Assessing Energy Needs, Market Opportunities, and Distribution Strategies. Eric Verploegen D-Lab s Off-Grid Energy Group February 22 nd 2016

Transcription

1 Assessing Energy Needs, Market Opportunities, and Distribution Strategies Eric Verploegen D-Lab s Off-Grid Energy Group February 22 nd 2016

2 Outline Overview of D-Lab Perspectives for scaling energy access Community focused approach for assessing energy needs and market opportunities Last-mile distribution

3 D-Lab Scale-Ups D-Lab s engine for scaling-up social technology and business innovation Fellowship Program The agility of entrepreneurship Turning prototypes into marketable products and ideas into investable ventures 12 months full-time fellowship for MIT and IDDS alumni Funding, Mentoring, Learning, Partnerships Research and Action Transforming knowledge into action Generating open-source tools and resources for implementers Direct technical support Practical Impact Alliance The power of collaborative action Network of corporations, social ventures, government agencies, and global NGOs to scale-up market-driven solutions to poverty Working groups Co-design summits

4 Off-Grid Energy Group What do we mean be energy access? Household electricity Household cooking Livelihood improving uses of energy (Household livelihoods, businesses, etc.) Community benefit (Health clinic, schools, street lighting, etc.)

5 SE4All Multi-Tier Framework A common language for describing energy access Similar 5-tier frameworks for other areas

6 What are the goals? How to achieve them? Who decides? Key questions

7 What are the goals? Specific energy access goals Households, business, community institutions What level of energy access is target? Economic development Improved health Improved education Environmental protection Climate change mitigation

8 How to achieve impact? Technology innovation Business model innovation Government program Scale existing enterprises or programs Replication Philanthropy Market based

9 Who is making the decisions? Funders Investors Businesses Governments Academics International NGOs Community organizations Consumers/users Approach focused Mandate focused Community focused

10 Perspectives for Scaling Energy Access Approach focused Investors and Businesses Mandate focused Governments, Multinationals, and NGOs Community focused Community Organizations, NGOs, and Entrepreneurs Solution Fixed Goal Fixed Market Fixed Goal Determined by needs the solution addresses Market Determined by where there is a need Goal Determined by needs and market opportunities Market Need to identify Solution Need to identify Solution Need to identify

11 Off-Grid Energy Toolkit A community focused approach to increase energy access in off-grid communities Energy Needs and Market Opportunities Target audience is any organization with: Assessment toolkit to identify the following in a target region: 1) Current A strong energy access presence in the community or region Aspirational energy needs 2) Existing The supply capability chain to take action Stakeholders in the energy sector (private sector, government, NGO) 3) Energy sector expertise NOT required Technology Individual entrepreneurs Businesses Civil society organizations NGOs Local governments Resources for energy product and technology identification Business Model Resources for distribution and business model identification Pilot Validate the technology and business model suitability Market Deployment Program implementation and monitoring and evaluation

12 Organizations using this toolkit in partnership with D-Lab ASAPROSAR in El Salvador Mercy Corps in Mali

13 Profile of implementing organization 40 years in El Salvador Main activities Community and Visual Health Youth education Microcredit Serves urban and rural communities Assessment approaches 3-day assessment (August 2015) Focused on off-grid village El Sauce ASAPROSAR and D-Lab collaborate on project design process

14 Households Energy Needs Household Energy $2 per week for kerosene $0.25 fee to charge cell phones (15-20 minute walk) Some residents carry car batteries to be charged for a fee Landowner is not concerned with lack of electricity access ASAPROSAR has a clean cookstove program Solar Lantern Cost Payback Period Monthly Saving Life Cycle Savings* $70 9 months $8.00 $ * Products have 2-year warranty and 5-year expected lifetime Next Steps: Pilot usage of lanterns among households Identify best vendor Establish microfinance program

15 Electricity Needs for Church in El Sauce Energy needs at the church: $6 per week on kerosene lamp $0.25 fee to charge cell phones (15-20 minute walk) TV and DVD player Microphone and amplifier Solar Power and Lighting System: $250 - $400 5 V and 12 V outputs

16 Profile of implementing organization 4 years in Mali Main activities Direct cash transfers and lending Peace-building Entrepreneur training Field offices located in the north where there are significant security concerns Assessment approaches 1-week of field work in each of three regions (October-November 2015) Focus on off-grid villages and towns Mercy Corps and D-Lab collaborate on project design process

17 Northern Mali Assessment Results Household Energy in Villages Wood for cooking fuel is becoming scarce Some households have solar panels Very few village-level electrification projects Productive Use Energy Needs Irrigation, refrigeration, and welding Community Institutions with electricity needs Schools Health clinics Street lighting

18 Efficient Cookstove Pilot Need: Wood for cooking fuel is becoming scarce Opportunity: Cookstove manufacturers in the south Mercy Corps has programs in the north Project: Sell efficient cookstoves in northern regions to determine market viability Results: 100 cookstoves sold on informal credit in one week Next Steps: Continue sales, monitor repayment, and gather user feedback Create program for cookstove manufacturing in the north

19 Needs in northern Mali: Micro-grids, irrigation, and refrigeration Asset Financing Opportunity: Private sector equipment suppliers in the south Mercy Corps has entrepreneurship and financing programs in the north Robust civil society organizations identified Project: Financing for access to decentralized solar powered electricity Connect civil society organizations and local businesses with technology providers Provide financing for capital equipment Support sustainable use of the equipment

20 Off-Grid Energy Toolkit A community focused approach to increase energy access in off-grid communities Energy Needs and Market Opportunities Assessment toolkit to identify the following in a target region: Current energy access Aspirational energy needs Existing supply chain Stakeholders in the energy sector (private sector, government, NGO) Technology Resources for energy product and technology identification Business Model Resources for distribution and business model identification Pilot Validate the technology and business model suitability Market Deployment Program implementation and monitoring and evaluation

21 SHARED LEARNING + COLLABORATIVE ACTION PIA members have access to hands-on, action-focused activities organized by MIT D-Lab, including: Working Groups Co-Design Summits MIT Scaling Development Ventures Conference Innovation Challenge Internships Class projects

22 Customer Point of Contact Last Mile Distribution Working Group Door-to-door Institutional Partnership Micro-retail Proprietary distribution Shared distribution Working Group Outputs Decision making tool Door-to-door best practices guide

23 BoP Distribution Decision Making Tool User inputs answers to the questionnaire Online Questionnaire Product requirements Market capabilities Organizational capabilities Organizational priorities As the context changes with time Re-evaluate distribution strategy Recommendations of a suitable distribution model Case studies of successful distribution models in a similar context Case examples Household energy products Health and nutrition products Agricultural products

24 The door-to-door model: Good practices Scalability drivers Financing Basket mix Decentralized functions Inventory management Technology use MEs as beneficiaries Trust culture Local leadership Incentives alignment Service approach Success factors Recruitment Training Equipment & branding Monitoring Incentives Key components

25 Thank You Questions? d-lab.mit.edu/off-grid-energy