Kate Steel: On a Mission for Universal Energy Access
Dec 5, 2024
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Kate Steel, co-founder and CEO of Nithio, discusses her mission to finance clean energy in Africa. She shares insights on the evolving landscape of energy access funding, emphasizing the need for public investment in underserved markets. Kate reflects on her transformative experiences in Kenya and highlights the resilience of the off-grid sector during the pandemic. They delve into trends in electric mobility financing and the significant role of data analytics in building consumer trust, while expressing optimism for future energy initiatives across the continent.
Kate Steele underscores that universal energy access is not just an engineering issue but a complex interplay of policy and financing challenges.
The podcast highlights the evolving role of subsidies in energy access, recognizing them as essential for reaching underserved markets and supporting sustainable growth.
Deep dives
Navigating Energy Access Challenges
Kate Steele, co-founder and CEO of Nithio, emphasizes the complex nature of energy access, illustrating her journey from engineering to the forefront of renewable energy. After a life-changing experience in Kenya during a power crisis, she recognized that the lack of electricity was not merely an engineering challenge but a multifaceted issue influenced by policy decisions and financing challenges. Her experience solidified her commitment to understanding the intricate dynamics that result in energy poverty, ultimately leading her to a career in energy finance and access solutions. This background provides a unique perspective on energy systems, integrating knowledge from the private sector, public initiatives, and grassroots experience.
Evolution of Subsidy in Energy Access
Steele discusses the energy access sector’s evolving perspective on subsidies, historically viewed as detrimental to market growth yet increasingly recognized as necessary for expanding access. Initially, programs aimed for commercial viability without subsidies, focusing on activating private capital for easier projects. However, as more challenging markets come into play, it has become evident that significant public and philanthropic funding is essential to reach underserved areas. Steele advocates for open discussions among all stakeholders to reevaluate the role of subsidies and the need for greater public investment to provide universal energy access.
Role of Nithio in Financing Solutions
At Nithio, Steele’s team leverages data analytics to unlock financing for energy access in Africa by understanding payment patterns and risks associated with off-grid power companies. By providing receivables-backed financing, they aim to support companies needing working capital to scale their operations and reach more households. The venture’s rapid early success was attributed to its nimble approach and a deep understanding of the risk landscape, helping both large and small companies navigate financing challenges. This model not only addresses immediate needs but also fosters a sustainable financial ecosystem for energy access innovations.
Resilience of the Off-Grid Sector During COVID-19
Despite initial fears that the off-grid energy sector would collapse during the COVID-19 pandemic, it proved to be remarkably resilient. Many companies adapted to the challenges posed by lockdowns and restrictions, with energy services classified as essential, allowing sales to continue. Steele highlights that the consistent value of energy services led many customers to prioritize their payments for electricity over other expenses. This resilience signifies the fundamental importance of energy access in daily life and showcases the sector's ability to adapt and thrive under pressure, laying a foundation for future growth.
Kate Steel, co-founder and CEO of Nithio, a start-up focused on financing clean energy companies and informing climate investments in Africa. In this episode, Kate talks with Katie and Rose about how we can fund universal energy access, the off-grid sector and its trajectory, and what she learned from launching Nithio.