Crowd Funding for Energy Access - Revision history

Agnes Ferretto at 07:21, 21 September 2021

2021-09-21T07:21:14Z

Agnes Ferretto at 07:16, 21 September 2021

2021-09-21T07:16:20Z

Ranisha at 13:12, 22 July 2019

2019-07-22T13:12:27Z

Johanna at 10:50, 18 January 2019

2019-01-18T10:50:52Z

Johanna: /* Further Information */

2017-08-04T09:20:35Z

Further Information

Johanna: /* Further Information */

2017-08-04T09:20:20Z

Further Information

Johanna at 15:56, 20 July 2017

2017-07-20T15:56:02Z

Johanna: Created page with " = Overview = The off-grid energy sector is capital-intensive. Especially market players offering pay-as- you-go (PAYG) financing to their customers require high working capi..."

2017-07-20T15:51:40Z

Created page with " = Overview = The off-grid energy sector is capital-intensive. Especially market players offering pay-as- you-go (PAYG) financing to their customers require high working capi..."

New page

= Overview =

The off-grid energy sector is capital-intensive. Especially market players offering pay-as- you-go (PAYG) financing to their customers require high working capital. Often they do not have access to traditional, big investors.

Social enterprises, charities and other organisations raise capital for off-grid energy projects. They use donation, reward, debt and equity campaigns to fundraise for money to finance energy access projects. <ref name="Davinia Cogan and Simon Collings, ‘Mapping the Market for Energy Access An Overview of the Crowdfunding for Energy Access Market to Date’ (GVEP International, 2016), https://assets.publishing.service.gov.uk/media/58da0abbe5274a06b300002a/Crowd_Power_-_Mapping_the_market_for_energy_access.pdf.">Davinia Cogan and Simon Collings, ‘Mapping the Market for Energy Access An Overview of the Crowdfunding for Energy Access Market to Date’ (GVEP International, 2016), https://assets.publishing.service.gov.uk/media/58da0abbe5274a06b300002a/Crowd_Power_-_Mapping_the_market_for_energy_access.pdf.</ref>

Currently, the crowdfunding market is predominantly a developed world phenomenon, but the potential exists for developing countries to capitalize on this new form of funding.<ref name="info Dev , Finance and Private Sector Development Department. ‘Crowdfunding’s Potential for the Developing World.’ Washington, DC: World Bank, 2013. http://www.infodev.org/infodev-files/wb_crowdfundingreport-v12.pdf.">info Dev , Finance and Private Sector Development Department. ‘Crowdfunding’s Potential for the Developing World.’ Washington, DC: World Bank, 2013. http://www.infodev.org/infodev-files/wb_crowdfundingreport-v12.pdf.</ref>

= Crowdfunding: Definition =

“Crowdfunding is an Internet-enabled way for businesses or other organizations to raise money in the form of either donations or investments from multiple individuals.”<ref name="info Dev , Finance and Private Sector Development Department. ‘Crowdfunding’s Potential for the Developing World.’ Washington, DC: World Bank, 2013. http://www.infodev.org/infodev-files/wb_crowdfundingreport-v12.pdf.">info Dev , Finance and Private Sector Development Department. ‘Crowdfunding’s Potential for the Developing World.’ Washington, DC: World Bank, 2013. http://www.infodev.org/infodev-files/wb_crowdfundingreport-v12.pdf.</ref>

There are 5 different business models:

Donation-based Reward-based Equity-based Lending-based Royalty-based

== History and Market Outlook of Crowdfunding for Energy Access ==

Crowdfunding emerged after the 2008 financial crisis in response to the difficulties faced by early-stage enterprises attempting to generate funding.<ref name="info Dev , Finance and Private Sector Development Department. ‘Crowdfunding’s Potential for the Developing World.’ Washington, DC: World Bank, 2013. http://www.infodev.org/infodev-files/wb_crowdfundingreport-v12.pdf.">info Dev , Finance and Private Sector Development Department. ‘Crowdfunding’s Potential for the Developing World.’ Washington, DC: World Bank, 2013. http://www.infodev.org/infodev-files/wb_crowdfundingreport-v12.pdf.</ref>

So far, the market is very small. In 2015, only 3.4 million USD were raised.

