Sei sulla pagina 1di 13

Market-based approach to catalyzing energy access: Lighting Africa

Pepukaye Bardouille 4 th June 2012 / Manila

Over the next 20 years, Africa will rapidly surpass Asia to become the largest un-electrified market in the world

Un-electrified

population,

millions

2009 2030 34 13
2009
2030
34
13
809 21 5 698 561 589
809
21
5
698
561
589
un-electrified market in the world Un-electrified population, millions 2009 2030 34 13 809 21 5 698

Household lighting data Rural HH in Kenya

Household lighting data – Rural HH in Kenya Province Electricity Lantern Tin Lamp Solar Total KENYA
Household lighting data – Rural HH in Kenya Province Electricity Lantern Tin Lamp Solar Total KENYA
Province Electricity Lantern Tin Lamp Solar Total KENYA 273,352 5.1% 1,847,613 34% 2,617,593 49% 118,412
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
Number of households – Kenya 2009 census

African BOP households and small businesses spend over $10 billion on lighting p.a - growing to over $11bn

Total annual spend on lighting ($,

- growing to over $11bn Total annual spend on lighting ($, billions) • Average rural HH

billions)

Average rural HH spends $10 12 per month and $ 120 140 per year

Significant, unexplored potential in low cost solar lanterns

Significant, unexplored potential in low cost solar lanterns Segmentation of potential market for solar lighting devices
Significant, unexplored potential in low cost solar lanterns Segmentation of potential market for solar lighting devices

Segmentation of potential market for solar lighting devices

Segmentation of potential market for solar lighting devices 4 % 7% 14% 26% 49% 1-5W solar
Segmentation of potential market for solar lighting devices 4 % 7% 14% 26% 49% 1-5W solar

4%

7% 14% 26% 49%
7%
14%
26%
49%

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

of larger solar systems Price range from $25 - $110 Source: GTZ, SEF, Newenhout surveys across

Source: GTZ, SEF, Newenhout surveys across Kenya, Tanzania, Rwanda, Ethiopia, and Uganda. (1) Average market segmentation projections based on purchasing ability and on-the-ground expert assessment.

Profitability

Catalyzing market development

Business Model Development Proof of concept Maturity Advisory services Investment
Business Model Development
Proof of concept
Maturity
Advisory services
Investment

Break-

even

Technology/business model advancement

MARKET INTELLIGENCE CONSUMER EDUCATION Catalyzing mainstream investment with Financial Institutions BUSINESS SUPPORT
MARKET INTELLIGENCE
CONSUMER EDUCATION
Catalyzing mainstream
investment with
Financial Institutions
BUSINESS SUPPORT
QUALITY ASSURANCE
Catalyzing venture
financing
Addressing regulatory constraints

8

Lighting Africa’s approach

The overall approach of the program is to accelerate the

development 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 successful

businesses

Programmatic Response

Firm Sector Standards & Practices Policy & Awareness
Firm
Sector
Standards &
Practices
Policy &
Awareness

B2B linkages

Technical assistance

Market intelligence

Training Mobilization of commercial and concessional financing

Product quality standards

Best practices and business models for serving the poor

Policy: undertaken by WB National consumer education and communication programs

10

Results to date:

 

2.5m

 

Number of people in Africa with access to better

Energy Access

Lighting from using solar lanterns

 

502k

 

Number of solar lanterns sold by manufacturers

Energy Access

that have passed LA min quality standards

 

113%

Growth rates

July Dec 2011 growth rates over Jan June 2011 in Africa

 

14

Energy Access

Number of countries in Africa that manufacturers have established importers/distributors

 

14

Quality

Number of good quality products available in the

products

market in Africa

 

1

Replication

Replicated the program in India launch 31 st May

2012

Quality Assurance Highlights

5

test labs

Nairobi, Kenya / California / Germany / New York/ Beijing

94

products tested

Ever-expanding coverage of the market

29

products passed quality standards

Allowed to use Standardized Specifications Sheets;

differentiated from other products.

1

institution referencing test method

UNFCCC harmonized with Lighting Africa QTM for carbon finance (CDM) compliance

1

government using

Ethiopia requires products meet the standards and targets for import.

standards and targets

2

product awards

 

competitions

2012 awards underway now, built on success of 2010

7

technical briefing notes

Part of the technical assistance to the market

1

Path to standardization

LA invited to sit in an IEC tech committee that is looking to institutionalize LA standards

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 market

attractiveness)

Other competing initiatives e,g WB GEDAP & JICA

Key priorities going forward

1.

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 and Greening 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 of subsidies)

5.

Institutionalization of LA standards with IEC

6.

Development of a replication/best practice tool kit for other Dev Inst, NGOs etc

www.lightingafrica.org