Responsible Investment Management and Advisory Services

Renewable Energy and Triple Jump

For many years, Triple Jump has been an active supporter of the energy sector through its existing active mandates.

In 2016 small-scale clean energy and in particular the access to energy / off-grid energy markets caught our attention. Clean energy has become the main stay of the global energy market, contributing more than 50% to new power capacity installations globally, whereby the lions share is typically in mid-large scale projects in more developed countries.

Steep cost reductions have strongly supported the development of clean energy solutions. From heavily dependent on subsidies, they became privileged commercially competitive for small and decentralized energy production. This is especially true in remote location in emerging markets.

Energy as the prerequisite for most productive and service businesses, has become more available and will continue to foster the development of SMEs, also outside of the economic capitals of emerging markets.

The off-grid energy market as a sub-segment of the clean energy space started about a decade ago only. It is still a small but fast growing industry, very true and relevant to Triple Jump’s mission. Access to energy solutions create impact, and bring affordability and innovation to people in remote locations in frontier and emerging markets. Furthermore, access to energy solutions support financial inclusion to the end users, where Triple Jump’s deep microfinance expertise is a strong value addition to assess and support market players.

The market today primarily consists of small companies, with the vast majority being younger than five years. Triple Jump’s typical active engagement to provide risk capital in addition to active investee support is a key deliverable to foster professionalization and growth of the investees and create positive sustainable development impact. Naturally, access to energy solutions strongly support UN Sustainable Development Goal 7 (SDG7) and due to its empowering impact, SDG7 is a precondition to achieve most other SDGs.

The Triple Jump energy team very much looks forward to execute impactful missions for mandates in the making, with both excitement and humbleness.

Happy reading,

Jan-Henrik Kuhlmann
Triple Jump Senior Investment Manager