The Renewable Energy and Energy Efficiency Partnership (REEEP), a Vienna based non-government organisation engaged in promoting renewable energy, has provided 667,500 Euros in seed funding for eight new finance projects to accelerate the clean energy market in the developing world. This includes funding for establishing retail outlets in Karnataka for selling energy efficient compact fluorescent lamps, pressure cookers, stoves and solar lanterns in villages.

The Vienna-based NGO will associate with microfinance institutions to provide finance to end users. The funding for small-scale projects isintended to open up access to energy services for the rural poor, according to an e-mail message from REEEP. The agency is collaborating with the Kerala government in the renewable energy sector. The project involves study on expanding the renewable energy network and funding for various projects in a time-bound manner. REEEP has also funded various projects in Andhra Pradesh and Tamil Nadu. It will work in Uganda to help microfinance institutions (MFIs) toestablish small businesses selling solar, biogas and high-efficiency cook stoves, and to provide loans to 5000 consumers who buy them.

The REEEP project in Brazil targets the agricultural sector for financing to make solar water pumps for irrigation, solar dryers for fruits, and bio-digestorsfor agricultural waste available to small farmers.

The organisation has taken up a successful microfinance mechanism known as Private Financing Advisory Network (PFAN)), a finance coaching and investormatchmaking service that works well in many developing markets as well as India and China.

With microfinancing at one end of the spectrum, other REEEP projects will aim to unlock the potential of large-scale investment in renewables.Institutional investors such as pension funds, insurance companies, and savings and investment banks see high risks associated with the emergingmarkets and with renewable energy. A REEEP project will seek to develop risk mitigation strategies and financing products through intermediaries to attract these major players to the renewables market, according to the organisation.

Source: http://www.indiamicrofinance.com/

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