March 17, 2021
I am honored to join you today to announce the launch of this new credit guaranty, which will significantly advance our efforts to reduce emissions and expand access to renewable energy in India.
The climate crisis is one of the biggest challenges the world faces, and combating climate change is a core priority for U.S. International Development Finance Corporation. DFC has more than $5 billion invested in renewable energy. Around the world, we support projects that are helping countries generate electricity from the sun, the wind, geothermal, and other renewable resources.
These projects not only reduce emissions, they help lower the cost of energy, reduce the need for imports. They strengthen countries’ energy security and support economic growth.
The credit guaranty we are launching today with Electronica Finance and cKers Finance is special for another reason as well. It will support lending to micro and small and medium enterprises—MSMEs—that are such an important source of innovation and so critical to the local economy.
By supporting lending to MSMEs that are investing in or providing distributed renewable energy, this project has the potential to significantly expand residential access to renewable energy, through technologies such as rooftop solar.
In India, an estimated 13 percent of all households are not connected to a central utility grid. For these homes, distributed renewable energy can provide a crucial source of power to generate light, to power small appliances, and even charge cell phones. When there is electricity, children can do homework after dark, parents can more easily prepare food, and the entire family enjoys an elevated quality of life. The impact is transformative.
By lending to businesses that are investing in distributed renewable energy, Electronica Finance and cKers Finance, are helping to lead the innovation that will ultimately bring cleaner electricity to more homes.
DFC is proud to support this transaction which will mobilize up to $41.7 million in financing to support the deployment of renewable energy technologies.
We are honored to be partnering with EFL and cKers on this transaction and we hope that this is the start of an ongoing relationship as we seek out new and innovative ways to support the renewable energy sector in India.
EFL and cKers bring complementary backgrounds and expertise to the table, with EFL focusing on the consumer side and cKers on the provider side. Both are committed to ambitious renewable energy goals for India.
We are also proud to be working with USAID/India, Encourage Capital, and Climate Works Foundation on this transaction, all three of which have brought valuable financial and technical resources to the table. We could not have gotten to this point without you.
We have a high level of confidence in this combination of partners, and look forward to getting loans out the door under this guaranty and into the hands of borrowers ready to employ renewable energy technologies.