UNDERSTANDING ENERGY ACCESS MARKET NEEDS IN FIVE HIGH-IMPACT COUNTRIES

The report finds that finance flows to decentralized energy access enterprises are significantly lower than required to meet national targets, with a particularly severe gap in the clean cooking sector. While some markets like Kenya are dynamic due to PAYGO models and mobile money, others like Ethiopia and Myanmar struggle with severe foreign exchange restrictions and a heavy reliance on grants. Across all five countries, high collateral requirements from banks and currency volatility are primary barriers to obtaining debt. The study estimates that annual finance needs for Tiers 1-3 energy access in these five countries are approximately $3.97 billion, while the total estimated cost for meeting clean cooking targets through 2030 across four of the countries is $18.44 billion per year.

• Annual finance needs to reach national targets for Tiers 1-3 energy access in the five surveyed countries are estimated at approximately $3.97 billion.
• The financing gap in the clean cooking sector is substantial, with total estimated costs for meeting targets in Bangladesh, Ethiopia, Kenya, and Nigeria at $18.44 billion per year through 2030.
• Lenders' high collateral requirements are a universal barrier for small and medium enterprises (SMEs) across all five surveyed countries.
• Currency volatility and exchange rate fluctuations create unpredictability in equipment costs and negatively impact customer pricing and payment ability.
• Kenya is a global leader in the pay-as-you-go (PAYGO) solar home system (SHS) market, driven by a combination of mobile money (M-Pesa), real-time analytics, and policy clarity.
• Bangladesh is the only surveyed country where debt finance is common and widespread for SMEs, largely due to the concessional loans provided by the Infrastructure Development Company Ltd (IDCOL).
• In Ethiopia, severe foreign exchange shortages and government capital controls result in wait times of 8-10 months to purchase foreign currency, hindering the import of energy products.
• Myanmar's energy access market is overwhelmingly dependent on grants, with a lack of viable business models due to high government and donor subsidies (up to 90% for SHS).
• Nigeria's energy access growth is stifled by a lack of mobile money penetration (estimated at 1%) and a severe economic recession compounded by the crash of the Naira.
• The clean cooking sector is chronically underfunded compared to electricity, with most costs residing in the fuels rather than the stove technology (over 95% of costs in four surveyed countries).
• Mini-grids are generally viewed as less 'bankable' than solar lanterns or SHS due to regulatory constraints on pricing and competition with subsidized national tariffs.
• Female entrepreneurs face greater difficulties in accessing finance than male entrepreneurs across all surveyed countries, specifically regarding land ownership for collateral in Nigeria.

APA

Sustainable Energy for All (2017). UNDERSTANDING ENERGY ACCESS MARKET NEEDS IN FIVE HIGH-IMPACT COUNTRIES. https://www.seforall.org/system/files/gather-content/2017_SEforALL_FR3-F_0.pdf

Chicago

Sustainable Energy for All. UNDERSTANDING ENERGY ACCESS MARKET NEEDS IN FIVE HIGH-IMPACT COUNTRIES. 2017. https://www.seforall.org/system/files/gather-content/2017_SEforALL_FR3-F_0.pdf.

Wikipedia

{{cite report |author=Sustainable Energy for All |title=UNDERSTANDING ENERGY ACCESS MARKET NEEDS IN FIVE HIGH-IMPACT COUNTRIES |date=2017 |url=https://www.seforall.org/system/files/gather-content/2017_SEforALL_FR3-F_0.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sustainableenergyforall2017understanding, author = {{Sustainable Energy for All}}, title = {{UNDERSTANDING ENERGY ACCESS MARKET NEEDS IN FIVE HIGH-IMPACT COUNTRIES}}, institution = {Sustainable Energy for All}, year = {2017}, url = {https://www.seforall.org/system/files/gather-content/2017_SEforALL_FR3-F_0.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }