Using Microfinance to Expand Access to Energy Services: The Emerging Experiences in Asia of Self-Employed Women's Association Bank (SEWA), Sarvodaya Economic Enterprise Development Services (SEEDS), Nirdhan Utthan Bank Limited (NUBL), and AMRET

This study analyzes the opportunities and challenges of integrating energy products into an MFIs product mix. It examines four MFI energy-lending programs in Asia, namely SEWA Bank (India), SEEDS (Sri Lanka), NUBL (Nepal) and AMRET (Cambodia). The study analyzes MFIs lending programs and financial and accounting reports. Study findings indicate that:

• Each MFI has its own competitive edge that gives it a unique position;
• Country context has significant influence on the implementation and market potential of energy lending by MFIs;
• Market potential for energy lending by MFIs is huge;
• MFIs, energy suppliers and energy sector facilitators could form collaborations to expand energy lending;
• MFIs need to assess their cost structure, increase efficiency of operations, and scale up their respective markets to achieve a critical mass.

The study states that initiatives to foster development of microlending for energy consumers can come from any stakeholder as long as there is collaboration with other stakeholders. Recommendations include:

• Strong coordination among relevant stakeholders;
• Innovative market development and technology selection;
• External funding for research, market promotion, and introductory pricing;
• Innovative technical and credit risk mitigation.