Amidst a 43% funding decline in the global off-grid solar sector, Productive Use of Renewable Energy (PURE) technologies have emerged as a beacon of investor interest, raising $65 million in 2023. This surge, double the previous year’s investment, highlights the growing recognition of the transformative impact these technologies have on livelihoods through innovation.
PURE technologies encompass appliances and products such as solar-powered water pumps, refrigerators, cold rooms, and agri-processing equipment that unlock new revenue-generating opportunities, primarily in the agricultural sector. Laura Fortes, GOGLA’s senior Access to Investment manager, emphasized the significant role these technologies play in mitigating climate change, enhancing resilience, and increasing income prospects for smallholder farmers and health clinics. By displacing outdated diesel water pumps and fossil-fuel-dependent coolers, PURE technologies bolster resilience and support small farmer incomes, particularly in the face of climate change.
While the off-grid solar sector secured $425 million in funding across 158 deals, with $281 million being debt, the bulk of these investments benefited startups or scale-ups operating in Africa, where they provide solutions to address the energy access gap. Despite the substantial global population lacking access to electricity, equity investment in solar startups remains low, signaling a concerning failure to nurture new companies focused on electricity access, which is crucial for achieving electrification goals. As Fortes points out, without additional de-risking instruments and concessional financing, off-grid solar will fall short of the scale needed to realize global development objectives. By multiplying industry funding sevenfold through successful blended finance structures, the potential of PURE technologies can be fully unleashed to enhance livelihoods and accelerate sustainable development.
