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Access to Energy for the Base of the - Ashoka

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such as charging mobiles <strong>for</strong> a small fee. CSOs can<br />

help <strong>the</strong>ir clients learn about <strong>the</strong>se opportunities<br />

and get ready <strong>to</strong> take advantage <strong>of</strong> new energy<br />

opportunities.<br />

5. Social marketing and awareness building<br />

especially around health and safety benefits. For<br />

example, CSOs focused on health may want <strong>to</strong> take<br />

a leading role educating <strong>the</strong>ir communities about<br />

<strong>the</strong> dangers <strong>of</strong> indoor air pollution. CSOs working in<br />

slums have helped communities understand how<br />

moving <strong>to</strong> legal grid connections will enable street<br />

lighting and improve neighbourhood safety.<br />

<strong>Energy</strong> social entrepreneurs<br />

Social entrepreneurs active in <strong>the</strong> energy space are at<br />

an interesting point <strong>of</strong> transition. Some are moving <strong>to</strong> a<br />

<strong>for</strong>-pr<strong>of</strong>it model, as SELCO did years ago, and some are<br />

creating hybrid value chains with companies, as Muthu<br />

Velayutham has done with BP Oorja in India. It is a<br />

moment <strong>of</strong> choice <strong>for</strong> social entrepreneurs, as <strong>the</strong>y look<br />

<strong>to</strong> expand products, promote <strong>the</strong>ir unique IP, and focus<br />

on <strong>the</strong>ir best value-add.<br />

1. Expand range <strong>of</strong> products. Distribution channels<br />

focused on one product are his<strong>to</strong>rically expensive<br />

<strong>to</strong> build and difficult <strong>to</strong> maintain. For example,<br />

Grameen Shakti has promoted more than solar<br />

systems, and benefits from <strong>the</strong> diverse family <strong>of</strong><br />

Grameen <strong>of</strong>ferings.<br />

2. Promote IP if distinctive and leverageable. Over<br />

<strong>the</strong> years social entrepreneurs have built unique<br />

capabilities that can help o<strong>the</strong>rs replicate and<br />

perhaps bring revenue or recognition <strong>to</strong> <strong>the</strong> CSO.<br />

For example, SEF’s training curriculum <strong>for</strong> SHS<br />

technicians could be licensed <strong>to</strong> o<strong>the</strong>r SHS<br />

providers, saving everyone time and money.<br />

3. Examine best value-add as new entrants emerge.<br />

One <strong>of</strong> <strong>the</strong> outcomes <strong>of</strong> innovation from social<br />

entrepreneurs is that o<strong>the</strong>rs enter <strong>the</strong> field, excited<br />

by <strong>the</strong> new possibilities. Some <strong>of</strong> <strong>the</strong>se new<br />

entrants will take on parts <strong>of</strong> <strong>the</strong> value chain that<br />

social entrepreneurs used <strong>to</strong> do. For example,<br />

distributing devices such as solar LED lanterns or<br />

cooks<strong>to</strong>ves may be rolled in<strong>to</strong> o<strong>the</strong>r commercial<br />

distribution systems.<br />

Multinational companies<br />

Multinational companies are already active in <strong>the</strong><br />

access <strong>to</strong> energy field. The cases highlighted here reveal<br />

a number <strong>of</strong> roles that MNCs can play in reaching poorer<br />

cus<strong>to</strong>mers and replicating in more regions. These<br />

include working with individual social entrepreneurs,<br />

building a portfolio <strong>of</strong> social entrepreneurs, launching a<br />

project around a key installation, and building a business<br />

in a key segment. The strategy that an MNC chooses<br />

depends on its objectives and capabilities.<br />

1. Support a social entrepreneur. Social entrepreneurs<br />

in <strong>the</strong> energy field have deep familiarity <strong>of</strong> <strong>the</strong> needs<br />

and desires <strong>of</strong> low-income communities, trust<br />

networks within <strong>the</strong>se communities, and a<br />

commitment <strong>to</strong> make seemingly impossible models<br />

come <strong>to</strong> life.<br />

An MNC may chose <strong>to</strong> work with social<br />

entrepreneurs if it hopes <strong>to</strong> learn about <strong>the</strong> BOP <strong>for</strong><br />

business development, and involve its staff in<br />

hands-on work. In turn, social entrepreneurs can<br />

use assistance with financing, technical<br />

2.<br />

competencies such as R&D facilities, and<br />

managerial competencies such as setting up a<br />

franchise system or managing inven<strong>to</strong>ry.<br />

Build a portfolio <strong>of</strong> social entrepreneurs. Over<br />

130 projects were pr<strong>of</strong>iled <strong>for</strong> this investigation,<br />

and each had something <strong>to</strong> teach about access <strong>to</strong><br />

energy <strong>for</strong> low-income people. In light <strong>of</strong> this<br />

diversity, one strategy is <strong>to</strong> fund a portfolio <strong>of</strong> social<br />

entrepreneurs.<br />

An MNC may build a portfolio <strong>of</strong> social<br />

entrepreneurs if it prioritizes having s<strong>to</strong>ries <strong>to</strong><br />

communicate externally, as well as learning about<br />

<strong>the</strong> BOP <strong>for</strong> business development and involving its<br />

staff (which could be accomplished with fewer<br />

social entrepreneurs).<br />

The portfolio <strong>of</strong> social entrepreneurs could use<br />

shared services such as web-hosting or bulk<br />

91

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