Renewable Energy Market Development
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households energy mix 68,493 Paraffin Electricity 16.13 139,901 Firewood Electricity 29.49 231,225 Paraffin Firewood Electricity 22.41 12,630 Paraffin Firewood 21.22 25,260 Electricity 24.80 7,772 Paraffin 11.80 (SNV Hivos 2011) Market Development for Renewable Energy Technologies 6 Competing with Firewood – 5.2 million market • Some companies are in the market with Charcoal Coal dust briquettes Sawdust briquettes Biofuel such as ethanol gel • Factors to consider for successful market entry Price competitive /MJ Consumer preference – turn key clean energy (electricity) Paraffin fairly affordably, but affects taste of sadza, prohibitive cost of cookstove(s), is believed to cook slower, and some fear its inflammability Initial stove price prohibitive at Bottom of the Pyramid Market Development for Renewable Energy Technologies 7 Energy for Lighting – Rural Zimbabwe • 1.5 million rural households off-grid (census 2002) • • 14 owns solar Off-grid used to cope with energy mix • Half uses paraffin and candles with electricity or solar • Cellphone charging 10x per month 0.2 to 1 7.5million per month (SNV Hivos 2011) Market Development for Renewable Energy Technologies 8 Willingness to Pay Research • three products Market Development for Renewable Energy Technologies 9 Willingness to Pay Research Continued District Zimbabwe District Zimbabwe District Zimbabwe Total market potential 15 market potential 33,793,980 Total market potential 5,069,097 15 market potential Households without electricity 1,536,090 Households without electricity 1,536,090 WTP solar lantern 22 WTP solar lantern + charger 44 Households without electricity WTP small Total market solar potential home system 153 235,021,770 1,536,090 67,587,960 10,138,194 15 market potential 35,253,265 Source: Koen Van Kuijik, Solar PV Potential in rural Zimbabwe, Vrije Universiteit Amsterdam and SNV Zimbabwe 2012 Market Development for Renewable Energy Technologies 10 Competing with Paraffin Candles
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