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MicroEnergy International Linking Microfinance and Energy - Development of a business case in Peru. Daniel Philipp Energy Engineering & Economics 15 years experience in microfinancing Managing Director. Mission.
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MicroEnergy International Linking Microfinance and Energy - Development of a business case in Peru
Daniel Philipp • Energy Engineering & Economics • 15 years experience in microfinancing • Managing Director
Mission • „Support microfinance institutions in developing energy specific programs in order to expand access to energy services for the poor“ • Furthermore... • we support local and global policy makers in developing a favorable framework for linking energy & microfinance • we support manufactures and energy companies in adapting their products to the quality requirements of microfinance institutions • we support investors to link social and ecological investments.
Activities since 2002 Canada Canada Germany Germany Afghanistan Afghanistan USA USA Jordan Jordan Ethiopia Ethiopia India India Bangladesh Bangladesh Yemen Yemen Senegal & Mali Senegal & Mali Nicaragua Nicaragua Kenya Kenya Sri Lanka Sri Lanka Indonesia Indonesia Tanzania & Uganda Tanzania & Uganda South Africa South Africa Argentina Argentina El Salvador Peru
Agenda International Experience on Microenergy CombiningMicrofinance and Energy ADA and MicroEnergy International Development of a business case in Peru Key Benefits for Investors Investing Opportunities
International Experience on Microenergy Combining Microfinance and Energy
Status of Experience • Currently • About 10,000 MFIs world wide serving more than 155 Mio. clients • 300-400MFIs are experiencing energy loans
Challenges and Opportunities Microfinance Institutions have lack ... infrastructure to provide financial services to low-income people … specific customer knowledge and long term business relationships with clientele ... understanding of their clients’ energy needs …technical expertise on logistics, quality issues, service and maintenance, hardware product financing
Energy Expenditure Grid (Luxembourg) 0.17 € per kwh Energy costs DC example* 1.50 € per kwh Solar Electricity 0.60 € per kwh * Fieldstudyresultsfrom Bangladesh
Energy Lending Every MFI has its own strategy Enhancing productivity – Support existing businesses with better solutions Financing the substitution process with energy efficient solutions Supporting other products through energy
ADA and MicroEnergy International Development of a business case in Peru
The idea • ADA and ME: joint development and implemention of a microenergy approach • ME Atlas: Peru as the most promising country Increasetheaccess to sustainableenergyservicesforvulnerablepopulationsbysupportingMFIs to integrateenergyproductsintotheirportfolio.
The ADA-ME Activities Terminatedactivities: (1) Identification of potential MFIs, Energy Providers and otherstakeholders (2) InstitutionalAssessment and CapacityBuilding (3) Field Research and Business Plan Development
Selected MFIs • The Caja Municipal de Ahorro Huancayo • 80,000 clients in department of Junin • Intensive experience with hardware products • Member of FEPCMAC
Selected MFIs • Fondesurco • NGO withsome 10,000 clients in Arequipa • verysocial and ruralfocus • one of themost innovative institutionsfound
Pilot PlanningCaja Huancayo S/. 1000 = 263,55 €
Key Benefits for Investors Investment Opportunities
Key Benefits for Investors • Financial Return • Share of Profits • Carbon Finance Revenue
Key Benefits for Investors • Social Return • Meeting an essential need: energy inclusion • Promoting local development • Offsetting carbon emissions
Thank you for your attention! • ADA - Appui au Développement Autonome2, rue Sainte Zithe, L-2763 LuxembourgLuxembourg • Phone : +352 45 68 68 1Fax : +352 45 68 68 68 • francesca.ada@microfinance.luwww.microfinance.lu • MICRO ENERGY internationalHorstweg 16, 14059 BerlinGermany • Phone: +49 30 20179986Fax: +49 30 484 98 70 54 • www.microenergy-international.comcontact@microenergy-international.com