SCOPE: Development of the Energy Savings Insurance (ESI) Program in SMEs in the agricultural sector (Mexico – FIRA)
DESCRIPTION: Thanks to the support of the Clean Technology Fund (CTF), the Danish Government through the Danish Energy Agency and the Inter-American Development Bank, the ESI Program was replicated in Mexico, with FIRA, a second-tier rural development bank. The program implements mechanisms to ensure energy savings in micro, small and medium enterprises in the agricultural sector of Mexico, and focuses on replacing energy inefficient equipment and productively. It currently covers technologies such as boilers, electric motors, industrial cooling, cogeneration, compressed air and solar thermal for hot water. In Mexico the ESI Program is targeting an investment stimulus of USD 25 million in the agro-industry sector with over 190 EE projects amongst its beneficiaries. Its mechanisms have been consolidated and a dedicated financing line has been launched and is currently starting to get traction in local markets. Most agribusinesses substantially lower their energy costs, recurring energy savings can reach up to 40% with payback periods between 2 to 5 years, at the same time the SMEs update and substitute obsolete equipment, reduce maintenance costs and downtimes, thus significantly increase competitiveness. Highly regarded by different institutions of the Mexican government and with the key participation and support of ASERTA as the insurance provider, and the Association of Normalization and Certification (ANCE) as the validator and verification entity, ESI is overcoming important barriers, high technical and financial risk perception in energy efficiency matters, lack of know-how and EE project management, amongst others. Taking advantage of FIRA’s presence in the Mexican agro-industry this approach has taken off promoting the mutual benefits to all the stakeholders such as SMEs and technology services providers (TSPs).
PROJECT TYPE: Technical Cooperation
OPERATION NUMBER: RG-X1258