pepukaye bardouille - market-based approach to catalyzing energy access lighti
TRANSCRIPT
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Market-based approach to catalyzing
energy access: Lighting Africa
Pepukaye Bardouille
4th June 2012 / Manila
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Over the next 20 years, Africa will rapidly surpass Asia to
become the largest un-electrified market in the world
2009
2030
13
34 589
698
80921
5
561
Un-electrified
population,millions
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Province Electricity Lantern Tin Lamp Solar Total
KENYA 273,352 5.1% 1,847,613 34% 2,617,593 49% 118,412 2.2% 5,361,334
Household lighting data Rural HH in Kenya
Number of households Kenya 2009 census
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African BOP households and small businesses spend over
$10 billion on lighting p.a - growing to over $11bn
Total annual spend on lighting($,billions)
Average rural HH spends $10 12 per month and $ 120 140 per year
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Significant, unexplored potential in low cost solar lanterns
49%
26%
14%7% 4%
1-5W solar lanterns account for at least 50% of the potential off-grid solar
system lighting market based on the expense of larger solar systems
Price range from $25 - $110
Source: GTZ, SEF, Newenhout surveys across Kenya, Tanzania, Rwanda, Ethiopia, and Uganda. (1) Average market segmentation projections based on purchasingability and on-the-ground expert assessment.
Segmentation of potential market for solar lighting devices
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Technology/business model advancement
Profitability
Business Model Development
Catalyzing mainstream
investment withFinancial Institutions
CONSUMER EDUCATION
MARKET INTELLIGENCE
Proof of concept Maturity
BUSINESS SUPPORT
Break-even
Advisory services Investment
Addressing regulatory constraints
Catalyzing venture
financing
8
Catalyzing market development
QUALITY ASSURANCE
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Lighting Africas approach
The overall approach of the program is to accelerate thedevelopment of off-grid lighting markets by:
1. Demonstrating the viability of the market to companies
and investors
2. Improving the enabling environment for the sector
3. Supporting the scale up and replication of successfulbusinesses
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Programmatic Response
10
Firm
Sector
Standards &
Practices
Policy &
Awareness
Market intelligence
Training
Mobilization of commercial and concessional financing
B2B linkages
Technical assistance
Product quality standards
Best practices and business models for serving the poor
Policy: undertaken by WB
National consumer education and communication
programs
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Results to date:
Number of people in Africa with access to better
Lighting from using solar lanternsEnergy Access2.5m
July Dec 2011 growth rates over Jan June 2011 in
AfricaGrowth rates113%
Number of countries in Africa that manufacturers
have established importers/distributorsEnergy Access14
Number of good quality products available in the
market in Africa
Quality
products14
Number of solar lanterns sold by manufacturers
that have passed LA min quality standardsEnergy Access502k
Replicated the program in India launch 31st May
2012Replication1
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Quality Assurance Highlights
LA invited to sit in an IEC tech committee that is looking to
institutionalize LA standardsPath to standardization1
Ever-expanding coverage of the marketproducts tested94
Allowed to use Standardized Specifications Sheets;
differentiated from other products.
products passed
quality standards29
UNFCCC harmonized with Lighting Africa QTM for carbon
finance (CDM) compliance
institution referencing
test method1
Nairobi, Kenya / California / Germany / New York/ Beijingtest labs5
2012 awards underway now, built on success of 2010product awards
competitions2
Part of the technical assistance to the markettechnical briefing notes7
Ethiopia requires products meet the standards and targets
for import.
government using
standards and targets1
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Key challenges:Lack of finance impeded market growth and expansion:
Manufacturers (based in China/India)
Do not meet IFC investment criteria
Perceived as high risk and suited for impact/social PE
Too small/young for mature PE funds/mainstream FIs
Local distributors Lack collateral to finance additional growth
Unwilling to invest upfront and tie funds for 90 120 days
Ghana low uptake of solar lanterns
High grid electrification/subsidised connections (low marketattractiveness)
Other competing initiatives e,g WB GEDAP & JICA
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Key priorities going forward1. Develop an A2F facility for the supply chain
Developing a $20m inventory facility with FM (Global) Working with BOA Kenya/FM to development a risk guarantee for
local importers
2. Develop a sustainability plan ; includes waste disposal/collection andGreening the products
3. Expansion /replication of the Lighting Africa program in Africa and India
4. Pricing of all our AS provided at firm level (gradually phase out ofsubsidies)
5. Institutionalization of LA standards with IEC
6. Development of a replication/best practice tool kit for other Dev Inst,NGOs etc
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www.lightingafrica.org