Women in energy: Experts call for reforms to bridge financing, leadership gaps

Women-led enterprises in the energy sector face significant barriers to financing and leadership opportunities despite proven success, experts reveal at the South Asia Women in Energy (SAWIE) Summit 2024. Systemic biases, limited access to networks, and the need for structural policy changes are some of the necessary changes to unlock the potential of women entrepreneurs in the space. 

The energy sector remains one of the most gender-skewed industries, with women accounting for only 16% of the global workforce and an even lower 3–15% in South Asia. “Women face dual hurdles—mainstreaming climate-focused ventures and simultaneously overcoming gender biases in funding. The goal is to bring women to the forefront and ensure their enterprises receive the necessary support to grow,” says Shweta Rajpal Kohli, president & CEO of the Startup Policy Forum. 

Access to finance continues to be a major bottleneck for women entrepreneurs striving to make inroads in the energy sector. Vibhuti Garg, director, South Asia at the Institute for Energy Economics and Financial Analysis (IEEFA), notes that women-led ventures often outperform but are still perceived as high-risk investments. “Studies show women-led businesses deliver better investor returns and fewer instances of fraud, yet they face higher interest rates and stricter collateral demands,” she adds. 

Garg points out the stark reality of financial exclusion, “In India, 90% of the women workforce is still outside formal credit systems. Without addressing this structural issue, financing growth will remain out of reach for many women entrepreneurs.” 

It has also been a longstanding discussion among experts whether quotas or dedicated funds are the answer to the problem. Dr Suranjali Tandon, associate professor at the National Institute of Public Finance and Policy (NIPFP), argues for more innovative approaches over forced measures. “Quotas may not be sustainable. Instead, blended financing models—bringing together government contributions, DFIs, and private sector funds—can support women-led enterprises without compromising merit,” she says. Tandon also highlights the role of gender budgeting and skilling programmes in building a stronger pipeline of women leaders. 

International collaboration emerges as another critical lever. Mehnaz Ansari, Senior Regional Representative for South Asia at the U.S. Trade and Development Agency (USTDA), shares how partnerships can support scalable energy solutions. However, she acknowledges that women’s participation in leadership remains a major challenge. “It starts with visibility and networking. The biggest hurdle I’ve seen in India is simply getting women leaders to the table. That has to change,” she says. Ansari also calls for building ecosystems that address these gaps rather than relying solely on incentives like tax rebates. 

While progress is visible—women-led startups in India rose from 10% in 2017 to 17% in 2022— quite evidently the pace remains slow. Institutional investors need to take a more active role in pushing for gender diversity on boards and within their portfolios, aligning with Environmental, Social, and Governance (ESG) goals. 

“Investors must prioritise the ‘S’ in ESG, holding companies accountable for gender diversity, wage gaps, and equal representation,” says Garg. Building a gender-inclusive ecosystem, panellists argue, is not just a social imperative but also an economic opportunity.