Providing first-time electricity to more than 1 billion people around the world is not a task for the fainthearted. In fact, it is quite risky. Despite the risks, the private sector is interested. According to the International Energy Agency, emerging markets in Africa, South East Asia, the Middle East and Latin America will make up almost half of all new global energy demand between now and 2040. India and China make up the remainder of global energy growth. Meanwhile, traditional markets like the EU, US and Japan will experience decreased energy demand.

One of the challenges to tapping this potential is that these emerging markets host the world’s poorest people. Without access to affordable and reliable energy, these potential customers have few means of escaping poverty. But with access to energy, these communities could accelerate their business growth and become strong and loyal customers.

Many special purpose mechanisms including loan guarantees and blended finance instruments have reduced power sector investor risk and increased the amount of electricity available in energy-poor countries.

Below are some of the community-level risks that are specific to energy projects. However, for each risk, we show how traditional tools and techniques in Community Engagement and Financial Inclusion can help to overcome them.

  • Risk: Getting Data That Enables Reliable Site Selection Decisions
  • Risk: Revealing and Mitigating Potential Flaws at the Site/Community Level
  • Risk: Designing Financial Options for Affordability
  • Risk: Ensuring Project Sustainability & Growth

Read more about the risks and tools to achieve energy access for everyone by Robyn McGuckin at Global Communities.