--- title: "The Future of Energy in Emerging Markets" url: https://www.seedstars.com/content-hub/life/future-energy-emerging-markets/ --- 1. [HOME](/) 2. [RESOURCES](/content-hub/) 3. [SEEDSTARS LIFE](/content-hub/life/) 4. THE FUTURE OF ENERGY IN EMERGING MARKETS ![The future of energy in emerging markets](https://seedstars-com.s3.amazonaws.com/images/The_Future_Of_Energy_In_Emerging_Markets.max-1500x500.jpg) AFRICA • ENERGY & NATURAL RESOURCES ## The future of energy in emerging markets Brandon Curriston SEPTEMBER 21, 2017 In Africa, providing reliable electricity is one of the continent’s main challenges. Even if energy production could meet the huge demand of its 1.5 billion inhabitants, the energy supply, including infrastructure, remains very poor. This challenge, unfortunately, does not have a clear and simple solution. It requires creative, innovative, and progressive new ideas and solutions. Luckily, small local businesses understand many of the issues and may hold the key in unlocking viable solutions. But before we delve into finding solutions, we must begin to understand the severity of the problem. According to the 2016 World Energy Outlook (WEO), 1.2 billion people, 16% of the global population, live without electricity. And half of that number resides in Africa. What’s even worse, many more people suffer from supply that is of poor quality, as only 10% of Africa is on the grid, with total electrification rate estimated at 45% for the entire continent. Additionally, around 20–30% of African rural income is spent on electricity. ![Electricity access in 2014](https://seedstars-com.s3.amazonaws.com/images/86_1.width-800.png) As technological advances continue to push the world forward, and strides are being made in a variety of sectors, one unspoken prerequisite remains the access to electricity. It acts as the springboard for growth. With that said, the amount of talent and resources going untapped by simply the lack of access to electricity is largely unquantifiable. Traditionally, the main approach to improve access to energy has been to extend the existing grid. However, this further causes greenhouse gas emission, remains very expensive, and is an extremely long process. The generating capacity in Africa only increases by 3% per year, while the network is expanding at a rate of 0.4% per year, and the growth in domestic demand is over 10% per year. Electrifying all of Africa in a centralised way at this rate will take decades, and by the year 2100, hundreds of millions of African people will still be living in the dark. In this context, the development of innovative business model solutions with low carbon impact adapted to the base of the pyramid should not wait. ## **South Africa is a Sub-Saharan anomaly** Portraying Africa as a single entity remains a dangerous proposition. It implies generalised assumptions for what is in fact a very diverse continent, facing several very unique and challenging circumstances within this macro-ecosystem. Notable is the distinction between North Africa and Sub-Saharan Africa. Unpacking these challenges is vital to thoroughly understand the complexity of the issue at hand and finding viable solutions. ![Electricity consumption per capita](https://seedstars-com.s3.amazonaws.com/images/86_2.width-800.png) About 50% of the energy produced in Sub-Saharan Africa comes from South Africa, and a large majority of the population has electricity. Nevertheless, 3.4 million households are still not connected to the national grid. They are located mainly in sparsely populated rural areas or in urban “informal settlements.” South Africa’s energy comes mainly from coal, which provokes combustion wastes, coal mine wastes, and toxic coal land fires. With the emergence of new business models, there are several coming to the forefront, with their different advantages and limits often determined by regional variables. Micro-mini-grids, solar home systems (SHS), and solar/energy kiosks are emerging models that especially stand out. Micro-grids are “electricity distribution systems containing loads and distributed energy resources, (such as distributed generators, storage devices, or controllable loads) that can be operated in a controlled, coordinated way either while connected to the main power network or while landed” (CIGRE). They are often used in areas with a lot of inhabitants, not connected to the centralised network. Solar Home Systems (SHS) are stand-alone photovoltaic systems that offer access to electricity to one house and its inhabitants. In the world, SHS is used by hundreds of thousands of households who are not connected to the grid. Solar/energy kiosks are essentially stations that sell or lease large batteries used to directly power customer’s products. This model can be very relevant for rural areas