*75% of all funds raised are debt campaigns, mainly micro-loans
*It is expected, that the crowdfunding landscape will change significantly: equity and debt crowdfunding could grow in the short term because small projects might get crowdfunding (but no funding from traditional banks)
*In the long term, crowdfunding will play a limited role as the relevant companies reach scale and are better suited with capital from other investors than the crowd.<ref name="Davinia Cogan and Simon Collings, ‘Mapping the Market for Energy Access An Overview of the Crowdfunding for Energy Access Market to Date’ (GVEP International, 2016), https://assets.publishing.service.gov.uk/media/58da0abbe5274a06b300002a/Crowd_Power_-_Mapping_the_market_for_energy_access.pdf.">Davinia Cogan and Simon Collings, ‘Mapping the Market for Energy Access An Overview of the Crowdfunding for Energy Access Market to Date’ (GVEP International, 2016), https://assets.publishing.service.gov.uk/media/58da0abbe5274a06b300002a/Crowd_Power_-_Mapping_the_market_for_energy_access.pdf.</ref>

= Impacts of Crowdfunding =

[Impacts?]

= Examples and Experiences =

== Crowd Investing Platform: Ecoligio ==

[[Ecoligo|ecoligo]] is a solar utility that provides low-cost solar energy to businesses in emerging markets. By financing the solar systems through a crowdinvesting platform, they close the finance gap that prevents these projects from being realised.<ref name="Patmore, Emma. ‘Crowdinvesting’. Ecoligo. Make Investments. Make Them Matter., 7 September 2016. https://www.ecoligo.com/crowdinvesting/.">Patmore, Emma. ‘Crowdinvesting’. Ecoligo. Make Investments. Make Them Matter., 7 September 2016. https://www.ecoligo.com/crowdinvesting/.</ref>

*ecoligo presents opportunities to finance solar energy systems in emerging markets to the crowd, at an attractive interest rate.
*Once financed, subcontractors and partners of ecoligo implement the project.
*When the project is completed, the energy off-taker pays for the electricity they use, through business models such as a Power Purchase Agreement or lease contract. This gives them clean energy at a lower cost than the national grid.
*The proceeds from the sale of electricity is used to repay the crowd, with interest.

 

== Crowd Power: a programme by Energy4Impact ==

A three-year programme to stimulate, develop and learn from crowdfunding of renewable energy enterprises in sub Saharan Africa and Asia. DFID has committed a total of £845,000. This is providing direct financial support to crowdfunding campaigns trialling approaches such as match-funding, guarantees (insurance) and/or “gift” vouchers. Energy 4 Impact is running the programme and producing in-depth research and analysis.

*Energy4Impact. ‘Crowdfunding for Energy Projects’. Energy For Impact, 2017. [https://www.energy4impact.org/what-we-do/innovative-models/crowdfunding-energy-projects https://www.energy4impact.org/what-we-do/innovative-models/crowdfunding-energy-projects].

= Conclusion =

Crowdfunding offers several advantages for small energy projects and start-ups that might not have access to products of traditional finance institutions like banks.

