The Technology and Development Group of the University of Twente has joined with Winrock International, Brazil, Friends of the Environment, Nigeria and APPROTECH, The Philippines to conduct a study which aims to gain insights into poor urban livelihoods and the role which energy plays into sustaining those livelihoods. The outcome of the study will contribute to the eradication of urban poverty by making pragmatic policy recommendations that formulate strategies for addressing bottlenecks in accessing energy services by urban poor people which are acting as a barrier to their moving out of poverty. The focus of the study will be enterprises (micro and small scale; formal and informal sectors) and how energy services influence enterprise development and the sustainable livelihoods of urban household members, including their well-being and productivity. This Draft Inception Report includes details of initial findings and activities, proposed adjustments to the project, and strategy for monitoring, evaluation and uptake. The Inception Workshop Report is included as an appendix.