Renewable Energy Products
Cognizant of the opportunities in the renewable energy sector, and specifically focusing on its mission, FMFB seeks to develop customized financial products to support access to renewable and affordable alternate energy products, and to support economic and social needs of its target markets. Such an intervention would also be in line with the social objectives of the institution and is expected to create a positive and measurable impact on the social well-being of the low income segments. Additionally, this would also assist in expanding and deepening the outreach of the FMFB, since un-electrified locations remain largely untapped by the microfinance sector.
Based on the secondary research carried out by FMFB, to efficiently develop and pilot test different models of interventions, FMFB entered into a strategic collaboration with Nizam Energy (Pvt) Limited (NE) in October 2013. Taking into account the technical nature of the intervention and with no financial institution having successfully managed and sustained a similar intervention in the microfinance sector in Pakistan, the FMFB evaluated the viability and modalities of a financial product aimed at providing access to alternate energy.
FMFB’s first intervention includes provision of flexible and affordable financial facilities to support acquisition of various solar home solutions – comprising solar lantern, solar lights, cell phone charger, FM radio, UPS, and DC fans. This product is targeted for low income segments, confronting long hours of electricity load shedding, or households living in off-grid locations.
On the basis of response from the target segments, FMFB has initiated its second intervention in this sector – supporting agricultural activities by financing solar tube-wells. These solar tube-wells are being financed to enable farmers to transition to more environment-friendly and sustainable energy solution, by substituting diesel cost used in conventional tube-wells.