Masters Thesis

Small community finance for renewable energy systems in Chiapas, Mexico

In this project, I identified finance mechanisms for use in a small, mainly indigenous community in Chiapas, Mexico. The mechanisms can make renewable energy more affordable while allowing these communities to maintain some control of the projects. In addition, I designed a framework for a financially sustainable payment collection, monitoring, maintenance and education program that aims to ensure the successful operation of the energy technologies and is paid for through the sale of voluntary carbon credits. This research is based on review of literature and current market practices, along with field research and interviews in both Nicaragua and Chiapas, Mexico. Although there are opportunities for small communities to finance renewable energy, many small communities lack the funds, knowledge and access to tools that can allow them to successfully implement a program while using those tools at their discretion. This project gives EduPaz, a Chiapas-based Microfinance Institution (MFI), the roadmap to access those tools. My key finding is that a solid roadmap for this program will allow the MFI, EduPaz, to show external funders (microlenders, subsidy providers, and carbon credit funds) of the technology used that the monies available will be used appropriately. In addition, EduPaz is well-positioned to draw from its own expertise and understanding of local conditions as it works to implement a more sustainable future for community members that choose to participate in the program. This project examines most aspects of iv this undertaking for EduPaz and provides a framework for making renewable energy systems more affordable via an energy services finance program.

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