Among microfinance markets, basic infrastructure services for energy and water are often not provided as public goods. Although these populations are poor they often have a surprising capacity to pay for improved energy and water services. This is because:

• Improved services offset their current expenditure on inferior services.
• These services have other benefits, which clients value and for which they can pay including:
a. Time saving benefits
b. Health benefits
c. Education benefits
d. Gender-specific benefits
• These services lead to improved opportunities for income generation which can offset the cost of services

Examples of technologies that meet these needs include:
Cooking
• Improved cookstoves
• Sustainable charcoal businesses
• Liquefied Petroleum Gas (LPG)
• Biogas digesters
Electricity and motive power
• Solar home systems
• Battery charging systems
• Diesel generators
• Biodiesel generators
• Multi Function Platforms
• Wind electric and hybrid systems
• Grid extension
Water pumping and delivery
• Wind water pumps
• Solar water pumps
• Diesel water pumps
• Non-motive wells
• Community water supply cooperatives/associations

An MFI’s existing operation may position them to create sustainable businesses delivering these services themselves, or to joint venture with other companies to provide these services to their clients. MFI’s are uniquely positioned for energy and water opportunities because of their:

• Existing brand recognition and credibility with rural and peri-urban markets
• Standing financial relationship with clients
• Access to capital and ability to offer financing

 
MFI venture opportunities include:

• Education about the health, education and income benefits of energy and water choices
• Provision of energy and water products and services
• Partnerships or joint ventures with Energy or Water Services Companies
• Financing energy and water equipment purchase by clients
• Financing energy and water businesses run by clients

Renewable Energy for Micro Enterprise