Even with a recorded decline in overall investment in the global off-grid solar sector, 2023 was a year marked by significant interest in unique applications of solar energy. These primarily involve applications in solar irrigation and cold chain technologies known as Productive Use of Renewable Energy (PURE) technologies. Bucking the general trend, PURE technologies saw an inflow of $65 million— a figure that doubles the previous records. So, what fueled the interest despite the gloomy outlook in the larger sector? Let’s delve into the key reasons.
1. A Bright Spot in the Off-Grid Solar Market
Despite the 43% decrease in the global off-grid solar sector’s general investment in 2023, PURE technology was a shining beacon. The sector raised an impressive $65 million within the year, doubling the previous fundraising record.
2. The Lifeline: Solar Irrigation and Cold Chain Technologies
Proving to be essential in developing regions, solar irrigation and cold chain technologies received particular interest from investors. These tailored solar solutions have been instrumental in enhancing food security, reducing post-harvest losses, and increasing income for vulnerable communities.
3. The Guiding Force: GOGLA’s Influence
GoGLA, the global association for the off-grid solar energy industry, played a pivotal role in directing interest towards these sectors. Through their focused efforts and advocacy, GoGLA facilitated an environment conducive to productive investment in this space.
4. The Appeal: Answering The Call of Social Impact
The appeal of PURE technologies lies not merely in their revenue prospects. Instead, they answer a growing interest among investors towards operations with socio-environmental impact. Investing in PURE technologies allows investors to contribute towards reducing carbon footprint, combating food shortages, and promoting sustainable farming.
5. The Outlook: Promise Amidst Turbulence
As we look ahead, PURE technology appears to be a promising field despite the turbulence in the broader solar sector. With its infusion of distinct relevance and social impact, it is likely that this field will continue to attract both interest and capital.
In summary, 2023 was a paradoxical year for the off-grid solar sector where despite the overall slump, we saw an interest spike in PURE technologies. The surge proves that investors are progressively recognizing opportunities centered around impactful societal needs, particularly when it comes to renewable energy. As we stride forward, the focus is likely to remain on select, high-impact ventures in the renewable energy space.
Credit: BBC. TechCrunch, Reuters
