An “energy performance” insurance that guarantees the return on investment of small and medium-sized enterprises (SMEs) in energy efficiency projects and photovoltaic generation facilities, minimising the risk of small entrepreneurs to adopt these initiatives. This is the proposal of the Inter-American Development Bank (IADB), which on Wednesday launched the ESI Program (Energy Savings Insurance), aimed at boosting these segments.
The model already operates in Europe and is available in neighbour countries such as Chile, Colombia, El Salvador, Mexico and Peru.
The insurance provides for the payment of the amount foreseen in the contract corresponding to the reduction of energy consumption – in the case of energy efficiency projects – or of electricity generation – in the case of photovoltaic installations – if these indicators are not achieved due to operational problems with the project or the equipment involved.
Small and medium-sized enterprises were identified as a priority for the programme by the IADB due to their importance in the country’s economy. The SME segment represents 99.5% of companies and 58% of formal jobs in Brazil and, in the bank’s assessment, they can gain budgetary space by optimising their electricity costs.