How to Scale Up Green Microfinance? A Comparative Study of Energy Lending in Peru

How to Scale Up Green Microfinance? A Comparative Study of Energy Lending in Peru

Presenter: Natalia Realpe Carrillo, (MicroEnergy International,Germany)

Overview

Among the green microfinance initiatives, energy lending still appears to lack long-term sustainability, and therefore remain difficult to up-scale. In the rollout of these programs, implementing a two-hand model approach – where microfinance institutions (MFIs) partner with energy suppliers – becomes a challenge for both parties. Obstacles entail the access to technical assistance, and the development of efficient supply chains and profitable business models. In this paper, a comparison of the energy diversification process – from a pilot phase towards a large commercialization – of the Peruvian MFIs Fondesurco and CMAC Huancayo is presented, highlighting their experiences, challenges and discusses opportunities to build from their lessons learned in order to innovate green microfinance</ref>.