Making micro finance and clean energy technologies work for the poor

The Council for Renewable Energy in Nigeria 1

MAKING MICRO FINANCE AND CLEAN ENERGY TECHNOLOGIES

WORK FOR THE POOR

PRESENTEDBY

CHIEF MRS ANITA OKURIBIDOSecretary

Council for Renewable Energy in Nigeria

17 Oct. 2011

Microfinance is a promising system of providing people with access to

basic services that particularly give comfort.

The Council for Renewable Energy In Nigeria

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WHAT IS MICRO-FINANCE?

What is Clean Energy?Clean energy is the form of energy

that has little or no emission, is

environmentally friendly and poses no environmental challenges.


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Examples• Solar energy• Wind energy• Hydro• Biogas• etc


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Current state of rural

environment in Nigeria• A large proportion, precisely 80% of Nigerians, are rural dwellers

who do not have any access to basic services including lighting, potable water, decent shelters, health centers, effective irrigation for farming, etc

• The rural communities are generally least favored in the budget allocation, out of which very little portion or none gets to the grassroots level.

• Worst and vivid scenario is such that little democratic “dividend” gets to the rural dwellers very late.

• Despite their being last in line for resources, rural dwellers often have an important role to play in the social, economic, and political development of the nation.


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Problems associated with existing energy delivery systems

Often the Energy Supply from the grid, for rural and very remote areas is virtually non existent. Dwellers in this part of the world where the third (3rd) Millennium Development Goal or the twenty first century has no relationship ,with global and economic development still believe that light comes from the sky during the day and in the night, darkness is their lot.

• These Unfortunate Nigerians, believe that one source of water is a heavy downpour of rain, which goes away with the rainy season, while other sources may be from springs ,rivers, or ponds which probably are several kilometers away from their homes.

• The lack of Electricity from the National grid, exacerbates the already high rate of suffering, toiling and hardship of the rural dwellers, thus creating a negative impact on their standard of living


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The Role of Clean Energy

Clean energy systems have a very important role to play in grass-root development for the following reasons;

1. To provide instant opportunity for special amenities such as domestic lighting, water supply, health facilities, educational facilities and communication gadgets to be put in place.

2. To create instant democratic awareness for rural dwellers whereby they begin to experience a sense of democratic belonging, even being several scores of kilometers away from the local government headquarters.


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The Role of Clean Energy(contd)

2. Renewable Energy technology such as solar and wind energy

systems offer lower operating cost and reduce environmental pollution, such as carbon emission .

4.They also provide long-term benefits ,which if evaluated by decision and policy makers, could impart the choice of technology in favor of Renewable Energy(RE) system.

5.However since RE technologies are relatively new comers on the energy-supply list, they are not often given proper consideration for grass root application. Part of the fault lies in the lack of available information about capabilities of RE system.


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Clean Energy Sustains Lifein the Rural Sector

• Clean Energy system is a vital component in life development which completely illuminates the grim reality of rural poverty and deprivation.

• Electricity offers a quality of life to which gas, kerosene or paraffin oil cannot compare. Kerosene or paraffin oil lighting, on the other hand, is most common in non-electrified communities and is known to be hazardous while it contributes to indoor air pollution.


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Renewable Energy Applications Renewable energy technologies such as solar/wind, provides

electricity from natural sources e.g.

• Domestic (Lighting, Refrigeration, Television, Hi-fi, etc)

• Water supply (water pumping, treatment, and purification)

• Primary Health Care (vaccine refrigeration, Lighting, and Water Supply)

• Education, (lighting, computer, VCR, etc)

• Agriculture (lighting, water irrigation, etc)

• Rural radio communications equipment (VHF, HF, VSAT, etc)


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MODELS OF MICRO-FINANCE

Associations:

• This is where the target community forms an 'association' through which various microfinance (and other) activities are initiated. Such activities may include savings.

• Associations or groups can be composed of youth, or women; they can form around political/religious/cultural issues; can create support structures for microenterprises and other work-based issues.


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Non-Governmental Organizations :

•NGOs have emerged as a key player in the field of microcredit. They have played the role of intermediary in various dimensions. NGOs have been active in starting and participating in microcredit programmers.

• This includes creating awareness of the importance of microcredit within the community, as well as various national and international donor agencies..


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Peer Pressure: • Peer pressure uses moral and other linkages between

borrowers and project participants to ensure participation and repayment in microcredit programmes

• Hence pressure is put on the initial members to repay);

community leaders (usually identified, nurtured and trained by external NGOs); NGOs themselves and their field officers; banks etc.

• The 'pressure' applied can be in the form of frequent visits to the defaulter, community meetings where they are identified and requested to comply etc.


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Small Business: • The prevailing vision of the 'informal sector' is one of

survival, low productivity and very little value added. But this has been changing, as more and more importance is placed on small and medium enterprises (SMEs) for generating employment, for increasing income and providing services which are lacking

• A key component that is always incorporated as a sort of common denominator has been finance, specifically microcredit - in different forms and for different uses.

• Microcredit has been provided to SMEs directly, or as a part of a larger enterprise development programme, along with other inputs.


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VISION

We are all coming together today to bring about a shared vision. This moment marks an extraordinary opportunity for change in the renewable energy sector, if only we can be integrated into the mainstream of the energy policy reform in Nigeria as stated below,

• The federal government is embarking on a plan to increase electricity generation capacity and extend the grid to 85% of the Nigerian population by 2010.

• The Energy Commission has completed an Energy Master Plan.

• Some organizations such as Council for Renewable Energy in Nigeria have been gaining experience and building capacity in renewable energy implementation.

The Council for Renewable Energy zIn Nigeria

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VISION(contd)

• It is the vision of IREC to take renewable energy to the next level in Nigeria, by connecting experts in the government, private sector, non-profit organizations, and the international agencies.

• By 2020 at least 50% of rural homestead should have access to clean water supply and illumination via the use of clean energy.

• It is grossly believed that the use of the micro-finance mechanism will surely play a vital role in accomplishing this dream.


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CONCLUSION

• By dint of determination, hard work, with main focus and priority on sustainability of renewable energy development in Nigeria, there is no doubt that when the micro finance sector is fully developed to service the Clean energy network in the rural environment, our names will surely be written in gold in the hearts of the rural dwellers and even all Nigerians at large.


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Have a fruitful deliberation

THANKS FOR LISTENING


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Making micro finance and clean energy technologies work for the poor

Technology

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