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An Under-Recognized Obstacle to Solar Access in Africa: The Impact of Foreign Exchange Risk — And How to Mitigate It
Solar energy businesses are rapidly gaining traction in Africa, driving economic growth, improving living standards and supporting the transition to a low-carbon future. But Yariv Cohen at Ignite Power highlights an under-recognized barrier facing the sector: foreign exchange risks. He explores the impacts that volatile exchange rates can have on two common types of solar projects in Africa, and shares some of the strategies that have emerged to mitigate these risks.
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- Energy, Environment, Investing, Technology
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Funding the Fight Against the World’s Oldest Fuel Source: How New Financing Mechanisms in Clean Cooking Can Succeed Where Grants Have Failed
The use of biomass fuel for cooking has remained consistent over the centuries, despite the development sector's efforts to scale global access to clean cookstoves. As Paul Ronalds at Save the Children Global Ventures argues, a key reason for this failure is the estimated $5.5 billion annual funding gap facing clean cooking initiatives — a gap that traditional sources of finance, like private donations and government grants, have been unable to fill. He discusses several funding solutions, including carbon credits, that could help the clean cooking sector finally end the era of biomass fuel.
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- Energy, Environment, Investing, Technology
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Replacing Old Technologies or Creating New Markets?: The Pros and Cons of Two Paths to Impact for Productive Use of Energy
Productive use of energy (PUE) technologies have the potential to unlock higher incomes and reduce reliance on more costly, non-renewable energy sources in rural and low-income communities. Dan Waldron, Chris Emmott, Yash Vardhan Gaddhyan and Ruth Wairimu at Acumen discuss the advantages and disadvantages of two different paths to impact for PUE: replacing inefficient, fossil fuel-based incumbent technologies, vs. disrupting entire markets with innovative PUE approaches.
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- Energy, Environment, Investing, Technology, Transportation
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Blockchain vs. Greenwashing: Why Emissions Reporting is Pointless Without Verifiable Data
The current carbon emissions reporting landscape is awash in bold, often dubious claims about the supposed climate impact of different businesses. According to Nish Kotecha at Finboot, these claims are a result of the growing pressure on companies to provide more environmental accountability, and they often reduce emissions reporting to an exercise in greenwashing. He explores how Finboot is leveraging blockchain to verify the accuracy and reliability of emissions data, and discusses some key obstacles to the wider adoption of blockchain-based emissions reporting.
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- Energy, Environment, Technology
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Why Private Businesses — Not Non-Profits and NGOs — Present the Only Scalable Solution for Last-Mile Electrification in Africa
In the pursuit of last-mile electrification in Africa, both businesses and NGOs/non-profits are pursuing different pathways to scale. In a recent NextBillion article, Aneri Pradhan at New Energy Nexus argued that market-led approaches are ill-suited for remote communities, and that philanthropy should focus more on scalable non-profit models. But according to Yariv Cohen at Ignite Power, when it comes to serving these communities at scale, businesses offer advantages that non-profits and NGOs cannot match. He explores why the private sector’s role is critical for addressing energy poverty across Africa.
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- Energy, Technology
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Scalable Mini-Grid Design Requires Expandable Systems: Why Modular Technology and Finance are Key to the Sector’s Growth and Sustainability
Mini-grids offer a proven, low-cost solution to bring energy access to hard-to-reach communities. But as Nathan Sermonis and Liam Murphy at Vittoria Technology argue, mini-grid projects need to start small and grow alongside customer demand for optimal sustainability. They explore why smart mini-grid design requires expandable, right-sized systems with “modular” finance and technology, and discuss how recent innovations in batteries and other solar technologies can enable this change in the sector’s approach to system design.
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- Energy, Technology
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Under-Leveraged Best Practices for Scaling Productive Use of Energy Appliances: Part 2 — Financing Options
Productive Use of Energy (PUE) appliances are the subject of growing attention in the development sector, but manufacturers and distributors are facing a number of challenges and misconceptions that are limiting uptake of these devices. In the second article of a two-part series exploring best practices for selling PUE appliances, Thomas Charoy and Lucie Klarsfeld McGrath at Hystra discuss the affordability challenge, sharing solutions for handling the high level of working capital and financial skills required to offer financing options to end-users.
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- Agriculture, Energy, Finance, Technology
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Empowering the Underserved: A New Report Highlights the Impact of Off-Grid Energy Solutions — And Some Emerging Challenges
Up to 674 million people living in the world's most vulnerable communities are projected to remain unelectrified by 2030. According to Kat Harrison at 60 Decibels, the off-grid sector could reach these customers, if these energy businesses and organizations are given the right support to successfully scale. She shares insights from a new 60 Decibels report, based on interviews with 79,000 energy customers in over 30 different countries over the last three years, which highlight some adjustments the sector could make to reach hundreds of millions of excluded customers.