Difference between revisions of "SPIS Toolbox - Credit Policy: Analyze Potential"
From energypedia
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*higher credit risk. | *higher credit risk. | ||
| − | === '''<span style="color:#879637;">Outcome/Product</span>''' === | + | ==== '''<span style="color:#879637;">Outcome/Product</span>''' ==== |
*Study on potential of financing SPIS and recommendations for financial service provider. | *Study on potential of financing SPIS and recommendations for financial service provider. | ||
| − | === '''<span style="color:#879637;">Data Requirements</span>''' === | + | ==== '''<span style="color:#879637;">Data Requirements</span>''' ==== |
*Profile end customers (cropping patterns, irrigation techniques, pumping systems, market); | *Profile end customers (cropping patterns, irrigation techniques, pumping systems, market); | ||
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*Environmental impact assessment (long term perspective). | *Environmental impact assessment (long term perspective). | ||
| − | === '''<span style="color:#879637;">People/Stakeholders</span>''' === | + | ==== '''<span style="color:#879637;">People/Stakeholders</span>''' ==== |
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*Solar-powered irrigation technology is mature, reliable and systems costs have decreased. | *Solar-powered irrigation technology is mature, reliable and systems costs have decreased. | ||
*SPIS generally require higher investment cost than other irrigation system, but operation costs are lower. | *SPIS generally require higher investment cost than other irrigation system, but operation costs are lower. | ||
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Revision as of 06:45, 3 November 2017
Credit Policy: Analyze Potential
Today, solar-powered irrigation is a technically mature and reliable option and an alternative to conventional irrigation approaches. When analyzing options for the development of credit policies for SPIS, the following aspects should be considered:
SPIS is likely to be a feasible option in a region if:
- energy provision for farming is a constraint (availability or cost of fuel, reliability of grid connection);
- an intensification of agricultural production is envisaged;
- producers are market-oriented and not working on subsistence level;
- producers are at least medium sized or organized in small holder groups;
- subsidized refinancing options for financial operators are available;
- grant schemes or subsidies are available to borrowers (producer);
- producers aim at specialized markets using environmental friendly technology (focusing on ecological production, which could give scope for premium pricing);
- technology distributors and system integrators available in the region;
- water is available and managed adequately so as to prevent groundwater depletion in the long run.
However, compared to conventional pumping and irrigation methods, PV-based pumping solutions have:
- a comparatively high initial capital investment requirement;
- longer repayment periods or/and significantly higher repayment rates;
- higher credit risk.
Outcome/Product
- Study on potential of financing SPIS and recommendations for financial service provider.
Data Requirements
- Profile end customers (cropping patterns, irrigation techniques, pumping systems, market);
- Current offer of loan products available for potential SPIS customer;
- Water and energy provision regime in region;
- Support/advice structures and subsidy schemes (refinancing) available for the region;
- Environmental impact assessment (long term perspective).
People/Stakeholders
- Management of financial service providers;
- Market analysts/consultants;
- Research and training institutions;
- Public entities promoting or/and subsidizing SPIS initiatives;
- Donors refinancing solar-powered initiatives;
- Associations of producers / potential borrowers;
- Technology providers;
- Service providers.
Important Issues
- Solar-powered irrigation technology is mature, reliable and systems costs have decreased.
- SPIS generally require higher investment cost than other irrigation system, but operation costs are lower.
