Mobile + Energy

Programme Activities Knowledge Sharing and Convening Advisory Services Market Building Innovation Funding

Funding & Timeframe UK Department for International Development Phase 1: £4.1M (2013-2014) Phase 2: Additional £6M (2015-2017)

Our Theory of ChangeDeveloping commercially sustainable solutions that leverage mobile for energy, water and

sanitation access requires support to develop the ecosystem, and that funding should be paired with research and evidence to support the uptake of solutions and business models. The

programme operates as a market facilitator and innovation lab to support the R&D of strategic and commercially viable products and services.

Funding

M&E

Research

Evidence Trials

Champions

Mobile channels for utilities access

The current success story -> Solar Pay As You Go

Examples of success: ~500,000 smart PAYG home solar systems installed (mainly in East Africa) MKOPA processes 10,000+ payments/day (2nd largest utility bill provider in Kenya)

Focus on Mobile Financial Services

a. Mobile Money Services have become a critical part of our M4D Utilities activities:i. Enable the emergence of innovative utility models (ex. solar PAYG)ii. Facilitate the payment process for unbanked customers on Utility servicesiii. Improve payment efficiency for service providers (ex. evidence from Water Utilities in Tz)iv. Enable customers to pay back product loans in small instalments (ex. solar, water pumps, toilets,..)v. Enable Service Providers to build a customer repayment profile (credit rating and further product

loans)

b. M4D Utilities models can have an important Impact on MNOs MM Businessi. New subscriber acquisition (ex. solar PAYG esp. rural and off grid)ii. New subscriber revenue generation from fees on mobile money paymentsiii. Increased subscriber activity on their mobile money account (ex. evidence from Phase 1 PAYG pilot)iv. (Increased mobile ARPU (airtime, SMS,..) (esp. energy because of charging phones))v. Brand loyalty and stickiness due to partnerships with MNOs on MM and/or M2Mvi. Market Operational Synergies – M4D Utilities agents reach underserved MM segments (ex. rural

and off grid) -> improve digital financial literacy and register new customers (ex. PEG Ghana)

~16 out of 21 grantees (10 energy, 5 water and 1 sanitation) are looking to use some forms of mobile payments (mainly MM) in their model

Our Phase 2 Grantees