where there is no grid. Consequently, being able to take the battery back home is very valuable. In peri-urban areas with existing or emerging access to the the grid, micro-grids seem to have a bright future. In rural areas, lack of proximity to existing infrastructure necessitates stand-alone solar home systems and solar kiosks. All three models provide much needed resources that address the unique needs of their local populations. However, the problem of accessing energy is also closely linked with the methods of payment for it. Flexibility in payment model is key to answering customer’s needs, with mobile money being a crucial tool. Additionally, community engagement is essential as young companies experimenting with alternative ways of delivering energy are looking for first adopters, building loyalty, and growing organically. Public support and financing are essential elements for long term success and viability of such a large scale endeavor. That is why at Seedstars, we are also working very closely with Enel’s renewable energy division, Enel Green Power to source the most innovative business models in the energy sectors and ones that are fostering socio-economic development in rural villages in Africa. As one of our key partners, they are dedicated to providing much needed support to aspiring entrepreneurs and facilitating the growth of external solutions. Hopefully, continued engagement with both private and public sector will allow the new innovative technology solutions become more wide-spread over time, and shape the future of energy in emerging markets. ### ** _Do you have a technology solution with innovative business model that fosters socio-economic development in rural Africa?_** [**_Apply here_**](https://www.seedstarsworld.com/accounts/register/?__hstc=242025565.c9a372498fb707241a59bbc2e7a08046.1603964344551.1605087497389.1605100901021.19&__hssc=242025565.79.1605100901021&__hsfp=3043511956) **_to compete for the 50k USD Africa Energy prize!_** *This article is an original piece written for [seedstars.com](http://www.seedstars.com/). You can contact the author, Brandon, directly at curriston@mail.usf.edu or on Twitter [@BCurriston](https://twitter.com/BCurriston). _“Disclaimer: Seedstars encourages freedom of speech and the expression of diverse views. The views of columnists published on seedstars are therefore their own and do not necessarily represent the views of seedstars.”_ ARTICLE THEORY OF CHANGE AFRICA SOUTH AFRICA ENERGY & NATURAL RESOURCES ENERGY EFFICIENCY WASTE & WATER MANAGEMENT ## More like this [ ![Green startups in Asia](https://seedstars-com.s3.amazonaws.com/images/greenstartups.max-320x550.png) ASIA • ENERGY & NATURAL RESOURCES Can Green Startups in Asia Help Mitigate Climate Change? The Metronome, the famous Manhattan digital clock in Union Square, started the countdown to the next climate disaster. __ ](https://www.seedstars.com/content-hub/life/can-green-startups-asia-help-mitigate-climate-change/) [ ![Entrepreneurs in Africa](https://seedstars-com.s3.amazonaws.com/images/Entrepreneurs_in_Africa.max-320x550.jpg) AFRICA • ECOSYSTEM ENABLER Designing Virtual Learning Opportunities for Entrepreneurs in Africa [Q&A] If we say that COVID-19 has changed the world, it would be an understatement. COVID-19 disrupted our world. __ ](https://www.seedstars.com/content-hub/life/designing-virtual-learning-opportunities-entrepreneurs-africa-q/) [ ![Vocational Training](https://seedstars-com.s3.amazonaws.com/images/Vocational_Training_.max-320x550.jpg) AFRICA • EDUCATION & CONSULTING Can Vocational Training Help the African Economy Soar to New Heights? When the time comes to make career choices, modern young people suddenly find themselves in a seismically active world, where rock-solid paradigms are cracking, new normals are forming, and opportunities are flowing like lava. __ ](https://www.seedstars.com/content-hub/life/can-vocational-training-help-african-economy-soar-new-heights/) [ ![Tracking KPIs is crucial for ensuring that your start-up dream stays on track](https://seedstars-com.s3.amazonaws.com/images/Measuring_KPIs.max-320x550.jpg) GLOBAL • INVESTMENT 5 Simple Mistakes Start-ups Can Avoid When Measuring KPIs Despite some fantastic ideas, brilliant products and passionate owners, it’s a sad fact that most start-ups never make it to their third year. __ ](https://www.seedstars.com/content-hub/learning-resources/5-simple-mistakes-start-ups-can-avoid-when-measuring-kpis/) [ ![Seedstars Index](https://seedstars-com.s3.amazonaws.com/images/Efficient_Tool.max-320x550.jpg) GLOBAL • ECOSYSTEM ENABLER New Seedstars Index: Efficient Tool for Data-Driven Decision Making The Seedstars Index (SSI) has been fully reworked for the 2020 edition with the aim of achieving a higher quality predictive indicator for the success of an