Consumer Financing Solutions

We are delighted to invite you to the 12^th session of the Talk Series – Phase II on Transitioning to Modern Energy for Cooking: Consumer Financing for Clean Cooking Solutions.The session would be conducted virtually and is being organized by the Modern Energy Cooking Services (MECS) Programme, through its In-country partner – India, Finovista with an aim to identify, discuss and explore avenues to address the specific challenges in the global clean cooking sector.

Globally, 2.4 billion people lack access to clean cooking facilities, necessitating a substantial annual investment of $10 billion. However, insufficient funding, limited sector expertise, and perceived risks have impeded the financial support crucial for this sector. Encouragingly, the landscape of the clean cooking industry has been undergoing a transformation. This shift is driven by the emergence of innovative technologies and solutions, a growing acknowledgment of the sector’s significance within the broader clean energy context, and the proliferation of startups, innovators, and small to medium enterprises (SMEs) in this domain. Consequently, the topic of Access to Finance has regained prominence as a pivotal area of focus within the sector.

The viability of any successful clean cooking business model depends on various factors: the cost of the clean cooking hardware, operational expenses (particularly fuel costs), and end-user financing. While certain households can absorb the expenses of adopting new clean cooking technologies by reallocating their current expenditure on polluting cooking fuels toward cleaner alternatives, a considerable number of less affluent customers are unable to manage the upfront expense associated with modern cooking devices. Additionally, it’s important to highlight that the majority of clean cooking appliances continue to be sold through direct cash transactions or retail credit.

While many eCooking appliances are presently distributed through cash transactions or retail credit, it is imperative to establish a range of options that allow for the distribution of upfront appliance payments over an extended timeframe. The expansion of eCooking is contingent upon several critical factors including government support, consumer demand, the capacity of manufacturers to achieve economies of scale, involvement of major corporations, and the availability of financing. The last aspect is particularly crucial for individuals situated at the base of the socioeconomic pyramid. This session aims to concentrate discussions on the obstacles and challenges faced by consumers when integrating electric cooking devices into their daily lives due to the initial device costs.

MECS Programme is a UK Aid (FCDO) funded global research programme led by Loughborough University and the World Bank’s Energy Sector Management Assistance Program (ESMAP). By integrating modern energy cooking services into the planning for electricity access, quality, reliability, and sustainability, MECS hopes to leverage investment in renewable energies (both grid and off-grid) to address the clean cooking challenge. MECS is implementing a strategy focused on including the cooking needs of households in the investment and action on ‘access to affordable, reliable, sustainable modern energy for all’. Globally, MECS is now well established as a prominent programme in the clean cooking domain and has also become a strong and active player in India. The programme is also supporting India to emerge as a Global Hub for manufacturing clean cooking devices for domestic and international markets, aligned to the Atmanirbhar Bharat and Make in India mission while focusing on the shift to modern energy cooking within India which is also one of the objectives of the GoElectric and LiFE (Lifestyle for Environment) campaign launched by the Government of India.

The Talk Series has evolved into a crucial platform for promoting the adoption of modern energy for cooking. It has successfully united stakeholders from the clean cooking domain and related sectors to engage in discussions surrounding the challenges, opportunities, and essential elements of the Modern Energy-based Clean Cooking Sector. The Talk series is thoughtfully structured in phases, with each phase consisting of 12 sessions. This particular session marks the twelfth and last session of the Talk of Phase II. Upon successfulness of the Phase I & II and we will be continuing with next Phase of Talk Series with another 12 module.