Energy Access to the Poor How?. The Myths that we refuse to accept 2 Typical Myths Poor are a...

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Energy Access to the Poor How?

Transcript of Energy Access to the Poor How?. The Myths that we refuse to accept 2 Typical Myths Poor are a...

Energy Access to the PoorHow?

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The Myths that we refuse to accept

Typical Myths

• Poor are a monolithic group• Simple Scaling of existing successes can help achieve

energy access goals.• Standardization of technology, (business models is

the key)• Poor are stakeholders only from an end-user

perspective.• Cheap (affordable) technology can solve most of the

issues.• Robust Technology exists and thus after sales service

need not be given importance• Technology and Finance dissemination can be done

by the same set of people• End-Value technology is mature.• Large amounts of private capital will solve the issue

These are just some of them…

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The Missing gap

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The Ecosystem

Appropriate TECHNOLOGY

Entrepreneur INCUBATION

SKILL DEVELOPMENT

End User FINANCING

Practitioner centric POLICY

ENERGY ACCESS for the Poor

Livelihoods

VulnerabilityEducation

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Think Differently

But Difficult to do…

Think Replication instead of Scale.

Think of Poor as asset creators, employers and innovators – not just as consumers, employees and implementers.

Think of end value (4 hours of lighting, 2 hours of sewing machines – instead of solar panels, pico hydro).

Think Holistically – expensive product (not compromising on value and quality) can be made affordable by site specific financing.

Think Ecosystem not technology or Finance

Think Energy Services as Service and Assets – not as consumptive items.

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Some Solutions – “Internet and the Google Approach”

• High Risk Innovation fund– To fund innovations in business models, utilization of

technology, market linkages and financial products.– To create long term (low return) investments to ‘non-

power point’ entrepreneurs who are closer to the client base.

– To help channelize low cost finance towards financial institutions that the clients have access to.

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Some Solutions – “Internet and the Google Approach”

• Large scale Finance to create HR at all levels– Service– Entrepreneurs– Champion local Bankers

• Investment Fund (multiple parts) – Presently Very Difficult to GET– Between $1000 to $5000– Between $5000 to $50,000– Between $50,000 to $1 million