This is the major hindrance to electrification of Africa to save the climate initiative because, few countries in Africa have policy framework with focus on renewable energy in place. In addition, it is going to be a herculean task to get African politicians and governments to put necessary policies in place fast enough to enable us commence rural electrification in 2010.

Policy frame work is made of legislated rules, regulations and measures upon which self-sustained, private sector based electricity infrastructure market is established and thrives. In addition to enabling private project developers and equipment suppliers assess risk level in a market, policy measures such as power purchase guarantee for long period and feed-in tariff actually make them invest in the market knowing the environment and time to recoup their investment exist in such a market.

Without policy framework which provides level playing field for all players in the market, it would be difficult for small equipment suppliers to compete. In the absence of competition only well established companies would thrive and would dictate the price of supplying electricity equipment or electricity infrastructure development. Also, in the absence of competition the well established companies are known to use the instrument of bribe to influence decision makers to make decisions in their favor in securing projects contracts. Unfortunately those that spend millions in bribe in Africa, as records show, are exclusively multinational companies. In all, the absence of electricity infrastructure market in Africa gives multinational companies undue advantage over local companies and smaller foreign companies.  Lack of completion due to lack of policy framework is among the reasons why electricity infrastructure development costs twice more in Africa than elsewhere in the world.

Therefore, it is in the interest of Africa (African countries) to reduce cost of electricity infrastructure development by putting in place necessary policy framework. Policy framework is the wheel upon which electricity infrastructure market revolves. It is the very fact there are more than one suppliers (sellers) of any given equipment in a market that provides buyers the opportunity for lower price, which would not be there, if there is no electricity market structure (policy frame work) in place. As soon as electricity infrastructure market (visible and regulated policy framework) is in place, the role of government should be restricted to licensing to participants in and regulatory oversight of the market. Indication of the absence of electricity infrastructure market (i.e policy framework may be in place but not visible - that is, it is not worth the paper it is written on, largely due to endemic corruption) is when government role expand to include award of contracts.

Tackling the challenge of insufficient or lack of policy framework with focus on renewable energy: It is a daunting task getting all African countries put necessary policy framework in place soon enough to enable us take off in all countries in 2010. Desertec-Africa operates within the scope of a policy framework and cannot commence without it, therefore, Desertec-Africa’s requirement for countries wishing to be part of “operation rural electrification for Africa to save the climate” is simple – “demonstrate your seriousness to improve your electricity infrastructure by putting comprehensive policy framework in place”. Therefore, it is individual government across the continent that would have to act first by establishing policy-framework-based electricity-infrastructure-market (initial political support), and may have to make the first purchase (initial financial support in form of setting aside the right percentage of their GDP for electricity infrastructure development, made available to private project developers in the form long-term power purchasing guarantees, effective feed-in tariffs, investment tax credit, production tax credits (and if need be equity ownership by public organizations, Desertec-Africa do not encourage this though), instead of direct government involvement in project contract awards and execution). These financial instruments from government would encourage sellers such as private project executioners and equipment suppliers (private sector) to see the market as well established and participate in it.