Page 8 - Market Creation for Clean Energy Access - Insights from Jeevika-TERI partnership in Bihar
P. 8
more market-based solutions1 that could be However, Bihar’s under-developed clean energy
developed and sustained within ‘Bottom of Pyramid (specifically solar) markets have been a difficult
(BoP)’segments2 . With increasing technological breaking ground for enterprises that wish to
innovations in renewable energy solutions, the operate purely as per market-based modes, making
market also saw individual- and private business- scalability and sustainability harder than perceived.
led models sprout as they joined in to generate For example, several business owners and retailers
and distribute electricity through independent of mobiles, electronics, and allied products/services
and decentralized systems or to retail stand-alone became value added resellers of pico energy
products. systems3 to address the gap in electricity access.
1 Market-based approach refers to delivery of products and services that the poor value and afford. In treating poor as customer,
in a market-based approach, the focus is on delivering solutions in ways that can become financially viable so as to avoid donor
dependency (Shell Foundation 2010).
2 BoP segments are difficult for conventional private sector players as the operating and distributions costs are extremely high due
to scattered nature of consumers, fragmented retail channels, and low sales volumes (Dutta 2015).
3 Pico energy systems are ‘Plug & Play’ systems typically with configurations below 10 Wp and voltages not above 12 V (Source:
http://www.energy4humandevelopment.com/2012/02/pico-pv-real-solution-for-rural.html).
8 LaBL Publication
developed and sustained within ‘Bottom of Pyramid (specifically solar) markets have been a difficult
(BoP)’segments2 . With increasing technological breaking ground for enterprises that wish to
innovations in renewable energy solutions, the operate purely as per market-based modes, making
market also saw individual- and private business- scalability and sustainability harder than perceived.
led models sprout as they joined in to generate For example, several business owners and retailers
and distribute electricity through independent of mobiles, electronics, and allied products/services
and decentralized systems or to retail stand-alone became value added resellers of pico energy
products. systems3 to address the gap in electricity access.
1 Market-based approach refers to delivery of products and services that the poor value and afford. In treating poor as customer,
in a market-based approach, the focus is on delivering solutions in ways that can become financially viable so as to avoid donor
dependency (Shell Foundation 2010).
2 BoP segments are difficult for conventional private sector players as the operating and distributions costs are extremely high due
to scattered nature of consumers, fragmented retail channels, and low sales volumes (Dutta 2015).
3 Pico energy systems are ‘Plug & Play’ systems typically with configurations below 10 Wp and voltages not above 12 V (Source:
http://www.energy4humandevelopment.com/2012/02/pico-pv-real-solution-for-rural.html).
8 LaBL Publication
