End-User Finance for Access to Clean Energy Technologies (FACET) - - PDF document

Finance for Access to Clean Energy Technologies (FACET)

UNEP Round Table March 2013

End-User Finance for Access to Clean Energy Technologies (FACET)

Background In Asia and the Pacific, over 800 million people have no access to electricity About 1.8 billion people still use wood, dung, crop waste, and

• ther traditional biomass for cooking and heating (source:

ADB, Energy For All Initiative) Only a small percentage of South- and Southeast Asian end- users can afford to purchase clean energy technologies (too capital intensive to buy)

End-User Finance for Access to Clean Energy Technologies (FACET)

Objectives

• Mobilizing financial access to clean energy in Indonesia and

Vietnam

• Providing temporary financial support mechanisms like

interest rate softening or partial guarantees, combined with TA and capacity building measures

• Initial disbursements of around 10,000 loans per country
• Initiate and scale up domestic bank lending to end-users of

small-scale energy technologies in South and South-East Asia

Eligible Technologies

Biogas digesters Solar water heaters Solar PV

Eligible Technologies cont.

Micro-hydro systems Improved biomass cook-stoves

Eligible Technologies cont.

Energy efficient appliances (e.g. air conditioners or refrigerators)

• Labelling as mandatory precondition

Status in Southeast Asia

• I. Project preparation
• II. Project implementation

Current phase Pre-selection of countries and technologies Desk studies: Short-list of partner countries and appropriate technologies Stakeholder consultations: Vietnam, Indonesia Financial Support Mechanisms: Interest rate softening, partial guarantees Technical Support & Capacity Building Final goal: Disbursement of 10,000 – 20,000 microloans for clean energy technologies Design of Individual country programmes: Selection of technologies, local partners, and support mechanisms

Key Success Factors

• Country selection: Favourable framework conditions, i.e. RE

laws and action plans, low/decreasing fossil fuel subsidies, etc.

• Technology selection: Commercial availability, widespread

supplier networks, reliable partners, vendor qualification, definition of minimum product standards

• FI selection: Own funding, wide outreach/network,

motivated/qualified staff, top management support

• Financial support mechanisms (e.g. interest subsidy, credit,

guarantee) must be adapted to local market needs

• Awareness raising among end-users, communication

(partnership) among stakeholders, capacity building in FIs

Thank you.

Contact: Torsten Becker, Frankfurt School of Finance & Management, t.becker@fs.de