MICRO ENERGY international MicroEnergy International Linking Microfinance and Energy - Development of a business case in Peru
MICRO ENERGY international Daniel Philipp Energy Engineering & Economics 15 years experience in microfinancing Managing Director
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. Mission
MICRO ENERGY international Senegal & Mali South Africa Tanzania & Uganda Ethiopia Yemen Jordan Afghanistan IndiaBangladesh Sri Lanka Indonesia Germany USA Canada Kenya Argentina Nicaragua Senegal & Mali South Africa Tanzania & Uganda Ethiopia Yemen Jordan Afghanistan IndiaBangladesh Sri Lanka Indonesia Germany USA Canada Kenya Argentina Nicaragua El Salvador Peru Activities since 2002
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 Agenda
MICRO ENERGY international International Experience on Microenergy Combining Microfinance and Energy
MICRO ENERGY international Currently About 10,000 MFIs world wide serving more than 155 Mio. clients MFIs are experiencing energy loans Status of Experience
MICRO ENERGY international... infrastructure to provide financial services to low- income people … specific customer knowledge and long term business relationships with clientele have Microfinance Institutions... understanding of their clients’ energy needs …technical expertise on logistics, quality issues, service and maintenance, hardware product financing lack Challenges and Opportunities
MICRO ENERGY international Kerosene 3.80 € per month Battery 4.30 € per month Wood 6.00 € per month * Field study results from Bangladesh Grid (Luxembourg) 0.17 € per kwh Energy costs DC example* 1.50 € per kwh Solar Electricity 0.60 € per kwh Energy Expenditure
MICRO ENERGY international Every MFI has its own strategy Enhancing productivity – Support existing businesses with better solutions Financing the substitution process with energy efficient solutions Supporting other products through energy Energy Lending
MICRO ENERGY international ADA and MicroEnergy International Development of a business case in Peru
MICRO ENERGY international ADA and ME: joint development and implemention of a microenergy approach ME Atlas: Peru as the most promising country The idea Increase the access to sustainable energy services for vulnerable populations by supporting MFIs to integrate energy products into their portfolio.
MICRO ENERGY international 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 Partner Identification (1) Partner Mobilizatio n (2) Business Planning (3) Pilot Project EvaluationScaling UpReplication The ADA-ME Activities
MICRO ENERGY international Selected MFIs in Peru
MICRO ENERGY international The Caja Municipal de Ahorro Huancayo 80,000 clients in department of Junin Intensive experience with hardware products Member of FEPCMAC Selected MFIs
MICRO ENERGY international CMAC Huancayo
MICRO ENERGY international Fondesurco NGO with some 10,000 clients in Arequipa very social and rural focus one of the most innovative institutions found Selected MFIs
MICRO ENERGY international Fondesurco
MICRO ENERGY international S/ = 263,55 € REVENUE GENERATED IN THE ENERGY PILOT (5 months conservative projection) Financed Product & Service # of productsRevenuePortfolio Solar Thermal12S/. 8,880S/. 30,000 Solar Dryers16S/. 4,800S/. 16,000 Improved Ovens12S/. 7,680S/. 24,000 Total40S/. 21,360S/. 70,000 Pilot Planning Caja Huancayo
MICRO ENERGY international ProductUseClienteleMarket Size Target Market (3y) Average Product Prize Credit Amount Solar ThermalProduc tive usage Hotels (2 app.) Lodgings Cheese Producers S/. 2,050S/. 1,320,125 Solar DryerProduc tive usage Producers of oregano and paprika 20130S/. 1,700S/. 51,000 Improved Ovens and Large ICS Produc tive usage Restaurants Bakeries S/. 2200S/. 175,230 Total S/. 1,546,355 = 407,548 € 3 years demand projection Fondesurco
MICRO ENERGY international Key Benefits for Investors Investment Opportunities
MICRO ENERGY international Financial Return Share of Profits Carbon Finance Revenue Key Benefits for Investors
MICRO ENERGY international Social Return Meeting an essential need: energy inclusion Promoting local development Offsetting carbon emissions Key Benefits for Investors
MICRO ENERGY international Expansion Business Investment Start-Up Venture Capital Piloting GrantsPatient Capital Business Case Identification GrantsPatient Capital Financing of operational activities
MICRO ENERGY international ADA - Appui au Développement Autonome 2, rue Sainte Zithe, L-2763 Luxembourg Luxembourg Phone : Fax : MICRO ENERGY international Horstweg 16, Berlin Germany Phone: Fax: international.com Thank you for your attention!