Purpose

To expand the investment portfolio and incorporate additional financing mechanisms into the S3IDF model to facilitate local finance and enterprise development for small REES projects with large pro-poor impacts, global and local environmental benefits, and the continued dissemination of the model's successes and lessons.

Main Activities

• Conduct deal identification, feasibility analysis, financial engineering (transaction and ownership/operations business structuring), assist during implementation and operation, and disseminate M&E lessons;
• Expand S3IDF's market-shed;
• Introduce policy initiatives (e.g., sub-franchise agreements) for specific new investments;
• Tackle related issues mentioned for larger and longer gestation projects, which need such structuring and risk mitigation approaches.

Expected Impact

• Further demonstration and dissemination of new/innovative financing and related risk mitigation ownership arrangements, (e.g. BOT) for "collateral-poor" and/or inexperienced owner/operators in REES projects;
• Implementation of 15-20 additional poverty alleviating and environmental benefits transactions with local financing (increased local financial-institution involvement) and expansion of the portfolio's market-shed;
• Replicable - but new to the portfolio - innovative financing/deal structuring arrangements and associated business models owning/operating pro-poor REES investments;
• Increased understanding of the poors' willingness-to-pay for energy services;
• Additional M&E and dissemination of lessons;
• New/additional international financial resource mobilisation for REES investments from socially, ethically and/or environmentally concerned individuals (including GHG offsets).