Renewable Energy for Microenterprise

How can microfinance fund renewable energy initiatives?

The document focuses on renewable energy (RE) options but offers a microfinance perspective. It investigates three institutional approaches that have been used to combine RE technologies with microfinance for the benefit of microentrepreneurs where:

  • The MFI finances the purchase of a small RE system by a rural microentrepreneur or household;
  • An MFI, microenterprise nongovernmental organization (NGO), or strategic partner develops a community-scale facility in which electricity and other services are provided to microentre-preneurs on a fee-for-service basis;
  • A credit organization finances a microentrepreneur owning and operating an energy supply business, which may be a retail operation, a battery-charging station (BCS), or a minigrid.

Presents advantages and disadvantages of each of these institutional approaches, with an emphasis on the experiences of existing programs. Offers five case studies of existing programs and lessons learned.

About this Publication

By Allderdice, A. & Rogers, J.