Liberian Micro-Finance Solar Lantern Project Wins World Bank Award
Monrovia, 14.05.2008
The Center for Sustainable Energy Technology (CSET) was one of the winners of the World Bank/IFC award for "Innovations in Off-Grid Lighting Products and Services for Africa”. The NGO was awarded a USD $200,000 grant to implement a project to provide improved lighting and battery charging for low-income households and street vendors through the use of micro-financed solar/LED lanterns in rural Liberia.
The winning idea was one of 16 that were selected in Accra, Ghana on May 12th from a shortlist of 52 finalists. CSET decided to utilize and build upon the strength of the church-community relationship in Liberia’s rural communities for the development of a micro-credit financing mechanism for solar lanterns and battery chargers.
Working through the social network of the church will ensure high repayment rates and effective advertising. The strength of a community’s religious network will create a rural market for sustainable lighting.
Innovative financing will provide needed micro-credit services to rural communities, and will introduce solar/LED technologies on a commercial basis and at an economic level accessible to such communities. CSET will work together with the private sector, as a service-oriented NGO, to develop and implement a sustainable business model for rural communities.
According to the Government’s draft Poverty Reduction Strategy Paper, less than 2% of rural residents have access to electricity, produced mainly from private diesel generators at prohibitive costs; the remainder depend on candles, kerosene, and palm oil for lighting. Since their expendable income is low, an innovative approach was needed to provide improved lighting.
The Centre for Sustainable Energy Technology was the recipient of a REEEP grant to help the government of Liberia draft a new renewable energy law. The NGO is active in the renewable energy sector and its work was essential to the government’s decision to enact new legislation in support of renewable energy.