entrepreneurial ecosystem. Why SSI is a powerful tool for data-driven decision making: __ ](https://www.seedstars.com/content-hub/insights/new-seedstars-index-efficient-tool-data-driven-decision-making/) [ ![Prepare Younger Generations](https://seedstars-com.s3.amazonaws.com/images/C-Bridging_the_Gap_How_to_Prepare_Younger_Ge.max-320x550.png) AFRICA • OTHER Bridging the Gap: How to Prepare Younger Generations to the Future of Work Access without quality undermines investments in the sector and yields limited gains. Ivory Coast, and the continent more broadly, has witnessed an increase of the school attendance rates __ ](https://www.seedstars.com/content-hub/life/bridging-gap-how-prepare-younger-generations-future-work/) [ ![Country of Innovation](https://seedstars-com.s3.amazonaws.com/images/switzerland.max-320x550.png) CENTRAL AND EASTERN EUROPE • URBAN DEVELOPMENT How Switzerland Won Its Title of the Country of Innovation What makes Switzerland unique? How did the country manage to become the global leader in innovation? __ ](https://www.seedstars.com/content-hub/life/how-switzerland-won-its-title-country-innovation/) [ ![Being a Better Leader](https://seedstars-com.s3.amazonaws.com/images/Better_Leader.max-320x550.jpg) GLOBAL • HR Being a Better Leader: 5 Skills Founders Have to Learn to Survive Their First Year It's not all doom and gloom. Founders have to realize that setting up a business is hard, but also that most challenges can be surpassed if tackled with the right mindset and skills. __ ](https://www.seedstars.com/content-hub/learning-resources/being-better-leader-5-skills-founders-have-learn-survive-their-first-year/) [ ![Civic Tech](https://seedstars-com.s3.amazonaws.com/images/C-Civic_Tech_Building_More_Transparent_Socie.max-320x550.png) GLOBAL • URBAN DEVELOPMENT Civic Tech: Building More Transparent Societies in Developing Countries Our society is at a tipping point. Consequently, there is an urgent need for developing sustainable economic and social solutions for change. This is where transparency comes in. __ ](https://www.seedstars.com/content-hub/life/civic-tech-building-more-transparent-societies-developing-countries/) [ ![African startup funding](https://seedstars-com.s3.amazonaws.com/images/Untitled_design_8.max-320x550.png) AFRICA • FINANCIAL SERVICES Future bright as african tech startup funding grows Africa has long lagged behind the rest of the world when it comes to investment, even in the continent’s most exciting tech areas. __ ](https://www.seedstars.com/content-hub/life/future-bright-african-tech-startup-funding-grows/) [ ![Agritech in Africa](https://seedstars-com.s3.amazonaws.com/images/agritech.max-320x550.png) AFRICA • AGRICULTURE Agritech in Africa: Paving The Way For a New Era in Farming Imagine a drone flying 100 metres over a section of Nigerian farmland, taking infrared pictures that will then tell the farmer if his crops are suffering from a disease – up to 10 days before the damage is visible to the naked eye. __ ](https://www.seedstars.com/content-hub/life/agritech-africa-paving-way-new-era-farming/) [ ![Entrepreneurial Landscape in MENA](https://seedstars-com.s3.amazonaws.com/images/Omar_Christidis.max-320x550.jpg) MIDDLE EAST AND NORTH AFRICA • TECHNOLOGY Overview of the Entrepreneurial Landscape in MENA by Omar Christidis, CEO of Arabnet [Interview] Recently, we had a chance to talk to Omar Christidis, CEO of Arabnet __ ](https://www.seedstars.com/content-hub/life/overview-entrepreneurial-landscape-mena-omar-christidis-ceo-arabnet-interview/) [ ![Fighting Trash - Myanmar](https://seedstars-com.s3.amazonaws.com/images/waste.max-320x550.png) ASIA • ENERGY & NATURAL RESOURCES Fighting Trash: How Myanmar Is Tackling the Waste Problem in the Country? At the forefront of the Myanmar waste discussion, the historic nation grapples with managing unwanted products like plastic and food __ ](https://www.seedstars.com/content-hub/life/fighting-trash-how-myanmar-tackling-waste-problem-country/) [ ![Migrant Workers](https://seedstars-com.s3.amazonaws.com/images/passport-thumbnail.max-320x550.png) GLOBAL • TECHNOLOGY Migrant Workers: Four Ideas On How Technology Can Support Skills Mobility In this article, we will focus on the question of mobility skills, because building the right framework and policies to enable the movement of people is primordial for a sustainable economy and social wellbeing of the world’s population. __ ](https://www.seedstars.com/content-hub/life/migrant-workers-four-ideas-how-technology-can-support-skills-mobility/) [ ![Ventureburn editor Stephen Timm spoke to Heyl on the role that developed countries can play](https://seedstars-com.s3.amazonaws.com/images/keyways.max-320x550.png) AFRICA • TECHNOLOGY Key Ways to Shape Africa's Tech Startup Sector: Media Perspective Heyl has also taken an undisclosed