) resource assessment,
plants and variation of biogas production, with factors such as
(b) research and development, (c) capacity building, and (d)
ambient temperature, have reportedly been detrimental to its
quality control and standardization.
adoption in Nepal [8]. Likewise, the need for regular cleaning of
Apart from the frequently cited general remedial measures
photovoltaic panels has been cited as a barrier to the performance
listed in Table 2, there are few other case-specific measures that
of solar pumps located at arid zone in India [62].
have been recommended to overcome technical barriers. To
Reliability of DRES has also been an issue of concern for its
overcome intermittency problem associated with DRESs due to
potential adopters. Lack of standards [14,18,29,33,47,55,63–66], irregular resource availability, two or more energy systems can be
codes [18,66], certification [18,29,67,68] for DRESs, and conse- integrated. A study has recommended integrating photovoltaic
quently poor quality/reliability [18,29,33,55,64,65] of these sys- with compressed air energy storage and increasing the thermal
tems are important technical barriers to its diffusion. As per a storage capability in concentrated solar power [52]. Utilization of
study, absence of quality control, non-functionality and low- solar dryers at community level has been recommended to offset
capacity utilization are the barriers affecting improved cook the problem of low capacity utilization associated with solar dry-
stoves, family type biogas plants and small hydropower plants in ers [70]. Extensive testing of solar photovoltaic pumps under
India respectively [38]. Also, low efficiency or quality of some similar climatic conditions has been advocated to ensure their
renewable energy technologies and its insignificant utilization has reliability for drip irrigation in arid zones [62].
been detrimental to its diffusion [69]. For example, solar dryers are It may be noted from Table 2 that research and development
reportedly facing the problem of low capacity utilization in India (R&D) institutions and academic institutions (universities and
[70]. Low reliability of solar buildings in Kenya and the depen- colleges) have major roles to play in overcoming technical barriers.
dence of building designers on foreign designs have also been Thus, such institutions need to be supported by both government
cited as barriers to diffusion of solar buildings in the country [71]. and private sector to promote DRESs.
On similar lines, a study has mentioned poor reliability and shorter
expected life as the barriers to market development of solar water 2.2. Economic barriers and remedial measures
heating and space heating systems in USA [72]. Also, past failures
and poor reliability of DRESs such as solar thermal systems are Diffusion of DRESs face economic and/or financial barriers [5–
reportedly discouraging its adoption among masses [28]. Thus, it 7,10,12–14,16,18,20–23,53,54,73,76,80,84,85]. As per an article,
can be inferred that technology (design, installation and perfor- financial and economic viability and awareness barriers are
mance) related barriers have significant impact on the dis- important economic barriers affecting the promotion of family-
semination of DRESs. type biogas plants, improved biomass cookstoves, box-type solar
480 M. Yaqoot et al. / Renewable and Sustainable Energy Reviews 58 (2016) 477–490

Table 2
Potential remedial measures suggested to overcome the sub-barriers of Technical barrier.

Sub-barrier Remedial measure(s) Responsibility center(s) Relevant reference(s)

Resource availability Accurate resource assessment Institutions for resource [6,7,13,46,49,55,63,82]


assessment
Technology-design,installation and Research and Development (R&D) R&D institutions [6,7,13,19,23,28,43,57,58,63,73,82]
performance International cooperation R&D institutions, govern- [19,25,33,38,40,46,60,69,80]
ment organizations, aca-
demic institutions
Indigenization of technology by study- R&D institutions [6,7,10,12,13,15,24,25,33,56,82]
ing local conditions and involving all
stakeholders during product
development
Training for skill related to product R&D institutions, academic [6,18,19,23,28,29,33,43,73,80,82]
development institutions
Introduction of standards and regula- R&D institutions, quality [6,18,20,29,33,57,61,67,72,79,83]
tions during product development assurance and quality con-
trol institutions
Deployment of mature, reliable, easy to R&D institutions [15,34]
maintain and long lasting technologies
Skill requirement for design and Education and training R&D institutions, NGOs, [4,20,22,44,47,55,57,58,63,64,65,67,68,71,76, 77,82,83]
development, manufacturing, instal- academic institutions
lation, operation and maintenance

cookers, domestic solar water heaters and solar photovoltaic lan- 38.80 per kWh that is much costlier than the prevailing unit cost
terns [49]. Several other research papers have discussed the fol- of grid electricity in India [3]. Several other studies have also
lowing economic barriers-subsidies for competing conventional reported high cost as a major barrier to the diffusion of solar PV
fuels, high initial capital cost, difficulty of fuel price risk assess- systems [14,20,37,72,83,98–100]. For example, as per experiences
ment, high transaction costs of renewable energy projects, non- of a renewable energy company named Grameen Shakti in Ban-
inclusion of environmental externalities in the cost of conven- gladesh, high cost of solar PV module has been the main barrier to
tional energy, lack of access to capital and inadequate information Bangladesh’s PV program [101].
[4,18,25,74]. Another study has listed high investment cost, long Likewise, high cost of solar water heaters has been pointed as a
payback period, lack of purchasing power, uncertainty about barrier to their diffusion [38].
benefits and availability of cheaper alternative fuels as economic Apart from high upfront cost, high fuel cost, operation and
barriers affecting the diffusion of family size biogas plants and maintenance costs, and taxes and insurance costs have also been
solar cookers [7]. As per some researchers, high initial investment reported as barriers to the diffusion of DRESs such as biomass
cost, negative image caused by failed biogas plants, limited private gasifiers [5]. Additional burden on villagers due to operation and
sector participation, lack of money and lack of awareness are the maintenance cost of PV battery charging stations for village elec-
economic barriers hindering the adoption of biogas plants by trification in Thailand has been cited as a barrier [22]. High
farmers in Kenya [86]. Lack of private sector investments due to operation and maintenance cost due to the lack of technically
profit uncertainties has also been reported as a critical economic skilled personnel has also been cited as a barrier for the diffusion
barrier [58]. It has also been argued that availability of highly of DRESs in Nigeria [67]. Similarly, few other studies have also
subsidized conventional energy as well as inadequate fiscal reported high maintenance cost as a barrier to the diffusion of
incentives to DRES users are preventing the diffusion of DRESs in DRESs [47,54,75].
Oman [73,84]. Thus, economic barriers can be classified as cost Often, smaller size of DRES projects lead to high transaction
related or market related and further discussion in this section is cost (cost incurred in various approvals, regulatory and adminis-
presented under these two categories. trative procedures) and the same has been reported as a barrier to
its diffusion [4,13,18,25,26,33,42,45,55,57,67,74,100]. For example,
2.2.1. Cost in Mexico, DRES projects have faced high project development
DRESs often suffer from high upfront cost [4–8,12,17– cost as a barrier since these projects are typically smaller in size
20,23,43,45,47,48,82,86–97]. For example, it has been reported compared to their conventional counterparts [78]. Similarly, high
that cooking technologies based on biogas and solar energy have transaction cost has been cited by a study as a barrier to the uti-
high initial cost that has limited their diffusion [24]. In rural lization of domestic biogas plants [32]. Solar PV systems are also
households of developing countries such as India, traditional
reportedly suffering from high transaction costs during sales,
cookstoves are generally constructed free of cost with locally
installation, etc., due to the lack of conducive and enabling
available materials (stone and mud) and fuelwood is also available
investment policies and a small market size [100]. In addition, lack
at almost zero private cost. Availability of such a zero cost option
of awareness among customers and dealing with multiple stake-
for cooking usually discourages a rural household to invest
holders (government agencies) increases transaction cost for solar
around `2 26000 on a 2 m3 biogas plant [Project Officer of Uttar-
PV system projects [65]. From the above mentioned examples, it
akhand Renewable Energy Development Agency, India, Personal
can be inferred that for accelerated dissemination of DRESs, cost
Communication, May 11, 2014] or about ` 1800 on an improved
related barriers need to be addressed.
cookstove [Project Officer of Uttarakhand Renewable Energy
Development Agency, India, Personal Communication, May 11,
2.2.2. Market
2014]. Similarly, a solar home system of 35 Wp is reported to cost
In comparison to conventional energy technologies, DRESs
around ` 12,000 with resultant levelized unit cost of electricity of `
have been facing economic barriers due to the existing market
structure and its policies that favor their conventional counter-
2
1 USD ¼ ` 65.75 parts through subsidies and other incentives.
M. Yaqoot et al. / Renewable and Sustainable Energy Reviews 58 (2016) 477–490 481

