Overview and Updates

Contents

• Roadmap for 24*7 Power in Karnataka

• Value Added Tax on Renewable Energy

Focus Areas and Key Projects

Decentralized Renewable Energy Access

Energy Entrepreneurship and Ecosystem Development

• Skill Development through ITIs

• Financing for Energy

• North East ecosystem for energy access

Social Enterprise Issues

• Impact Investing in the Social sector

Global Replication: Exploring Ecosystem in Africa

Genesis and Approach

About SELCO Foundation and Policy Group

DECENTRALIZED RENEWABLE ENERGY ACCESS

Three fold mandate: Plugging gaps in the ecosystem

Develop holistic linkages

Replicate concepts and processes

The Policy Group within the Foundation is one of the teams charged with plugging the gaps in the ecosystem from a policy perspective based on inputs from the Foundation’s R&D Labs, practitioners and stakeholders in the sector. This includes facilitating the creation of more practitioner–friendly, field-driven policies that make better integration and

implementation of decentralized sustainable energy solutions possible.

Approach

DECENTRALIZED RENEWABLE ENERGY ACCESS

Differentiators - SELCO Policy Group

DECENTRALIZED RENEWABLE ENERGY ACCESS

Policy Focus Areas

ENERGY ENTREPRENEURSHIP&

ECOSYSTEM

SOCIAL ENTERPRISE

DECENTRALIZED RENEWABLE ENERGY ACCESS

GLOBAL REPLICATION

Key Projects

ENERGY ENTREPRENEURSHIP and ECOSYSTEM

•Skill Development

•Financing for End users and

Entrepreneurs

•National Clean Energy Fund

•Ecosystem Needs in North East

SOCIAL ENTERPRISE ISSUES

•Impact Investment

•Reporting Framework-

Impact assessment

•Due diligence processes for Investments

DECENTRALIZED RENEWABLE ENERGY ACCESS

• Energy Planning with

Karnataka Govt

•Value Added Tax

• National Solar Mission

• Low Carbon Development

GLOBAL REPLICATION- Ecosystem Approach in African regions

Asked by KERC to be

part of 24*7 Power report

Data collection and Analysis for districts

across Karnataka

First Draft of Report with

Energy availability map

and DRE recommendatio

ns

Final report submitted and

Launch of Report

expected

Proposal for similar

intervention in Tamil

Nadu (WRI)

Advocacy on the need for

similar analyses in

other States

ENERGY INTEGRATION PLAN: Roadmap for 24*7 Power in Karnataka

Project Outline:

• Part of a study commissioned by Karnataka Electricity Regulatory Commission (KERC) Chairman

• Required analyzing data on the Availability and Adequacy of electricity in districts across Karnataka.

• Gaps identified and a plan to integrate Decentralized Renewable Energy solutions such as Solar Water pumping, Micro grids, Energy for livelihood applications proposed.

• Inputs have been incorporated in the Roadmap on 24*7 Power report for Karnataka State.

July 2014

Nov 2014

Dec 2014

Feb 2015

Mar 2015

May 2015

June 2015

Energy Access mapping study undertaken in 5

districts of Karnataka

Meeting with Energy Secretary; Draft Solar Policy provides for VAT

exemption on Solar

Suggestion on VAT exemption on Solar rejected by

Finance dept

Meetings with Energy, Finance

Dept, Commercial taxes dept

VAT exemption announced in

Budget FY 2015-16

Advocate for GST

exemption on RE devices at National level

ENERGY REGULATIONS: Value Added Tax on Renewable Energy in Karnataka

Project Outline:

SELCO Foundation has been working over the last 2 years to facilitate the Exemption of VAT on Renewable energy devices and spare parts in Karnataka state. In addition to increasing the system cost for low income households, this taxation is contradictory to the intentions of the government which also provides subsidies.

On 13th March, 2015, the Chief Minister of Karnataka announced the exemption of VAT on Solar panels and solar invertors as part of the year’s State Budget.

Moving forward, the team will work on ensuring a similar exemption for all RE devices when the new GST regime comes into place (in FY 2016-17)

Feb 2013

Jan 2014

Feb 2014

Dec-Feb

2015

Mar 2015

June- Dec 2015

Meeting with then Energy Minister

and then CM about the VAT removal

Alliance Charter to

create network signed by 10 organizations

Final Proposal submitted and

Funder agreements signed

CEO officially on board

CLEAN Meetings with key

stakeholders; Projects started

CLEAN to be officially launched and Membership

drive

Policy team to deliver on North

East policy ecosystem gaps

NETWORK FOR SECTOR: Creation of Clean Energy Access Network (CLEAN)

Project Outline: SELCO Foundation is one of the founding members of the Clean Energy Access Network (CLEAN) and currently serves on the Advisory Group of the Network.

• CLEAN is an all India representative organisation for decentralized clean energy entrepreneurs and related stakeholders.

• Technology, scale and business model agnostic, and includes both electricity and non-electricity energy usage.

• Delivers five core sets of services,: information and networking; technology development and innovation, skills and training, opportunities for policy advocacy and increased access to finance.

