Wednesday, February 1, 2012

Solar Energy: Starting From Scratch

http://www.economist.com/blogs/babbage/2012/01/solar-energy

This article brings to light a unique way that a British company, Eight19, is trying to bring cheap solar power to poor families in Kenya. Their business plan is something like a pay-as-you-go cell phone, with a small deposit for the solar cell and access cards that must be purchased in order to activate the cell. The access cards also count towards the total cost of the solar cell so eventually the family will be able to pay off the entire unit and continue use for free or upgrade to a more expensive and powerful solar cell. The solar units appear to be comparable in cost to what many Kenyan families spend on alternative sources of interior lighting and cell phone charging in the short term while also being a good long term investment for both the family and the environment.

The challenge of providing access to modern technologies and the benefits of globalization to people in the poorest regions of the world may seem insurmountable. In many ways it is comparable to the environmental injustice issues we have examined in our discussions, where class and race become the basis for great inequalities. These inequalities are on a far different scale however, and cannot be dealt with through a government intervention or a lawsuit. Overcoming these inequalities require the involvement of people all over the world and in all sectors of society. This article points to one approach that I find particularly important, which is that of businesses founded not only to create profit but also to improve the lives of people. As Eight19 shows, with the right blend of creativity and technology, companies can develop effective business plans to create mutually beneficial relationships with even poor families in Africa. Eight19's business model is good for the environment, good for the company, and good for their customers. It's hard to ask for more than that.

2 comments:

  1. I would agree that this is an exciting venture, particularly for those who will now have a more reliable and environmentally and economically sound light source. I have heard of similar programs elsewhere too--sometimes with solar panels and in other cases with lamps.

    I think this concept, of "motivating" the lower classes to be environmentally friendly for economic reasons is particularly interesting. During one of our first class discussions we talked about how to motivate middle and upper classes in wealthier nations to prioritize the environment, and choose the more expensive but better food.

    Both the wealthy shopper in America and the poor Kenyan are motivated economically, the outcome for the environment just happens to be different. I would argue the only way to popularize being environmentally conscious is to make it economically advantageous as well. However, I'm not even convinced this is possible. Even the Eight19 program was aided by charity loans. It is definitely a hard balance to find!

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  2. It was refreshing to me to read an article that seemed to focus on positive efforts to help preserve the environment as well as provide for the human population. So far our class discussions have been focused primarily on how large organizations like the World Bank are working to supposedly conserve resources, but are simultaneously uprooting the lives of local peoples. Eight19 seems to have a great business plan in place that benefits both the environment and the Kenyan people which is definitely a nice change of pace from the other articles we've been reading.

    Additionally, the fact that the people in Kenya seem to welcome the idea of solar energy units is a fantastic accomplishment. All too often, groups of people are hesitant to adopt new practices presented by outsiders despite the benefits they might receive. However, it's not hard to understand why when there are constantly wealthy companies and investors presenting misleading information. All in all, great post!

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