RE based energy access markets

An Investor’s Perspective

Energy for All Investor Forum 2014

Asian Development Bank, Manila

June, 2014

- EN Venkat , Aavishkaar

© Aavishkaar 2014. All rights reserved

What we have Done : Aavishkaar’s Journey

• Pioneers in early stage equity investing in inclusive business

• Focus of priority sectors including – Energy, Agriculture,

Education, Healthcare, Technology, Water and Sanitation

and Financial Inclusion for development

• Began in India but now expanding to Pakistan, Sri Lanka,

Bangladesh, Indonesia

• Ecosystem development approach: Intellecap, Sankalp, I3N

and IntelleGrow

US$ 150 mn under management

50+ enterprises

invested

© Aavishkaar 2014. All rights reserved

RE based energy business models can be driven by

applications or processes

Players in the Value Chain

Consumer Finance Monitoring and

Metering

Component

Manufacture

System Integrator

Operation & Maintenance Fuel Management

Venture Finance

Equity Debt

Products Provision of energy :

mini-grids

Examples

• Solar Home lighting

system

• Solar water pumps

• Bio-digesters

• Energy Storage

• Solar lantern

Examples

• Energy Access Program

• Anchor Load Driven

• Captive +

• Waste to Energy

© Aavishkaar 2014. All rights reserved

Productive use of energy and use of technology for

managing operations are key emerging trends in the sector

Products Lighting and

mobile charging

Comfort related products like fans

and television

Productive use (solar pumps and

cold storage)

Technology Providers

Energy Storage and component

manufacturers

Remote monitoring and smart meters

Payment technologies

Mini-grids Energy Access

Programs

Anchor load, bundled offerings (appliance lease &

energy charges)

Captive +

models and waste management

© Aavishkaar 2014. All rights reserved

Type of capital required and availability depends on the

stage of enterprise growth

Design Execute Grow / Diversify

Stages Design Execute Grow / Diversify

Key

Activities

•Problem statement

• Technology & business

model

•Pilot study

•Go to market strategy

Installation or manufacture

Operations /sales

Maintenance/ product

servicing

Movement to new

geographies

Change product/services/

applications

Types and characteristics of capital

Equity Seed Capital Early stage capital (VC) Growth stage capital (PE)

Grants Risk tolerant capital

Ecosystem building

•Catalyze commercial

capital (Typically not available from

Trusts)

Debt •Debt finance not available •Short term depending on

capital raising plan

• Long & short term

Customer

driven

•Unique / custom built

applications

•Program roll-out •New geographies/ Supplier

driven seeding programs

Thank You