2.2.2.1. Market structure. Lack of competitiveness of DRESs in com- 2.2.2.3. Incentives/Taxes/Duties. Government may support the dif-
parison to conventional energy technologies in current market sce- fusion of DRESs through incentives such as capital subidy, soft loan,
nario is an important barrier [5]. Also, current market is reportedly carbon credit, etc. Also, reduction or waiver of taxes and duties on
biased against DRESs and favors established technologies such as DRESs and associated projects may help the dissemination of
large-scale fossil fired power plants [102]. Market related barriers to DRESs. However, DRESs often receive inadequate incentives to
the diffusion of DRESs have been highlighted by various studies promote its adoption among its potential users. Inadequate incen-
[13,18,21,26,30,33,35,40,45,53,57,58,74,77,80,82,83,103,104]. Lack of tives to DRES users have been considered as a barrier to its diffusion
competition, trade barriers and inadequate information are the fac- [14,46,68,69,84]. In Australia, dearth of incentives for renewable
tors responsible for market barriers with respect to the diffusion of energy has been cited as a barrier [43]. Similarly, lack of incentives
DRESs [105]. For example, state ownership of energy related enter- to wind installations in Greece has been cited as a major barrier to
prises has reportedly created market barriers in Thailand for private its diffusion [35]. Conventional power generation technologies have
entities that are promoting DRESs in the country [68]. Similarly, been reaping the benefits of tariff support, tax holidays and other
distortions in energy market are reported as one of the significant conducive policies since decades and this gives them significant
barriers to the diffusion of DRESs in India [11]. Distortions in energy edge over solar PV systems in the absence of conducive renewable
market are a result of policies that favor conventional energy tech- energy policies in developing countries [100]. A study has cited
nologies through various incentives (subsidies, tax rebates, etc.) and taxes on DRESs as barriers that lead to market distortions [18]. In
discourage the utilization of DRESs through trade barriers and non- addition, distortions in tariff policies on imported equipments are
internalization of externalities [18]. Small size of DRESs market and reportedly retarding the dissemination of DRESs [82]. For example,
subsequent lack of economies of scale has also been cited as an import duty on solar PV systems has further worsened its compe-
economic barrier [6,9,18]. In addition, a study has reported that 100% titiveness in energy market [65].
accelerated depreciation in the first year, capital subsidies and tax
incentives for wind installations created market distortions in India 2.2.2.4. Purchasing power and spending priorities. Poor purchasing
that led to siting of wind turbines at sites with poor wind resource power of potential users has been a significant hurdle to the dis-
leading to project failures [99]. semination of biogas, biomass and solar energy based cooking
systems [7,24]. Poverty or affordability has been reported as a
2.2.2.2. Fuel/Energy pricing. Pricing and affordability issues barrier to the promotion of DRESs [45,68,107]. Dissemination of
reportedly reflect as financial barriers to the adoption of DRESs solar water heating systems is also reported to be adversely affected
[20]. High cost of electricity from DRESs for rural electrification is by the lack of purchasing power of households that are potential
considered as an impediment to their diffusion [46,106]. Failure to adopters of the system [59,79]. Similarly, low purchasing power of
take into account all costs and benefits (particularly environment and potential adopter households due to poverty has been preventing
health related) associated with both conventional energy and usage of solar home systems in un-electrified areas of rural Ban-
renewable energy is another barrier [66]. Subsidies to fossil fuels and gladesh [101] and other countries [65]. Other spending priorities of
non-internalization of externalities in the energy cost are significant households in Greece is also reported as a barrier to the dis-
barriers impeding the diffusion of DRESs [4,18,25,28,33,35,74,78,90]. semination of solar domestic hot water system in the country [61].
A researcher has cited uncompetitive market price of renewable
energy due to its lack of economies of scale and price distortion as a 2.2.2.5. Financial issues. Lack of access to credit facilities has been
result of subsidies to its competitors (conventional energy sources) as widely reported as a critical barrier to the dissemination of DRESs
barriers to the diffusion of DRESs [26]. [4,6,7,17,18,25,26,33,34,39,40,43,44,45,57,58,65,66,69,74,79,80,86].
Subsidized conventional energy sources create market distortions For example, limited access to financial resources and high cost of
favoring conventional energy sources [17,55,67,69,76,7982,93,103]. For finance are preventing commercialization of DRESs in India [11].
example, subsidies to oil and gas have been considered as a barrier to Similarly, difficulties with financing and insuring biomass based
active solar systems for water or space heating in USA [9,72]. Likewise, projects in Europe have been reported as barriers to their successful
subsidies for conventional electricity sources have created a distorted implementation in the region [85]. As many of the potential users of
market for solar PV that discourages its usage [14,100]. In the state of improved cookstoves in rural areas of developing countries are very
Punjab in India, solar PV pumps have been unfairly put against pumps poor, need for access to subsidized credit has been stressed [10].
that operate on free electricity or subsidized diesel [65]. Limited access to affordable credit facilities is also reported as a
Non-inclusion of externalities in the cost of energy from fossil barrier to solar PV diffusion as it prevents the entry of private sector
fuels is reported to have created imperfect market hindering large- in the industry [14,100]. Also, lack of long-term financing [93] and
scale diffusion of DRESs [30,76,89,103]. Consequent availability of high interest rate for capital are important barriers to the diffusion of
cheaper but less sustainable fossil fuel derived energy options has DRESs [18,72]. Moreover, lack of supportive investment climate in a
put renewable energy at disadvantage [39]. For example, abun- country is also reported as a barrier as it may affect the growth of
dance of fossil fuels and cheap electricity has been considered as a DRES industry in the country [68]. Some researchers have cited long
significant barrier to the diffusion of DRESs in Australia [43]. economic payback period as a barrier to the dissemination of biogas
Likewise, easy availability of fuelwood at zero private cost has plants and solar cookers [7]. Long payback period of DRES projects
been cited as a barrier to the utilization of biogas in Nepal [8]. has also been cited as a barrier by several other studies
Reportedly, non-monetary benefits such as time savings or [18,33,47,61,64,72,94].
reduction in the consumption of freely available firewood are not
motivating the potential users enough to adopt DRESs such as 2.2.2.6. Awareness and risk perception. Awareness among various
family-type biogas plants [15]. Also, non-monetary benefits may stakeholders is a very important requirement for effective func-
not be considered for adoption of improved biomass cookstoves in tioning of a market or economy. Lack of information among the
developing countries, especially where adoption decisions are stakeholders has been cited in many studies as a barrier to the
taken by men whereas fuelwood collection and cooking is per- dissemination of DRESs [18,26,32,33,43,48,54,64,66–68,75,79,
formed by women [10]. The difficulty of fuel price risk assessment 108,109]. For example, in the case of family-size biogas plants in
(due to risk associated with the fluctuation of future fossil fuel Kenya, lack of information is rated one of the critical barriers
prices in international/domestic market) has also been considered affecting their adoption among the farmers of the country [86]. On
as a barrier to the dissemination of DRESs [4,74]. similar lines, some researchers have mentioned that innovation
482 M. Yaqoot et al. / Renewable and Sustainable Energy Reviews 58 (2016) 477–490

