1. M i c r o E n e r g y I n t e r n a t I o n a l MicroEnergy International INAISE Conference 2012 1st June 2012

2. M i c r o E n e r g y I n t e r n a t I o n a l 2 - ## Agenda 3. Financing renewable energy solutions Practices and MEI approach 2. Linking Microfinance and Clean Energy Supply Challenges and opportunities 1. MicroEnergy International Our Vision and Role

3. M i c r o E n e r g y I n t e r n a t I o n a l 3 - ## MicroEnergy International Vision and Role

4. M i c r o E n e r g y I n t e r n a t I o n a l 4 - ## Background approx. 200-250 Energy Service Companies 300 – 400 MFIs experiencing energy loans 10.000 MFIs serving more than 155 mio. clients 1.4 billion people without access to electricity 2.7 billion people dependent on biomass US$ 433 billion energy purchasing power of the BoP

5. M i c r o E n e r g y I n t e r n a t I o n a l 5 - ## MEI Company Private consulting company specialized in the field of microfinance and energy. Founded in 2001 in Berlin Team consisting of: 12 Consultants & Assistants 15 Associate Experts 7 Associated scientific institutes MicroEnergy International We design, develop and implement strategies to facilitate access to clean and affordable energy to low-income people at the BoP. We support financial institutions to develop programs in the energy sector. VISION MISSION Synergizing Microfinance and Clean Energy Supply

6. M i c r o E n e r g y I n t e r n a t I o n a l 6 - ## Science Microenergy Research Alliance Academy Trainings, qualification industrial & scientific programs Quality Group Quality Mgmt for Energy Companies & Product Certification Finance & Investment Financial Instruments for the Microenergy Sector Engineering Energy Product Design & Optimization Consulting Policy & Business Consulting Our Role Microenergy Sector MicroEnergy International Society Public Relations & Promotion of Microenergy Topics Making energy work for people living in poverty: How clean energy supply can be enabled through microfinance

7. M i c r o E n e r g y I n t e r n a t I o n a l 7 - ## Our Vision “Support microfinance institutions in developing energy specific programs in order to expand access to energy services for low-income segments at the BoP” Support local and global policy makers in developing a favorable framework for linking energy & microfinance Support manufacturers and energy companies in adapting their products to the quality requirements of MFIs Support investors to link social and ecological investments

8. M i c r o E n e r g y I n t e r n a t I o n a l 8 - ## Linking Microfinance & Clean Energy Supply Challenges and Opportunities

9. M i c r o E n e r g y I n t e r n a t I o n a l 9 - ## Necessity of microfinance Microfinance Change requires new microenergy systems Small to medium sized investment necessary

10. M i c r o E n e r g y I n t e r n a t I o n a l 10 - ## MEI experience …technological knowledge …experience with energy needs of their clients …awareness of additional requirements of energy loans …experience with servicing/maintenance …experience with quality issues …experience with low-income clients …network of clients and partners …knowledge on income and repayment habits/possibilities …financial expertise …service expertise …infrastructure to offer financial services have Microfinance Institutions… lack

11. M i c r o E n e r g y I n t e r n a t I o n a l 11 - ## Challenges – Suppliers vs. MFIs 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

12. M i c r o E n e r g y I n t e r n a t I o n a l 12 - ## Opportunities for Productive Uses of Energy solutions through MFIs Also: Cooking energy for restaurants Energy in food processing Energy for artisans Energy in commerce... Cooling energy Cooking energy for restaurants Solar driers for coffee producers Energy for mobile charging Energy for lighting

13. M i c r o E n e r g y I n t e r n a t I o n a l 13 - ## Financing Renewable Energy Solutions through MFIs Practices: Why and How?

14. M i c r o E n e r g y I n t e r n a t I o n a l 14 - ## Every MFI has its own strategy, diverse products & adapted business models Energy Lending Increasing income – Supporting existing businesses with better solutions Financing the substitution process with energy efficient solutions

15. M i c r o E n e r g y I n t e r n a t I o n a l 15 - ## One hand model MFI ENERGY PRODUCT SUPPLIER Microenergy Provider Microfinance Sustainable option of funding Installation Microenergy systems Maintenance Customer Service (warranty, spares) Join-Venture End-user Consumers and Microentrepreneurs

16. M i c r o E n e r g y I n t e r n a t I o n a l 16 - ## Grameen Shakti Bangladesh Example Financing the substitution process with energy efficient solutions Subsidiary of Grameen Bank

17. M i c r o E n e r g y I n t e r n a t I o n a l 17 - ## Two hand model MFI ENERGY PRODUCT SUPPLIER Microfinance Sustainable option of funding Installation microenergy systems Maintenance Customer Service (warranty, spares) End-user Consumers and Microentrepreneurs Contract

18. M i c r o E n e r g y I n t e r n a t I o n a l 18 - ## Example: Microenergy projects in Peruvian MFIs MFIs: Caja Huancayo, Fondesurco Technical Assistance: MEI Income generation – Support existing businesses with better solutions The Energy Inclusion Initiative

19. M i c r o E n e r g y I n t e r n a t I o n a l 19 - ## Small Scale Commercializ ation 6 Large Scale Commercializ ation 7 PreparationIdentificationPlanning Pilot Execution Pilot Evaluation Impact Assessment Up-scaling Monitoring Desk-study and research Identification of products Search of Suppliers and Design of Supply Chain Monitoring of Products and Suppliers Evaluation of MFIs Business Plan Draft, Pilot Planning Evaluation of Pilot and Adjustments of Business Plan Execution of Pilot with MFIs 5 3 4 23 4 1 1 ME Methodological Approach Microenergy Microfinance Renegotiation with suppliers Identification of Energy needs 2 5 Microenergy Microfinance

20. M i c r o E n e r g y I n t e r n a t I o n a l 20 - ## Thank you for your attention! MicroEnergy International GbR Postdamerstr. 143 D, 10783 Berlin · Germany Partner: Noara Kebir, Daniel Philipp Contact Person: sarah.roopinia@microenergy-international.com Visit us at: www.microenergy-international.com Contact