ELECTRICITY FOR THE WORLD
Electrical energy is indispensable form of energy for industrial and domestic utilities. However, there is a shortage of its supply in developing countries such as in Africa and Asia. Developed countries possess renewable forms of energy such as solar, wind, nuclear and hydroecletricity.
There are numerous companies running developmental researches to produce ground breaking technologies on electricity generation. There is a waiting market for electricity in most African countries. Thus, any investor in electricity and power generation business will be in for massive gains.
To conduct a comparative study of the supply chains of 3 products that successfully serve the BOP and are readily available in rural areas e.g. dry cell batteries, DVD players, mobile phones, agricultural products etc. (research firm will work with Associates to identify these best practice sample products), in order to identify supply chain similarities, differences and opportunities, and to glean insights on how to improve the off-grid lighting supply chain.
Specifically, the study should provide qualitative and secondary data analysis of the key value and supply chain issues as follows:
Ascertain the prevalence of the most common lighting options (i.e. LED lights, battery torches, kerosene lamps, generators, portable solar lanterns, solar home systems etc.); and for the different lighting options, determine the following:
Product category size (in $) and market growth rate;
Market share of solar lighting products as a percentage of the total off-grid lighting market
Level of penetration of solar lighting products (SHS).
Carry out a baseline study to collect information on the following suggested parameters:
Estimated number of sellers categorized as importers, distributors/wholesalers and retailers/ re-sellers active in the chain and various product groups mentioned in
1:Estimated average level of inventory of importers, distributors/wholesalers and retailers/ re-sellers;
Prevailing supply and demand trends;
2.Financing needs and potential providers across the value chain.
3. Provide detailed value chain scenarios and distribution channel analysis. This should include:
Evaluation of different commercial distribution models for off-grid lighting products (including 1KVA and emergency HH lights) currently in Nigeria and determination of:
Key benefits; Key challenges; Channel synergy opportunities and; Possible recommendations.
Identification of key commercial distribution partners in various states;
Identification of key “alternative/innovative” distribution channels e.g. NGOs and other community based organisation represent an alternative distribution channel;
Bonded warehouse and general policies surrounding their use;
Deep dive: conduct in-depth discussions with current distributors and leading retailers of BOP products that reach the last mile to better understand the distribution/supply chain dynamics (product range to be determined).
4. Map the off-grid products value chain: Identify the key primary and secondary firm level activities that will have the greatest impact on scaling up adoption:
Map backward linkages that are economically viable Map potential forward linkages to markets including post-sales support services that create value for both sellers and buyers
Identify the roles played and influences exerted by the various stakeholders in the supply/value chain.
5. Determine the key constraints and challenges that would be encountered in optimizing the current supply chain/s: What are the main constraints and challenges (cluster constraints and challenges to max 7 key issues); are these constraints, and challenges critical, and can they be addressed in a reasonable timeframe?
What actions have others taken in the past to surmount these challenges, and what has been their level of success?
High level overview of the reach of MFIs, Savings and cooperative societies, community based organizations etc. and their impact in retail and consumer financing for consumer products.
Literature review. Quantitative approach. Qualitative approach
Literature review/Desk research: This approach would be used to purposively obtain trade respondents list i.e. the importers/large distributors and wholesalers/retailers/intermediaries. Sampling frames for these categories would be developed by reviewing previous World Bank Enterprise surveys and business yellow pages, state chambers of commerce, National Bureau of Statistics published documents and data, any other government regulatory bodies, departments and agencies considered relevant. We would also consider if affected companies have associations. From this list we would draw the samples through a systematic random sampling method. Alternatively, we propose to conduct a listing of potential importers/distributors, wholesalers & retailers/intermediaries. Samples could now be drawn using systematic random sampling method.
Quantitative approach: Structured questionnaires would be developed to collect primary data and secondary data especially for the purpose of market size estimation from consumers as well as other applicable study population
Qualitative approach: For a more holistic and comprehensive study, towards unearthing hidden information on the subject matter, as well gather perspectives and profile information about, supply, demand and usage of off-grid lighting products across the country, qualitative method will be used. Information would be obtained from practitioners in the industry, suppliers and manufacturers associations and government regulatory agencies.
We propose to address the qualitative phase of the study through the combined application of focus group discussions (FGDs) and Extended (individual) Depth Interviews (EDIs).
The FGD option will be adopted among members of the general public who are the consumers or end users of off grid-lighting products, while the EDI option will be adopted among regulators and corporate entities representatives. It is easier and faster to get information from corporate consumers or stakeholders through the EDI approach without loss of depth and breadth than to adopt the same approach for the general public. On the other hand, the FGD approach is much more appropriate for members of the general public than for regulators or corporate consumers who might be busy and might be too few to make up groups in some localities.
The fact that the FGD approach allows for free self expression on the part of individual respondents, promotes intra group stimulation and cross-fertilization of ideas while allowing for in-depth probing of salient issues makes it an especially attractive option for qualitative inquiry among members of the general public who often gain expression and confidence through intra-group dynamics.
The FGDs will take the form of round table discussion in relaxed settings among 6-8 respondents guided by an experienced moderator. The FGDs will take place in central locations with CCTV linking the discussion room with a separate observation room.
The EDIs will be one-on-one direct questioning of individuals by an experienced qualitative interviewer also in a relaxed setting which could be a quiet part of a respondent’s home, office, central location or any convenient venue including hotel rooms. The convenience and availability of the respondent will be the key guide to venue of the interview.
The driving considerations at this level should be congruence of beliefs, attitudes, behavioural patterns, proximity, etc. In agency’s view, these variables are much more likely to affect perception and response to power and energy concepts and especially off-grid lighting products.