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The global fuel crisis is exposing the vulnerability of energy systems built around imported fossil fuels, unreliable grids, and centralized infrastructure. As a result, clean energy is becoming more than a climate choice for households and businesses across emerging markets. It is increasingly a strategy for controlling costs, maintaining operations, and reducing exposure to supply disruptions.

A recent webinar from GCFF member New Energy Nexus highlighted how locally rooted clean energy companies are responding across Pakistan, the Philippines, Thailand, and Nigeria. Although the market conditions differ, the examples point to a common shift: demand for distributed solar, storage, and other decentralized technologies is rising faster than many local enterprises can scale to meet it.

FROM EMERGENCY DEMAND TO LASTING MARKETS

Periods of high fuel prices can rapidly change the economics of clean energy. In Pakistan, electricity tariffs rose by 155% between 2021 and 2024, helping drive distributed solar generation from nearly zero in 2017 to the equivalent of 46% of grid sales by 2025. In Nigeria, where commercial areas can face daily outages of 12–18 hours, solar is increasingly a business-continuity tool and an alternative to costly diesel generation.

Local SMEs are central to translating this demand into adoption. They assess customer needs, adapt systems to local conditions, arrange installation, and provide the ongoing service required to keep equipment operating.

Still, crisis-driven demand does not automatically produce strong local markets. A survey of 28 solar installers in the Philippines found that customer inquiries had risen by an average of 582% compared with pre-crisis levels. Yet installers also reported delayed deliveries, workforce shortages, limited inventory, and pressure from inexperienced market entrants.

FINANCE MUST GROW WITH DEMAND

This creates a financing challenge distinct from simply funding new technology. Clean energy SMEs require capital suited to the realities of their businesses: financing for equipment purchases, customer receivables, staff expansion, and regional distribution, alongside longer-term investment for growth.

They also require market infrastructure that makes capital productive. In Thailand, New Energy Nexus has trained 250 solar entrepreneurs through its SolarStep program, combining technical and business skills. In the Philippines, it has supported regional solar associations to coordinate procurement, workforce development, and policy engagement. In Nigeria, its PREPARED initiative has worked with 47 clean energy startups and helped extend power to more than 9,400 households.

Clean energy SMEs are more than vendors responding to temporary price shocks. With suitable finance and ecosystem support, they can become long-term builders of more affordable, decentralized, and resilient energy systems.

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View the full webinar recap and recording: ‍Clean energy SMEs vs the global fuel crisis: Who’s winning?

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