Green Microfinance
HORUS provides its expertise in inclusive finance to promote green energy solutions.
HORUS is convinced that inclusive finance mechanisms have the potential to broaden access to green energy solutions for underserved populations. We provide our expertise in market studies, product development and knowledge of financing mechanisms to support green energy promotion programs. Our services notably target rural areas where off-grid solutions show great potential but still have limited outreach.
Our Experience
Feasibility study for the development of results-based financing to promote off-grid solar PV lighting products in Mali (World Bank, 2014).
Under the World Bank Lighting Africa program, HORUS studied the feasibility of applying various results-based financing (RBF) approaches to promote the sale and uptake of 100,000 off-grid lighting solutions (pico-PV solar lighting products). To this end, we conducted:
- A documentary review of international best practices in RBF mechanisms
- An analysis of the Malian off-grid lighting value chain through on-site meetings
- A feasibility assessment of the various RBF approaches.
On this basis, we issued recommendations on RBF activities and processes, based on a cost-benefit analysis, and an impact evaluation on sales, with a twofold objective of allowing sustainability of operations and avoiding market distortions.
Preparatory study for a program promoting solar PV products through microfinance mechanisms in Cambodia (Ministry of Industry, Mines and Energy, AFD, 2013-2014).
The overall objective of the study was to broaden rural Cambodian households’ access to energy, at an affordable cost, while limiting environmental impact. The program intends to take advantage of the broad coverage and good performance of the Cambodian microfinance industry to set up sustainable financing schemes, allowing remote households to access solar energy products.
Phase 1 of the study consisted of:
- An analysis of the solar and microfinance sectors
- An assessment of remote rural households’ demand for solar PV products and needs for loans to finance such equipment
- Identification of private partners (solar, microfinance, program managers) to participate in the program.
This phase resulted in a proposal for geographical and socio-economic targeting, pre-identification of a range of suitable solar products, and a shortlist of five potential partner MFIs.
Phase 2 consisted of formulating recommendations on the program design, with a market-led private sector approach using a result based financing mechanism. The main deliverables were:
- A detailed market study
- Recommendations on the organization and coordination of Solar PV value chain stakeholders
- Definition of the technical specifications of the products
- Analysis of the awareness-raising and training needs
- Definition of the required level and mechanism for the subsidization of products and loans
- Definition of adequate support for project partners, based on an RBF mechanism
- Recommendations for the selection of project partners
- Recommendations on the project’s architecture
- Preparation of the project’s implementation.
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Strategy & Business Planning