Renewable energy is an essential part of the energy mix in sub-Saharan Africa, yet its potential remains underutilized. While the region relies heavily on biomass for energy, modern renewable sources still hold a relatively small share. This trend is mirrored in Bangladesh, where significant strides in off-grid solar have been made, but many rural areas still face challenges such as affordability, maintenance, and access to reliable electricity. Similarly, traditional biomass stoves, which contribute to indoor air pollution and health issues, are still common in both Bangladesh and sub-Saharan Africa.
In Cambodia, renewable energy accounts for about half of the electricity generation, predominantly from hydropower, with solar making up a smaller portion. Despite this progress, there remains a notable opportunity to enhance solar access, with high access costs posing a significant barrier.
Addressing these challenges is crucial for expanding renewable energy access, improving health outcomes, and fostering sustainable development. Efforts to overcome barriers such as affordability and access are vital in these regions, where renewable energy could play a transformative role in enhancing quality of life and driving economic growth.
The EEC’s approach
The Energy Enterprise Coach (EEC) is dedicated to enhancing renewable energy access across Africa and Asia. By providing tailored business development services to small and medium-sized enterprises (SMEs), EEC aims to drive growth in the sector and promote expansion of clean energy solutions.
Supporting SMEs towards investment readiness
Investment readiness is essential for enhancing renewable energy access, especially in rural communities where costs can be high. While there is growing demand for clean energy products, the market is often flooded with lower-quality and faulty products. This issue is compounded by the price sensitivity of consumers, making it challenging for entrepreneurs to sell higher-quality, certified, and tested products at a premium.
EEC addresses these challenges by helping businesses become investment-ready. This involves preparing them to attract and secure funding, which is crucial for scaling operations and reducing costs. By providing guidance on business planning and financial management, EEC helps businesses navigate the financial complexities of the renewable energy market. When SMEs are able to attract investments they are in turn, able to subsidize costs and offer better-quality products at more competitive prices. This financial backing helps to ensure that reliable and efficient clean energy solutions reach rural communities, overcoming barriers related to affordability and market saturation, and contributing to broader adoption and sustainable development.
Building capacity and expanding reach
EEC’s training programs are integral to its approach, focusing on both technical skills and confidence-building. Entrepreneurs often face challenges not only with technical knowledge but also with engaging confidently with potential customers. EEC’s training and personalised mentorship enhances both skill levels and confidence, helping businesses to effectively promote and deploy renewable energy solutions. This empowerment is crucial for expanding renewable energy access, as it enables businesses to navigate sales conversations and implement clean energy solutions within their communities.
Effective sales and marketing strategies are key to increasing renewable energy access. Research by the International Finance Corporation (IFC) shows that over 90% of households without clean lighting and cooking solutions could afford these improved products if they were accessible. Many of these households currently spend more on traditional energy sources, highlighting a significant market opportunity.
EEC supports businesses in developing robust sales and marketing strategies to tap into this potential. In rural areas, where trust is a critical factor in purchasing decisions, EEC helps businesses build strong branding and marketing approaches. This fosters trust and clearly communicates the benefits of renewable energy products, ensuring that these solutions reach more households and bridging the gap between potential customers and clean energy access.
An example of EEC’s impact is seen with Clean Energy for Africa (SARL) from Benin. Due to the EEC program, Clean Energy for Africa has reported an increase in audience reach and attraction of new customers, resulting in a 23% increase in sales. This success illustrates how EEC’s training and support can directly enhance the capacity of SMEs, thereby expanding the reach of clean energy solutions and increasing access to renewable energy.
Women empowerment
EEC places a strong emphasis on supporting women-owned enterprises, with at least 25% of its supported businesses being women-led. This focus is significant as women-owned SMEs are often growing at a faster pace than their male counterparts and have demonstrated resilience in overcoming challenges. This growth presents a substantial opportunity to expand access to renewable energy.
Women bring a unique value proposition to the sector, particularly in sales and distribution. They are well-positioned to serve as effective last-mile distributors due to their ability to leverage existing social networks and build trusting relationships with potential customers. In rural areas, where women are typically the primary energy users in households, this capability is particularly valuable. Supporting women entrepreneurs not only fosters gender equality but also strengthens the overall energy access ecosystem, ensuring that renewable energy products and services are more accessible and better suited to the needs of the communities they serve.
Renewable energy SMEs are pivotal to the growth of the clean energy sector, and the Energy Enterprise Coach (EEC) is dedicated to equipping these businesses with essential skills, services, and expertise. By fostering the development of these SMEs, EEC not only supports their growth but also significantly enhances access to renewable energy across Africa and Asia.
