IDEAS Energy Contest: Financing the energy access value chain
- Aims
- To create market driven finance for energy access programmes in developing countries which will enable clean energy companies to gain access to funding.
- Region
- Latin America and the Caribbean
- Status
- Planning
- Summary
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A one-stop shop for financing local energy enterprises will aim to connect different parts of the finance chain, build partnerships between micro finance institutions and energy enterprises as well to seek revenue from sources not yet explored, including carbon trading.
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. It is jointly sponsored by GVEP International and GTZ.
- Full Description
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Creating market driven finance for energy access programmes in developing countries continues to be an area which has growth potential but lacks overarching management and co-ordination structures. The project aims to fill this vacuum by providing a one-stop shop for financing local energy enterprises, connecting different parts of the finance chain, building partnerships between micro finance institutions and energy enterprises as well seeking revenue from sources not yet explored.
It also aims to promote carbon trading between energy businesses on the ground and third parties, with the goal to create a more effective marketplace for clean energy services in Latin America over the long term.
The innovation of the proposal lies in bringing together currently disconnected sources of funding for modern energy access into a comprehensive package to serve local energy enterprises in the most efficient manner.
The programme will assist hundreds of clean energy companies across Latin America to access the funding they need to prosper. Their success will in turn enable more Latin Americans to have access to modern energy forms. The introduction of improved microfinance products for clean energy will enable low income families to access credit and buy energy products that were previously out of their reach, products that will have life changing effects on their daily routines and livelihoods.
The activities within this proposal are inherently scalable as they focus on establishing viable growing businesses and functioning markets.
About the award winner:
E+Co Brazil, E+Co Costa Rica and ARC Finance. E+Co Brazil and Costa Rica have over 10 years of experience supporting local energy enterprises with business advisory services and investment. ARC finance, a not for profit organisation focuses on expanding access to end-user financing for energy products, increasing capacity of practitioners to link access to energy with access to finance, providing resources, tools and training materials and acting as a leader in advocacy and stewardship.
