Unlocking access to finance for decentralised energy solutions
Decentralised energy technologies have a vital role in extending electricity to around 80 million households lacking access to grid electricity and meet cooking energy needs of 49 % of the population which is still dependent on biomass fuels for cooking (Census 2011). Access to enterprise and end-user finance is one of the key pre-requisites for ensuring greater penetration or widespread uptake of decentralised renewable energy (RE) technologies. One of the key objectives of the Clean Energy Access Network (CLEAN) is alleviating financing gaps hindering the growth of the decentralised renewable energy sector. With this backdrop, CEEW undertook a two-month study to understand the various business models of decentralised RE enterprises; map the enterprise and end-user financing mechanisms in place; investigate enterprise and end-user financing challenges; and develop a portfolio of interventions which can be implemented to CLEAN for addressing the financing gaps. Further, the study also features a special case on the financing ecosystem for decentralised RE in seven north-eastern states, which has thus far received very little attention. The overarching goal of the study is to lay the foundation for CLEAN’s work on facilitating greater access to finance for various decentralised RE enterprises and end-users in the next three years.