E&ID:USES - The next generation of low-cost energy-efficient appliances and devices to benefit the bottom of the pyramid
Lead Research Organisation:
The Open University
Department Name: Faculty of Arts and Social Sci (FASS)
Abstract
In recent years, there has been a significant increase in activity to provide energy to low-income households and communities in developing countries, through micro-grids and other methods. Unfortunately, beyond LED lighting and mobile phone charging, there has been limited practical exploration of how access to energy can improve the lives of people in developing countries. While studies have shown some improvement in people's lives as a result of this increase in access to lighting, there have been few studies evidencing broader improvement due to energy access. Indeed, adoption of renewable energy has been very low in these countries. This low adoption is especially surprising in light of several studies, which have found that energy can represent one of the largest markets within the Bottom of the Pyramid (the poorest households in our global society). Even as organizations working on the energy access issue wrestle with struggling business models for clean energy distribution, we believe a critical portion of the solution lies elsewhere; and it is receiving scant attention.
We believe the primary reason for the low adoption of renewable energy is that there are very few low-energy low-cost products available to-or made for-the poor in developing countries. Energy itself doesn't change people's lives; rather, it is what people use the energy for that does change lives: household appliances, workplace machines, clinical/medical devices, etc. Unfortunately, there is very limited understanding of the many market segments represented by the global poor, and of what types of powered appliances and products might change the quality of their lives (and, ideally, their economic condition). For example currently, more than two-thirds of births in developing countries occur at home, because poor off-grid communities cannot afford to build clinics with expensive medical devices which also require electricity. New low-cost, low-energy medical devices (e.g., solar-powered infant incubators) would make it possible to build clinics at a dramatically lower cost (as low as 10% of current costs). This would allow women to give birth at clinics instead of homes, and the medical devices in these clinics would lead to faster and more effective intervention during birth emergencies. Since these devices could be solar-powered, they would also significantly reduce the need for non-renewable energy.
The low power incubator is something some early research suggests may be appropriate, but this project as a whole is about setting up research to really understand the detailed needs of the BoP market, and then responding to them with innovative design on an ongoing basis. We strongly believe that demand for renewable energy-and the impact of clean energy access-will significantly increase if a new generation of demand-driven, affordable, low-power products were available. A core component of our project is the creation of Innovation Hubs in countries like Kenya and India. Working with key private and public sector partners, these hubs are intended to be centers-of-excellence which can:
(a) conduct ongoing market research on BoP segments, demands and needs
(b) produce low-cost, energy-efficient appliances (in collaboration with supply chain partners)
(c) lend technical expertise to public, private and academic institutions interested in BoP market insights.
Private-sector companies do not traditionally invest in the R&D required to build such products for the BoP, because those markets are highly unpredictable, and because profit margins can be low. As a result, virtually all private sector investments in developing countries are targeting the emerging middle class, rather than the poor. We believe that the market insights we will generate from this project will give private sector companies market intelligence that currently does not exist.
We believe the primary reason for the low adoption of renewable energy is that there are very few low-energy low-cost products available to-or made for-the poor in developing countries. Energy itself doesn't change people's lives; rather, it is what people use the energy for that does change lives: household appliances, workplace machines, clinical/medical devices, etc. Unfortunately, there is very limited understanding of the many market segments represented by the global poor, and of what types of powered appliances and products might change the quality of their lives (and, ideally, their economic condition). For example currently, more than two-thirds of births in developing countries occur at home, because poor off-grid communities cannot afford to build clinics with expensive medical devices which also require electricity. New low-cost, low-energy medical devices (e.g., solar-powered infant incubators) would make it possible to build clinics at a dramatically lower cost (as low as 10% of current costs). This would allow women to give birth at clinics instead of homes, and the medical devices in these clinics would lead to faster and more effective intervention during birth emergencies. Since these devices could be solar-powered, they would also significantly reduce the need for non-renewable energy.
The low power incubator is something some early research suggests may be appropriate, but this project as a whole is about setting up research to really understand the detailed needs of the BoP market, and then responding to them with innovative design on an ongoing basis. We strongly believe that demand for renewable energy-and the impact of clean energy access-will significantly increase if a new generation of demand-driven, affordable, low-power products were available. A core component of our project is the creation of Innovation Hubs in countries like Kenya and India. Working with key private and public sector partners, these hubs are intended to be centers-of-excellence which can:
(a) conduct ongoing market research on BoP segments, demands and needs
(b) produce low-cost, energy-efficient appliances (in collaboration with supply chain partners)
(c) lend technical expertise to public, private and academic institutions interested in BoP market insights.
Private-sector companies do not traditionally invest in the R&D required to build such products for the BoP, because those markets are highly unpredictable, and because profit margins can be low. As a result, virtually all private sector investments in developing countries are targeting the emerging middle class, rather than the poor. We believe that the market insights we will generate from this project will give private sector companies market intelligence that currently does not exist.
