Feasibility Study for a Credit Facility, Guarantee Scheme and Technical Assistance for Clean Energy Financing

Challenge

Poor and low-income communities and Small and Medium Enterprises (SMEs) in Pakistan continue to face energy access gaps, while the country also needs to address broader energy production challenges. Local financial institutions required feasible mechanisms to finance clean and renewable energy solutions that could improve environmental, health, financial, and economic outcomes.

Client

Agence Française de Development (AFD) through Enclude NL

Approach

Reenergia Impact conducted a feasibility study for the financing and deployment of clean energy solutions through local financial institutions in Pakistan. Working for Agence Française de Développement (AFD), the team assessed the viability of a credit facility, guarantee scheme, and technical assistance mechanism to accelerate investment in renewable energy. The study involved extensive stakeholder engagement with the State Bank of Pakistan, Pakistan Microfinance Investment Company, Pakistan Poverty Alleviation Fund, commercial banks, and relevant government ministries, including Finance and Energy, to identify implementation pathways and market opportunities.

Outcome

The study identified potential mechanisms to close the energy access gap for low-income communities and SMEs through local financial institutions. It contributed to the design of a framework for clean energy financing, with expected benefits for environmental outcomes, health, and economic development.

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