= Further Information =

*[[Portal:Financing and Funding|Portal:Financing and Funding]]
*[[Financial_Instruments_&_Support_for_Renewable_Energy|Financial Instruments & Support for Renewable Energy]]
*[[Debt_Finance|Debt Finance]]
*[[Blockchain_Techologies_For_the_Energy_Access_Sector#Blockchain_technology_in_financing_energy_access|Crowd-financing via Blockchain Technologies]]

= References =

<references />

[[Category:Financing_and_Funding]]
[[Category:Microfinance]]
[[Category:Energy_Access]]

@@ Line 39: / Line 39: @@
 == Crowd Investing Platform: ecoligo ==
-[[Ecoligo|ecoligo]] is a solar utility that provides low-cost solar energy to businesses in emerging markets. By financing the solar systems through a crowdinvesting platform, they close the finance gap that prevents these projects from being realised.<ref name="Patmore, Emma. ‘Crowdinvesting’. Ecoligo. Make Investments. Make Them Matter., 7 September 2016. https://www.ecoligo.com/crowdinvesting/.">Patmore, Emma. ‘Crowdinvesting’. Ecoligo. Make Investments. Make Them Matter., 7 September 2016. https://www.ecoligo.com/crowdinvesting/.</ref>
+ecoligo is leading the clean energy revolution in emerging markets with solar energy solutions that generate economic and environmental returns, all financed by crowdinvestors. By working in the world’s fastest growing economies, ecoligo stops harmful CO2 emissions from ever being released in countries that will be decisive in efforts to save the planet as we know it.
 == Crowd Power: a programme by Energy4Impact ==

@@ Line 14: / Line 14: @@
 There are 5 different business models:
-Donation-based<br/>Reward-based<br/>Equity-based<br/>Lending-based<br/>Royalty-based
+*Donation-based
 == History and Market Outlook of Crowdfunding for Energy Access ==
@@ Line 53: / Line 59: @@
 Crowdfunding offers several advantages for small energy projects and start-ups that might not have access to products of traditional finance institutions like banks.
+<br/>
 = Further Information =
@@ Line 65: / Line 71: @@
 *Report #1: '''[http://www.energy4impact.org/file/1697/download?token=CLBAAi7Q Crowd Power: Mapping the Market for Energy Access]''' (May 2016, Authors: Davinia Cogan & Simon Collings) This report reveals how crowdfunding for energy access is a niche market segment, with only $3.4 million raised for individuals, charities, NGOs and social enterprises in Africa and Asia in 2015.
 *Report #2: '''[http://www.energy4impact.org/file/1882/download?token=pqiI7Nb6 CROWD POWER: Can the Crowd Close the Financing Gap?]''' (July 2017, Authors: Davinia Cogan & Simon Collings) This report, the second of a series, looks at the energy access related crowdfunding across donation, reward, debt and equity platforms, and showcases examples of successful campaigns by WakaWaka, BuffaloGrid, and Okra Solar, among others. To download the first Crowd Power report, click here.
 <br/>
 = References =
@@ Line 73: / Line 81: @@
 <references />
 [[Category:Energy_Access]]

@@ Line 52: / Line 52: @@
 Crowdfunding offers several advantages for small energy projects and start-ups that might not have access to products of traditional finance institutions like banks.
@@ Line 59: / Line 60: @@
 *[[Financial Instruments & Support for Renewable Energy|Financial Instruments & Support for Renewable Energy]]
 *[[Debt Finance|Debt Finance]]
-*[[Role_of_Crowdfunding_in_Raising_Finance_for_Energy_Access_Businesses_and_Projects|Role of Crowdfunding in Raising Finance for Energy Access Businesses and Projects]]
+*[[Role of Crowdfunding in Raising Finance for Energy Access Businesses and Projects|Role of Crowdfunding in Raising Finance for Energy Access Businesses and Projects]]
 *[[Blockchain Techologies For the Energy Access Sector#Blockchain technology in financing energy access|Crowd-financing via Blockchain Technologies]]
 *‘Solar Crowdfunding Non-Profit Wins DOE-SunShot “Solar in Your Community” Seed Funding’. ''Microgrid Media'', 9 March 2017. [http://microgridmedia.com/solar-crowdfunding-non-profit-wins-doe-sunshot-solar-community-seed-funding/ http://microgridmedia.com/solar-crowdfunding-non-profit-wins-doe-sunshot-solar-community-seed-funding/].
 *Report #1: '''[http://www.energy4impact.org/file/1697/download?token=CLBAAi7Q Crowd Power: Mapping the Market for Energy Access]''' (May 2016, Authors: Davinia Cogan & Simon Collings) This report reveals how crowdfunding for energy access is a niche market segment, with only $3.4 million raised for individuals, charities, NGOs and social enterprises in Africa and Asia in 2015.
 *Report #2: '''[http://www.energy4impact.org/file/1882/download?token=pqiI7Nb6 CROWD POWER: Can the Crowd Close the Financing Gap?]''' (July 2017, Authors: Davinia Cogan & Simon Collings) This report, the second of a series, looks at the energy access related crowdfunding across donation, reward, debt and equity platforms, and showcases examples of successful campaigns by WakaWaka, BuffaloGrid, and Okra Solar, among others. To download the first Crowd Power report, click here.
 <br/>

