M i c r o E n e r g y I n t e r n a t I o n a l Implementation Models Initiation Assessment Mission Kathmandu, Nepal, 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 Synergies between the energy and financial sector

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 Base models (1) Consumers / micro-entrepreneurs MFI Product supplier Microenergy Operator Joint-Venture Microfinance Sustainable options for financing Microfinance Sustainable options for financing Installation Domestic service of the energy system Installation Domestic service of the energy system Maintenance Attention to the client and solution of the problems Maintenance Attention to the client and solution of the problems One Hand Model

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 Base models (2) Consumers / micro-entrepreneurs MFI Product supplier Contract Microfinance Sustainable options for financing Microfinance Sustainable options for financing Installation Domestic service of the energy system Installation Domestic service of the energy system Maintenance Attention to the client and solution of the problems Maintenance Attention to the client and solution of the problems Two Hand Model

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 Current Operational Modalities 1. Vendor Financing Model (Biogas) 2. Wholesale Financing Approach 3. LFI Approach (Agent model) 4. Wholesale Lending Model for Micro Hydro (community) 5. Integrated Model for Incremental Improvements (Ghatta Model for water pumps) 6. Special Fund Model (dedicated to a particular technology)

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 Intermediate Financial Level (meso) Service Provider (local) End-User (micro) Governmental Donor- Level (macro) Clean Development Bank – Biogas Vendor Model Subsidy after Installation AEPC Shift of Loan to Customer after Inst. Customer Wholesale Loan (Zero Bonds) Garantor Biogas System Biogas Vendor (Installer) Installments Clean Development Bank Deprived Sector Lending Government

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 Intermediate Financial Level (meso) Service Provider (local) End-User (micro) Governmental Donor- Level (macro) Clean Development Bank – SHS Wholesale Model Subsidy after Installation AEPC Customer Wholesale Loan (Zero Bonds) SHS Sola Home Systems (Installer) Cash Clean Development Bank Deprived Sector Lending Government

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 Intermediate Financial Level (meso) Service Provider (local) End-User (micro) Governmental Donor- Level (macro) AEPC SHS LFI Approach Subsidy after Installation AEPC Customer Wholesale Loan (Zero Bonds) Due Dilligence Local Financial Institution (LFI) Installments Urban Financial Institutions List of pre-selected banks SHS Supplier Solar Home System

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 Intermediate Financial Level (meso) Service Provider (local) End-User (micro) Governmental Donor- Level (macro) Wholesale Lending Model for Micro Hydro (community) Community Subsidy after Installation AEPC Customer Micro LoanInstallments Deprived Sector Lending Government Customer Local Financial Institution AEPC Wholesale Loan (Zero Bonds) Urban Financial Institutions List of pre-selected banks Micro Hydro Supplier Micro Hydor Plant Payment

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 Intermediate Financial Level (meso) Service Provider (local) End-User (micro) Governmental Donor- Level (macro) Integrated Model for Incremental Improvements (Ghatta Model for water pumps) Community Subsidy after Installation AEPC Customer Micro LoanInstallments Customer Ghatta Cooperative (Local Financial Instit.) AEPC Wholesale Loan (Zero Bonds) National Cooperative Bank Improved Water Mill Supplier Improved Water Mill Payment

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 Intermediate Financial Level (meso) Service Provider (local) End-User (micro) Governmental Donor- Level (macro) Special Fund Model (dedicated to a technology) Subsidy after Installation Shortlisted products AEPC Customer Biogas Loan Biogas Biogas Supplier (Installer) Installments Biogas Support Fund Management