Impact on a big scale
With Daystar Power being the first investment opportunity at Trine that’s in the Commercial & Industrial (C&I) segment, we wanted to share some of our insights and provide a deeper understanding on what investing in this sector means.
First things first: What do we mean with Commercial and Industrial?
If you’ve followed Trine for some time or invested in our loans you have probably noticed that we’ve mainly worked with solar partners targeting households and small business owners. However, the off-grid solar sector is big! The need for renewable energy solutions is not only for individuals, businesses are also crying out for reliable, clean energy.
Clients classed as C&I can be anything from factories to banks, to administrative buildings to agriculture plants. Commercial and industrial customers (C&I) are currently dependent on expensive, highly polluting diesel generators and an unreliable grid connection.
Transforming infrastructure as we know it
Our aim has always been to finance innovative businesses where it has the most impact. That’s why it is a natural step for us to move into this new, exciting segment that has the possibility to really transform the infrastructure in the countries where these solar energy solutions are being deployed. We see that if we can finance the companies working to build a new, renewable infrastructure, that will make the future greener while accelerating a sustainable, economic growth.
It also looks like solar energy for the commercial and industrial sector is here to stay.
Renewable Energy World reported in 2016 that the C&I solar sector has the potential for huge growth in the next few years. In many frontier markets the solar irradiation is high while the grid electricity is both expensive and unreliable which makes C&I solar solutions financially viable. The key issue when it comes to the off-grid sector remains:
Access to affordable finance.
Investmenting for sustainable economic growth
Small and medium-sized C&I enterprises working in manufacturing are the most critical for early stages of industrialisation.
According to UNDP they are:
- Typically the largest job creators in frontier markets.
- Worldwide level they account for 50%-60% of employment.
- Every one job in manufacturing creates 2.2 jobs in other sectors.
The impact of investments into the Commercial and Industrial sector cannot be underestimated. When businesses get access to reliable, affordable and clean electricity that enables economic growth and increased employment. The installations last for a decade or more which means that large CO2 emissions can be avoided. In addition to this replacing diesel generators has a significant impact to reduce air and noise pollution, essentially creating a greener and healthier environment.
To find out more and maybe even invest, take a look at our investment opportunity with Daystar Power.
/ Hanna
Communications at Trine
