Energizing Microfinance

Transcription

1 Energizing Microfinance Experiences from the Energy Inclusion Initiative -Sebastian Groh - Leicester, 16. October 2012

2 Contents 1. MicroEnergy International: Energizing Microfinance 2. The Energy Inclusion Initiative: productive energy in Peru 3. Microfinance & Energy: challenges and key factors 2-21

3 The image part with relationship ID rid5 was not found in the file. MicroEnergy Internation (MEI) MEI is German-based consulting company focusing on the potential of microfinance mechanisms to provide clean energy solutions in regions with poor infrastructure and reaching triple bottom line results: Social Impact: Improves situation for MFIclients energy access Vulnerability reduction Economic Impact: Improves MFI portfolio Risk reduction Environmental Impact: Mitigation of CC Emissions reductions 3-21

4 Energizing Microfinance The three levels of green microfinance The Consortium Green finance products Vulnerability of MFI loan portfolio to climate change Internal policies for energy savings 4-21

5 The Energy Inclusion Initiative Millenium Development Goals Eradicate extreme poverty and hunger Environmental sustainability Genderequality and the empowerment of women Vision Promote universal access to energy through inclusive financial services Mission Incorporate green energy products in MFIs portfolios. 5-21

6 The EII Pilot projects: 2 MFIs profiles Lima Huancayo Arequipa GENERAL INFORMATION Clients: (31/05/2012) ( microentrepreneurs) 36% rural Microenterprise Loan Portfolio : USD 100,506 mil Average loan/microenterprise client : USD 1, branches GENERAL INFORMATION Lenders: (31/05/2012) 93% Rural Loan Portfolio : USD 20,43 mil Average loan/client : USD 1, branches 6-21

7 Selected Energy Equipment for the EII Solar Crop Dryers Solar Water Heaters Improved Cooking Ovens 7-21

8 Actors in the EII in Peru ADA FundsforAT MEI EnDev -GIZ Technical Assistance Universities Technical Assistance Supplier Technical Assistance Payment Team Energy Equipm ent Funds Technical Assistance MFI Technical Assistance ADA myclimate Possible Funds Credit Payment Credit Clients Energy Equipment Lessons to Capitalize on 8-21

9 Example: FondeEnergía Specialized selection of suppliers Clients : Mainly rural Client benefits Savings Differentiation Environmental contribution Improved quality of life Methods of financing Specialized Technical Advisor 9-21

10 Chain Logistics MFI Clients Contact with suppliers Microenergy equipment Reimbursement MFI Payment Credit Granting credit Monitoring the distribution and implementation of the equipment Supplier After-sales service Goal: Ensure the quality of products and services 10-21

11 Generating Impact 11-21

12 Generating Impact 12-21

13 Generating Impact 13-21

14 Microfinance & Energy Knowledge gap between Product Suppliers & MFIs Product Suppliers MFIs End User knowledge Living conditions End-users needs Technology Know-How Technology quality Technological needs of end users Marketing & Distribution Know-How Energy products Savings + Credit products 14-21

15 Challenges Political Framework Financing and subsidies Microfinance regulations Governmental programs Political promises 15-21

16 Challenges Productive Use Energy for Enterntainment vs. Energy for Productive Activities MicroEnergy InternatIonal 16-21

17 Challenges Shared Responsibilities Contract adaption Warranty terms Support services 17-21

18 Challenges Quality Control Validations and Certifications Technical training for Installers Control assessment MicroEnergy InternatIonal 18-21

19 Challenges Logistics Transport and installation Service costs Payment collection costs MicroEnergy InternatIonal 19-21

20 Green Finance for the MF Sector Key Factors Focus on income generation (return on investment for end-user) End-user need assessment (technological neutral) Quality control After-sales support infrastructure (transition from over-the-counter to service model approaches) Re-financing and Financing Costs Value chain analysis and financing 20-21

21 Thank you for your attention! MicroEnergy International GmbH Potsdamer Str Berlin Germany Consulting and Implementation Scientific Research