Business solutions to enable energy

access for all

The WBCSD Access to Energy Initiative

Washington D.C. February 21st 2012

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WBCSD Access to Energy Initiative

Maximizing the business contribution to

expanding access to clean, reliable &

affordable energy

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New publication: Business solutions to enable energy access for all

19 member company case

studies

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Background to the publication• Expansion and transformation of energy systems

required.• Efficiency and reliability are critical for delivering

development benefits.• Business is a primary solution provider…• …but there are major barriers to investment.• Public investment is essential.• Maximizing the opportunity for business:

Reduction of financing gap. The business role as a solution provider. Efficient and effective implementation capabilities.

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Government Development Agencies

Financing Institutions

Communities Consumers/Householders

LARGE COMPANIES & UTILITIES

1. Efficient deployment of existing solutions at scale

2. Innovation & new solutions

3. Efficiency & reliability of the energy system

4. Knowledge & skills transfer

5. Financial resources6. Linkages with local firms

and social entrepreneurs

LOCAL FIRMS & SOCIAL ENTREPRENEURS

•Localized solutions to meet local customer needs•Last mile service delivery•Key producers and distributors

Partnering, supply chain, joint ventures etc.

Regulatory Agencies

NGOs

KEY STAKEHOLDERS

EXPANDING ACCESS TO

CLEAN, RELIABLE &

AFFORDABLE ENERGY

CONTRIBUTION OF BUSINESS

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MAXIMIZING THE BUSINESS

CONTRIBUTION TO PROVIDING

ACCESS TO CLEAN,

RELIABLE & AFFORDABLE

ENERGY SERVICES

1. BUSINESS MODEL INNOVATION

• Grid extension • Decentralized/renewable

energy systems• Products & appliances

2. ENABLING POLICY FRAMEWORKS

3. FINANCING MECHANISMS

COLLABORATION & PARTNERSHIPS(Governments, IFIs,

Development Agencies, Social entrepreneurs,

NGOs etc.)

DELIVERY OF GOODS & SERVICES

ENABLING ENVIRONMENT

Maximizing the business contribution

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• More affordable and reliable products and services.

• Overcoming or circumventing market barriers/failures.

• Increasing profitability and scalability of servicing poor customers.

Business model innovation

Improvement of the investment climate & removal of barriers

Products & appliances Grid extension

Distributed/renewable

energy systems

Enabling of private participation & Public Private Partnerships

(PPPs)

INVESTMENT CLIMATE

Prioritization in National Development Planning

PLANNING, COORDINATION & PRIORITIZATION

Policy coordination & coherence

Capacity building & skills development

Public investments in core infrastructure

SUPPORT TO KEY

SOLUTIONS

SIMPLIFIED POLICY FRAMEWORK FOR SCALING BUSINESS INVESTMENT

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0

10

20

30

40

50

2009 Annual requirement for universal access

by 2030

Bill

ion

dolla

rs (

2010

) Private finance

Developing country governments

Multilateral development banks

Bilateral official development assistance

The financing gap…

Source: IEA World Energy Outlook 2011

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• Challenge: (often) weak private financial case but clear social benefits warranting public investment.

• Public and development finance can be designed to leverage additional business investment to maximize impact.

• Other mechanisms/actors also important: Climate finance Local banking sector Microfinance Social/impact investment

Scaling up private investment

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Collaboration & partnerships

• Partnerships and cross-sector collaborative approaches between key stakeholders are essential to make all of these opportunity areas successful.

• Effective public private partnerships (PPPs) will be particularly important drivers of progress toward universal access to energy.

• Partnerships are also critical for: Making new business models work. Effective financing models. Coordination and advocacy for global action (e.g. Global

Alliance for Clean Cookstoves).

Contact: Matthew Lynchlynch@wbcsd.org +41 (0) 22 839 31 94

http://www.wbcsd.org/accesstoenergy.aspx