henri dommel, uncdf, usa, green microfinance solutions
TRANSCRIPT
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Innovations in BoP Energy Access Financing
Abu Dhabi, March 2016
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CleanStart overview• Purpose: To expand consumer financing for low-income consumers who want to
transition to cleaner and more efficient energy. • Goal: To support low-income consumers in six countries to transition to cleaner and
more efficient energy through microfinance by 20181. Finance for clean energy to develop scalable consumer and enterprise financing models. This
is supported through a combination of pre-investment technical assistance; risk capital grants; and concessional finance.
2. Technical assistance for clean energy to increase the ‘scale’ potential of financing models by creating a supportive business ecosystem(e.g. consumer confidence, last-mile distribution, customer service). This also includes work with meso-level support institutions for refinancing, such as CREF in Nepal.
3. Knowledge and Learning to promote awareness and customer-centric growth and understanding the customer journey.
4. Advocacy and Partnerships to co-create a policy and business environment that supports energy microfinance to reach scale.
• Budget: $26 million over 6 years--2012-2018• Main funders: Sweden, Norway and Austria• Active countries: Cambodia, Myanmar, Nepal, Uganda (expansion envisaged for
Ethiopia and West Africa)
• CleanStart is an initiative contributing to SE4ALL and SDG7
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MFI “original” model
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Nepal- Nepal: As of Q4 2015, 43,082 low-income people have been able to purchase renewable energy technologies; interest rates vary depending on size/type of system (typically12%-30% p.a.)- Support to Central Renewable Energy Fund (refinancing)
- Four types of FSPs:• JBS = MFI• SKBB = Farmer Cooperative Bank• ACE = Development Bank(wholesaler)• NMB = Development Bank(wholesaler)
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FSPs and ESCos
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Challenge round Asia 2015Announcement (September)
40 Expressions of Interest (October)
8 due diligence and proposal development (October)
6 proposals reviewed by Investment Committee
(November)
5 partne
rs (Dec)
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Sample investments AsiaCompany Country Type of tech &
finance Total Project cost
1 Kamworks Cambodia Solar home system – PAYGO 638,040
2 Hydrologic Cambodia Improved cook stove 410,720
3 Brighterlite Myanmar Solar home system - PAYGO 1,030,000
4 Greenlight Planet Myanmar Solar lamps and
PAYGO 483,361
5 Biolite MyanmarImproved cook stove – PAYGO
testing486,950
Total 75,000 HHs $3,049,071 (50% UNDCF Investment)
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© UNCDF/ Frederic Noy