Scaling the Local Green Economy

During the readings for this week, I was particularly interested in the hybrid nonprofit ventures described in “Creating Successful Business Models.” Clean Energy Works Portland seems to be this type of enterprise. The organization meets the main characteristics described by the Harvard Business article: They are expanding services to meet previously underserved homeowners in Portland while still intending to make a profit and the enterprise is mobilizing funds from public and private organizations in the forms of grants, loans and investments.

Clean Energy Works Portland is helping homeowners invest in weatherizing their homes with energy efficient upgrades and renovations. While focusing on the environmental impacts of energy efficiency, the organization is also creating job training for many who are unemployed or without profitable skill sets.

The Portland Project was a pilot that will soon be implemented in many other regions. With the help of stimulus money from the government and the investments of non-profits and private companies, the organization has developed a public-private partnership that is working to scale the market. Though the organization is working in the developed world, they are utilizing many of the key strategies discussed in “Capturing the World’s Emerging Middle Class.” Clean Energy Works Portland is working at a local level to gain scale in the Portland region and partnering with knowledgeable local organizations to do this. They are also working to gain customer loyalty and trust. While many homeowners have some idea of the importance of energy efficient housing, they often feel unable or unmotivated to make the investment for renovation. The organization is working to increase consumer understanding of the benefits of renovation, make financing options available, and to streamline the entire process so it is as painless for the consumer as possible.

Clean Energy Works first targets the least efficient homes that could benefit from the most basic and affordable upgrades. Once those consumers begin seeing positive results, the organization hopes to encourage more consumers to invest in the more costly renovations. The organization is utilizing the endorsement of local companies and grassroots organizations to spread the word and try to make energy efficient renovations as sexy as kitchen and bath upgrades.

This organization is a great example of the collaboration of the different sectors. Government initiatives and funding fueled the way for an organization to get started and utilize local non-profit endorsement and private sector expertise. It seems that the organization, while operating in the developed world, utilized many strategies seen in scaling a market in the developing world. What other lessons can organizations in the developed world borrow from the enterprises scaling developing markets?