Value Chain Thinking and Energy Projects—A Problem-Centered Value Chain Approach to Energy Based Upgrading of Rice Farmers in the Philippines

Abstract

This paper conceptualizes the link between value chain theory and productive use (PU) focused energy projects based on microfinance mechanisms. Its main argument is that all PU of energy projects focusing on micro, small, and medium enterprises (MSME) development can be interpreted as value chain upgrading attempts. It is argued that successful upgrading greatly depends on the MSMEs embeddedness in specific market contexts. For that reason, the context must be assessed to derive energy based intervention points that cause additional income for MSMEs and consequently development. Based on this rationale, a problem-centred value chain approach is proposed. A case study of the Philippine rice market illustrates the usability of the method by outlining some risks and opportunities the rice value chain context poses to energy based upgrading attempts of rice farmers.