Digital aggregation platforms for off-grid energy
A report outlining how online aggreagation platforms reduce investment barriers in off-grid projects.
In this report, we show how online, digital aggregation platforms are changing the investment mechanisms for off-grid projects. The primary purpose of digital aggregation platforms is to facilitate investment into the off-grid space. In order to achieve this, projects are standardized, aggregated and made accessible to different stakeholders. This can significantly reduce transaction and operating costs and unlock new investment sources.
There are two types of platforms: 1. Project aggregation platforms: They aggregate projects and link them to professional investors, regulators or subsidy providers. They are mostly used by mini-grid companies where transaction cost for infrastructure investors is key to scaling. 2. Crowdfunding platforms: They aggregate private investors and link them to companies or projects. They are sometimes used by mini-grid developers for project financing. More often, they are used by OGS companies to access debt.
This document is part of the sector-wide report Energy access, data and digital solutions which is available here.