Frugal energy and the global markets of pico solar systems

This chapter looks at the markets of frugal energy technologies for off-grid populations in Africa. It focuses on stand-alone energy solutions like solar lamps and kits for domestic needs, a case study in which innovations have taken up the challenge of large-scale market development. The first part describes the initiatives of start-ups and multinational companies (MNCs) aimed at bringing new frugal technologies to the African off-grid markets. Then, it examines the development of a second segment of generic, non-labelled and low-cost solar products, spreading rapidly in local markets. This segment is based on other routes of entrance belonging to the “globalization from below”. Facing this growing competition, social business leaders are challenged to develop more sophisticated products for higher consumer segments based on innovative prepaid business models. The analysis suggests that this reverse capture of frugal technologies can be seen as a way of scaling up frugal innovations. Value chains already embedded in local and informal economies provide solar products with a wider range of quality and price that is better able to meet the poorest needs. Such a trajectory of frugal innovation brings to the research agenda the question of its relevance to sustainable development.