IDEAS Energy Innovation Contest: Rural solar energy
- Aims
- To make solar electricity accessible and affordable to rural populations in Peru.
- Region
- Latin America and the Caribbean
- Status
- Planning
- Summary
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The project will develop a commercial model based on microfinance to make solar energy affordable to rural populations in Peru.
Small solar franchises run by rural people will offer solar equipment and microcredit.This project is one of the award-winning projects of the 2009 IDEAS Energy Innovation Contest for improving energy efficiency and expanding access to renewable energy. The project is jointly sponsored by GTZ and GVEP International.
- Full Description
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Conventional sources of finance, such as banks, rarely extend their services to clients with little or no cash income.
This creates many challenges for poor communities, and makes solar energy equipment all but inaccessible to Peru's poor rural communities.
This project aims to establish a viable commercial model to make renewable solar energy available to those communities.
Small solar franchises will be set up to be run by rural people. These franchises will offer solar equipment and microcredit.
The terms of microfinance offered by the franchise will put the equipment within reach of poor rural households in Peru.
Initially, six solar franchises will be established, to provide solar energy to 300 families.
Once a workable commercial model is found, this programme will be scaled up and implemented across Peru and Latin America.
The ultimate objective of the project is to help improve the quality of life and fight poverty in the region.
About the award winner:
Emprenda has implemented solar programmes in Argentina. Vivencia is part of the ACP Group which is the major shareholder of MiBanco, a microcredit bank in Peru. Patricio Boyd is 31 years and has been working for the last 8 years in microfinance projects in Argentina
Interview with Patricio Boyd