The Secret to Abundant, Clean, Modern Energy for All? Simpa Networks Is Passing It On. . . .and on. . . . .and on. . . .

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Simpa Networks has a mission which boldly goes where no venture-backed technology company has gone before: to make modern energy simple, affordable, and accessible for all. 

Their mission statement is:

We envision a world in which everyone has access to abundant, clean, modern energy.  That’s a world of opportunity.

Their product and business model allows for sustainable energy choices to become “radically affordable” to the 1.6 billion Base of the Pyramid (BoP) consumers who currently lack access to electricity – in any form.

Simpa provides distributed energy solutions on a “Progressive Purchase” basis to underserved consumers in emerging markets.  Their launch in India focuses initially on the transformation of the solar energy system market.  How it works is that customers make a small initial down payment for a high-quality solar PV system.  They then pre-pay for energy service and top up their systems in small user-defined increments by using a mobile phone.  Each energy payment adds up towards the final purchase price.  Once the system is fully paid, it unlocks permanently and produces energy – FREE AND CLEAR.

The business model is based upon the Simpa proprietary risk mitigation technology.  This technology creates opportunities for market rate and social investors to invest in the expansion of energy access.  Particularly for the 1.6 billion Base of the Pyramid (BoP) consumers lacking electricity.  Currently, there are approximately 1.6 billion people on earth who have no access to any electricity.  There are also another 1 billion who have extremely unreliable access.  Without ready access to electricity, people dwelling in poverty depend on mainly kerosene lamps and battery-powered flashlights for light.  This makes it extremely difficult to break the cycle of poverty. Mainly because they are unable to take full advantage of the myriad productive uses of energy.  Access to sustainable, consistent energy is essential for a family’s economic livelihood, health, safety, educational achievement, and quality of life.

In many emerging markets, individual consumers are making less than $10/day, with the poorest ones spending up to 30% of their income on inefficient and expensive means of providing light and accessing electricity.  Worldwide, low income consumers spend approximately $38 Billion per year on kerosene for light with another $10 Billion on cell phone charging.  There is a likely $100B global opportunity for small scale distributed energy solutions, with no clear market leader.

With the launch market of India, Simpa hopes to create a model that will work in most developing countries.  In many of these places, the low income consumer can actually afford a small solar home system if only they can pay for such a system over time, in small, irregular and user-defined increments. This means that when the pricing model for energy or energy systems matches the pricing model they are currently using for kerosene, candles, batteries and phone charging – more people worldwide will have access to reliable energy sources.


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