systems for renewable energy technologies in United Kingdom are leakages to wealthy farmers has been recommended to improve
suffering due to lack of exchange of information among various dissemination of solar PV systems in Indian agricultural sector
stakeholders [23]. [65]. Moreover, appropriate
Perception of financial or investment risk is another challenge financial funding depending upon the relative maturity of solar
to the dissemination of DRESs [26,33,53,55,76,82,93,94,110]. In water heating industry has also been recommended [59]. Local
developing countries, public has general perception that new credit schemes need to be set up in rural areas to overcome the
technologies such as DRESs are costlier as compared to their cost barrier of DRESs [12]. Soft loan schemes of Grameen Shakti in
conventional counterparts [102]. Increased risk perception Bangladesh have been found to be very successful in overcoming
regarding the performance and durability of DRESs results in affordability barriers associated with solar PV systems and its
higher desired rate of return on investment leading to less capital replication in other areas has been recommended [101]. Creation
availability for DRES projects [4]. of self-help groups among farmers to raise revolving funds for
construction of biogas plants is also reported as a viable option for
2.2.3. Potential remedial measures promotion of DRESs in Kenya [86].
Generally, most of the renewable energy policies attempt to As indicated in Table 3, role of institutions including DRES
address economic barriers [4]. Table 3 presents some of the sug- related policymaking and implementation agency, R&D institu-
gested remedial measures to overcome the sub-barriers under tions, banks, NGOs and academic institutions is critical to sur-
economic barrier category. From Table 3, it can be gauged that mount cost and market barriers. Besides supporting R&D for cost
overcoming economic barriers to DRESs would need institutional reduction, efforts should also be made towards the development
support from government and DRES related policymaking and of a conducive market for DRESs through appropriate policy
implementation agency for: (a) setting up R&D institutions for cost measures.
reduction, (b) market facilitation to DRESs through various
incentives, (c) developing a fair energy pricing regime with 2.3. Institutional barriers and remedial measures
internalization of externalities, and (d) delivery of microfinance
facilities to poor households for DRES adoption. A large number of studies have reported the relevance of
In addition to the generic broad based remedial measures listed institutional barriers in preventing the dissemination of DRESs
in Table 3, there are few other case-specific measures that have [5,7,9,12–14,16,18–21,23,28,29,33–35,90,92,111–116]. The sub-
been reportedly suggested to overcome economic barriers to the barriers that may be listed under the category of institutional
dissemination of DRESs. Through a discussion on commercializa- barrier include: lack of agencies to disseminate information;
tion of solar technology in USA, a study has recommended uncertain government policies; lack of a legal/regulatory frame-
matching of government’s commercialization strategy with the work; tedious bureaucratic procedures; unstable macro-economic
stage of evolution of the industry [9]. Need for long-term fiscal environment; lack of stakeholder participation in decision making;
incentives has also been stressed [43]. Also, rationalization of clash of interests among stakeholders; lack of R&D culture;
subsidies has been recommended as large state subsidies in insufficient professional institutions; and lack of private sector
Thailand towards solar battery charging programmes for 15 years participation [18]. For example, institutional barriers reported to
have reportedly destroyed the market for private companies [22]. be affecting family-type biogas plants, improved biomass cook-
Developing solar PV promotion schemes that prevents subsidy stoves and solar cooker in developing countries are: lack of

Table 3
Potential remedial measures suggested to overcome the sub-barriers of Economic barrier.