Planned Impact
This project has three primary impact objectives, with respect to improving lives and livelihoods of the poor in developing countries:
1. Tangible improvements in the lives of communities in the target countries (Kenya, Ghana, Bangladesh and India), through the low-cost, energy-efficient products we will develop and deploy. While the specific products we select will depend on the market research in the early stages of the project, it will likely include medical devices for issues such as neonatal health; therefore, the impact plan below uses the example of improved health outcomes from neonatal devices. Additional impact measures will be added as the product portfolio is finalized.
2. Self-sustaining, job-creating innovation capacity in Kenya and India, to keep produce and deploying such in the future.
3. Mobilizing private sector investment in similar low-cost energy-efficient products for the poor in developing countries
In our Impact Pathways we present an example of a product and its potential to save lives. Our example theory of change is: Currently, more than two-thirds of births in developing countries occur at home, because poor off-grid communities cannot afford to build clinics with expensive medical devices which also require electricity. New low-cost, low-energy medical devices (e.g., solar-powered infant incubators) will make it possible to build clinics at a dramatically lower cost (as low as 10% of current costs). This will allow women to give birth at clinics instead of homes, and the medical devices in these clinics will lead to faster and more effective intervention during birth emergencies. Since these devices are solar-powered, they will also significantly reduce the need for non-renewable energy.
We will work with the Governments of Kenya, Ghana, Bangladesh and India to increase their awareness of the potential markets of the Bottom of the Pyramid, and work with them to create an enabling environment. We will work with the private sector in each country to share our market intelligence and encourage innovation in low energy products. This will include innovative financing mechanisms, such as working with Equity Bank in Kenya for financial services that enable device purchases by the very poor, and social investment that enables production of such devices. Specifically in Kenya and India we will have as a partner of the research, innovation hubs each employing more than 100 staff, designing, producing and distributing similar products to low-income markets. And we will work with communities at the Bottom of the Pyramid in these countries. They will share their own insights into the their lives and provide market intelligence that currently does not exist. This will be shared with private sector companies to enable the private sector to respond to market demands.
Additionally, any peer-reviewed publications arising from this grant will be registered on the Open University's open access institutional repository - Open Research Online (ORO) at http://oro.open.ac.uk. ORO is now one of the largest repositories in the UK. The site receives an average of 40,000 visitors per month from over 200 different countries and territories and has received over 2.2 million visitors since 2006. It enables access to research outputs via common search engines including Google, by using the OAI (Open Archives Initiative) Protocol for Metadata Harvesting.
1. Tangible improvements in the lives of communities in the target countries (Kenya, Ghana, Bangladesh and India), through the low-cost, energy-efficient products we will develop and deploy. While the specific products we select will depend on the market research in the early stages of the project, it will likely include medical devices for issues such as neonatal health; therefore, the impact plan below uses the example of improved health outcomes from neonatal devices. Additional impact measures will be added as the product portfolio is finalized.
2. Self-sustaining, job-creating innovation capacity in Kenya and India, to keep produce and deploying such in the future.
3. Mobilizing private sector investment in similar low-cost energy-efficient products for the poor in developing countries
In our Impact Pathways we present an example of a product and its potential to save lives. Our example theory of change is: Currently, more than two-thirds of births in developing countries occur at home, because poor off-grid communities cannot afford to build clinics with expensive medical devices which also require electricity. New low-cost, low-energy medical devices (e.g., solar-powered infant incubators) will make it possible to build clinics at a dramatically lower cost (as low as 10% of current costs). This will allow women to give birth at clinics instead of homes, and the medical devices in these clinics will lead to faster and more effective intervention during birth emergencies. Since these devices are solar-powered, they will also significantly reduce the need for non-renewable energy.
We will work with the Governments of Kenya, Ghana, Bangladesh and India to increase their awareness of the potential markets of the Bottom of the Pyramid, and work with them to create an enabling environment. We will work with the private sector in each country to share our market intelligence and encourage innovation in low energy products. This will include innovative financing mechanisms, such as working with Equity Bank in Kenya for financial services that enable device purchases by the very poor, and social investment that enables production of such devices. Specifically in Kenya and India we will have as a partner of the research, innovation hubs each employing more than 100 staff, designing, producing and distributing similar products to low-income markets. And we will work with communities at the Bottom of the Pyramid in these countries. They will share their own insights into the their lives and provide market intelligence that currently does not exist. This will be shared with private sector companies to enable the private sector to respond to market demands.
Additionally, any peer-reviewed publications arising from this grant will be registered on the Open University's open access institutional repository - Open Research Online (ORO) at http://oro.open.ac.uk. ORO is now one of the largest repositories in the UK. The site receives an average of 40,000 visitors per month from over 200 different countries and territories and has received over 2.2 million visitors since 2006. It enables access to research outputs via common search engines including Google, by using the OAI (Open Archives Initiative) Protocol for Metadata Harvesting.
