Transforming energy access finance: Sustainable financing for clean energy transitions in the Global South
Jiska De Groot  1@  , Whitney Pailman, Federico Caprotti@
1 : University of Cape Town

Finance for clean energy technologies and business models is crucial for advancing clean energy access and energy transitions globally. Addressing energy poverty, environmental sustainability, and climate change mitigation requires technological advancements and innovative social, economic, and institutional approaches. Off-grid and clean energy technologies are increasingly used in areas with limited or no access to centralized grid electricity. These solutions, often situated within market-based frameworks, are facilitated by international development finance, private sector capital, and blended finance models that leverage public sector investment to attract private capital. These models include combinations of grant, equity, and debt finance, as well as innovative mechanisms like Renewable Energy Credits. However, the financing trajectories of off-grid clean energy companies are often complex and non-linear, shaped by challenging markets, low affordability, regulatory intricacies, and other factors that complicate the development of sustainable and viable business models. The rapidly evolving context of clean energy access technologies necessitates spaces and resources for testing and trialing appropriate business models, whilst enabling scaling of appropriate solutions. Through the case study of Transforming Energy Access, a research and innovation platform that has invested in piloting and scaling clean energy technologies since 2016, this paper investigates how clean energy and climate finance within the TEA Platform and its partner ecosystem has contributed to shaping the overall energy access finance ecosystem. This paper has shown the complexity of the financing landscape off-grid energy companies and clean technology companies need to navigate when testing technologies and iterating sustainable business models. This is impacted by the intricacies of raising finance for start-up businesses and early-stage innovations as well as scaling innovations. This is further layered with several market and contextual considerations which compound the development of sustainable business models in complex markets.


Online user: 3 Privacy
Loading...