Sub-barrier Remedial measure (s) Responsibility center(s) Relevant reference(s)

Cost Incentives to DRES users or consumers DRES related policymaking and [4,5,8,14,17–19,21,26,28–30,35,43–47,49,51,53,60,61,63,67,71–75,79,82–
(subsidy, tax rebate) implementation agency 84,88,90,92,98,100,105]
R&D for cost reduction R&D institutions [8,13,46,52,90,99]
Funds for R&D on DRES DRES related policymaking and [13,19,58,63,69,79,90]
implementation agency
Reduction in transaction cost (learning by DRES related implementation [57,90,105]
doing effect) agency and other relevant gov-
ernment agencies
Market Innovative financing schemes (soft loans, DRES related policymaking and [4–6,13,14,17–19,21,26,29,33,49,57,58,63,64,67,69,75,76,79,82,83,89,90]
grants, revolving fund, fee for service implementation agency, banks,
delivery model) energy service companies
Micro-credit facilities Banks, NGOs, energy service [6,32,64,67,83,105]
companies
Internalization of externalities in cost of Policymaking agencies related to [21,26,30–33,35,46,51,57,58,64,74,76,89,90]
energy energy sector
Withdrawal of subsidies to fossil fuels Policymaking agencies related to [17,20,26,33,44,51,58,63,67,72,74,106]
energy sector
Quotas for DRES usage DRES related policymaking [28,83]
agency
Incentives (subsidies, tax break, reduced DRES related policymaking [17,19,23,28,45–48,53,57,63,67–69,72,73,84,100]
import duty) to private sector or entrepre- agency
neurs (acting as manufacturers/project
developers/distributors/retailers)
Market intermediation by government Relevant government agency [40,75,80,93]
Awareness or information dissemination DRES related implementation [4,18,20,21,26,29,33,43,44,51,55,58,60,61,72,79,82,89,111]
programme agency, NGOs, academic
institutions
M. Yaqoot et al. / Renewable and Sustainable Energy Reviews 58 (2016) 477–490 483

infrastructure; incompatibility with existing work organization; poor extension and after-installation services have resulted in slow
difficulties in obtaining loans from government; lack of coordi- dissemination of family-type biogas plants, improved biomass
nation among various agencies; poor technology transfer and cookstoves and box-type solar cookers [7]. Also, an article has
after-installation services; and differences in priority of policy- noted that lack of maintenance services has been the major factor
maker and users [7]. Based on their characteristics, institutional behind the failure of biomass gasifiers in Philippines [15]. Lack of
barriers can be classified as: (a) policy and regulatory; (b) infra- technical support for installation and maintenance is also reported
structure; and (c) administrative barriers. as a barrier impeding the dissemination of solar home systems in
Africa [83].
2.3.1. Policy and regulatory Institutional support to ensure easy availability of spare parts is
Lack of consistent policies and regulations to support DRESs necessary to ensure effective maintenance services for DRESs.
(e.g., lack of incentives to consumers, difficult zoning and per- Limited availability of spare parts and maintenance expertize has
mitting processes, etc.) has been cited as a barrier to their dis- been cited as a barrier to the growth of DRESs [39,60]. For exam-
semination [14,16,31,44,45,47,106,114,115,117,118]. Worldwide, ple, as most of the renewable energy systems are imported in
policies are reportedly biased towards fossil fuels and nuclear Pakistan, non-availability of spare parts is reported to be an
energy [44,90]. Lack of suitable legal and regulatory framework for important barrier to the dissemination of DRESs in the country
dissemination of DRESs is also a major institutional barrier [33]. Similarly, frequent failure of mantle lamps of biogas plants
[4,5,13,25,28,36,46,111]. Wind turbines, rooftop solar water-hea- and its unavailability as spare part has led to the non-usage of
ters, photovoltaic installations, etc. face opposition from urban biogas plants in Nepal [8].
planning agencies due to the lack of established procedures for As renewable energy sources are site specific, reliable resource
siting and installation of domestic DRESs [4,25]. The opposition availability data is essential for selection of favorable site for
may be based upon height, esthetics, noise, or safety [4]. While renewable energy projects. However, diffusion of DRESs is
excessive/inefficient/outdated regulation is reported to be hin- reportedly facing barrier due to lack of reliable resource avail-
dering the dissemination of DRESs [26], the risk of change of ability data [33,55,60,63,69,73]. According to a study, lack of
legislation has also been reported as a major institutional barrier accurate data on resource availability, and inadequate support to
to the diffusion of DRESs in South Africa [40]. research are hindering the development of DRESs in Oman [73].
Similarly, another research article has cited lack of detailed
2.3.2. Infrastructure renewable energy resource assessments and data banks as barriers
For the development of a DRES friendly environment, the hindering the diffusion of DRESs in Pakistan [33]. Accurate and
institutions involved in its dissemination are expected to be reliable resource assessment would need institutional infra-
effective in the following roles: planning at central, federal and structure for strong coordination between government agencies
local level; programme implementation; quality control and and research institutions.
standardization; performance monitoring; human resource
development; technology development and transfer; awareness 2.3.3. Administrative
generation and information dissemination; and market develop- Administrative barriers limit effective implementation of renew-
ment [49]. However, many studies have pointed that the institu- able energy programme. Lack of coordination between various sta-
tional infrastructure may not have evolved enough to effectively keholders has been frequently cited as a major administrative barrier
support the dissemination of DRESs. For example, in China, to the diffusion of DRESs [6,53,55,64–66,71,76]. For example, dearth
underdeveloped market support infrastructure for DRESs has of good coordination between various ministries and agencies, and
reportedly acted as an institutional barrier [57]. Lack of institu- dependence of renewable energy budget on national budget has
tional, financial and technical structures to promote DRESs has been acting as barriers to the dissemination of DRESs in Bangladesh
been found to be detrimental to their dissemination in ASEAN [6]. In addition, few studies have cited poor monitoring and evalua-
[69]. In another study, a researcher has observed that ineffective tion as a significant barrier to the diffusion of DRESs [38,112]. For
market and contract institutions and lack of institutional frame- example, large scale implementation of improved biomass cook-
work are the major institutional barriers in Russia [80]. Also, stoves with poor monitoring and evaluation lead to the failure of the
multiplicity of agencies for wind energy in India has been reported programme in China [112]. Similarly, poor monitoring and evaluation
as a barrier as it has resulted in lack of coordination and unne- and subsidy driven nature of National Programme on Improved
cessary delays [13]. Lack of organizational structure for installa- Cookstoves has been instrumental in limiting the impact of the
tion, sales, repair and maintenance of DRESs is also cited as a programme in India [38]. Tedious administrative and documentation
barrier to their diffusion [17]. As per a study on Europe, lack of procedures involved in the approval of DRES projects also hinder the
infrastructure to support market introduction and subsequent diffusion of DRESs [6,39,87,106]. Few studies have also cited
dissemination of biomass based DRESs has been a significant bureaucratic administrative procedures of government institutions as
barrier to their dissemination in the region [85]. Similarly, service barriers impeding the dissemination of DRESs [58,68].
infrastructure for the promotion, distribution, sales, technical
assistance and maintenance of solar PV systems is reported to be 2.3.4. Potential remedial measures
poorly developed and has been hindering their diffusion in many Institutional barriers (policy and regulatory, infrastructure, and
parts of the world [14]. Mismatch between organizational aspects administrative) can be addressed through several measures. Table 4
of DRESs and adopters also lead to unsuccessful diffusion (e.g., presents the suggested remedial measures to overcome the sub-
DRESs requiring frequent maintenance and services generally fail barriers listed under institutional barrier. From the table, it may be
in rural areas of developing countries as these areas suffer from noted that the role of DRES related policymaking agency is important
inaccessibility and lack of skilled workforce) [12]. to overcome institutional barriers due to inappropriate policy and
Availability of infrastructure for after sales services is also regulatory framework. Worldwide, conducive regulatory frameworks
crucial for accelerated diffusion of DRES. Underdeveloped exten- have been enacted to accelerate the diffusion of DRESs. For example,
sion services for spare parts supply and maintenance services are through a regulation introduced in 1980, Israel achieved 80% coverage
reportedly hindering the dissemination of renewable energy of the roofs of residential households with solar water-heaters [28]. To
technologies for decentralized applications in rural areas [8,13,14, promote solar energy utilization in buildings, building code of Florida
18–20,33,38,45,47,49,51,57,65,68,72,82]. In developing countries, (USA) mandates all new educational buildings to include passive solar
484 M. Yaqoot et al. / Renewable and Sustainable Energy Reviews 58 (2016) 477–490

