Backdrop

With energy-related activities being the main contributor to global emissions of harmful gases, energy is closely linked to climate change. Increasing demand for cleaner and cheaper energy services provides a scope to further the cause of low carbon development to reduce energy poverty and also to achieve Millennium Development Goals (MDGs). The market potential for clean, affordable energy especially for the poor is gradually and steadily expanding. New and innovative business opportunities are emerging rapidly in different parts of the country to meet the increasing energy demand in the rural areas. There is also increased interest by private players and social entrepreneurs to provide a range of energy services to the poor through a mix of renewable energy options which include solar, wind, hydropower, biofuels, biomass (such as wood used as fuel) or biogas including a few hybrid technological options. With the increasing demand for energy services coupled with increasing number of sustainable energy enterprises, the policy brief captures some of the key features of the sustainable energy enterprises (SEE) already in operation and also highlights some key suggestions regarding developing RET market, facilitating access to finance, capacity building and policy change.

Objective

The purpose of this project was to analyze the different existing models of sustainable energy enterprises, to summarize key issues involved in providing finance for the purchase of sustainable energy products and services, and to provide recommendations on how policy can support low carbon based development.

Summary of the main findings are as follows

• A strong social orientation and a mission to bring energy to poor households has been an underlined feature.
• All the models provide direct benefits to the poor households by providing energy services.
• Entrepreneurs have a combination of market and non-market mechanisms (Ashden Award, Development Market Place Award) to have access to finance.
• International Awards often gives the business models a level of recognition and credibility which often helps the entrepreneurs to access additional funds.
• Institutional linkage plays a very important role in these business models.
• Lack of suitable and sufficient funding acts as a deterrent for research & development.
• The business models contribute to reduction of green house gas emissions.
• All the business models have generated employment opportunities.
• Efforts are on by all the project developers to tap the carbon finance.