1a1a Two frameworks for beginning to think about small and medium ENTERPRISES as a DELIVERY...

1a

Two frameworks for beginningto think about small and medium

ENTERPRISES as aDELIVERY MECHANISM

for improved ENERGY ACCESS

The E-P-T triangle(a program approach)

The E-C interaction(a micro-economic analysis)

The problem of energy access appears messy and daunting at first.

Each of these squiggles represents a potential impact from improving energy access

Less drudgery forwomen and children

Reduced GHGemissions

Less Indoor airpollution

Income generatingactivities

Light for studying

Access to informationand communication

technology

So how do these impacts become realized?

Rule 1: If you have to herd cats, grab a couple of friends and some fencing.

Policy Technology

Enterprise

There are only so many ways you can “push” for clean energy access. These are: Enterprise, Policy, Technology (E-P-T)

Policy Technology

Enterprise

The impact of energy initiatives – public & private – is largely defined by how well these three variables are managed.

Policy Technology

Enterprise

All three must come together in order to complete the triangle.

Policy Technology

Enterprise

½ b

h

Think of the realized impact as the area of the triangle.

Policy

Technology

Enterprise

If there is too much emphasis on technology and too little attention to the policy environment and entrepreneur delivery, the impact is difficult to capture.

Policy

Technology

Enterprise

Likewise, if we trust that policy alone can solve the problem, we run a similar risk.

Policy Technology

Enterprise

And focusing on the enterprise issue alone without considering policy and technology creates a delivery system that is difficult to scale and vulnerable to the vagaries of policies and politics.

Policy Technology

Enterprise

Here, the sides are able to connect, but the impact is reduced because the technology is not fully supported by enabling policy and effective delivery systems. (See MFP)

Policy Technology

Enterprise

Again, the impact is limited when the primary “push” for clean energy access comes only from the policy side. (See Ghana LPG)

Policy Technology

Enterprise

Lastly, faith in SGBs to extend and scale clean energy access is misplaced unless careful attention is paid to deploying appropriate technology in a sound policy setting. (See Soluz DR)

Policy Technology

Enterprise

The objective is to achieve balance between the three strategies in order to maximize the “area,” knowing that each “push” supports and informs the others.

Enterprise

The focus of this toolkit is on the “E” side, recognizing that this is the most oft neglected of the three pieces.

E(Enterprise)

It is around this crucial interface that we will organize other important relationships and factors for success.

Also, a robust enterprise-customer interaction forms the crux of the delivery model. It doesn't matter whether the enterprise is an MNC, a contractor, a mom & pop store, a co-op, an NGO, etc.

C(Customer)

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

This is what is required for a successful E-C interaction.

E(Enterprise)

C(Customer)

Entrepreneur (e)

The “Champion” Dedicated Talented

E(Enterprise)

C(Customer)

Technology (t)

Solar PV Household biogas Wind Micro Hydro Improved charcoal stoves Etc. Etc.Any method used to accomplish the ends

E(Enterprise)

C(Customer)

Services (Es)

Business development Feasibility studies Legal aid Carbon strategy Technical advising Etc. Etc.

E(Enterprise)

C(Customer)

Finance (Ef)

Debt Equity Subsidies Grants Carbon Revenues Etc. Etc.

E(Enterprise)

C(Customer)

Demand (d)

Do consumers want theproducts? Income generation Cost-saving Health-preserving Education benefits Time-saving Status Leisure Etc. Etc.

E(Enterprise)

C(Customer)

Knowledge (k)

Do consumers... ...know of the tech.? ... know the company? ... know the benefits? ... know maintenance?

E(Enterprise)

C(Customer)

Services (Cs)

Can the consumers... ... get timely repairs? ... get safety training? ... exercise warranties?

E(Enterprise)

C(Customer)

Finance (Cf)

Savings Existing income Improved income Micro-loans Rent-to-own Etc. Etc.

E(Enterprise)

C(Customer)

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

E(Enterprise)

C(Customer)

What happens when...

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

E(Enterprise)

C(Customer)

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

E(Enterprise)

C(Customer)

What happens when...

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

E(Enterprise)

C(Customer)

What happens when...

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

E(Enterprise)

C(Customer)

What happens when...

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

E(Enterprise)

C(Customer)

What happens when...

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

E(Enterprise)

C(Customer)

What happens when...

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

E(Enterprise)

C(Customer)

What happens when...

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

E(Enterprise)

C(Customer)

What happens when...

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

But where does policy come into the picture?

E(Enterprise)

C(Customer)

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

Policy &

Enabling Environments

And what are the outcomes?

Policy and local contexts provide the larger framework within which the E-C connection takes place. This has been extensively studied.

E(Enterprise)

C(Customer)

Financial EnvironmentalSocial

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

Policy &

Enabling Environments

E(Enterprise)

C(Customer)

Financial EnvironmentalSocial

These are referred to as the:

Triple Bottom Line

A.K.A. People, Planet and Profit

A.K.A. Blended Value Propositions

But the basic idea is the same; it's a win-win-win scenariowhich addresses all three pillars of sustainable development.

Policy Technology

Enterprise

A balanced approach is necessary in order to have maximum impact and go to scale.

Quick recap:

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

Policy &

Enabling Environments

Pay special attention to the enterprise-customer interaction

E(Enterprise)

C(Customer)

Financial EnvironmentalSocial

Quick recap:

Thank You!

Questions?