Energy in Common is a non-profit organization utilizing micro-finance as a catalyst to fight poverty in an environmental way. Their model centers around providing environmentally friendly energy sources to the Bottom of the Pyramid through micro-finance loans. Through these micro-loans, families in turn are provided with reliable, accessible and safe forms of energy where they typically had access to little or none. The truly interesting part about Energy in Common is not simply that they are providing energy sources (and thereby boosting the potential of those at the BoP), but that they have designed their model to include a way to fight climate change too. Most sources of energy for the poorest of the poor include such methods as dung fires, kerosene lamps, and firewood, which not only can be dangerous, but end up emitting pollutants into the air. A quick visit to EIC’s website allows you to browse entrepreneuers at the BoP and loan them the funding necessary to accomplish their energy-driven initiative.

From EIC’s website, we see that “without access to modern power, the cost of energy is far higher than you can imagine. These families [at the BoP] must dedicate hours everyday to the collection of firewood. Any other fuels they have access to, such as kerosene, are not only incredibly expensive – often costing a whopping 30% of a family’s income – but also horribly inefficient.” EIC has observed a need and developed their model to attack poverty and fight climate change at the same time.

How they work
Anyone can visit EIC’s website to browse the available list of entrepreneurs to learn more about their energy-driven intiative that requires funding. Some of these initiatves range from restaurant owners to hotel operators. Once you loan funds to the entrepreneur and he or she receives the full amount (through a community of other lenders), they receive the sustainable energy source and begin repayment. The boost that these energy sources provide turn into financial gain. For example, by providing light at night for students to study, their grades begin to improve; extra work can be accomplished at home after hours; lights around shops, stores, or farms can drive more productivity. These are just a few of the noted cases where extra light can be a benefit. Currently, the BoP is faced with two choices: put up with dangerous and dim sources of light or live without light after the natural light is gone for the day.

I like this model because of the combination of many social business tactics. Utilizing micro-finance as a vehicle for driving social and environmental change is proving itself as a great and effective model. LifeGivingForce was recently profiled and is leveraging the same model. Additionally, EIC’s website is very user-friendly, easy to use, and is effective at getting their mission across. Energy in Common is hitting all of the right stops to prove that business at the BoP can be done.

- Chris