Table 4
Potential remedial measures suggested to overcome the sub-barriers of Institutional barrier.

Sub-barrier Remedial measure (s) Responsibility center(s) Relevant reference(s)

Policy and Conducive long-term policies for all DRES related policymaking agency [7,19–21,23,29,31,45,46,55,57,58,63,64,67,69,75,76,77,79,94,106]
regulatory stakeholders
Conducive regulatory framework DRES related policymaking agency [4,14,16,18,26,28,36,38,46,47,48,55,57,58,63,67,69,71,72,73,79,80,84,94]
Integration of DRES policies with DRES related policymaking agency [29,57]
developmental programmes and other participating government
agencies
Policy involving incentives for DRES DRES related policymaking agency [46,73,84,111]
utilization
Private sector participation DRES related policymaking agency [6,38,45,58,63,72]
Infrastructure Specialized institutions for R&D, DRES related policymaking and [6,13,18,57]
financing, capacity building, mar- implementation agency, R&D insti-
keting and commercialization of tutions, banks, NGOs and academic
DRES institutions
After sales services infrastructure for
DRES related implementation [8,20,22,47,65,82,83]
training and extension programmes agency, energy services companies,
NGOs and academic institutions
Administrative Strong coordination between var- DRES related implementation [23,25,33,43,44,55,64,76,78,85]
ious agencies and stakeholders agency and other relevant govern-
ment agencies such as municipal
corporations
Involvement of local stakeholders in DRES related implementation [6,16,35,45,58,64,67,76]
planning and implementation of agency
DRES programme
Simplified approval procedures or DRES related implementation [28,85,106]
single window clearance agency
Support and facilitation by govern- DRES related policymaking and [18,21,45,46,53,57,64,65,67,69,90,111]
ment from R&D to commercializa- implementation agency
tion of DRES
Effective project monitoring and DRES related implementation [6,17,92,93,112]
evaluation agency

design [4]. Similarly, through renewable access laws in some countries, It can be concluded that in addition to framing conducive long-
property owners are provided the right to continued access to a term policies and a favorable regulatory framework for the dis-
renewable resource [4]. The access is ensured through voluntary semination of DRESs, the concerned policymaking agency is also
contracts between neighbors or covenant laws [4]. In addition to expected to create conducive environment for development of
conducive policy and regulatory framework, setting up of specialized specialized institutions for R&D, financing, capacity building,
institutions (for R&D, financing, capacity building, marketing and marketing and commercialization (including awareness genera-
commercialization of DRESs), infrastructure support for after sales tion and quality control) of DRESs.
services, strong coordination between relevant stakeholders, simpli-
fied approval procedure for DRES projects, and effective project 2.4. Socio-cultural barriers and remedial measures
monitoring and control have been recommended to overcome the
institutional barriers that affect the dissemination of DRESs. Social/socio-cultural/cultural barriers have been extensively
Apart from the generic remedial measures listed in Table 4, reported with reference to the diffusion of DRESs [5,7,10,12,30,33–
there are few other case-specific measures that have been 35,37,39,87,102,105,117,119,120–126]. Moreover, negative impacts of
recommended to overcome institutional barriers. Rather than just socio-economic, socio-political and political barriers on the diffusion
focusing on number of installations, a study has advocated meti- of DRESs have also been discussed in [16,31] and [12] respectively.
culous planning and in-depth socio-economic evaluation studies Socio-cultural barriers may arise as a result of the following: (a)
for improved diffusion of biogas engines in India. Market inter- societal structure, norms and value system; (b) awareness and risk
mediation by Russian government for securing support of gov- perception; (c) behavioral or lifestyle issues [105].
ernment officials, securing funds, obtaining necessary licenses and
2.4.1. Societal structure, norms and value system
approvals, and managing, monitoring and evaluating projects to
A socio-cultural barrier may exist due to the lack of satisfaction
promote renewable energy in the country has been recommended
of perceived needs of the user and non-integration of the tech-
[93]. Creation of an umbrella organization for monitoring, reg-
nology with the social structure, and disharmony with prevailing
ulating and capacity building is recommended to overcome insti-
social values and ideology [7]. For example, in many rural societies,
tutional barriers in Bangladesh [6]. For Turkey, it is recommended higher efficiency improved biomass cookstoves have not been
that DRESs be promoted as unique products with attributes such adopted by traditional cookstove users as apart from cooking,
as environmental and social benefits [34]. Appropriate institu- traditional biomass cookstoves satisfy other perceived needs of the
tional infrastructure to plan and implement well-coordinated users (lighting, space heating, pest control, drying, etc.) which the
programme at all levels and simplified time-bounded adminis- improved biomass cookstoves could not fulfill [7]. Lack of under-
trative procedure for various approvals and clearances are sug- standing about the needs of the users primarily contributed to the
gested to promote wind installations in India [13]. Learning from failure of early Chinese biogas program [15]. A biogas project failed
the success of China’s diffusion programme of improved biomass in Indonesia because it was incompatible with the local belief
stoves, a study advocates: working in the best areas first; regular, which considered rice fields as holy and installation of biogas units
systematic and consistent monitoring and evaluation; and pro- on it was considered a taboo [121]. In Nepal, many households did
motion of rural energy companies [112]. not accept improved cookstoves and continued with open fire
M. Yaqoot et al. / Renewable and Sustainable Energy Reviews 58 (2016) 477–490 485

Table 5
Potential remedial measures suggested to overcome the elements of Socio-cultural barrier.

