BASE and ARC are developing a new business model that use remittances to finance sustainable energy technology in developing countries. Currently we are discussing the project with potential partners and are raising funds to develop the project.
Objective:
Facilitate access to and foster the use of sustainable energy technologies in developing countries to meet the energy needs of poor people in remote rural households.
The project intends to demonstrate and develop an innovative business model that uses remittances as the financing mechanism to facilitate the purchase of small-scale renewable energy equipment for immigrants that are working in a developed country where the installation of the equipment would be in their country of origin.
Example: The clients could be Haitian immigrants that work and live in in the US, but the energy device they purchase in the US, would be delivered to their families in Haiti.
The project intends to meet 3 core objectives
1. Radically increase access to renewable energy products for the poor: develop a business model (financial product, distribution channel, maintenance system, etc.) that enables large numbers of immigrants that live and work in a developed country to purchase sustainable energy technologies which would be delivered to their families in a developing country. This would promote the role of remittances as a form of end-user finance, and as a powerful mechanism to address energy challenges in the developing world.
2. Build a sustainable financing model for pro-poor energy products (no subsidies or grants): support companies focused on developing renewable energy technology devices that target poor people living in rural parts of the developing world, by tapping into the $300 Billion plus remittances market as a source of end-user finance.
3. Support the millennium development goals and energy justice: increase the well-being of poor families (health, education, incomes) and draw international attention to the importance of energy in poverty reduction strategies.
Initial target countries:
Ecuador- Ecuadorinan immigrants in Spain
Haiti- Haitian immigrants in the US
DR - Dominican Republicans immigrants living in the US
Strategic Partner
BASE is partnering with Arc Finance, Ltd. a US cutting-edge organization that focuses on the link between microfinance and energy. ARC provides a package of services and tools to make the link between energy enterprises and microfinance institutions, and works with them to establish or scale up energy lending partnerships in order to expand sales and services to the large, untapped, credit market for clean energy.
To download the Market Assessment Report click HERE
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