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Publication - Energy for Rural Industrialization - Productive Use of Energy 2.0
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This study analyses the changing nature of the PUE landscape. It looks at the innovations and models emerging in the market and discusses the challenges hindering the deployment of large-scale PUE promotion, especially in off-grid areas. Formerly a topic dominated by technical assistance agencies and non-profit organizations, the improving pace of electrification positions us at the beginning of a new era. Today, the private sector is defining innovative new approaches, and donors and governments are developing models to shift promotion from experimentation to scale – a kind of PUE 2.0.
With this study and future exchanges, GET.transform hopes to inspire a new dialogue on Energy for Rural Industrialization invites practitioners to discuss opportunities and shape the sector to capitalize on emerging trends. We see this and other publications as documentation of an ongoing effort – one we are pleased to participate in. Only by bringing public and private stakeholders together can we accelerate the development of scalable approaches for renewable energy-enabled rural development.
Many actors in the sector have expressed the need to improve our understanding and approaches toward PUE. While promising trends are emerging in some countries, much funding for PUE is still flowing to project implementing agencies due to a lack of private actors, or a lack of understanding around commercial opportunities. This leaves enormous sums of committed funding going unspent, or diverted away from the burgeoning commercial PUE sector, towards unscalable non-profit ‘1.0’-style measures.
Furthermore, development banks and donors have little experience to draw upon when it comes to designing support mechanisms. This leads to the creation of support mechanisms that may distort the market, crowd out banks or simply fail to mobilize.
The purpose of launching this discussion targeted at government, development banks, and donors, is to advance the understanding needed to support early-mover companies in the sector that are refining promising business models. Overall, we hope to foster convergence and partnerships amongst actors to minimize disruption to the already fragile rural electrification sector.
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