Off-grid energy distribution

arial view of solar panels on green field, photo by andreas  gucklhorn

Photo by Andreas Gucklhorn on Unplash

Off-grid energy distribution
Distribution of affordable and renewably sourced pre-paid electricity to off-grid communities
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Alternative Energy
Business Model Description

Distribute accessible renewable electricity services to communities out of reach of the interconnected electric power distribution grid. Companies that install, distribute, and maintain pre-paid solar battery storage kits to homes, schools, hospitals, and businesses through mom-and-pop shops that sell prepaid solar credit to customers, avoiding collection risk.

Expected Impact

This initiative intends to reduce the inequality in the access to energy and diversify the energy matrix towards renewable sources.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Quality Education (SDG 4) Responsible Consumption and Production (SDG 12) Climate Action (SDG 13)
Sector Sources
  • 1)IDEAM (2012) – Inventario de efecto invernadero. Accessed May 22nd 2020 2) UPME (2019) -Plan Energético Nacional 3) DANE (2018) Mujeres Rurales en Colombia 4) Colombia Investment Summit (2020) - Energy. Accessed February 8th 2021.
IOA Sources
  • 5) Kingo. Accessed February 8th 2020 (https://www.kingoenergy.com/) 6) Hirmer (2017) – The benefits of energy appliances in the off-grid energy sector based on seven off-grid initiatives. Accessed May 15 2020 7) Sáenz (2017) En penumbras 25 millones de colombianos no tienen energía eléctrica. Acceso 3 de Mayo 2020 8) WWF (2018) – Petición por las energías renovables. Acceso 2 de Mayo 2020 9) Camacol (2019) – Informe de gestión 2018-2019. Accessed May 13 2020 10) DNP (2017) – Plan Nacional de Desarrollo.Accessed May 13 2020 11) MinAmbiente (2011) – Estrategia Colombiana de Desarrrollo Bajo en Carbono. Accessed June 3rd 2020 12) ICEX (2019) – Energías Renovables en Colombia.Accessed May 13 2020. 13) Cámara de comercio de Cali (2016)- Normatividad para las Energías Renovables en Colombia. Accessed February 8th 2021. 14) Energía estratégica (2019) -El Gobierno de Colombia expide su primera regulación para la acumulación de renovables mediante baterías. Accessed February 8th 2021 15) Energía estratégica (2019) Multilaterales financiarán proyectos de energías renovables por 1.000 millones de dólares en Colombia. Accessed February 8th 2020. 16) Minenergia (2014) Energía eléctrica 17) Valora Analitik (2021) Colombia llegaría a 734 mw de capacidad instalada de energías renovables en 2021. Accessed February 8th 2021.