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Business solutions to enable energy access for all The WBCSD Access to Energy Initiative Washington D.C. February 21 st 2012. WBCSD Access to Energy Initiative. Maximizing the business contribution to expanding access to clean, reliable & affordable energy.
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Business solutions to enable energy access for all The WBCSD Access to Energy Initiative Washington D.C. February 21st 2012
WBCSD Access to Energy Initiative Maximizing the business contribution to expanding access to clean, reliable & affordable energy
New publication: Business solutions to enable energy access for all 19 member company case studies
Background to the publication • Expansion and transformation of energy systems required. • Efficiency and reliability are critical for delivering development benefits. • Business is a primary solution provider… • …but there are major barriers to investment. • Public investment is essential. • Maximizing the opportunity for business: • Reduction of financing gap. • The business role as a solution provider. • Efficient and effective implementation capabilities.
LARGE COMPANIES & UTILITIES • Efficient deployment of existing solutions at scale • Innovation & new solutions • Efficiency & reliability of the energy system • Knowledge & skills transfer • Financial resources • Linkages with local firms and social entrepreneurs KEY STAKEHOLDERS Regulatory Agencies Government Development Agencies EXPANDING ACCESS TO CLEAN, RELIABLE & AFFORDABLE ENERGY CONTRIBUTION OF BUSINESS Financing Institutions Partnering, supply chain, joint ventures etc. Communities Consumers/ Householders • LOCAL FIRMS & SOCIAL ENTREPRENEURS • Localized solutions to meet local customer needs • Last mile service delivery • Key producers and distributors NGOs
Maximizing the business contribution DELIVERY OF GOODS & SERVICES MAXIMIZING THE BUSINESS CONTRIBUTION TO PROVIDING ACCESS TO CLEAN, RELIABLE & AFFORDABLE ENERGY SERVICES • BUSINESS MODEL INNOVATION • Grid extension • Decentralized/renewable energy systems • Products & appliances COLLABORATION & PARTNERSHIPS (Governments, IFIs, Development Agencies, Social entrepreneurs, NGOs etc.) ENABLING ENVIRONMENT 2. ENABLING POLICY FRAMEWORKS 3. FINANCING MECHANISMS
Business model innovation • More affordable and reliable products and services. • Overcoming or circumventing market barriers/failures. • Increasing profitability and scalability of servicing poor customers.
SIMPLIFIED POLICY FRAMEWORK FOR SCALING BUSINESS INVESTMENT INVESTMENT CLIMATE PLANNING, COORDINATION & PRIORITIZATION Prioritization in National Development Planning Improvement of the investment climate & removal of barriers Enabling of private participation & Public Private Partnerships (PPPs) Policy coordination & coherence Capacity building & skills development Public investments in core infrastructure SUPPORT TO KEY SOLUTIONS Products & appliances Grid extension Distributed/ renewable energy systems
The financing gap… 50 Private finance 40 Developing country governments Multilateral development banks 30 Billion dollars (2010) Bilateral official development assistance 20 10 0 2009 Annual requirement for universal access by 2030 Source: IEA World Energy Outlook 2011
Scaling up private investment • Challenge: (often) weak private financial case but clear social benefits warranting public investment. • Public and development finance can be designed to leverage additional business investment to maximize impact. • Other mechanisms/actors also important: • Climate finance • Local banking sector • Microfinance • Social/impact investment
Collaboration & partnerships • Partnerships and cross-sector collaborative approaches between key stakeholders are essential to make all of these opportunity areas successful. • Effective public private partnerships (PPPs) will be particularly important drivers of progress toward universal access to energy. • Partnerships are also critical for: • Making new business models work. • Effective financing models. • Coordination and advocacy for global action (e.g. Global Alliance for Clean Cookstoves).
http://www.wbcsd.org/accesstoenergy.aspx Contact: Matthew Lynch lynch@wbcsd.org +41 (0) 22 839 31 94