Designing business models to overcome the barriers to renewable energy market creation in developing and emerging countries
This chapter aims to demonstrate how renewable energy companies are constrained by institutions, but how they can likewise design business models to shape institutional arrangements. Rules and norms guide the behavior of renewable energy actors, as has been acknowledged by scholars focusing on the role of governments in boosting renewable energy markets in developing and emerging countries. In general, research on renewable energy markets in developing and emerging countries is plentiful. Understanding that there were first-mover advantages in introducing containerized solar energy to the Egyptian market, Masar secured exclusive rights to distribute Africa GreenTec’s containers in North Africa. Masar has faced similar barriers to other renewable energy companies, having to overcome the already-mentioned institutional barriers to market creation in developing and emerging countries. Potential financiers were important in shaping Masar’s business model, as it was necessary to have a solution that matched the needs of both local customers and international financiers.