Innovative business models for the scale-up of energy access efforts for the poorest

Despite years of effort primarily by governments and donors the ability of large portions of the world's population to access modern and efficient energy services remains out of reach. Roughly 1.5 billion people live without access to electricity and 2.5 billion rely on biomass for their primary cooking fuel, often using highly inefficient and polluting cookstoves. Scaling up the effort to solve this energy-poverty problem requires innovation in service delivery which includes possible changes in both ownership of energy service delivery organizations and the ways in which energy is financed. This paper reviews options for innovative business models to scale up energy access and, in particular, focuses on both producer and consumer-side financing options that can ensure sustainability of energy access efforts.

► Innovative business models are needed to overcome energy access challenge. ► Energy must meet various needs for development and welfare. ► Financing options exist on producer and consumer side. ► Subsidy and regulatory reforms can support energy access. ► Carbon finance options exist but are not straightforward.