This report was prepared by the Foundation for the Development Cooperation for the Renewable Energy and Energy Efficiency. Scientifically, energy is defined as the ability for something to “work” now or in the future. This abstract definition has little meaning for non‐scientists, so for simplicity it is more common to think of energy in terms of the services it provides. Energy services are required to move heat and make things. Over time, energy production systems have become more efficient and economical, increasing the availability, quantity and quality of energy services. This meant that laborious tasks requiring large amounts of human power could be replaced with mechanical or electronic machinery, increasing the opportunity to spend time working on other, more important ventures.
The Pacific Renewable Energy and Microfinance (PREM) project was instigated with the aim to integrate microfinance institutions (MFI’s) with the energy sector to improve the financial availability of RE and EE systems and also increase awareness of their availability.
This manual is aimed at introducing ‘Energy Lending’ to MFIs in Pacific Island Countries. We hope these materials will assist MFIs to create appropriate energy loan product for their clients.
This manual is divided into six modules:
Along with comprehensive information, each module contains a number of exercises and discussion points to facilitate and enforce the learning process. Also included is a number of “Case Study” style exercises so participants can apply information to practical examples. Finally, the manual includes space for participants to complete a Work Plan which outlines the steps their organisation will take to incorporate RE and EE into their loan portfolio.
Keywords - microfinance, PREM, energy loan, training manual, capacity development