SECTOR OVERVIEW

Today approximately 1.6 billion people do not have access to electricity, while 3 billion people still use traditional biomass for cooking.
(Hystra Access to Energy Report)

Limited access to clean and safe sources of energy causes serious health and environmental problems, impedes the productive capacity of income earners, homemakers and students, and stunts overall economic development where it is most needed.
Currently, BOP consumers spend $500 billion (PPP) on energy each year (HYSTRA). Initial investment in and adaptation to a new energy solution is often found to result in significant cost savings per household.

Social enterprises in the energy sector design, manufacture, and distribute products and services such as grid connections at the community level, solar home systems at the household/business level, and stoves and lanterns at the individual level. Many of these products harness renewable materials and energy sources, such as solar, biofuel, or human power, dramatically reducing the use of natural resources, and cutting or eliminating emissions and wastes. These reduce health hazards from smoke inhalation and free time for work, study and other activities.

Products can be sold through an employed sales force on the ground, a large distributor network of independent shops, and/or micro entrepreneurs (micro franchising). Many SEs also work with NGOs who may give away or subsidize the product. Some SEs build renewable income streams for distributors into their products, through service or recharging fees.

Challenges to SEs in the energy sector include financing options for the high-cost early stages of launching their venture, as margins are low until the SE has reached scale, and difficulty manufacturing products locally at an affordable price.

Social Enterprises by Sub-Sector

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Common Metrics

IRIS Metrics
- Energy Capacity
- Energy Used by Product
- Energy Used by Replaced Product
- Energy Produced
- Energy Savings
Other Metrics
- Number of households reached
- Money saved since purchasing product
- Increased activities since purchase of product
- Decrease in health ailments
- Co2 emissions decreased
- Carbon credits
- Jobs created

Online Resources

Investors and Enablers

Lists of Resources

GIIN Resources- Energy Efficiency- List of resources about energy efficiency in regards to impact investing

GIIN Resources- Energy, Fuels and Generation- List of resources about energy and fuels in regards to impact investing

HEDON Publications Library- Books, articles, papers and reports addressing issues of clean and affordable energy in the developing world

Invennovations Energy and Lighting- List and descriptions of innovative BOP energy and lighting products

Reports