Feb 2014

Jun-Jul

2014

Dec 2014

Feb-Mar 2015

April 2015

June-July 2015

Skill development emphasized

as a key need for sector

ITI course suggested to

Energy and Labour Department in

Karnataka

Meeting with Staff Training centre (in charge of course

curriculum development)

Meeting with Skill Development &

Entrepreneurship Ministry

MoU with Industry partners;

Content developer identified

Planning meeting with

STARC and Stakeholders

Final course and material submitted to

STARC

SKILL DEVELOPMENT: Institutionalization of RE Technician course in ITIs

Project Outline:

• Engaged in a project with Staff Training & Research Centre (STARC), Department of Employment and Training (DET) in Karnataka

• Goal Create a 4-6 month Renewable Energy Elective/Module which can be part of the ‘Electrician trade’ in state ITIs- with State level certification.

• Content to cover theoretical and practical aspects of Solar, Grid integration, Wind and Pico hydro, with inputs from relevant Industry partners.

• Larger goal institutionalization of framework and curriculum through Ministries at National level – Ministry of Skill Development and Entrepreneurship, Ministry of Human Resource Development etc.

June 2014

Nov 2014

Dec 2014

Feb 2015

Mar 2015

Approach National

Ministries with finalized course and Case study

April 2015

May 2015

June 2015

Changes in National Solar

Mission guidelines for

off-grid

Increase in cess on coal to Rs. 200, which goes to National Clean Energy Fund

Possible removal of subsidy in Solar Mission suggested

by MNRE

Workshops with Financiers, CLEAN,

Practitioners on NCEF, end user

and Entrepreneur Financing

Meeting with RBI, NABARD, Policy makers on

needs of Financiers; Share final note on NCEF

utilization possibilities with MNRE, Ministry of Finance

FINANCING: National Clean Energy Fund and Capacity building

Dec 2014

Feb 2014

Mar 2014

April 2015

May 2015

Project Outline:

• Organizing 2 Banker/Policy maker meetings in the next 2 months with the objective of promoting financing for DRE solutions .

• Workshop 1: Innovative Financing and discusses challenges with Regional managers and Priority sector lending officers.

• Workshop 2: Aims to communicate these challenges and alternate policy models to Representatives from Apex banks and Policy makers. The Policy making bodies include Reserve bank of India (RBI), National Bank for Agriculture and Rural Development (NABARD), Ministry of Finance, SIDBI, Ministry of New and Renewable Energy (MNRE) and so on.

• Use workshops to begin suggesting alternative models for usage of National Clean Energy Fund, in the energy access and Entrepreneurship space

SELCO Foundation supported

Network- CLEAN is officially announced

Discussions with Entrepreneurs to narrow down on key ecosystem

factors

Discussions with CLEAN

practitioners on the ground to

understand constraints

Finalize report on Ecosystem gaps and ways to address them; Plan for interventions with CLEAN

and partners

ECOSYSTEM BUILDING: Scenario and Gaps in North East India

Nov 2014

Jan-Feb

2014

Mar 2014

April- May 2015

June-July 2015

Project Outline:

• Undertaking an evaluation of the Ecosystem for energy services in certain specific regions in the North east.

• Regions to be finalized based on inputs from CLEAN’s stakeholders in the region.

• Formulate an inclusive renewable energy implementation model that takes into account the complete ecosystem i.e. technology, finance (capital & end user), supply chain, capacity building, scalability/replicability, institutional aspects, policy framework and livelihood aspects of renewable energy application(s).

• These can then be implemented as part of CLEAN’s activities in the region.

Finalize list of Ecosystem factors

and prepare for Field research and

interactions

Workshop 1: Expectation Gaps

among Investors and Practitioners

Due Diligence booklet for

investors and practitioners

Workshop 2: Defining Sustainable

Investments for Social Enterprises

Advocacy for these recommendations

into ongoing discourse on impact

investments

IMPACT INVESTING: Bridging Gaps in Sustainable Investments

Project Outline:

• An insider’s perspective of on-the-ground challenges faced in balancing the right mix of investments impact on missions of social enterprises

• Recommendations that could help guide the growing social investment arena on how to support the development of sustainable social enterprises

• Act on recommendations by incorporation into training programs for fund managers, conducting workshops that highlight the expectations gaps and dive into a deeper understanding of sustainable investing, tap into impact investment networks to advocate for these changes

• Deep dive into related aspects: fine tuning impact metrics (organization and end user) for social (energy) enterprises, note on due diligence process as per SELCO and incubatees experience (negotiation process, checklist and term sheet clauses).

Apr 2014

Oct 2014

Nov-Mar 2015

Oct-Nov 2015

Report: Bridging Gaps among Investors and Practitioners

Apr 2015

Conversations with Practitioners and

previous workshop attendees on possible focus

regions

Based on previous

experience and conversations,

finalizing regions for focus

Field research and Understanding of

Focus regions; building

partnerships

Undertake Replication

workshop in Africa with partners, entrepreneurs

GLOBAL REPLICATION : Exploring the Ecosystem in the Africa context

Project Outline:

• In-depth field research and analysis in 2 regions of Africa to better understand energy access ecosystem (potential regions marked in red on map)

• Ecosystem analysis and corresponding policy interventions

• Replication through local partnerships, workshops on learnings/best practices/failures from another context like India.

Jan 2015

Feb 2015

Mar 2015

Apr-Sep 2015

Oct-Nov 2015

Tentative plan on exploring

Ecosystem aspects and

Replication in African regions

Identify and advocate for a Policy intervention

based on learnings of region and replication

possibilities

Sep-Dec 2015

Global Replication/Adaptation

Decentralized sustainable energy

Social Enterprise issues

Micro energy entrepreneurship

Partners and Supporters