Sub-barrier Remedial measure(s) Responsibility center(s) Relevant reference(s)

Societal structure, Comprehensive assessment R&D institutions [7,10,12,15]


norms and value of the perceived needs of the
system end user
Involvement of local stake- DRES related policymaking [6,24,25,35,61,65,85,87]
holders in planning and and implementation agency
promotion of DRES
Awareness and Awareness generation or DRES related implementation [4,6,16,18,26–29,32,33,39,43,44,55,58,60,61,64,67,68,72,76,78,79,85,86,87,100,123]
perception information dissemination agency, NGOs and academic
programmes institutions
Demonstration programmes DRES related implementation [4,26,28,46,55,68,71]
agency, NGOs and academic
institutions
Behavioral or life- Demonstration programmes DRES related implementation [26,28,71]
style issues agency, NGOs and academic
institutions

cooking as they believed that their family spirit resided in it [10]. caused by failed biogas plants in Kenya has been reported as a major
For family-size biogas plants, improved cookstoves and box-type barrier to its diffusion [86]. Moreover, failure of DRESs in raising the
solar cookers, socio-cultural acceptability factor is reported to be standard of living of its users has developed negative perception about
relatively more important as compared to solar water heating the DRESs among their potential users [22,51]. Past failures have
systems and solar photovoltaic technologies [49]. This reflects increased the risk perception regarding DRESs among public, politician
better socio-cultural acceptance of non-cooking devices such as and local authorities that are reportedly impeding their diffusion
solar water heating and photovoltaic technologies. [18,85,90]. Lack of demonstration of the utility of DRESs among their
A research article has reported that diffusion faces hurdles when potential users aggravates its risk perception [93]. Some researchers
there are cultural differences between the donor and the receiver [12]. have also pointed that inadequate demonstration of the utility of solar
In Turkey, wind energy installations have reportedly faced opposition energy devices is a significant barrier affecting their diffusion in
due to its weak social compatibility [34]. Likewise, for preservation of Pakistan [19].
natural resources and cultural heritage in Crete Island (Greece), local
population opposed wind energy projects [87]. 2.4.3. Behavioral or lifestyle issues
Psychological barriers and conservative rural traditions also act Preference for traditional energy sources and resistance to
as hindrances to the successful diffusion of DRESs [87]. In USA, change (consumer inertia) has reportedly created behavioral bar-
psychological attributes such as comfort, freedom, control, trust, riers that impede the diffusion of DRESs [18,21,105,131]. Few
social status, ritual, and habit are reportedly impeding the diffusion studies have cited behavioral or lifestyle issues impeding the dif-
of DRESs in the country [120]. Cooking is generally done by women, fusion of DRESs that are used for cooking [7,24,27,28,102]. Beha-
but gender bias leading to lack of women participation in decision vioral barriers are not limited to cooking devices. Power engineers
making and inadequate access to credit have reportedly hindered and others working in large energy supply companies are also
the adoption of improved cookstoves [10]. Non-ownership of house reportedly resisting innovations such as DRESs [102]. In United
is a psychological barrier to diffusion of domestic solar water heater Kingdom, inconvenience and subsequent behavioral changes
in Greece as it creates a condition of split incentives where the involved in the adoption of DRESs are reportedly preventing their
tenant pays the energy bill and the developer/owner has very little adoption [75].
motivation to invest in energy saving equipments [61]. A researcher
has also reported the problem of split incentives with respect to the 2.4.4. Potential remedial measures
diffusion of solar thermal technologies [28]. For successful diffusion of DRESs, it is necessary to address the
socio-cultural barriers faced by them. Suggested remedial measures
2.4.2. Awareness and risk perception and the corresponding responsibility centers to address the socio-
Lack of information or awareness is a widely reported socio- cultural barriers are presented in Table 5. Comprehensive assess-
economic barrier impeding diffusion of DRES [4–6,14,16,18,21, ment of the perceived needs of the end user, local stakeholder
24,25,86,93,96,100,102,105,108,116,127,128]. Because of lack of consultation during planning and promotion of DRES, awareness
awareness, DRESs are often perceived as inferior technologies in generation and appropriate demonstration have been recom-
terms of utility and user comfort [21]. For example, for wind parks mended to counter the socio-cultural barriers associated with the
in the Dodecanese Islands of Greece, public opinion on its esthetic diffusion of DRESs.
harmful effect and insufficient information on social benefits are In addition to the generic remedial measures listed in Table 5,
acting as social barriers [35]. As per a survey conducted in Greece, few other case-specific remedial measures have been recom-
respondents consider opinion of friends as a barrier to the diffu- mended to overcome the socio-cultural barriers. For example,
sion of domestic solar water heaters in the country [61]. installation of solar home systems for public view in the neigh-
Negative perception about DRESs is another issue that is hindering borhood of potential users has been advocated to increase its
its diffusion. Generally, DRESs suffer from perceptions of greater awareness in rural Nicaragua [108]. For Russia, a study recom-
technical risk than conventional technologies because of lack of visible mends market intermediation and joint ventures with foreign
installations and familiarity with the system [4]. Perceived technology corporations for enhanced information dissemination and
performance uncertainty, poor reliability and associated risks with demonstration experiences [93]. It is also suggested that the pol-
respect to the usage of DRESs have also been cited by other studies icymakers should strive to improve public understanding of
[7,11,13,21,23,24,25,32,38,64,74,75,76,82,129,130]. Negative impression renewable energy systems [1120]. Increased women participation
created by the failure of DRES projects in the past also hinder diffusion and adequate consideration of social equity for the poor and
of technically sound DRESs [12,28,102]. For example, negative image marginalized mountain population are recommended for
486 M. Yaqoot et al. / Renewable and Sustainable Energy Reviews 58 (2016) 477–490

Table 6
Potential remedial measures suggested to overcome the sub-barriers of environmental barrier.

