SEPTEMBER 8, 2013 | Three-quarters of Haiti’s population does not have access to their national power grid, but solar lamps are helping provide light to people in a nation with severely underdeveloped infrastructure. Jeff Glor reports. Watch video.
Solving the “last mile” problem – or providing renewable energy and suitable finance for it to the Bottom of the Pyramid – is far more collaborative than competitive. You can see this clearly in the network of partnerships we at Arc Finance have developed for our current portfolio of projects: we link energy companies, MFIs, technology providers, remittance companies and other distribution organizations to facilitate access to finance for renewable energy for the un(der)electrified billions whose lives can be improved.
Collaboration and partnership were among the key themes of the 2013 Ashden Awards held in London last week. We are proud to be a supporting partner of Ashden and were thrilled to attend the awards, which are among the most prestigious for sustainable energy solutions. Projects awarded ranged from partnerships at the local level (UK-based initiatives such as encouraging cycling or recycling in cities, or developing green spaces) to global projects that try to leverage new technologies, financial innovations and the brightest of ideas in order to scale access to affordable renewable energy to those who need it most: the poor. The conference was a great opportunity to share ideas, contacts and build further partnerships. Collaboration might be a tedious and overused bit of management-speak, but in this space, it is the sine qua non of progress.
This day-long, pre-event workshop, held in conjunction with the 2013 Microcredit Summit in Manila, was organized by Arc Finance and brought together high-level representatives from MFIs, energy enterprises, government entities and donors to engage MFIs on financing renewable energy. This video series was made possible with generous support from USAID.
SunnyMoney is a social enterprise that was spun off from the NGO, Solar Aid, in 2011. While Solar Aid focuses on installing solar systems into schools across several countries in Africa, SunnyMoney focuses on selling solar lanterns. In just a few years since its launch, SunnyMoney is already reaching sales levels of tens of thousands each month, growing very quickly in Kenya, Tanzania, Malawi and Zambia. The company employs a unique sales and marketing approach called “The SunnyMoney Way,” which works closely with education authorities, incentivizing head teachers in geographically defined regions to promote the benefits of solar lanterns to their students and families. Orders are then collected and the lights delivered in follow-up sales visits by SunnyMoney team members, during which thousands of lights can be sold in a single event.
SunnyMoney’s Managing Director, John Keane, talks to us about the excitement and hard work of the transformation of SunnyMoney from an NGO program into a social enterprise, and now the daily challenge of supporting its growing success.
INENSUS is a young, off-grid energy company based in Germany that develops solar/wind-hybrid microgrids for developing countries’ remote rural regions. The company’s “Micro-Power Economy” model, currently being employed in Senegal, centers on supporting both income-generating as well as household energy activities to truly catalyze local village economies.
Arc Finance recently caught up with Jakob Schmidt-Reindahl, managing director of INENSUS’ Senegal operations, to discuss the company’s clients, pre-payment approach, and role that microfinance plays in helping to realize the micro-energy economy.
Fenix International is a Silicon Valley based renewable energy company that designs and manufactures income generating energy solutions for mobile telecoms in emerging markets. The company has developed the ReadySet, a plug-and-play smart battery that charges by solar panels or bicycle dynamo to power mobile phones, lights, and many devices powered by USB or Car Lighter Adapters. The ReadySet is sold by MTN, Africa’s largest mobile phone company, through its network of retail outlets in Uganda. The end customers are micro entrepreneurs who use the ReadySet to make additional income from charging phones in off-grid rural areas.
In a conversation with Arc Finance, Brian Warchawsky (Chief Operating Officer) and Peter Glenn (Business Development and Sales Manager) explain how Fenix combines its core skills to ensure that its products work not only for the customer, but for the whole chain from manufacturing, to distribution and financing.
Founded in 2010, Solar Sister is an energy company that promotes access to affordable solar lamps and small solar systems in communities in Sub-Saharan Africa. Using an Avon-style distribution system, Solar Sister builds and extends the supply chain through women’s rural networks by providing women with a “business in a bag”: a start-up kit of inventory, training and marketing support.
Arc Finance talks with Katherine Lucey, CEO of Solar Sister, about the process Solar Sister uses to support rural women to become micro-entrepreneurs and how it enables rural women to earn an income in a flexible way, doing as much or little as their circumstances and preferences dictate. Due to the pioneering work of Solar Sister, renewable energy gets to even the most remote villages, women are empowered and supporters are satisfied. In this extract, Katherine discusses, among other things, village level cash management, the importance of mobile, and learning to let her entrepreneurs set their own pace.
Since its founding in 1984, the Negros Women for Tomorrow Foundation (NWTF) has explored a range of ways to live up to its mission of helping poor Filipino women achieve self-sufficiency and self-reliance. NWTF offers an impressive array of products, including micro-loans to assist micro-entrepreneurs, insurance and student loans, and continues to look for innovative products and services to meet the needs of its clients and grow the organization.
Arc Finance talks with Raymond Serios, Director of Research at NWFT, about how the MFI embraced energy lending as a way to expand its mission and find new ways to grow and attract customers. In 2009, Arc Finance helped the organization launch its energy loan portfolio, and since that time the program has changed in a number of ways as NWTF has learned more about client demands, and as energy products have continued to diversify and evolve. In this extract from a wide-ranging interview, Raymond reveals how NWTF’s business strategy and operational approach to energy has transformed over time, moving from a narrow focus on consumer credit to a model in which members are trained and financed as energy product sales agents.
The Negros Women for Tomorrow Foundation (NWTF) is a one of the Philippines’ oldest and largest microfinance institutions, serving nearly 140,000 clients across the nation’s central island region. Among institutional practitioners of energy microfinance NWTF is notable for its inventive, trial-and-error approach to problem-solving and program development, and its patient, long-term commitment to building a strong, high impact and commercially sustainable model. In this episode, Raymond Serios provides a nuts and bolts account of how the MFI draws on experimentation, client feedback and a close study of the evolving clean energy market to adapt and build its successful energy lending program.
Product R&D and design, high volume manufacturing, global distribution, sales and marketing – this is the range of one of the world’s best known micro solar companies, d.light. Since 2006, the company has been developing and distributing high-quality, solar portable lighting products to low-income, off-grid customers worldwide. Ned Tozun, d.light’s President and Co-Founder, recently took some time to speak with Arc Finance about the company’s growth, its approach to distribution and marketing, and the role he sees for microfinance in making improved energy affordable for d.light’s target customers.