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How To Leverage Carbon
Financing Towards Scaling Up
Solar Off-Grid Clean Energy
Programs
Presented by:Aimthy Thoumoung, Regional Director South Asia,
MicroEnergy Credits
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Discussion Agenda
Overview of MicroEnergy Credits
Problems Faces By SMEs in Scaling Up Clean Energy Programs
The Solutions Enabled by Carbon Financing
Case Study: MEC Partner in North India
The Investment Cycle for Carbon Financing
Conclusion
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We provide carbon funds to Rural Banks and MFIs so
that clients are empowered to have clean energy for
education, light, health, warmth, and wealth creation.
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The MEC Business Model
Carbon Markets Rural Banks and
Micro Finance Institutions
MicroEnergy
Credits
CO2CO2
$$
Buys Carbon
Credits
Provides Training
Carbon Purchase Credit Tracker
Lends for Clean
Energy
Products
MEC has 18 rural banking and microfinance partners in 11
countries.
13 partners in Asia include Aryavart Gramin Bank, Prathama Bank,
Gurgaon Gramin Bank,
Allahabad UP Gramin Bank, Purvanchal Gramin Bank, Andhra Pragati
Gramin Bank, Haryana
Gramin Bank, Bank Of India, Grameen Koota, ESAF, SKDRDP, VERC
and XacBank.4
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Who is MicroEnergy Credits?
Been in operation since 2008
$11 million in CO2 offset sales contracts signed to date
18 MFI partners representing 15 Million clients
Over 200,000 households currently receiving energy services
~$500,000 carbon revenues in 2011
Received commitment of $10 Million funds from OverseasPrivate
Investment Corporation (OPIC) to scale up our program
to millions of households around the world.
Key Stats
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Making the product affordable to low-income / BOP consumers
Investing in marketing and awareness generation activities
Investing in after-sales customer service programs
The Problems Faced by SMEs in
Scaling Up Clean Energy Programs
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Making the product affordable to low-income /
BOP consumers
The Solutions Enabled By Carbon
Financing and MEC
Table: Sensitivity Analysis of upfront payments onthe
addressable market (millions of HHs)
Source: IFC Analysis, Universal Modern EnergyCase presented by
IEA in 2010
o Solution: Access To Finance through loans
from Rural Banks and MFIs
Carbon Funds ensure that the lending
program is sustainable and profitable even
for the low ticket-size loans
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Investing in marketing and awareness generation activities
o At 1 MEC Partner in South India:
2 years without investments in marketing and awareness
generation
activities: 500 products sold
After a structured marketing and awareness generation program
was
implemented: 3,500+ products sold in 4 months
o Solution: Utilization of carbon funds
Investing in after-sales customer service programs
o At 1 MEC Partner in South India:
After reasonable scaling up of program, sales came to a halt
with
customer opinions of product nose-diving and spreading quickly
with
poor after-sales service of complaints
o Solution: Utilization of carbon funds
The Solutions Enabled By Carbon
Financing and MEC
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Products: Solar Home Lighting Systems
Impact: Over 50,000 households have purchased the Solar Home
Lighting Systems
MEC Partner has received > $120 K carbon funding over the
past
2 years from MEC. Carbon funding is recurring each year.
Usage of Carbon Funds: MEC Partner has utilized the fundstowards
establishing customer service centers, training of after-
sales service staff, training of bank staff, and marketing
activities.
Case Study:
MEC Partner in North India
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How the investment cycle works
Investors
$
$
Invests: OPIC $10M
DOEN
Deutsche Bank
Foundation
Uses Funds for:Training at MFIs
Carbon Project Dev.
Credit Tracker
Repays from
Carbon
Revenue
$
Rural banks and
MFIs
CarbonPurchasers
CO2
CO2
2.5 BILLION
PeopleEmpowered
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Conclusions
Simple clean energy products such as
solar off-grid lighting systems can
improve the quality of life of BOP clients
Renewable energy is affordable;
spending is close to what rural clients
already spend on kerosene, fuel wood
and charcoal
Carbon revenues are available to help
SMEs in partnership with rural banks and
MFIs bring these products to their clients
MEC has built a strong track record and
expertise in implementing and scaling up
clean energy programs with the help of
carbon financing.
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Contact:
Aimthy Thoumoung,
Regional Director South Asia
MicroEnergy Credits
Email: [email protected]
mailto:[email protected]:[email protected]
