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Global off-grid appliances positioned for increased growth

Renewable loan
By designing products to operate off renewable power systems, there is room for the off-grid product market to grow

According to a recent study by the global Lighting and Energy Access Partnership (LEAP), a US department of energy initiative of the clean energy ministerial, the global market for off-grid appliances is positioned for a large growth spurt.

Driving new developments

With rapid clean energy technological advancements in the global energy sector taking the market by storm, opportunities are opening up for producers of fans, televisions, and refrigerators.

These items play a key role in developing the health, agriculture and education sectors, especially in marginalised communities living off-grid.

According to the new research, off-grid consumers will spend close to $525 million on off-grid fans, televisions, and refrigerators in 2015, Clean Energy Ministerial reported.

By concentrating on delivering energy efficient and innovative designs, that can be operated through renewable power systems, it will help drive down the cost of these products and make them more attractive to off-grid consumers.

According to Clean Energy Ministerial, these adjustments could see consumer spend reach over $4.7 billion by 2020.

Gaurav Gupta, a Partner at Dalberg Global Development Advisors and one of report’s authors said: “The global off-grid appliance market is a major emerging commercial opportunity.

“We’re seeing more and more appliances that work well with off-grid energy solutions, and that’s helping to drive the entire market forward. A lot of smart companies are aware of this opportunity, and I think we’re going to see more of that in the coming years.”

Risk management

The research identifies the market challenges and what strategies should be implemented to overcome these.

Clean Energy Ministerial reported that: “These challenges, similar to what the off-grid lighting and clean energy market faced in its early days, fall into five broad categories: finance, tariffs and taxes, distribution, consumer awareness, and customer service.

“The report will provide specific recommendations to help market stakeholders—including multilateral development organizations, donor organizations and off-grid market governments, and industry leaders—address these barriers.”

The full report will be released by the end of the year.

Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.