CONTEXT

Access to affordable, modern energy services is essential both for an individual’s health and well-being and for a country’s economic prosperity and development. However, there are currently 1.3 billion people worldwide without access to electricity and 2.7 billion without access to clean cooking facilities. In Latin America and the Caribbean (LAC), over 31 million people – 7 per cent of the regional population – live without electricity, while 85 million, or 19 per cent of the people, are without clean cooking facilities. Most of these people live in rural areas and depend on wood, kerosene, candles, expensive disposable batteries and other rudimentary, and often more costly, forms of energy.

In order to meet the goal of providing universal modern energy access by 2030, substantial investments are needed by both the public and private sectors. Estimates conclude that to reach these goals, it would be necessary to invest USD 48 billion per year. However, the annual investment in 2009 to extend modern energy services was just USD 9.1 billion.

PROJECT

The objective the project was to examine three existing business models that promote access to clean energy in rural areas in the LAC region, to provide recommendations to improve their operations and to facilitate their expansion and replication. More specifically, the project aimed to guide the incorporation of new products and services that could create additional revenue streams for the organisations that were analysed to improve their financial viability. 

This project focused primarily on the following three organisations, which provide clean energy services in rural LAC: 1) IDEAAS (Brazil), 2) EMPRENDA (Argentina/Peru), and 3) ECAMI (Nicaragua). The three companies represent diverse organisation types, differing in terms of business model approach and geographic location.

OUTCOME

The results included best practice case studies, recommendations for the inclusion of new and innovative product lines, business models and financing instruments, plus a public report to demonstrate critical lessons for the industry. To understand the organisations and their environments, BASE conducted detailed field research in Argentina, Brazil, Nicaragua and Peru. We reviewed the current business models and product offerings and looked for innovative ways to strengthen them. We also analysed potential financing sources, including partnerships with financial institutions and carbon finance.