Introductory remarks by Nicola Armacost of Arc Finance and Pam Baldinger of USAID to a full-day 2014 workshop entitled “Innovations in Financing: The Nexus Between Energy, Distribution And Finance.” Organized by Arc Finance in conjunction with USAID, the day featured stakeholders from across the sector discussing the latest innovations in consumer and institutional finance for providing small-scale clean energy access to the poor.
More from: small-scale energy finance
IDCOL and Solar Home Systems in Bangladesh
While demand for small-scale renewable energy is virtually infinite, a small microfinance institution or energy enterprise needs capital to meet that demand with supply. The Infrastructure Development Company Limited (IDCOL) addresses this barrier to scale in a unique and exciting way. With massive infusion of government capital, management from the private sector and a unique asset finance model using creative partnerships, IDCOL has produced a stunningly successful program.
Efforts to provide energy access on a commercial basis to rural populations in developing countries face a range of challenges, including access to finance. Off-grid customers from lower income communities currently pay a high price for purchasing kerosene for basic lighting services and switching to renewable energy based systems would not only save them fuel-costs but also improve their overall quality of life. However, the high upfront cost of the renewable energy based systems (handheld devices and stand-alone systems) restricts them from making this switch. This is identified as a major barrier by all stakeholders committed to the delivery of energy access solutions in a commercially viable manner and at scale. Over the past decade, microfinance institutions, supported by the international development community, have played an important role in providing direct consumer finance for purchase of handheld devices and single home solutions. In addition to microfinance, a number of other innovative end-user finance schemes have emerged in recent years. Building on the findings from USAID’s Renewable Energy Microfinance and Microenterprise Program (REMMP), and specifically the experience of Arc Finance, this 3 weeks long e-discussion featured and discussed a number of mechanisms for downstream end-user finance and their integration into innovative energy access business models including pay-as-you go technologies, crowd funding, microfinance, remittances, and asset finance. See summaries of the discussions and recordings of the webinar ►
Innovations in Financing Small Scale Clean Energy, a full-day 2013 workshop organized by Arc Finance in conjunction with USAID and the Sustainable Energy for All Energy Access Practitioner Network, brought together a range of stakeholders to discuss the innovations in financing now being deployed in the small-scale, clean energy space. These sessions were made possible with generous support from USAID.
October 8, 2013, Manila, The Philippines
The Microcredit Summit Campaign brings together a range of organizations to promote best practices in the microfinance field. Facilitating the interchanging of knowledge, the summit, a 4-day conference held in 2013 in the Philippines, aimed to support the sector in reaching its goals. As a leading organization of its type in the renewable energy finance sector, Arc Finance was invited to organize and host a day-long pre-event workshop at this year’s summit, and for this purpose brought together high-level representatives from MFIs, energy enterprises, government entities and funding platforms to help engage MFIs on the renewable energy finance landscape. Arc’s event was entitled “Pioneering Small Scale Energy Finance Through Innovative Partnership Models.”