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| | Furthermore, an overview table allows to see the arguments side by side. | | Furthermore, an overview table allows to see the arguments side by side. |
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| − | = Why PAYGO is overhyped = | + | = Why PAYGO is Overhyped = |
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| | Blog by Ceniarth: “An Impact Investor Urges Caution on the ‘Energy Access Hype Cycle’”<ref name="Ceniarth’s Blog: Neichin, Greg, Diane Isenberg, and Mary Roach. ‘An Impact Investor Urges Caution on the “Energy Access Hype Cycle” | NextBillion’, 17 March 2017. https://nextbillion.net/an-impact-investor-urges-caution-on-the-energy-access-hype-cycle/">Ceniarth’s Blog: Neichin, Greg, Diane Isenberg, and Mary Roach. ‘An Impact Investor Urges Caution on the “Energy Access Hype Cycle” | NextBillion’, 17 March 2017. https://nextbillion.net/an-impact-investor-urges-caution-on-the-energy-access-hype-cycle/</ref> | | Blog by Ceniarth: “An Impact Investor Urges Caution on the ‘Energy Access Hype Cycle’”<ref name="Ceniarth’s Blog: Neichin, Greg, Diane Isenberg, and Mary Roach. ‘An Impact Investor Urges Caution on the “Energy Access Hype Cycle” | NextBillion’, 17 March 2017. https://nextbillion.net/an-impact-investor-urges-caution-on-the-energy-access-hype-cycle/">Ceniarth’s Blog: Neichin, Greg, Diane Isenberg, and Mary Roach. ‘An Impact Investor Urges Caution on the “Energy Access Hype Cycle” | NextBillion’, 17 March 2017. https://nextbillion.net/an-impact-investor-urges-caution-on-the-energy-access-hype-cycle/</ref> |
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| | Read more at: [http://ceniarthllc.com/ Ceniarth]’s Blog: Neichin, Greg, Diane Isenberg, and Mary Roach. ‘An Impact Investor Urges Caution on the “Energy Access Hype Cycle” | NextBillion’, 17 March 2017. [https://nextbillion.net/an-impact-investor-urges-caution-on-the-energy-access-hype-cycle/ https://nextbillion.net/an-impact-investor-urges-caution-on-the-energy-access-hype-cycle/] | | Read more at: [http://ceniarthllc.com/ Ceniarth]’s Blog: Neichin, Greg, Diane Isenberg, and Mary Roach. ‘An Impact Investor Urges Caution on the “Energy Access Hype Cycle” | NextBillion’, 17 March 2017. [https://nextbillion.net/an-impact-investor-urges-caution-on-the-energy-access-hype-cycle/ https://nextbillion.net/an-impact-investor-urges-caution-on-the-energy-access-hype-cycle/] |
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| − | = Why the hype is justified = | + | = Why the Hype is Justified = |
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| − | == Investment is needed! == | + | == Investment is Needed! == |
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| | Blog by GOGLA on: “Dear Critics: Here’s Why the Off-grid Energy Industry Needs Impact Investment”<ref name="GOGLA: Keane, John, and Laura Sundblad. ‘Dear Critics: Here’s Why the Off-Grid Energy Industry Needs Impact Investment | NextBillion’, 6 April 2017. https://nextbillion.net/dear-critics-heres-why-the-off-grid-energy-industry-needs-impact-investment/.">GOGLA: Keane, John, and Laura Sundblad. ‘Dear Critics: Here’s Why the Off-Grid Energy Industry Needs Impact Investment | NextBillion’, 6 April 2017. https://nextbillion.net/dear-critics-heres-why-the-off-grid-energy-industry-needs-impact-investment/.</ref> | | Blog by GOGLA on: “Dear Critics: Here’s Why the Off-grid Energy Industry Needs Impact Investment”<ref name="GOGLA: Keane, John, and Laura Sundblad. ‘Dear Critics: Here’s Why the Off-Grid Energy Industry Needs Impact Investment | NextBillion’, 6 April 2017. https://nextbillion.net/dear-critics-heres-why-the-off-grid-energy-industry-needs-impact-investment/.">GOGLA: Keane, John, and Laura Sundblad. ‘Dear Critics: Here’s Why the Off-Grid Energy Industry Needs Impact Investment | NextBillion’, 6 April 2017. https://nextbillion.net/dear-critics-heres-why-the-off-grid-energy-industry-needs-impact-investment/.</ref> |
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| | Read more at: GOGLA: Keane, John, and Laura Sundblad. ‘Dear Critics: Here’s Why the Off-Grid Energy Industry Needs Impact Investment | NextBillion’, 6 April 2017. [https://nextbillion.net/dear-critics-heres-why-the-off-grid-energy-industry-needs-impact-investment/ https://nextbillion.net/dear-critics-heres-why-the-off-grid-energy-industry-needs-impact-investment/]. | | Read more at: GOGLA: Keane, John, and Laura Sundblad. ‘Dear Critics: Here’s Why the Off-Grid Energy Industry Needs Impact Investment | NextBillion’, 6 April 2017. [https://nextbillion.net/dear-critics-heres-why-the-off-grid-energy-industry-needs-impact-investment/ https://nextbillion.net/dear-critics-heres-why-the-off-grid-energy-industry-needs-impact-investment/]. |
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| − | == Why we need the hype == | + | == Why We Need the Hype == |
