1. Programming for Rural Energy Services
 2. Energy and Rural Development
 3. Defining Productive Uses of Renewable Energy
 4. Eligibility for GEF Funding
 5. Guiding Principles for a PURE Approach
 6. Designing a UNDP-GEF PURE Project
 7. Lessons Learned from Rural Energy Programmes with PURE approaches
 8. Contacts 9. Definitions

Market Development through Rural Enterprises

RETs can contribute to meeting the energy demand related to agricultural and non-farm economic activities by providing energy for processes such as irrigation, food processing, food preservation, and delivery to market.

Besides the energy-producing RETs, end-use equipment such as light fixtures, stoves, motors, pumps, sewing machines, and so forth are required to deliver 'useful energy' for the services that people need. For poor people the initial cost of obtaining such equipment can be a critical factor in determining their ability to benefit from available energy. This is sometimes more of a constraint than the recurrent costs of the energy itself, and should not be underestimated. There are also other important issues to consider within the context of energy and productivity.

When promoting use of RETs, among micro- small- and medium sized enterprises for productive use it is clear that the approach must be designed to respond to users' needs ("demand-push") of rural energy services, rather than the other way around (supply or "technology-pull"). While energy is seen as an input to income-generating activities, demand will only be generated if a set of particular conditions, which enables small businesses to thrive, are present:

  • Knowledge and skill by small and micro-business and farmers on how to use new-found/improved electrical and motive power - as well as heat - for profitable enterprise.

  • Technical and financial management capacity of small and micro-business and farmers, including availability of credit and micro-credit to finance energy services, productive tools and equipment.

  • A policy and institutional environment conducive to business development and willingness to promote decentralized services.

  • Access to markets for additional or new products produced or services offered as a result of new electrical, heat or motive power.

  • Availability of a minimum of other complementary infrastructure services, such as transport, water supply and ICT services.