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Renco Technologies Private Ltd.
Chennai
www.rencotech.com
044-2498 8950
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About RENCO
Indias Energy Requirements
Energy Savings Potential
What is an ESCO?
Services Offered by an ESCO
Advantages of ESCO Business
Principles of ESCO Business Model
ESCOs Financial Viability
Open House
Agenda
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About RENCO
The Pathfinders ofGreen Energy Projects
&
Carbon Credits
in India
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RENCOs Mission
To Accelerate the use ofGreen Energy (Renewable Energy &
Energy Efficiency) Technologies for Small, Medium &
Large
Industries or Corporates
in India & other developing countries
using ESCO Model,
for the reduction of Global Warming &
promotion of Sustainable Development
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Overview of RENCO
Clean Energy Intervention Services Company
Established in Chennai, India in July 2001
The first Private Sector company in South India
specializing in One Stop Center Services for Green
Energy Projects
Works in conjunction with RENCO USA Inc., New York.
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Carbon Transaction Advisory Services
Arranging Equity / Project Finance
Renewable Energy & Energy Efficiencys latest and
commercially viable Technologies
Identifying Capital Equipments & Plants for RE & EE
Projects
Assist Organizations to go Carbon Neutral
One Stop Service Center
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Indias Energy Requirements (2005 2030)
Primary Energy Demand by Region in the Reference Scenario
Source: World EnergyOutlook 2007
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Industry Energy Saving Potential
Iron & Steel 10%
Fertilizers 15%
Textiles 25%
Cement 15%Chlor Alkali 15%
Pulp & Paper 25%
Aluminum 10%
Ferrous Foundry 20%
Petrochemicals 15%
Glass & Ceramics 20%
Refineries 10%
Energy Savings Potential by Industry
Source: Confederation of Indian Industry - 2007
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RENCOs ESCO Biz Model
Renewable Energy & Energy Efficiencys latest and
commercially viable Technologies.
Carbon Transaction Advisory Services.
Arranging Equity / Project Finance.
Carbon Trading
Go Carbon Neutral Services
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Feasibility Studies and Analysis
Engineering Designs
Providing or Arranging Financing
Project and Construction Management
Purchase and Installation of Equipment
Training
Maintenance of Efficiency Measures
Monitoring of Project Performance
Administration Services
Services Offered by ESCO
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ESCO Biz Model
Establish the Capital Equipment Cost
Workout the quantum of energy to be saved
Identify constraints & bottlenecks in the project
Agree on Manpower requirements for performance and
monitoring
Also agree on O&M package
Agree on Equity contribution level
Agree on Revenue Sharing Ratio & Duration
ESCO is an Energy Services Company
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Advantages of ESCO Biz Model
Reduction of Fossil Fuel consumption
Potential for generating Carbon Credits (CERs or VERs
or ESCs)
Increases Process Industries profitability & also its
share value
Enables the Process Industries to retain long term
Employees & attract quality new recruits
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Basis of ESCO Biz Financing Model
Returns must be commensurate with Equity Investments
High degree of commitment by three (3) parties
Project Beneficiary (Industrial Company),
Technology & Capital Equipment Supplier
Service Provider (RENCO)
A win-win scenario for all three (3) parties
Biz Model well-proven in industrialized countries & now
being
introduced in India
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Non-ESCO (Own) ESCOSPV Third Party
Total Financial Risk Shared Financial Risk
Carbon Credits Headache Minimizing the risk in Carbon Credits
(VER
values considered for calculations)
Going away from Core Competence (Time
& Cost Over run)
SPV is a specialists company with all skill
sets
Future Power prices remain a question
mark
a) Future Prices are projected for the 1st
10 years
b) The rest of 15 years of life of the
equipment costs only the O&M cost
considered. Hence Power generationcost is negligible
No Green Company Green Company
Non ESCO vs. ESCO Biz Model
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Sample Cash Flow Statement-5MW WHR Project
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ESCOs Additional Benefits
Reduction of fossil fuel use
Increases process efficiency and improvement
on the output (per litre of diesel or per cu.m ofgas)
Additional Revenue potential from CERs / VERs& ESCs !
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Highly experienced Senior Management Team with
International experience, diverse background and world-
wide contacts in Green Energy / Carbon Credits Domain.
Name and Brand recognition amongst Indian and
International Companies in Green Energy / Carbon Credits
domain as a unique One Stop Center Solution Provider.
RENCOs USP
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S.Rajha Gopalan - Founder & CEO
A British National, Graduate in Civil Engineering from India
& Post-graduate
Diploma in Management Studies from UK. Has more than 30 years of
wideexperience in International Marketing, RE Technology Transfer
& InvestmentPromotion.
Mohamed Saloudeen - Director (based in New York)
An Indian National settled in USA. Has 20 years experience in
Indian &International Banking with specialization in Industrial
Finance, Micro Credit,Retail Banking & Information
Technology.
B. Vijaykumar - M. Tech, Director of Operations
An Indian National, Post Graduate in Chemical Engineering has
more than 30years of experience in Paper Industries & Power
Plants with special emphasison Energy Conservation.
B. Ramasubramanian - B.Com., FCA, Part-time Director.
An Indian National, a Chartered Accountant with more than 10
years ofexperience in Project Evaluation and Project Finance
Syndication.
Rencos Team
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Thank YouContact:
S Rajha Gopalan
Founder & CEO
Tel: + (91 44) 2498 8950 / 4218 7844
Mobile: + (91) 91766 50215
Singapore Mobile : 8524 3644E-mail:
[email protected]
Web: www.rencotech.com
mailto:[email protected]://www.rencotech.com/http://www.rencotech.com/mailto:[email protected]
