session 1-combining various sources of financing

7/29/2019 Session 1-Combining Various Sources of Financing

1/17

Energy Access Business Models

Debajit Palit

Associate Director, TERI

February 8, Kathmandu

Energy for All Investor Forum


2/17

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Kerosene Total

Potential vis--vis Achievement in India

Off-grid lighting

Market

PotentialMarket

Achievement

No of

HHs


3/17

Overcoming challenges


4/17

What does TERI do?

Provision of lighting through

lanterns/fixed lightsHouseholds

Funding

agency

Technologysupplier

TERI

Local Financialinstitution

Energy

Enterprise

Funds

ProductsSmall Loans

Capacitybuilding

SCS/SMGs

Setting up & Responsive after

sales service, replication to covermore areas

VGF


5/17

DC distribution lines (voltage varies depending on distance) run alongrooftops from the battery bank to households over a short distance to

power lights, mobiles etc.

Solar DC micro grid

Source: TERI , 2012


6/17


7/17

Operation

No of connections per SMG: 10, 20, 40, 80, 100

Running time : 5-6 hours; 2 LEDs and Mobile charging

Installation Cost: Rs 3200 3800 per HH

Tariff: Rs 150 (~ 3 $) per month, charged by the operators


8/17

Costs and Revenue

Systemcapacity

(Wp)

System cost(USD)

Cost (USD) perwatt peak

Energy ProvidersShare (45%)(USD)

Yearly revenue(USD)

150 1142 8 514 663

300 2297 8 1034 1298

400 2669 7 1201 1326

600 4250 7 1912 2652

800 5724 7 2576 3260

1000 6659 7 2996 3315

Average 3328 7 1497 1365

Local banks (Aryabrat Grameen Bank, Kashi Gomti Samyukt Bank,

etc.) financed ~ 70% of the energy providers share at the

commercial rate and tenure of 2-3 yrs. 15 energy providers availed

the loan from the bank and rest invested their own savings


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Institutional Framework


10/17

Rural Energy Enterprises

Is in the process of incubating/facilitating~200 REEs over 2 years period

Start up inventory support and Incentives to the REE based on their

performance and quarterly achievements


11/17

Dibyajyoti Energy Enterprise, Assam

Start up capital Rs 50,000 (TERI

provided repayable inventory support )

Technical training Provided by TERI

FI linkages - NABARD (in process)

USP Community linkages and trust


12/17

Girijana Sanghata Energy Enterprise, AP

Start up capital Rs 50,000 (TERI

provided repayable inventory support)

Technical training Provided by TERI

FI linkage Mutually Aided Cooperative

Society (MACS MFI)

USP Community linkages and trust


13/17

Bankable projects to prove the

viability of solar technology

Extension of viability gap funding to

off-grid solar/ Risk guarantee fund

Mix of Grant: Debt: Equity

Finance

Finance

End Users

Institutions/delivery

Knowledge

Platform

Technology

Supply chain

After sales

Leveraging


14/17

Reducing costsNew operating

models

Adopting standard process and

metrics for scaling up

Buildscale/bundling to cut costs

& ensure bankability

Creating an eco-system for solar

electrification


Supply chain

Leveraging

End Users

After sales


KnowledgePlatform

Technology

Finance


15/17

Feedback for appropriate

technology development and

customization

(Strict) adherence to QAQC -

Making Quality the key vehicle

Last mile access for products

and (spares) missing link

Supply chain

Supply chain

End Users


KnowledgePlatform

Technology

Finance

After sales

Leveraging


16/17

Ensuring smoother after-sales and

maintenance

Creation of local level enterprises

that act as hub for sale and servicing

of clean energy products

After sales

End Users

After Sales


KnowledgePlatform

Technology

Finance

Supply chain

Leveraging


17/17

Thank You

[email protected]
mailto:[email protected]:[email protected]

session 1-combining various sources of financing

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