Limits of the corporate-led market approach to off-grid energy access: A review
Aleid C. Groenewoudt, Henny Romijn
Abstract
Markets not only enable wide technology diffusion but also shape sustainability transitions. From this perspective, it is critical to investigate the shaping effects of markets and market formation processes for human wellbeing and the environment. Through a systematic literature review, this study explores the limitations of the dominant corporate-led market development model. This constitutes the global compass for present-day energy access programs and international development policy, framed around the potential of foreign-affiliated corporate enterprises for the market-based diffusion of solar products in the Global South. Findings suggest that due to tradeoffs between people, planet, and profit-directed goals, the companies cannot enable sustainability transitions and equal and sustainable access to the energy poor. Instead, the corporate-led market development route reproduces structural injustices. A more pluralistic route with greater roles for local, non-affiliated entrepreneurs, non-profits, and the public sector is proposed for negotiating the tradeoffs to the extent possible.