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Erschienen in: Current Sustainable/Renewable Energy Reports 4/2018

27.10.2018 | Regional Renewable Energy - Africa (D Arent and N Lee, Section Editors)

Delivering on the Promise of Distributed Renewable Energy Entrepreneurship in Sub-Saharan Africa

verfasst von: Ganesh Rasagam, Danqing Zhu

Erschienen in: Current Sustainable/Renewable Energy Reports | Ausgabe 4/2018

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Abstract

Purpose of Review

This review of distributed renewable energy (DRE) entrepreneurship analyzes the market demand and unique market characteristics in sub-Saharan Africa (SSA) that drive technology-enabled DRE entrepreneurial solutions through innovative business models. It further examines how policy and regulatory challenges need to be overcome for scale and impact.

Findings

The unmet energy demand in SSA provides significant opportunities for DRE entrepreneurs to complement and/or substitute grid-based systems through renewable energy solutions. The characteristics of DRE solutions such as affordability, modularity, flexibility, and sustainability endow competitive advantages in small-scale price-sensitive market segments especially in rural and remote settings. The viability and scalability of business models in the DRE sectors are highly dependent on a conducive policy and regulatory-enabling environment.

Summary

DRE entrepreneurs are disrupting energy markets by combining technologies in renewable energy, energy efficiency, mobile payment, and data management systems to meet energy demand especially in price-sensitive, rural and remote markets.

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Fußnoten
1
The 2016 World Bank literature review of growth entrepreneurship [9] adopted Sander Wennekers and Roy Thurik’s definition of entrepreneurship in their 1999 paper as “the process of starting a business; using a manifest ability and willingness of individuals, on their own, in teams, within and outside existing organizations, to perceive and create new economic opportunities (new products, new production methods, new organizational schemes, and new product-market combinations) and to introduce their ideas in the market, in the face of uncertainty and other obstacles, by making decisions on location, form, and the use of resources and institutions.” In addition, “entrepreneur firms” are defined as enterprises “with less than 100 employees that are enterprises with less than 100 employees that are younger than 7 years old, and are new entrants to a particular market” by Praag and Versloot in a 2007 paper. This paper adopts these two definitions when referring to entrepreneurship and entrepreneurs.
 
2
Other negative impacts of traditional cooking methods on health, environment, and livelihoods, with disproportionally impacts on girls and women are detailed by Global Alliances for Clean Cookstoves studies.
 
3
Six hundred ninety-two million people live on less than US$2.50/day, including 60% of them on less than US$1.25/day in SSA. Assuming an average of five people per household and an average monthly household expenditure of US$6 on energy, this represents an annual market of US$10 billion [21•].
 
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Metadaten
Titel
Delivering on the Promise of Distributed Renewable Energy Entrepreneurship in Sub-Saharan Africa
verfasst von
Ganesh Rasagam
Danqing Zhu
Publikationsdatum
27.10.2018
Verlag
Springer International Publishing
Erschienen in
Current Sustainable/Renewable Energy Reports / Ausgabe 4/2018
Elektronische ISSN: 2196-3010
DOI
https://doi.org/10.1007/s40518-018-0120-x

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