Coming soon!!!
Thank you for your patience.

Financing Small Hydro Schemes in Peru

The objective of the project is to improve the living standards of the rural population in Peru by implementing Small Hydro Schemes (SHS), forming sustainable electricity services and promoting the productive use of energy. Its purpose is to promote a financial model that combines subsidized credits with technical assistance and an appropriate management model. The project is aimed at meeting small energy requirements in isolated rural areas that are impossible to serve with conventional electricity grids.

The project is based on two agreements with the Inter-American Development Bank. Under the first agreement for the period between 1992 and 1998, ITDG (Intermediate Technology Development Group), now called Practical Action, received a reimbursable contribution of USD 400,000 to establish the “Revolving Fund”. A second agreement was signed in 2000, increasing the revolving fund by USD 200,000 and recommending the establishment of new management models and the promotion of productive and business activities capable of generating employment and income. The financial model with the “Revolving Fund” combines a soft loan that includes technical assistance with joint financing by different institutions.

The implementation of SHS has both replaced and prevented the installation of diesel systems, which is a more affordable technology for rural populations. The CO2 emissions from burning fossil fuels have, therefore, been reduced. In addition, the use of electricity has replaced the traditional use of candles and kerosene burners that not only contaminated people’s homes but were also health hazards.

Currently, the revolving fund consists of about USD 600,000; 31 loans worth USD 880,000 have been granted for 28 SHS and 50 single-family photovoltaic schemes, and more than 2,000 rural families have benefited from the project.


  • FacebookTwitterLinkedIn
  • Share