The Renewable Energy Action Plan (REAP)was prepared in a participatory workshop with stakeholders,to discuss renewable energy potential, problems, andsolutions, and synthesize study results into a draft actionreport. The objective of the REAP is to providecost-effective, and reliable electricity to ruralpopulations, by supplying isolated households, andcommunities with renewable sources of energy, and augmentinggrid supply in remote areas. The capacity-building phasewill build on the renewable energy policy, and institutionaldevelopment, support individual household and institutionalrenewable energy systems, through the provision ofmini-grids based on hydro-hybrid plants. To this endtechnical assistance, and investment support will beprovided to encourage small power producers of renewableelectricity for grid supply, from small hydro, bagasse, orrice husk cogeneration, while other technologies will alsobe supported, such as wind power. Lessons learned from theREAP experience address the need to ensure a policy, andlegal framework to guide private sector involvement, byfirst building capacity, and a strong institutional support,to understand market characteristics, and supportdevelopment of commercial renewable energy businesses, toinclude financial intermediation, and micro-finance.