Crowdfunding for Energy Efficiency

Crowdfunding - 24 June 2019

This report investigates the extent to which Crowdfunding for Energy Efficiency (CF4EE) could play a relevant role in scaling up investments in energy efficiency in developing countries.

The document identifies conditions which are conducive for CF4EE and recommends policies and institutional actions that can help scale up CF4EE, where the conditions are favourable, in particular for debt and equity crowdfunding.

The report starts with a brief introduction on the topic of energy efficiency and crowdfunding, followed by the analysis of two scenarios which build on real life energy efficiency measures in Morocco and in Indonesia. These two cases were analysed from a financial perspective, using a dynamic investment analyses tool, and from an institutional viability perspective, using a SWOT (strength-weakness-opportunities-threats) framework. In both cases, the energy efficiency measures and the crowdfunding approach were found to be, in principle, financially viable. However, serious challenges (legal uncertainty, missing institutional capacity, possible ‘competition’ in the future from donations etc.) should be addressed before the implementation.

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