Gham Power at ACEF 2014

Solar Microgrids for Developing Countries

Sandeep GiriCEO, Gham Power

All Rights Reserved © 2010-2014, Gham Power

2009: Flew to Nepal on a bright, sunny day


Caught in the Worst Energy Crisis Ever:16 Hour a Day Blackouts!


7 MillionWithout Electricity

21 MillionGrid Connected

500 mWEnergy Deficit


Lighting + Backup + Financing

HouseholdsSmall

Businesses Streetlights

334 kWInstalled

438Customers

Solar

Diesel Generator

Large Business / Factories


Commercial Systems: Diesel + Solar Hybrid

• Diesel Usage: 50%• Costs: 20%

Rural Microgrid: Power Rural Businesses

Access to ITC

Telemedicine Mobile Banking

Household w/ Prepaid Meters

Grinding Mills


8 kW System at Maiti Nepal – a Shelter for Trafficked Girls and Women in Kathmandu


334 kW Installed for 438 Customers

43 kW System at UNICEF HQ Office Complex in Kathmandu


12 kW @ Nyaya Health Bayalpata HospitalIn Remote Far Western Nepal


1 of the 3 sites for a 3-village 35 kW rural microgrid pilot (with ADB support)


“Special Sauce”: Energy Services Platform


Pipeline Management

Power Management

Monitoring and Payments

Social Enterprise with Strong Partners


Technology Finance DevelopmentAgencies / Funds

15 Installation + Biz Dev Partners

Sandeep GiriCEO

Kebal RayamajhiOperations Manager

Anjal NiraulaMicrogrid Systems Manager

Jeevan BaidyaRetail Systems Manager

Shrawan PradhanGeneral Manager

Silicon valley entrepreneur (originally from Nepal); has

launched technology companies with successful exits

• 30 people• Experienced local management• Engineering team with unique

off-grid solar expertise

Team: Gham Power


Commercial Systems Portfolio: 762 kW / $2.1 mm


• Portfolio: 8 projects / 762 kW– Includes reputed hospitals, banks, hotels, and offices– ~400 jobs & ~2,000 lives impacted– 4 mW pipeline under LOI

• Budget: $2.1 million– 67% debt; 33% Equity ($643k) – Target IRR: 15%

• Sources:– Local banking partner (Clean Energy Bank) on-board for debt– ~$250k equity investment pledged @ Pymwymic investment forum– Remaining equity need: $512k

Rural Microgrids: 512 kW Pipeline / 35 kW Pilot


• Feasibility study completed for 35 villages (512 kW)

• Starting point: 3-Village, 35 kW pilot with ADB– 25 businesses, 83 households– 250 jobs, 1,665 lives impacted– Installation budget: $241k– Annual income: $24k with 5% increase each year

• Sources:– ADB assistance: $100k– Local community: $35k– Gham Power: $32k– Remaining grant funding need: $73k

Rural Institutional Systems: $3.2 mm with 75% Subsidy


• Gham Power: “Pre-Qualified”(PQ) by Nepal government– Qualifies for 75% subsidy for rural institutional projects– $10k subsidy cap per project

• 42 developed, 23 granted subsidy– $505k budget (112 kW developed) – $212k subsidy approved (68 kW being installed)

• Need $520k in working capital– “Tail-end” subsidy: requires own capital to fund installations– Developing ~20 new projects each month– Bank ready to provide 70% debt for equipment financing– 12-mo pipeline: ~240 projects; $ 3.2mm budget; $2.4mm subsidy

Financial Projections


FY2012/13 FY2013/14 FY2014/15 FY2015/16 FY2016/17 FY2017/18 FY2018/19

Revenue 605,936$ 906,270$ 3,525,813$ 5,787,373$ 9,900,518$ 19,181,880$ 35,537,726$

Gross Margin 18% 20% 20% 21% 22% 23% 26%

KW 90 145 906 1,310 2,461 4,875 9,753

J obs Impacted 20 40 200 510 440 890 1,285

Lives Impacted 170 465 535 885 2,240 8,890 16,685


Help us start by serving 28 million in Nepal

20% of world (1.6 billion people) without electricity

$2.1 millionProject Equity

$73k Grant forMicrogrid Pilot

$1.1 millionCorporate Equity

Financing Requirements• Raising $3,239,015 in total

• Equity: $1.68 mm• Debt: $1.5 mm• Grant: $73k

• $2,145,948 to fund initial project portfolio• 33% equity; 67% debt (target IRR: ~15%)

• $1,020,000 towards corporate equity• Working capital for ISPS project: $520,000• New staff, marketing, R&D: $500,000• 24-month convertibles notes (6% int; 20% discount; $5mm val cap)

• $73,067 in grant for rural microgrid pilot• Join ADB to kick-start rural microgrid market


Thanks!


Sandeep GiriCEO, Gham Power

[email protected]

Small Business & Entrepreneurship

Gham Power at ACEF 2014