Microgrids Capture More Energy Access Startup Funding

This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

    • Startups selling energy to off-grid areas raise $308 million
    • Funding in the sector may decline for first time in 2018

Startups distributing solar-based energy products to those not adequately served by the conventional electric grid in Sub-Saharan Africa and South Asia have raised $1.3 billion since 2013, largely from family offices and development finance institutions seeking to combine profits with impact. The money has raised hopes that private entrepreneurs and investors can make a dent in expanding access to electricity in developing countries. The pace of funding to date is, however, insufficient compared with the $353 billion BloombergNEF estimates would be required to reach universal access to electricity by 2030. Furthermore, investor interest is shifting away from larger Series C and D rounds to scale businesses toward smaller rounds for more novel approaches such as solar-powered cold storage and irrigation instead.

BNEF clients can access the full report Microgrids in a Changing Power System on the Terminal or on web.

BNEF Shorts are research excerpts available only on the BNEF mobile app and the Bloomberg Terminal, highlighting key findings from our reports. If you would like to learn more about our services, please contact us.

About Bloomberg NEF

Bloomberg NEF (BNEF), Bloomberg’s primary research service, covers clean energy, advanced transport, digital industry, innovative materials and commodities. We help corporate strategy, finance and policy professionals navigate change and generate opportunities.

Available online, on mobile and on the Terminal, BNEF is powered by Bloomberg’s global network of 19,000 employees in 176 locations, reporting 5,000 news stories a day.
 
Sign up for our free weekly newsletter →

Want to learn how we help our clients put it all together? Contact us