People |
ORCID iD |
Joanna Chataway (Principal Investigator) | |
Terence Cook (Researcher) |
Publications
Batchelor S
(2019)
Two Birds, One Stone-Reframing Cooking Energy Policies in Africa and Asia
in Energies
Leach M
(2021)
Modelling the Costs and Benefits of Modern Energy Cooking Services-Methods and Case Studies
in Energies
Leary J
(2021)
eCooking: Challenges and Opportunities from a Consumer Behaviour Perspective
in Energies
Mitra S
(2015)
Universal Access to Electricity: Closing the Affordability Gap
in Annual Review of Environment and Resources
Morine Chepkemoi And Nigel Scott
(2016)
Choice Modelling in Development
Simon Batchelor
(2016)
Low cost modern energy technologies for Africa
Description | Findings from the discrete choice experiments are informing product development strategies. We are now working with collaborators to develop low cost energy efficient health related products and domestic appliances. |
Exploitation Route | We will provide detailed findings on our website and others may find user preferences useful in their work in developing health and user innovations |
Sectors | Agriculture Food and Drink Energy Environment Healthcare Retail |
URL | http://www.sussex.ac.uk/spru/research/projects/lct |
Description | PLEASE SEE THE RESPONSE FOR THE MORE RECENT ACCOUNT FOR THIS PROJECT. Our findings are being used to inform low carbon technology based product development strategies in health and cooking. Through our partnerships with RECI and the health clinics the project is contributing to the ongoing development of energy efficient low cost devices and products. We are also engaged in ongoing efforts to create sustainable business models. The creation and spin out of the Health Innovation Network (HIN) is providing a vehicle for continued development efforts which will outlive the lifespan of this project. UK Aid (DFID now FCDO) funded modern energy Cooking Services MECS, based partly on the LCT research. It started at £20m and got upgraded 8 months later to £40m https://devtracker.fcdo.gov.uk/projects/GB-GOV-1-300123 This has resulted in the LCT work being promoted through the MECS website mecs.org.uk and being foundational in further work in Kenya and contributing to work in the 14 other priority countries. Our partners ACTS have been funded the role of coordinator for research. The Government is aware of the MECS work, as are the KPLC utility, and half a dozen organisations working on minigrids and solar home systems, each at various stages of pilots and scaling preparation. Endev ran a Results Based Funding for EPCs and this has stimulated the market. This has led on to a programme of training of County officials which is about to start (funded outside MECS), and Kenya is a focus country for Climate Compatible Growth (CCG) a new programme of a similar size to MECS and is further research contributed to MECS and therefore has its roots in LCT. |
Sector | Agriculture, Food and Drink,Digital/Communication/Information Technologies (including Software),Energy,Environment,Healthcare,Retail |
Impact Types | Societal Economic |
Description | Rockefeller Foundation |
Amount | $3,000,000 (USD) |
Funding ID | TSG301 |
Organisation | Rockefeller Foundation |
Sector | Charity/Non Profit |
Country | United States |
Start | 08/2015 |
End | 08/2017 |
Description | Rockefeller Foundation |
Amount | $550,000 (USD) |
Funding ID | SPE302 |
Organisation | Rockefeller Foundation |
Sector | Charity/Non Profit |
Country | United States |
Start | 05/2015 |
End | 02/2017 |
Description | Tata Trusts (India) |
Amount | $4,000,000 (USD) |
Organisation | Tata Trusts |
Sector | Charity/Non Profit |
Country | India |
Start | 08/2016 |
End | 08/2021 |
Title | Discrete Choice Experiment in Sub-Saharan Africa |
Description | Very few DCEs have been done in SSA. In the course of developing the work we added to capacity in the region |
Type Of Material | Improvements to research infrastructure |
Year Produced | 2016 |
Provided To Others? | No |
Impact | We have built capacity to carry out DCEs amongst the SSA research community. |
Description | Working collaboration with Engineer Clinic to develop 'clinic in a box' |
Organisation | Engineer Clinic Kenya |
Country | Kenya |
Sector | Public |
PI Contribution | We are working with engineer clinic on product and electronic health record development. |
Collaborator Contribution | Engineer clinic is helping us with product and electronic health record development |
Impact | This is a product and electronic health record development partnership |
Start Year | 2016 |
Description | Working collaboration with Topcare Clinics to develop 'clinic in a box' |
Organisation | Topcare Clinic |
Country | Kenya |
Sector | Hospitals |
PI Contribution | Working with nurses to test and develop product |
Collaborator Contribution | Nurses in the clinic provide crucial data which helps with clinic in a box and electronic health care record product development |
Impact | The collaboration is around product development. No final outcomes yet. |
Start Year | 2016 |
Description | We have posted details about fieldwork activity on Facebook |
Form Of Engagement Activity | Engagement focused website, blog or social media channel |
Part Of Official Scheme? | No |
Geographic Reach | International |
Primary Audience | Public/other audiences |
Results and Impact | We want to engage interest in the study amongst a broad audience and to generate feedback on methodology. We have not had direct feedback so far |
Year(s) Of Engagement Activity | 2015 |
URL | https://www.facebook.com/LowCostTechnologies |