Abstract
Among the green microfinance initiatives, energy lending still appears to lack long-term sustainability, and therefore remain difficult to up-scale. In the rollout of these programs, implementing a two-hand model approach—where microfinance institutions (MFIs) partner with energy suppliers—becomes a challenge for both parties. Obstacles entail the access to technical assistance, and the development of efficient supply chains and profitable business models. In this paper, a comparison of the energy diversification process—from a pilot phase towards a large commercialization—of the Peruvian MFIs Fondesurco and CMAC Huancayo is presented, highlighting their experiences, challenges and discusses opportunities to build from their lessons learned in order to innovate green microfinance.
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Notes
- 1.
A tool to assess the potential of microfinanced modern energy services based on renewable energy and energy efficiency evaluating the microfinance and energy sectors.
- 2.
Through a partnership between ADA and the ULB (Université Libre de Bruxelles), internships for students of the Master European Microfinance Program at the local MFIs were sponsored. Pierre Casal was awarded a scholarship from May to July in 2012, supporting Fondesurco in its initiation of the small commercialization phase.
- 3.
Ibid. Caroline Lentz assisted CMAC Huancayo in the implementation of the pilot project from May to July 2011.
- 4.
As a public institution, stability of the management positions largely depends on the municipal elections and political agreements, which influence personnel rotations.
- 5.
In the framework of the partnership between ADA and the Université Libre de Bruxelles (ULB), internships for students of the Master European Microfinance Program at the local MFIs have been sponsored for a period of 4–6 months, for their master thesis projects. Pierre Casal was awarded a scholarship from May to July in 2012, supporting Fondesurco in its initiation of the small commercialization phase.
- 6.
Ibid. Caroline Lentz assisted Caja Huancayo in the implementation of the pilot project from May to July 2011.
- 7.
Only for CMAC Huancayo.
- 8.
Laboratory tests, contracted by EnDev/GIZ, were conducted at the National University of Engineering of Lima and the University of San Agustín to validate the ICOs and STS, while a technical study conducted by the National Institute of Agricultural Innovation compared the performance of the SCD with traditional drying methods.
- 9.
A project evaluation—contracted by ADA—was conducted in 2012 by COPEME, a Peruvian microfinance network and consultancy company.
- 10.
COPEME Evaluation (2012).
- 11.
Kebir et al. (2013) explain how MFIs tend to be the only formalized institutions able to lend to the customers of energy SMEs or small informal local distributors. In this case, being Fondesurco the financer of the supplier, the risks of its energy portfolio is intensified.
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Carrillo, N.R. (2015). How to Scale up Green Microfinance? A Comparative Study of Energy Lending in Peru. In: Groh, S., van der Straeten, J., Edlefsen Lasch, B., Gershenson, D., Leal Filho, W., Kammen, D. (eds) Decentralized Solutions for Developing Economies. Springer Proceedings in Energy. Springer, Cham. https://doi.org/10.1007/978-3-319-15964-5_13
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