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MICRO
ENERGY
international
MicroEnergy International
Linking Microfinance and Energy Development of a business case in Peru
[email protected]
www.e-mfp.eu
MICRO
ENERGY
international
Daniel Philipp
Energy Engineering & Economics
15 years experience in microfinancing
Managing Director
MICRO
ENERGY
INTERNATIONAL
[email protected]
www.e-mfp.eu
Mission
MICRO
ENERGY
international
„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.
[email protected]
www.e-mfp.eu
Activities since 2002
MICRO
ENERGY
international
Canada
Canada
Germany
Germany
USA
USA
Jordan
Jordan
Afghanistan
Afghanistan
Ethiopia
Ethiopia
El Salvador
Nicaragua
Nicaragua
Senegal
Senegal&&Mali
Mali
India
India
Bangladesh
Bangladesh
Yemen
Yemen
Kenya
Kenya
Sri
SriLanka
Lanka
Indonesia
Indonesia
Peru
Tanzania
Tanzania&&Uganda
Uganda
Argentina
Argentina
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SouthAfrica
Africa
South
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Agenda
MICRO
ENERGY
international
International Experience on Microenergy
Combining Microfinance and Energy
ADA and MicroEnergy International
Development of a business case in Peru
Key Benefits for Investors
Investing Opportunities
[email protected]
www.e-mfp.eu
MICRO
ENERGY
international
International Experience on Microenergy
Combining Microfinance and Energy
[email protected]
www.e-mfp.eu
Status of Experience
MICRO
ENERGY
international
Currently

About 10,000 MFIs world wide serving more than 155 Mio. clients

300-400 MFIs are experiencing energy loans
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Challenges and Opportunities
MICRO
ENERGY
international
Microfinance Institutions
have
... infrastructure to provide
financial services to lowincome people
… specific customer
knowledge and long term
business relationships
with clientele
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lack
... understanding of their
clients’ energy needs
…technical expertise on
logistics, quality issues,
service and maintenance,
hardware product
financing
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Energy Expenditure
MICRO
ENERGY
international
Grid (Luxembourg)
0.17 € per kwh
Kerosene
3.80 € per
month
Battery
4.30 € per
month
Wood
6.00 € per
month
Energy costs DC
example*
1.50 € per kwh
Solar Electricity
0.60 € per kwh
* Field study results from Bangladesh
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Energy Lending
MICRO
ENERGY
international
Enhancing productivity – Support existing businesses with better solutions
Financing the substitution process with energy efficient solutions
Supporting other products through energy
Every MFI has its own strategy
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www.e-mfp.eu
MICRO
ENERGY
international
ADA and MicroEnergy International
Development of a business case in Peru
[email protected]
www.e-mfp.eu
The idea
MICRO
ENERGY
international
 ADA and ME: joint development and implemention
of a microenergy approach

ME Atlas: Peru as the most promising country
Increase the access to sustainable energy services for vulnerable
populations by supporting MFIs to integrate energy products into
their portfolio.
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The ADA-ME Activities
MICRO
ENERGY
international
Partner
Identification (1)
Partner
Mobilizatio
n (2)
Business
Planning
(3)
Pilot
Project
Evaluation
Scaling Up
Replication
Terminated activities:
(1) Identification of potential MFIs, Energy Providers and other stakeholders
(2) Institutional Assessment and Capacity Building
(3) Field Research and Business Plan Development
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Selected MFIs in Peru
MICRO
ENERGY
international
[email protected]
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Selected MFIs
MICRO
ENERGY
international
The Caja Municipal de Ahorro Huancayo
 80,000 clients in department of Junin
 Intensive experience with hardware products
 Member of FEPCMAC
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CMAC Huancayo
MICRO
ENERGY
international
[email protected]
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Selected MFIs
MICRO
ENERGY
international
Fondesurco
 NGO with some 10,000 clients in Arequipa
 very social and rural focus
 one of the most innovative institutions found
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Fondesurco
MICRO
ENERGY
international
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Pilot Planning
Caja Huancayo
MICRO
ENERGY
international
REVENUE GENERATED IN THE ENERGY PILOT (5 months conservative
projection)
Financed Product
& Service
# of products
Revenue
Portfolio
Solar Thermal
12
S/. 8,880
S/. 30,000
Solar Dryers
16
S/. 4,800
S/. 16,000
Improved Ovens
12
S/. 7,680
S/. 24,000
Total
40
S/. 21,360
S/. 70,000
S/. 1000 = 263,55 €
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3 years demand projection
Fondesurco
Product
Use
Solar Thermal
ENERGY
international
Market Target Average
Size
Market Product
(3y)
Prize
Credit Amount
Produc Hotels (2 app.)
tive
Lodgings
usage Cheese
Producers
207
2275
31
208
455
16
S/. 2,050
S/. 1,320,125
Solar Dryer
Produc Producers of
tive
oregano and
usage paprika
201
30
S/. 1,700
S/. 51,000
Improved Ovens
and Large ICS
Produc Restaurants
tive
Bakeries
usage
481
25
72
8
S/. 2200
S/. 175,230
3220
787
Total
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Clientele
MICRO
S/. 1,546,355
= 407,548 €
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MICRO
ENERGY
international
Key Benefits for Investors
Investment Opportunities
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Key Benefits for Investors
MICRO
ENERGY
international
Financial Return
 Share of Profits
 Carbon Finance Revenue
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Key Benefits for Investors
MICRO
ENERGY
international
Social Return
 Meeting an essential need: energy inclusion
 Promoting local development
 Offsetting carbon emissions
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Financing
of operational activities
MICRO
ENERGY
international
Business Case Identification
Grants
Patient Capital
Piloting
Grants
Patient Capital
Start-Up
Venture Capital
Expansion
Business Investment
[email protected]
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MICRO
ENERGY
international
Thank you for your attention!
ADA - Appui au Développement
Autonome
2, rue Sainte Zithe, L-2763
Luxembourg
Luxembourg
Phone : +352 45 68 68 1
Fax : +352 45 68 68 68
[email protected]
[email protected]
www.microfinance.lu
MICRO ENERGY international
Horstweg 16, 14059 Berlin
Germany
Phone: +49 30 20179986
Fax: +49 30 484 98 70 54
www.microenergy-international.com
[email protected]
www.e-mfp.eu