The problem –  Energy poverty is rampant problem among the urban poor living in informal settlements, and even when subsidies exist to cover variable costs, the fixed costs of electricity provision are often so large that they prevent the economical extension of trunk infrastructure to poor communities. South Africa has a Free Basic Electricity Subsidy that entitles every household to 50 kilowatt hours per month, but the subsidy lies inoperative in communities that aren’t already connected to the grid.

The way forward – A research institute in South Africa developed a business model for electricity provision to poor communities through outfitting local community entrepreneurs with solar-powered, distributed, DC micro grid systems, which can power individual households. Local operators are trained how to maintain units for customers they recruit as part of their service hubs. The initial funding that was provided them allowed the institute to refine the concept, and they were eventually able to find longer-term, in-country investors.

Contribution – Assistance with editing and technical review during proposal development; budget analysis for the proposal; business model review; development of project metrics.