Sub-barrier Remedial measure and reference(s) Responsibility center(s) Relevant reference(s)

Resources (land and water), pollu- Life cycle analysis of the project Environment protection agency [30]
tion, esthetics R&D for development of efficient systems with R&D institutions [5]
minimum possible footprint
Awareness generation among stakeholders DRES related implementation agency, NGOs and [61]
academic institutions

improved DRESs dissemination programmes in the mountainous 3. Mapping of critical barriers for individual DRES and trend
areas of China, India, Nepal and Pakistan [16]. assessment of evolution of barriers
From Table 5, we can conclude that surmounting socio-cultural
barriers associated with the diffusion of DRESs would need insti- In general, the barriers and sub-barriers discussed in the earlier
tutional support for participative and indigenous R&D, demon- sections affect the dissemination of almost all DRESs. However, for
stration and awareness generation. Government may support the dissemination of a particular DRES, the impact of some of the
these activities through academic and R&D institutions, and NGOs. barriers and sub-barriers may be more profound. Table 7 presents a
snapshot of the barriers that are critical to the diffusion of individual
2.5. Environmental barriers and remedial measures DRES. Awareness, resource availability and lack of after sales services
are critical to the adoption of all DRESs and thus they have not been
In comparison to fossil fuel based energy technologies, most of mentioned separately in Table 7 for individual DRES.
the RETs are relatively better in terms of environmental emissions From the barriers highlighted for individual DRES in Table 7
and are expected to promote environmental sustainability. How- and the corresponding literature, the following trends have been
ever, their dissemination also face environmental barriers [96,117, observed:
119,126] and the environmental impacts of installation and opera-
tion of DRESs must be analyzed for their large-scale diffusion [61]. 1. Technical barriers (technological appropriateness and skill
Environmental barriers with respect to DRESs involve competi- requirement for operation and maintenance) are more critical to
tion for natural resources (e.g., water and land) and pollution (e.g., the diffusion of DRESs that require frequent maintenance ser-
air and noise pollution) [18]. For example, non-availability of water vices such as family-size biogas plants and biomass based
has been reported as one of the significant barriers to the utilization power plants.
of biogas engine in India [17]. A study on solar desalination plants in 2. Market barriers are critical to almost all DRESs as these high cost
Israel has listed large land requirement as a major issue [89]. Land systems generally replace conventional energy technologies that
issues affecting the diffusion of DRESs have also been reported from benefit from their large market size, low fuel price (due to sub-
Nigeria [67]. Environmental barrier is also significant to biomass sidies on fuel) and non-internalization of externalities. However,
gasifiers as their operation involves combustion, gasification and with recent advancements in solar PV technology and introduc-
pyrolysis that release pollutants in the atmosphere [5]. Similarly, tion of LED lamps, the costs of solar lantern and solar home system
biogas and wind energy systems are also reported to have envir- have reduced substantially. Evolution of evacuated tubular collec-
onmental concerns [5]. For example, leakage of biogas (mixture of tor (ETC) based solar water-heater technology has led to consider-
methane, carbon dioxide and hydrogen sulfide) pollutes atmo- able cost reduction of solar water-heaters. On the contrary, with
sphere and leads to global warming. Also, noise and odor have been recent increase in cost of construction material (cement, brick and
reportedly hindering the usage of bioenergy technologies in United metal), the costs of family-size biogas plant and biomass based
Kingdom [53]. Wind energy installations are also facing environ- power generation system have increased significantly.
mental barriers as they negatively affect the ecosystem (damage to 3. Institutional (administrative and regulatory) barriers are more
flora and displacement of fauna such as migratory birds) [35]. Other relevant to the dissemination of electricity generating DRESs
environmental issues hindering the utilization of wind energy such as solar home system, biomass based power generation
systems are microwave interference, possibility of climate mod- system and wind energy system as the users face difficulties
ification, noise, esthetic (landscape) impact, bird collision and with siting approvals and supply of surplus power to grid.
change of land use [5,34,35,44]. Few other studies have also noted Institutional barrier (lack of infrastructure for after sales ser-
that esthetic issues or its perception with respect to DRESs are vices) are more important for the dissemination of DRESs that
acting as barriers to their diffusion [47,53,61,66,75]. require frequent maintenance services such as family-size
biogas plants and biomass based power plants.
2.5.1. Potential remedial measures 4. Socio-cultural barriers are more critical to the dissemination of
Environmental barriers need to be assessed and addressed for cooking related DRESs such as family-type biogas plants,
improved diffusion of DRESs. Table 6 presents the suggested improved biomass cookstoves and solar cooker as cooking is
remedial measures and relevant responsibility centers to address performed as a ritual in many societies.
various environmental barriers. Life cycle analysis (LCA) has been
recommended for assessment of environmental impact of various Institutional support to R&D activities in the field of solar PV
DRESs [30]. For a given energy project, based on the results of the technologies and commercialization of Thin- Film solar PV tech-
LCA, the cleaner technology must be selected from a set of com- nology has led to significant cost reduction of solar home system,
peting DRESs. Research for development of efficient technologies solar lantern and solar PV pump. Adequate institutional support to
with minimum possible environmental footprint, and awareness the development and market introduction of LED lamps also
generation campaigns regarding environmental/esthetic issues of helped to overcome technical, cost and market related barriers
DRESs are also recommended. Institutions that deal with envir- associated with solar lighting systems. All these developm-
onmental protection and R&D, as well as academic institutions and ents during the last few decades have resulted in increased dis-
NGOs can play a major role in addressing environmental concerns semination of solar PV based DRESs in countries around the world.
associated with the diffusion of DRESs. Similar institutional support is needed to overcome barriers that
M. Yaqoot et al. / Renewable and Sustainable Energy Reviews 58 (2016) 477–490 487

Table 7
Critical barriers (in addition to awareness, resource availability and lack of after sales services) to the dissemination of individual DRES and corresponding remedial
measures.

DRES Barrier (s) identified Suggested remedial measures

Domestic solar water-heater High cost and lack of access to credit Capital subsidy and/or soft loan facility
Low capacity utilization due to poor access to solar radiation in urban Regulation for sharing of terrace space among the
households households in multi-storied buildings
Lack of incentives to users Rebate in electricity bill
Solar lantern Poor reliability Standards and certification in manufacturing
Solar home system High cost and lack of access to credit Capital subsidy and/or soft loan facility
Lack of access to solar radiation in urban households Regulation for sharing of terrace space among the
households in multi-storied buildings
Poor reliability Standards and certification in manufacturing
Lack of appropriate regulatory framework to support injection of surplus Single window clearance for siting and connection to the
electricity to local grid grid and attractive feed-in tariff
Solar PV pump High cost and lack of access to credit Capital subsidy and/or soft loan facility
Availability of highly subsidized fuel alternatives (electricity or diesel) Fair pricing mechanism in energy market that takes
externalities into account
Poor reliability Standards and certification in manufacturing
Parabolic solar cooker High cost and lack of access to credit Capital subsidy and/or soft loan facility
Low capacity utilization as meals can be cooked only during bright sunshine Use of cooker in community mode at schools (for mid-day
meals), temples, etc
Lack of flexibility with respect to the style of cooking (generally, only boiling Use of cooker in community mode at schools, temples,
type cooking possible) etc. where primarily boiling type cooking is done
Lack of socio-cultural acceptance due to cooking in open Awareness generation
Solar dryer High cost and lack of access to credit Capital subsidy and/or soft loan facility
Low capacity utilization Use of dryer in community mode at village level
Family-size biogas plant High cost and lack of access to credit Capital subsidy and/or soft loan facility
Frequent need for maintenance and repair Design and installation of improved/matured technology
Lack of socio-cultural acceptance primarily due to the usage of dung for Awareness generation
cooking
Improved biomass cookstove Availability of biomass at no private cost and zero tangible cost attached Awareness generation
with time spent on biomass collection in rural areas Consideration of user’s perspective in design and manu-
Lack of flexibility with respect to the size of cooking pot and wood-chips facturing of cookstoves
Wind turbine High cost and lack of access to credit Capital subsidy and/or soft loan facility
Bureaucratic administrative procedures for various approvals and lack of Single window clearance for siting and connection to the
appropriate regulatory framework for injection of surplus electricity to local grid and attractive feed-in tariff
grid
Biomass based power genera- High cost and lack of access to credit Capital subsidy and/or soft loan facility
tion system Frequent need for maintenance and repair Design and installation of improved/matured technology
Bureaucratic administrative procedures for various approvals and lack of Single window clearance for siting and connection to the
appropriate regulatory framework for injection of surplus electricity to local grid and attractive feed-in tariff
grid

