Mind the gap: Rethinking transitions along the energy access finance continuum

This paper examines transitions along the financing continuum for energy access companies, highlighting the dynamic and often non-sequential pathways through which they secure capital. It explores the complexities of moving between funding types and stages, identifying the critical junctures where funding gaps emerge and how these discontinuities affect the delivery of energy access business models and technologies. Drawing on the Transforming Energy Access (TEA) research and innovation platform as a case study, the paper makes three academic contributions. Firstly, it shows that energy access companies often follow non-linear, bidirectional finance pathways characterised by discontinuities and repeated cycling between early- and later-stage instruments - a departure from theoretical models of linear financing trajectories. Secondly, it demonstrates that existing financing approaches do not adequately address key gaps, particularly in bridging the grant-equity-debt disjuncture. Thirdly, it argues for an expansion of patient capital and enabling policy strategies that create ‘innovation spaces’ for experimentation within a non-linear finance continuum. By addressing these challenges, policymakers, development partners and funders can create a more enabling environment for off-grid energy companies. • Financing journeys for companies are not linear. • Grant-equity-debt disjuncture. • Patient capital to address company needs. • Bridging financing gaps with tailored policies. • Tailored finance needed for energy access ecosystems.