Drawing on the first comprehensive dataset of more than 2,300 renewable energy start-ups across Africa and South Asia, a team led by the University of Oxford on Friday revealed India and South Africa among solar 'business hotspots'.
The analysis also investigates why some countries, such as Chile and Namibia, produce more solar energy relative to their potential while others fall short -- even when factors such as hours of sunlight, availability of fossil fuels or hydropower, and GDP are accounted for.
"Our report identifies the countries where -- all other things being equal -- proactive policies and simple social affinity have created a better-than-expected environment for solar energy," said lead author Lorenzo Agnelli.
By comparing start-up activity with the cost of electricity, the report further identifies: Business hotspots: such as India and South Africa, which combine vibrant start-up ecosystems with low solar costs.
Business headwinds: in countries, such as Nigeria, where entrepreneurial activity is high there are challenges such as low energy access rates.
Dormant opportunities: in countries including Botswana and Namibia, with favourable conditions for solar but limited start-up activity.
Bleak business outlook: for example, Chad and Malawi, have difficult conditions and limited start-up activity -- but where strategic support could unlock entrepreneurship in the future.
"The global energy transition is not just about new technology -- it is about new, often more inclusive ways of providing energy," says Sam Fankhauser, Professor of Climate Policy at the Oxford Smith School of Enterprise and the Environment.
"Across the Global South, it has empowered agile, dynamic entrepreneurs. And the business opportunities only tell part of the story -- often these new business models are uniquely suited to drive electrification and energy access."
The report highlights concrete actions to overcome challenges to renewable energy entrepreneurship, including localising supply chains, holding renewable energy auctions, and adopting alternative consumer payment systems.
"The energy transition is happening, but it's not happening fast enough, or equitably enough. With ambitious (but non-binding) targets already in place at a global level to treble renewables by 2030, now is the time for an acute focus on the practical steps required to unlock the necessary investment on the ground in a way that leaves nobody behind, especially the Global South," says Sam Peacock, MD Corporate Affairs, Regulation and Strategy, SSE.
"As this latest report makes clear, there will be vital roles in this for everyone from local entrepreneurs to large international players and investors. We are pleased to have been able to support the Oxford Smith School to develop this latest contribution to the debate."
The report concludes by identifying countries with particularly innovative start-up ecosystems that may serve as a blueprint for others. One such example is from Pakistan, where female solar power engineers are being trained and empowered through a collaboration between the professional network 'Women in Energy' and local entrepreneur, Shams Power.
"Solar power is not just a cleaner, more affordable energy source, it's a catalyst for social change," says Fatima Khushnud, Senior Associate, Oxford Net Zero.
"Initiatives like Pakistan's Women in Energy program show how empowering women in the renewable sector can break down gender barriers, boost economic opportunities, and foster inclusivity, ultimately driving both sector growth and energy security."
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