The Micro-Energy Alliance

Over the past decade and a half, the drive to improve access to energy in South Africa has yielded impressive results: the number of households with access to electricity has more than doubled in a matter of 15 years, from 4.5 million in 1994 to 9.1 million in 2008 – a jump from 50% of households to almost 75%. The aim of South Africa’s Department of Energy is to achieve universal access to energy by 2014. Yet there is a difference between access and affordability, and in a country where 19 million people live on less than R 20 (EUR 2) per day, much remains to be done, not only to deliver universal access to electricity, but to ensure that energy is affordable, safe and clean.

To answer this need, with initial funding from the Citi Foundation and Fondation Alstom, PlaNet Finance, the Business Place and Restio Energy have set up the basis of the the Micro Energy Alliance (MEA).

MEA is a microfranchise retail distribution channel to propose Energy Efficient and Renewable Energy (EE&RE) solutions- such as insulation systems, LED solar lamps, solar water heaters, and efficient stoves- to low income households in South Africa. This is made possible by carrying out market research, sourcing EERE solutions, facilitating business training and microfinance options for micro-franchisees and households.

Reciprocity acts as a support to the field operations of the Micro Energy Alliance, testing the channels with the goal of improving the access to EE&RE solutions at the BoP.

MEA also offers a “route to market” for large energy companies that have viable products but limited BoP distribution channels. While MEA is still at a pilot stage, opportunities are already emerging, leveraging on local human resources for the marketing, distribution and maintenance of the EERE solutions.

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