@@ Line 52: / Line 52: @@
 Crowdfunding offers several advantages for small energy projects and start-ups that might not have access to products of traditional finance institutions like banks.
 = Further Information =
@@ Line 58: / Line 59: @@
 *[[Financial Instruments & Support for Renewable Energy|Financial Instruments & Support for Renewable Energy]]
 *[[Debt Finance|Debt Finance]]
 *[[Blockchain Techologies For the Energy Access Sector#Blockchain technology in financing energy access|Crowd-financing via Blockchain Technologies]]
 *‘Solar Crowdfunding Non-Profit Wins DOE-SunShot “Solar in Your Community” Seed Funding’. ''Microgrid Media'', 9 March 2017. [http://microgridmedia.com/solar-crowdfunding-non-profit-wins-doe-sunshot-solar-community-seed-funding/ http://microgridmedia.com/solar-crowdfunding-non-profit-wins-doe-sunshot-solar-community-seed-funding/].
-*Cogan, Davinia, and Simon Collings. ‘Mapping the Market for&nbsp; Energy Access An Overview of&nbsp; the&nbsp; Crowdfunding for Energy&nbsp; Access Market to Date’. GVEP International, 2016. [https://assets.publishing.service.gov.uk/media/58da0abbe5274a06b300002a/Crowd_Power_-_Mapping_the_market_for_energy_access.pdf https://assets.publishing.service.gov.uk/media/58da0abbe5274a06b300002a/Crowd_Power_-_Mapping_the_market_for_energy_access.pdf].
+*Report #1: '''[http://www.energy4impact.org/file/1697/download?token=CLBAAi7Q Crowd Power: Mapping the Market for Energy Access]''' (May 2016, Authors: Davinia Cogan & Simon Collings) This report reveals how crowdfunding for energy access is a niche market segment, with only $3.4 million raised for individuals, charities, NGOs and social enterprises in Africa and Asia in 2015.
 <br/>
 = References =

@@ Line 37: / Line 37: @@
 = Examples and Experiences =
-== Crowd Investing Platform: Ecoligio ==
+== Crowd Investing Platform: ecoligo ==
 [[Ecoligo|ecoligo]] is a solar utility that provides low-cost solar energy to businesses in emerging markets. By financing the solar systems through a crowdinvesting platform, they close the finance gap that prevents these projects from being realised.<ref name="Patmore, Emma. ‘Crowdinvesting’. Ecoligo. Make Investments. Make Them Matter., 7 September 2016. https://www.ecoligo.com/crowdinvesting/.">Patmore, Emma. ‘Crowdinvesting’. Ecoligo. Make Investments. Make Them Matter., 7 September 2016. https://www.ecoligo.com/crowdinvesting/.</ref>

@@ Line 1: / Line 1: @@
 = Overview =
@@ Line 81: / Line 80: @@
 <references />
 [[Category:Financing_and_Funding]]
-[[Category:Microfinance]]
+[[Category:Blockchain]]