energizing microfinance - dmu
TRANSCRIPT
Energizing Microfinance
M i c r o E n e r g yI n t e r n a t I o n a l
Energizing Microfinance
Experiences from the Energy Inclusion Initiative
- Sebastian Groh -
Leicester, 16. October 2012
ContentsContentsContentsContents
1. MicroEnergy International: Energizing Microfinance
2. The Energy Inclusion Initiative: productive energy in Peru
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3. Microfinance & Energy: challenges and key factors
MEIMEIMEIMEI is Germanis Germanis Germanis German----based consulting company focusing based consulting company focusing based consulting company focusing based consulting company focusing on the potential of on the potential of on the potential of on the potential of microfinance mechanisms to provide clean energy solutions in regions with poor microfinance mechanisms to provide clean energy solutions in regions with poor microfinance mechanisms to provide clean energy solutions in regions with poor microfinance mechanisms to provide clean energy solutions in regions with poor infrastructure and reaching infrastructure and reaching infrastructure and reaching infrastructure and reaching triple bottom line results:triple bottom line results:triple bottom line results:triple bottom line results:
MicroEnergy Internation (MEI)MicroEnergy Internation (MEI)MicroEnergy Internation (MEI)MicroEnergy Internation (MEI)
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Social Social Social Social Impact:Impact:Impact:Impact:
Improves situation for Improves situation for Improves situation for Improves situation for MFIclients MFIclients MFIclients MFIclients energy accessenergy accessenergy accessenergy access
Vulnerability reductionVulnerability reductionVulnerability reductionVulnerability reduction
EconomicEconomicEconomicEconomicImpact:Impact:Impact:Impact:
Improves Improves Improves Improves MFI MFI MFI MFI portfolio portfolio portfolio portfolio
RiskRiskRiskRisk reductionreductionreductionreduction
EnvironmentalEnvironmentalEnvironmentalEnvironmentalImpact:Impact:Impact:Impact:
Mitigation of CCMitigation of CCMitigation of CCMitigation of CC
Emissions reductionsEmissions reductionsEmissions reductionsEmissions reductions
Energizing MicrofinanceEnergizing MicrofinanceEnergizing MicrofinanceEnergizing Microfinance
The ConsortiumThe ConsortiumThe ConsortiumThe Consortium
The three levels of green microfinanceThe three levels of green microfinance
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Green financeproducts
Vulnerability of MFI loan portfolio to climate change
Internal policiesfor energy savings
The Energy Inclusion InitiativeThe Energy Inclusion InitiativeThe Energy Inclusion InitiativeThe Energy Inclusion Initiative
Millenium
Development
Goals
•• Eradicate extreme poverty and hunger
• Environmental sustainability
• Gender equality and the empowerment of
women
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Vision • Promote universal access to energy through
inclusive financial services
Mission •• Incorporate green energy products in MFIs’
portfolios.
