International Activities
Micro Small and Medium Enterprise Green Future Initiative

Micro, Small, and Medium Enterprise Green Future Initiative

The Micro, Small, and Medium Enterprise (MiSMEs) Green Future Initiative (MGFI) facilitated by NREL, offers affordable energy solutions for disadvantaged communities, and women- and minority-owned businesses, and informal sector businesses.

MGFI is redefining energy narratives for these businesses, ensuring that sustainable energy is not a luxury, but an accessible reality for all.

Project Objectives

Yucatán Governor, Mauricio Villa speaks at podium in front of panel

Yucatán Governor, Mauricio Villa, at the MicroYuc Verde Launch in Merida, Yucatán.

The MGFI fosters sustainable economic growth within the MiSMEs sector. The primary objectives center around:

Increasing financial inclusion: Addressing financial access barriers that many MiSMEs face, particularly those lacking credit history or operating within the informal economy
Maximizing energy cost savings for business owners: Through energy efficiency audits and techno-economic analyses, business owners are empowered with the knowledge to harness potential savings
Empowering MiSMEs to make strategic investments: Providing them with essential trainings on energy efficiency and microfinance and offering comprehensive microfinance counseling to guide potential energy efficiency investments
Catalyzing economic growth within the MiSMEs sector: By positioning these businesses at the forefront of sustainable energy transition, we aim to boost their economic footprints, by shrinking their environmental footprints.

To achieve these goals in our pilot program within the Mexican state of Yucatán, NREL adopted a synergistic approach. MGFI facilitated initial, complimentary support services, delivered by MGFI-trained local university volunteers. These included hands-on training for MiSMEs owners and on-site energy audits, allowing each business to tailor technology and financing solutions to their unique needs.

Program Highlight: Yucatán Pilot

In 2021, NREL began collaborating with the Yucatán, Mexico's state government, to pilot MGFI and help address the lack of affordable clean energy options available to MiSMEs in the region. Through this initiative, NREL worked with Yucatán to develop a new green micro-finance program, MicroYuc Verde.

Since the pilot’s launch, the program has demonstrated tangible impact. Program progress and accomplishments include:

Overall, the program facilitated 20 loans for energy efficiency upgrades in MiSMEs, totaling MXN 5,514,377 (approximately $320,346).
Gender-based loan distribution: Addressing financial inclusivity, 25% of loan recipients were women-owned MiSMEs. A notable highlight is the 100% performance rate among the women-owned MiSMEs, signifying all female beneficiaries made their payments punctually, whereas male recipients maintained an average 73% timely repayment rate.
The overall loan performance rate stands at 80%.

As the project continues to grow and seek avenues for expansion, the Yucatán government's MicroYUC Verde initiative stands as a testament to its success and influence. Offering credits specifically tailored for energy efficiency, circular economy, and sustainable development, the initiative provides:

Affordable financing at a low 5% annual interest
Generous credit limits up to $500,000 pesos
A 24-month repayment term, with a 90-day grace period for the initial payment
Ongoing training on energy transition, financial literacy, and environmental inclusivity
An interdisciplinary team for comprehensive energy and financial audits.

These advancements are fostering an environment in Yucatán where MiSMEs can thrive with accessible finance and tools to drive energy efficiency and sustainable business practices. As MGFI looks to the future, it remains committed to iterating, expanding, and furthering its reach, ensuring the Yucatán Peninsula remains a beacon of sustainable business practices in Mexico.

Scalability and Replicability

The team's direct involvement in Yucatán has developed a model tailored to support local MiSMEs with an emphasis on those in economically under-resourced communities, MiSMEs led by women and ethnic minority communities, and MiSMEs operating in the informal sector. Working within the framework of an established non-profit, the initiative has generated practical insights that highlighted the adaptability and efficacy of the strategies implemented.

Building on the Yucatán experience, there's potential for broader application. Different regions present varied challenges and opportunities, but the core elements of the model can serve as a foundation for adaptation in these new environments.

Globally, the financial hurdles faced by MiSMEs are substantial. The team’s approach offers a pragmatic solution. By leveraging innovative fintech solutions and the adaptive strategies tested in Yucatán, there’s an opportunity to advance financial inclusion and sustainable energy integration, driving tangible impacts across the globe.