Monday, December 12, 2016

Solar-for-the-poor business model seeks financing



Published November 21, 2016, 10:00 PM By Myrna M. Velasco

Solar technology is deemed a thriving energy solution for poor households and communities at off-grid areas, but for this to become sustainable, the business model has to viably make its way with the banks for social financing.
In an interview with journalists, Ramon Magsaysay awardee Dr. Harish Hande, noted that India’s “social enterprise ecosystem” with the deployment of solar energy (SE) can well be replicated in the Philippines but with much needed financial support that may even be done through rural banks.
He said the business model is ideal for off-grid applications, which is highly relevant for the archipelagic nature of the Philippine electricity systems.
Via their India SELCO team, Hande noted that they will provide guidance in the design and actual replication process of solar energy for the country’s chosen project areas. It will be done in collaboration with Peace and Equity Foundation (PEF) as the Philippine partner.
“SELCO will provide specific technical advice on the design of sound solar energy solutions that will be affordable for poor communities,” Hande said.
He added that part of the assistance they will do for their local foundation-partner will be “on the development of organizational structures and management systems for the solar energy enterprises that will be set up by the project stakeholders.”
The PEF, on the other, will make its bargaining chip on the financing structure of projects – primarily with loans or credit facilities that may be made available to poor households or families availing of the solar solution.
“As the country’s key advocate of solar energy (SE) for the poor, PEF will mobilize its SE partners and renewable energy stakeholders to actively participate in the SELCO replication project,” the foundation emphasized.
Additionally, the Ramon Magsaysay Transformative Leadership Institute will be providing “research and process expertise to assist PEF and SELCO in designing and managing the complex processes involved in the replication project.”
Hande said poor communities had the simplest questions when it comes to solar technology – whether it will work for them and can they afford it.
Hence, these are the two major concerns that project stakeholders must concretely address in the technology deployment for them.

No comments:

Post a Comment