hinder the dissemination of other DRESs. For cooking related prescribed measures for increased dissemination of DRESs. In
DRESs, it is necessary to exhibit the technological appropriateness addition, for improved diffusion of DRESs, appropriate institu-
and utility of the systems to the masses through demonstration tional arrangements are required to facilitate R&D, capacity
projects at institutions, temples, etc. Such demonstration projects building, conducive market, credit facilities and awareness gen-
can reduce the socio-cultural barriers associated with cooking eration. Role of DRES related policymaking and implementation
related DRESs and may accelerate their dissemination. agency, R&D institutions, NGOs and academic institutions would
be crucial to overcome barriers to the promotion of DRESs.
During last few decades, adequate institutional support to R&D
4. Conclusion activities and commercialization of solar PV technology and LED
lamps has significantly reduced the cost of solar lighting systems and
Dissemination of DRESs may face variety of technical, eco- consequently led to their accelerated adoption. For other DRESs,
nomic, institutional, socio-cultural and environmental barriers. similar institutional support is needed to improve their dissemina-
Inappropriateness of technology, unavailability of skilled workers tion. As socio-cultural barriers are more critical to the dissemination
for maintenance, unavailability of spare parts, high cost, lack of of cooking related DRESs, it is necessary to demonstrate their utility
access to credit, poor purchasing power and other spending to the public at institutions and community centers to overcome
priorities, unfair energy pricing, lack of information or awareness, socio-cultural barriers associated with them. Also, institutional sup-
and lack of operation and maintenance training are the critical port to awareness generation, resource assessment and after sales
barriers impeding the dissemination of DRESs. service is crucial for increasing the rate of dissemination of DRESs.
The barriers to the dissemination of DRESs can be addressed
through conducive policy environment, supportive regulatory
framework, and appropriate institutional arrangements. Long- Appendix
term conducive policies and appropriate regulatory framework
that involve financial incentives (capital subsidies and soft loans) The literature (research papers and articles) that has been used
to users, inclusion of externalities in the cost of energy, withdrawal in the review of barriers to the dissemination of DRESs have cited
of subsidies to fossil fuels, development of specialized institutions, the barriers with reference to various technologies and/or geo-
cooperation with international agencies, and participation of local graphical locations. Table A.1 presents a technology and geography
community in planning and implementation are the frequently based classification of the literature.
488 M. Yaqoot et al. / Renewable and Sustainable Energy Reviews 58 (2016) 477–490

Table A.1
Technology and region based classification of literature on barriers to the dissemination of DRESs.

Technology Region/Country and reference(s)

Renewable energy technologies (including DRESs) World [4,5,12,18,26,30,39,41,50,58,77,90,95,96,102,105,110,111,117,119]; Europe [124]; Developing countries
[64,109]; Arab states of the gulf [25]; ASEAN countries [69]; France and Sweden [125]; Tanzania and Mozambique
[45]; Australia [43]; Bangladesh [6,115]; Canada [44]; China [42,57,97,128]; Greece [87]; India [11,38,99,106,126];
Ireland [113]; Lebanon [63]; Maldives [103]; Mexico [78]; Nepal [116]; Oman [73,84]; Pakistan [31,33]; Russia
[80,93]; South Africa [40]; Sweden [129]; Switzerland [122]; Thailand [68]; Turkey [34]; UAE [74],United King-
dom [23,75]; USA [52,120]
DRESs in general World [15,51,82]; Developing countries [29]; China, India, Nepal and Pakistan [16]; India [36]; Nepal [20]; Tan-
zania [60]; United Kingdom [48,94]
DRESs (Biogas plant, improved biomass cookstove, India [49]
box-type solar cooker, domestic solar water-heater,
solar photovoltaic lantern)
DRES (Family- type biogas plant, improved biomass Developing countries [7]; India [24]
cookstove, solar cooker)
Biomass energy technologies (including DRESs) Europe [85,76]; Thailand [55]; United Kingdom [53]; Uganda [107]
DRES (Improved biomass cookstove) World [10]; China [112]
DRES (Biogas plant) World [32]; Europe, USA and Australia [118]; Africa, Rwanda, Tanzania, China, India and Nepal [127]; Indonesia
and Africa [121]; India [81]; Kenya [86]; Nepal [8]
DRES (Biogas engine) World [130]; India [17]
Solar energy technologies (including DRESs) World [66]; Hong Kong [47]; Nigeria [67]; Taiwan [46]; USA [9]
DRESs (solar – photovoltaics and thermal) Pakistan [19]; USA [72]
Solar PV (including DRESs) World [14,100]; Europe [92]
DRES (Solar photovoltaic system or solar home World [114]; Africa [83]; Japan, Germany and USA [131]; Bangladesh [101]; India [37,65]; Nicaragua [108]
system)
DRES (Solar photovoltaic pump) India [62,98]
DRES (Solar photovoltaic battery charging system) Thailand [22]
DRESs (Solar thermal technologies) World [28]
DRESs (Renewable heating technologies) Ireland [54]
DRESs (Solar space heating and cooling systems) Kenya [71]
DRES (Solar still) India [91]; Israel [89]
DRES (Solar dryer) India [70]
DRES (Solar cooker-parabolic) India [27]
DRESs (Solar water heater and solar space heater) Germany [88]
DRES (Solar water-heater) World [59]; China [104]; Greece [61]; Lebanon [79]
DRES (Solar water heater) and grid connected wind India [21]
energy
Wind energy (including DRES) India [13]; Greece [35,123]
DRES (water wheel) Nepal [56]

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