Productive use of energy solutions for microenterprises

Exploring the potential of under-researched productive uses of energy in India, Kenya and Nigeria

Much has been written about productive use of energy (PUE) strategies as it relates to irrigation and agro-processing, but a variety of other PUE activities should also be focused on as more attempts are made to ensure that energy translates into economic activity. This report delves into the intricate landscape of less documented PUE solutions, analysing their impact on microenterprises in India, Kenya, and Nigeria. Our findings are based on a market database covering 153 suppliers across these countries and 31 in-depth supplier interviews. We mapped funding flows, identified technology innovation trends and investigated business models. In each country, we also covered the landscape of the intended users of PUE equipment: microenterprises.

The PUE technologies covered in this report have a transformative impact on the livelihoods of microenterprises living below living incomes. In India, microenterprises report an increase of $57 in monthly income after purchasing a refrigerator while the incomes of cold room customers in Kenya have been shown to increase by 25%. Globally more than 4 out of 5 productive users experience an increase in their incomes after purchasing a PUE product.

A key driving force for this research has been the slow uptake of PUE technologies. Market fragmentation, funding mismatches, high upfront costs, detrimental importation regulations, limited consumer awareness, and gender-specific barriers have all been highlighted as critical obstacles to the widespread adoption and impact of PUE solutions. By offering specific, actionable resolutions – such as tailored financing models, enhanced last-mile connectivity, and targeted gender support – we offer a roadmap for stakeholders aiming to facilitate exponential increases in the adoption of PUE technologies by microenterprises in India, Kenya and Nigeria.

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