Gham Power: EPC to Energy Services · Gham Power: Solar EPC Transitioning to Developer/Energy...

GhamPower:EPCtoEnergyServices

AnjalNiraula,GMGhamPower

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GhamPower:SolarEPCTransitioningtoDeveloper/EnergyServicesModel

• Startedin2010– Developscommercialsolar+ruralmicrogrids– Focusonbusinessesandproductiveuse

• 1.2mWinstalled;900+projects:– UNICEF(42kW)– Nepal’sfirstsolarmicrogridsinKhotang(70kW)

• Powers2Ncell telecomtowers– RatnanagarHospital(21kW)

• Currentprojectpipelineworth$10million,including:– 515kW/$900kcontractforCIAAbuilding– 115kW/$160kcontractforTeachingHospital

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EnergyCrisisinNepal16HourDailyBlackouts

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7MillionWithoutElectricity

21MillionGridConnected

500MWEnergyDeficit

531MWPrivatelyOwnedDieselGenerators

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StartedwithSolarHomeSystemsResidentialSystems– DirectSalesorFinanced

Price:$1,000- $5,000Size:200watts– 1kW

• ForUrbanHouseholds• 5-yearbankfinancingorcashpurchase• Unpredictableinstallationlaborcostsdependingonhousewiringconditions

• Highsupportcost• Difficulttoscale

SmallHospitals/ClinicsAllRightsReserved©2010-2016,GhamPower

FoundScalewithProductiveEndUse(PEU)

Water Pumping

GrindingMills

• Systemsize/revenuehigherwhensolarpowersbusinesses• Increaseinincome>energytariff• Projectsizes:$5k- $20k• PPA/Leasespreferable,butlackofcustomercreditscoresahurdle

inbundlingprojectsandraisinginvestment

Petrol Pumps

43KWSystematUNICEFHQOfficeComplexinKathmandu

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StartedDeveloping/DeployingCommercial&IndustrialSolar

Size:30kWandhigherPrice:$50k+

DieselUsage:50+%ReduceCosts:20+%

• HighlymotivatedcustomersforleaseorPPAmodels

• “Chickenoreggproblem”– needtosetupaninvestmentfundbeforeapproachingcustomers

• Needtobeatbankinterestrates

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Supportedby

Developed/Deployed70kWMicrogridPilot

• Longdevelopmenttimenotsustainable

• Solution:phasedapproach->startwithPEUanchorloads,thenextendtomicrogrids

ProjectFinancingKeytoScale:DirectSalesModel

• Paymentterms:10-20%upfront;remainder@completion

• Needbankdebttofundinstallationfor1-3months– 70%ofprojectvalueinlettersofcreditorcash– 5-10%performancebond

• Bankdebtsrequire30%cashasequity+assetsonbalancesheet– Requiremuchlesswithacreditguarantee(local/international)

• Weareconstrainedbyourcurrentcreditlineof$250k(andcashposition),notbyourpipeline

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ProjectFinancingKeytoScale:Pay-As-You-Go(PAYG)/LeaseModel

• MultipleprojectsbundledintoSPV– Equityinvestment=30to50%ofprojectcost– 50to70%inbankdebt– SPVhiresGhamPowertoinstall&maintainprojects

• SPVearnsongoingincomefromenergycustomers– Customerspayflatfeepermonth– SPVpaysannualorquarterlydividendtoinvestors– TargetIRR:15%orhigher

• Customerscomparelease/PPAratestobankfinancedrates– Needtobeatbankfinancing,AND– Generatesavingscomparedtocurrentenergycosts

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Raisingfundstoimplementprojects• Bankshesitantinlendingtoruralcustomers– Nocreditratings– Lackofbranchesinruralareas

• MFI’sconstrainedtolend>$2000

• CurrentlydevelopingbundleofprojectsforPEUapproach– Specificgeographicareas– Developingdealer/agentnetwork– Aggregatingprojectstogetherforinstitutionalinvestors

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ProjectName Size(kW) Value EstimatedClose EstimatedInstallationStartChitwanMedicalCollege-Hostel 70 205,000$ 2016-April 2016-JuneChitwanMedicalCollege-Hospital 650 1,200,000$ 2016-June 2016-SeptemberCIAA 514 980,000$ 2016-April 2016-JunePackage1 2,000,000$ 2016-October 2017-JanuaryPackage2 1,000,000$ 2016-October 2017-January

Total 5,385,000$

CurrentPipelineValueEstimate:$10million

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SystemType #ofProjects ProjectValue

C&I 47 3,342,076$

Microgrid 24 638,340$

PEU 113 603,318$

SHS 3 7,019$

GrandTotal 187 4,590,753$

$5mmfromCurrentCustomerProposals

$5mmfromTenders/RFP’s– announced andupcoming

*

*Alreadyawarded

Team:GhamPower

JeevanBaidyaInstallationsManager

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SandeepGiriCEO

Siliconvalleyentrepreneur;originallyfromNepal;launchedmultiplesuccessfulsoftwareVenturesasCTO/CEOsince2001;lastcompanyacquiredbyOracle

Renewableenergyexpert.ResearchedrenewableprojectsforNAST.Master’sDegreeinRenewableEnergyfromUKandGermany.

AnjalNiraulaGeneralManager

Sudeep TuladharOperationsManager

7+years’experienceinmanagingoperationsinlargescalemanufacturingandconstructionProjects.MBAfromAIM,Master’sDegreeinProductionEngineeringfromMNNIT,India.

5+yearsofhands-onexperienceinbothurbanandruralsolarPVprojectdevelopment,executionandinstallation.

SocialEnterprisewithStrongPartners

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Technology Finance DevelopmentAgencies/Funds

Wayforward

• DifficultexecutinglargeprojectsasEPC– Workingcapitalissues

• Microgridà difficultwithoutcontinuoussubsidy&clarityinpolicies

• PEUapproachofmicrogrids easiertoscale• FinancialsupportrequiredforbothEPCandEnergyservice

models• Raisingadditionalfunds

– Optiontoinvestasconvertiblenote,SeriesAordirectlyintoprojects

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