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| | Blog by The Persistent Energy Capital LLC on: “Hype in the Energy Access Sector (Finally!)”<ref name="Persistent Energy Capital LLC: Aidun, Chris, Dirk Muench, and Rodrigo Weiss. ‘Hype in the Energy Access Sector (Finally!) | NextBillion’, 6 April 2017. https://nextbillion.net/hype-in-the-energy-access-sector-finally/.">Persistent Energy Capital LLC: Aidun, Chris, Dirk Muench, and Rodrigo Weiss. ‘Hype in the Energy Access Sector (Finally!) | NextBillion’, 6 April 2017. https://nextbillion.net/hype-in-the-energy-access-sector-finally/.</ref> | | Blog by The Persistent Energy Capital LLC on: “Hype in the Energy Access Sector (Finally!)”<ref name="Persistent Energy Capital LLC: Aidun, Chris, Dirk Muench, and Rodrigo Weiss. ‘Hype in the Energy Access Sector (Finally!) | NextBillion’, 6 April 2017. https://nextbillion.net/hype-in-the-energy-access-sector-finally/.">Persistent Energy Capital LLC: Aidun, Chris, Dirk Muench, and Rodrigo Weiss. ‘Hype in the Energy Access Sector (Finally!) | NextBillion’, 6 April 2017. https://nextbillion.net/hype-in-the-energy-access-sector-finally/.</ref> |
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| | Read more at: Persistent Energy Capital LLC: Aidun, Chris, Dirk Muench, and Rodrigo Weiss. ‘Hype in the Energy Access Sector (Finally!) | NextBillion’, 6 April 2017. [https://nextbillion.net/hype-in-the-energy-access-sector-finally/ https://nextbillion.net/hype-in-the-energy-access-sector-finally/]. | | Read more at: Persistent Energy Capital LLC: Aidun, Chris, Dirk Muench, and Rodrigo Weiss. ‘Hype in the Energy Access Sector (Finally!) | NextBillion’, 6 April 2017. [https://nextbillion.net/hype-in-the-energy-access-sector-finally/ https://nextbillion.net/hype-in-the-energy-access-sector-finally/]. |
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| | = Overview Table = | | = Overview Table = |
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| | The following table summarises the critique on the PAYGO hype by the blog post of [http://ceniarthllc.com/ Ceniarth] and the two reactions by GOGLA and Persistent Energy Capital (PEC) who both thinks what Ceniarth calls a PAYGO “hype” is a justified and necessary development in order to reach energy access via PAYGO. The table follows 5 categories of arguments: financing, regulation, profitability, consumption vs. productive uses, and target markets. For details and resources, see sections above. | | The following table summarises the critique on the PAYGO hype by the blog post of [http://ceniarthllc.com/ Ceniarth] and the two reactions by GOGLA and Persistent Energy Capital (PEC) who both thinks what Ceniarth calls a PAYGO “hype” is a justified and necessary development in order to reach energy access via PAYGO. The table follows 5 categories of arguments: financing, regulation, profitability, consumption vs. productive uses, and target markets. For details and resources, see sections above. |
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| − | {| style="width: 750px" width="0" cellspacing="0" cellpadding="0" border="1" | + | {| style="width: 0px; width: 750px" cellspacing="0" cellpadding="0" border="1" |
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| | + | ! style="width: 189px" scope="col" | # |
| | ! style="width: 189px" scope="col" | | | ! style="width: 189px" scope="col" | |
| | '''Category''' | | '''Category''' |
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| − | #'''Financing PAYGO increased exponentially during the past years.''' (to 200 million USD in 2016)
| + | '''Financing PAYGO increased exponentially during the past years.''' (to 200 million USD in 2016) |
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| − | #'''Regulations for customer protection do not yet exist'''
| + | '''Regulations for customer protection do not yet exist''' |
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| | + | | style="width:189px" | <p style="text-align: center">3</p> |
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| − | #'''Profitability of remote distribution'''
| + | '''Profitability of remote distribution''' |
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| − | #'''Productive vs. consumption of energy'''
| + | '''Productive vs. consumption of energy''' |
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| − | #'''Target markets of PAYGO products and services'''
| + | '''Target markets of PAYGO products and services''' |
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| | = Conclusion = | | = Conclusion = |
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| | It is true, the PAYGO market got a lot of attention during the past years and exponentially more money is lending to push the market. Whether or not we can call this a “hype”, depends on the perspective. Some call it overhyped, others feel the attention is justified. | | It is true, the PAYGO market got a lot of attention during the past years and exponentially more money is lending to push the market. Whether or not we can call this a “hype”, depends on the perspective. Some call it overhyped, others feel the attention is justified. |