share in the company, which was founded in 2010 by the late media entrepreneur Matthew Buckland, who passed away in April. __ ](https://www.seedstars.com/content-hub/life/key-ways-shape-africas-tech-startup-sector-media-perspective/) [ ![Technology and Entrepreneurship](https://seedstars-com.s3.amazonaws.com/images/Untitled_design_24.max-320x550.png) AFRICA • GOVERNMENT Delivering Public Services Through Technology and Entrepreneurship The delivery of public services such as healthcare, education, sanitation and criminal justice, is a key task for any government. __ ](https://www.seedstars.com/content-hub/life/delivering-public-services-through-technology-and-entrepreneurship/) [ ![Password Manager for Startups](https://seedstars-com.s3.amazonaws.com/images/password_manager.max-320x550.png) GLOBAL • PROFESSIONAL SERVICES What Is a Password Manager, and Why Does Your Startup Need One When you’re running a startup, it goes without saying that you’ve got a lot on your plate: managing your team, updating all your social media channels, responding to user feedback. The list goes on. __ ](https://www.seedstars.com/content-hub/learning-resources/what-password-manager-and-why-does-your-startup-need-one/) [ ![Fintech](https://seedstars-com.s3.amazonaws.com/images/Untitled_design_20.max-320x550.png) GLOBAL • FINANCIAL SERVICES Fintech and the Future of Your Money At the intersection of finance and technology lies a phenomenon that has been reshaping the world of money. The rise of the internet has brought about a high degree of disruption to almost all industries and financial services are no exception. __ ](https://www.seedstars.com/content-hub/life/fintech-and-future-your-money/) [ ![Digital Health](https://seedstars-com.s3.amazonaws.com/images/digitalhealth.max-320x550.png) GLOBAL • HEALTHCARE Digital Health: A Solution to Growing Problems in Healthcare The Healthtech industry spans a broad number of sub-sectors: hospitals and practitioners; insurance companies; consumer-facing services; pharmaceuticals; and government – to name a few. __ ](https://www.seedstars.com/content-hub/life/digital-health-solution-growing-problems-healthcare/) [ ![LATAM Startup](https://seedstars-com.s3.amazonaws.com/images/chile4.max-320x550.png) LATIN AMERICA • INVESTMENT Chile — the Leading LATAM Startup Ecosystem Known for its numerous breathtaking landscapes, wineries, and abundance of copper, Chile is a country that has so much more to offer. __ ](https://www.seedstars.com/content-hub/insights/chile-the-leading-latam-startup-ecosystem/) [ ![Proven Methodologies](https://seedstars-com.s3.amazonaws.com/images/proven_methodologies.max-320x550.png) GLOBAL • TECHNOLOGY Proven Methodologies for Delivering an Interactive Workshop in the Tech Industry Hosting a workshop at a conference or an event can be strenuous __ ](https://www.seedstars.com/content-hub/learning-resources/proven-methodologies-delivering-interactive-workshop-tech-industry/) [ ![Networking with investors, media, prospective business partners, employees, and customers](https://seedstars-com.s3.amazonaws.com/images/Networking_Event.max-320x550.jpg) GLOBAL • ENTERPRISE How To Make The Most Out Of A Networking Event Although some entrepreneurs out there attribute their success to luck, savvy startups know that real business opportunity is created through hard work and consistently showing up in the right place at the right time. __ ](https://www.seedstars.com/content-hub/learning-resources/how-make-most-out-networking-event/) [ ![Have you ever been to Astana?](https://seedstars-com.s3.amazonaws.com/images/group.max-320x550.png) CENTRAL AND EASTERN EUROPE • FINANCIAL SERVICES The FinTech Stars Journey: An Insight on the Three-Month Acceleration Program Have you ever been to Astana? You would be surprised. Sky-high glass buildings, newly built smart quarters with entrances by a fingerprint scan, huge Expo area - firstly, a venue for the biggest Exposition “Future of Energy” __ ](https://www.seedstars.com/content-hub/newsroom/fintech-stars-journey-insight-three-month-acceleration-program-july-24-2018/) [ ![Mega Cities in emerging markets](https://seedstars-com.s3.amazonaws.com/images/Mega_Cities_in_emerging_markets.max-320x550.jpg) GLOBAL • MOBILITY Mega Cities in emerging markets: what are the perspectives on Smart Mobility? By 2030, almost 60% of the world’s population will live in urban areas. The rapid growth of cities in the developing world, coupled with increasing urban migration, has led to a boom in mega-cities. __ ](https://www.seedstars.com/content-hub/life/mega-cities-emerging-markets-what-are-perspectives-smart-mobility/) --- ## Sitemap - [Sitemap](https://www.seedstars.com/sitemap.md): every public page on this site - [llms.txt](https://www.seedstars.com/llms.txt): what Seedstars does and where to start