The EII Pilot projects: 2 MFIs profilesThe EII Pilot projects: 2 MFIs profilesThe EII Pilot projects: 2 MFIs profilesThe EII Pilot projects: 2 MFIs profiles
Lima Huancayo
GENERAL INFORMATION
• Clients: 149 397 (31/05/2012)
(60 927 microentrepreneurs)
• 36% rural
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Lima Huancayo
Arequipa
• Microenterprise Loan Portfolio : USD 100,506 mil
• Average loan/Microenterprise client : USD 1,649
• 56 branches
GENERAL INFORMATION
• Lenders: 13 760 (31/05/2012)
• 93% Rural
• Loan Portfolio : USD 20,43 mil
• Average loan/client : USD 1,811
• 16 branches
Selected Energy Equipment for the EIISelected Energy Equipment for the EIISelected Energy Equipment for the EIISelected Energy Equipment for the EII
Solar Crop Dryers
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Solar Water
Heaters
Solar Crop Dryers
Improved Cooking
Ovens
Actors in the EII in PeruActors in the EII in PeruActors in the EII in PeruActors in the EII in Peru
MEI
Universities
ADA
Technical
Assistance
Funds for AT
Technical
AssistanceEnDev
-GIZ
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MFI
Supplier
ClientsE
ne
rgy
Eq
uip
m
en
t
En
erg
y
Eq
uip
me
nt
Cre
dit
Technical Assistance
Assistance
myclimate
Possible
Funds
ADA
Funds
Technical Assistance
Technical Assistance
Lessons to
Capitalize on
Cre
dit
Pa
ym
en
t
Pa
ym
en
t
Te
am
Example: FondeEnergíaExample: FondeEnergíaExample: FondeEnergíaExample: FondeEnergía
• Specialized selection of suppliers
• Clients : Mainly rural
•Client benefits
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� Savings
� Differentiation
� Environmental contribution
� Improved quality of life
•Methods of financing
•Specialized Technical Advisor
Chain LogisticsChain LogisticsChain LogisticsChain Logistics
� Contact with suppliers
� Granting credit
MFI Clients
Reimbursement Credit
Microenergy
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� Monitoring the distribution and
implementation of the equipment
� After-sales service
Goal:
Ensure the quality of products
and services
MFI
Supplier
Payment
Microenergy
equipment
Generating ImpactGenerating ImpactGenerating ImpactGenerating Impact
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Generating ImpactGenerating ImpactGenerating ImpactGenerating Impact
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Generating ImpactGenerating ImpactGenerating ImpactGenerating Impact
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Microfinance & Microfinance & Microfinance & Microfinance & EnergyEnergyEnergyEnergy
Knowledge gap between Knowledge gap between Knowledge gap between Knowledge gap between Product Suppliers & MFIsProduct Suppliers & MFIsProduct Suppliers & MFIsProduct Suppliers & MFIs
Product Suppliers MFIs
End Userknowledge
Living conditions
End-users needs
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Technology Know-How
Technology quality
Technological needs of end users
Marketing &Distribution Know-How
Energy products
Savings + Credit products
ChallengesChallengesChallengesChallenges
• Financing and subsidies
• Microfinance
Political FrameworkPolitical FrameworkPolitical FrameworkPolitical Framework
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• Microfinance regulations
• Governmental programs
• Political promises
Energy for Enterntainment
vs.
Productive UseProductive UseProductive UseProductive Use
ChallengesChallengesChallengesChallenges
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vs.
Energy for Productive Activities
• Contract adaption
• Warranty terms
Shared ResponsibilitiesShared ResponsibilitiesShared ResponsibilitiesShared Responsibilities
ChallengesChallengesChallengesChallenges
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• Warranty terms
• Support services
• Validations and Certifications
• Technical training
Quality ControlQuality ControlQuality ControlQuality Control
ChallengesChallengesChallengesChallenges
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• Technical training for Installers
• Control assessment
• Transport and installation
• Service costs
LogisticsLogisticsLogisticsLogistics
ChallengesChallengesChallengesChallenges
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• Service costs
• Payment collection costs
•Focus on income generation (return on investment for end-user)
•End-user need assessment (technological neutral)
•Quality control
Green Finance for the MF SectorGreen Finance for the MF SectorGreen Finance for the MF SectorGreen Finance for the MF Sector
Key FactorsKey FactorsKey FactorsKey Factors
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•After-sales support infrastructure (transition from over-the-counter to service model approaches)
•Re-financing and Financing Costs
•Value chain analysis and financing
Thank you for your attention!Thank you for your attention!Thank you for your attention!Thank you for your attention!
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MicroEnergy International GmbH MicroEnergy International GmbH MicroEnergy International GmbH MicroEnergy International GmbH Potsdamer Str. 143 · 10783 Berlin ·Germany
Consulting and Implementation www.microenergy-international.comScientific Research www.tu-berlin.de/microenergysystems