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| | Traditional impact investors like Ceniarth might feel that PAYGO is not quite the right approach to reach the last mile customers for achieving universal access to energy. They feel that the hype around the PAYGO approaches might even endanger the path towards that goal. Others (GOGLA and PEC) rather see the fast development of the PAYGO approaches as a “normal” development of new markets. This path will maybe not only focus on the most vulnerable customers, but offers the possibility to reach many more people than other approaches. According to them, like other young markets, the PAYGO market receives the attention that is needed to grow substantially. | | Traditional impact investors like Ceniarth might feel that PAYGO is not quite the right approach to reach the last mile customers for achieving universal access to energy. They feel that the hype around the PAYGO approaches might even endanger the path towards that goal. Others (GOGLA and PEC) rather see the fast development of the PAYGO approaches as a “normal” development of new markets. This path will maybe not only focus on the most vulnerable customers, but offers the possibility to reach many more people than other approaches. According to them, like other young markets, the PAYGO market receives the attention that is needed to grow substantially. |
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| | = Further Information = | | = Further Information = |
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| − | *[[:Category:Financing_and_Funding|Category:Financing and Funding]] Portal
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| − | *[[Pay-as-you-go_Approaches_(PAYGO)|PAYGO: Definition and How It Works]]
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| − | *[[Fee-For-Service_or_Pay-As-You-Go_Concepts_for_Photovoltaic_Systems|Fee-For-Service_or_Pay-As-You-Go_Concepts_for_Photovoltaic_Systems]]
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| − | *[[Market_Development_of_PAYGO|Market Development of PAYGO]]
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| − | *Advantages and Disadvantages of PAYGO Approaches
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| + | *[[:Category:Financing and Funding|Financing and Funding]] Portal |
| | + | *[[Pay-as-you-go Approaches (PAYGO)|PAYGO: Definition and How It Works]] |
| | + | *[[Fee-For-Service or Pay-As-You-Go Concepts for Photovoltaic Systems|Fee-For-Service or PAYGO for PV systems]] |
| | + | *[[Market Development of PAYGO|Market Development of PAYGO]] |
| | + | *[[Advantages and Disadvantages of PAYGO Approaches|Advantages and Disadvantages of PAYGO Approaches]] |
| | | | |
| | = References = | | = References = |
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| | <references /> | | <references /> |
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| − | [[Category:Financing_and_Funding]]
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| | [[Category:Financing_Solar]] | | [[Category:Financing_Solar]] |
| | + | [[Category:PAY-GO]] |
| | + | [[Category:Financing_and_Funding]] |
Since the PAYGO market got a lot of attention during the past years and exponentially more money is lend to push the market, it seems that PAYGO approaches were hyped by the media and within the energy access sector.
In March 2017, a blog post explained what was wrong with this hype about PAYGO. A few days later, two blog posts responded to the 5 critiques on PAYGO. This article summarises all three articles in bullet points. Ceniarth shifted its investments away from PAYGO and dared to explain why. GOGLA and Persistent Energy Capital LLC strongly disagree with Ceniarth’s analysis.
Blog by Ceniarth: “An Impact Investor Urges Caution on the ‘Energy Access Hype Cycle’”[1]
Blog by GOGLA on: “Dear Critics: Here’s Why the Off-grid Energy Industry Needs Impact Investment”[2]
Blog by The Persistent Energy Capital LLC on: “Hype in the Energy Access Sector (Finally!)”[3]
The following table summarises the critique on the PAYGO hype by the blog post of Ceniarth and the two reactions by GOGLA and Persistent Energy Capital (PEC) who both thinks what Ceniarth calls a PAYGO “hype” is a justified and necessary development in order to reach energy access via PAYGO. The table follows 5 categories of arguments: financing, regulation, profitability, consumption vs. productive uses, and target markets. For details and resources, see sections above.
It is true, the PAYGO market got a lot of attention during the past years and exponentially more money is lending to push the market. Whether or not we can call this a “hype”, depends on the perspective. Some call it overhyped, others feel the attention is justified.
Traditional impact investors like Ceniarth might feel that PAYGO is not quite the right approach to reach the last mile customers for achieving universal access to energy. They feel that the hype around the PAYGO approaches might even endanger the path towards that goal. Others (GOGLA and PEC) rather see the fast development of the PAYGO approaches as a “normal” development of new markets. This path will maybe not only focus on the most vulnerable customers, but offers the possibility to reach many more people than other approaches. According to them, like other young markets, the PAYGO market receives the attention that is needed to grow substantially.
