The Green Microfinance Program is helping develop supply and demand for high-quality solar panels to facilitate access to energy for rural households in Cambodia.
Context
In rural areas that are not connected to the grid, individual solar systems provide households with access to electricity. In 2014, only 34% of rural households had access to electricity in Cambodia.
However, the lack of cooperation between banking institutions and solar equipment distributors has prevented the development of loans for rural people to buy solar kits.
Description
The Green Microfinance Program has several objectives:
- Improve living conditions for households in rural and remote areas by giving them the means to buy affordable individual solar systems that are more environmentally friendly than thermal generators
- Raise public awareness about the use of solar systems through information campaigns
- Develop a local supply of high-quality individual solar systems by creating a label and paying subsidies based on the results of the solar product distributors approved by the program
- Help three microfinance institutions (MFIs) diversify their portfolio by providing loans to buy solar kits
- Help develop innovative systems to meet public demand.
Impacts
The Green Microfinance Program is raising the awareness of 40,000 Cambodians about the benefits of individual solar kits. The inclusion of three microfinance institutions in the project has made it easier for rural people to invest in solar energy through the development of loans for this type of equipment. In addition, the Good Solar label guarantees the quality of the solar kits on offer and financed under the program.
In four years, the Green Microfinance Program has provided some 15,000 households with access to solar electricity.
This project is carried out with the support of the European Union
01/01/2014
Project start date
4 years
Sectors
Rural areas
Financing tool
2 000 000
USD
Achevé
Microfinance Institutions: Kredit, Vision Fund et TPC
Cambodian solar sector
European Union
Co-financiers
The content of this project information sheet falls under the sole responsibility of the AFD and does not necessarily reflect the opinions of the European Union.
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