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New Ventures INDIAEnergy for All Investor Forum
June 2014
What we do
Sector : Clean energy and water access
Key Partner : DOEN Foundation Geography : India, Bangladesh, Nepal
Goal : Facilitate investments and partnerships
Energy
Water
The New Ventures India Value Add
Identify, Select, Mentor & Nurture
• 100% Owned Indian subsidiary of Oikocredit• FDI of US$ 60 millions from Oikocredit• In Business since 2004• Registered as Non Banking Finance Company• HO at Hyderabad with offices in Delhi, Bangalore and Kolkata• Development Financing
Maanaveeya Development & Finance Pvt
Ltd.
• Net worth : INR 2300 Mln and debt of INR 1500 Mln. • Projects : Supporting 60 MFI and 12 other development projects
: Portfolio o/s of INR 3500 Mln
• Thrust area : Social Performance: 40% weightage • Lending Model : Bulk Lending to MFIs and
for development projects, including clean energy • Products : Bulk loans, Equity, Sub-debt
Maanaveeya Development & Finance Pvt Ltd
Clean Energy Access Models in India
Solar Home System available typically with a loan from a bank. Typical Prices vary from USD 290 to USD 1150 . Lights up one household. Companies: SELCO, Orb Energy, Tata Solar, Solid Solar, ONergy
Biomass micro grids. Typical Price USD 60,000. Lights up a village of 500 households Companies: Husk Power
Solar Micro grids. Typical Prices vary from USD 1000 to USD 4000. Lights up 20 to 50 households.Companies : Mera Gao Power, Minda NexGenTech
Solar Pumps. Typical Price USD 13500. Waters 20 to 30 farmer families. Companies: Claro
2oo3 20140
500000
1000000
1500000
2000000
2500000
3000000
3500000
Number of SHS installations
Number of SHS installations
The Role of Credit – the Bangladesh lesson
• NABARD “Solar loan cum refinancing scheme” Based on the experience of Aryavart Gramin Bank
• Micro finance organizations lending for solar lanterns Including an IFC sponsored project of Maanaveeya Development & Finance
India: the experience so far
• Safe Drinking Water, Sanitation and Renewable Energy Project
• 106,000 client loans disbursed through 9 loans.
• The Renewable energy component led to the following conclusions:• Solar lanterns loans were too small for MFIs to be interested in.• MFIs needed far better assurance on product quality and service standards
Maanaveeya & IFC project
• Stay within two regulatory parameters:The “Solar loan cum refinancing scheme” is for banks and not MFIsMFIs are encouraged to do productive assets
• Justify business considerations:Very small loans for solar lanterns are not commercially justifiable Maanaveeya can make relatively large volume loans Maanaveeya MFI partners can make the smaller volume loans But overall volume matters to everybody!
The Problems we try to solve
The structure that we propose
Maanaveeya Development & Finance
MFI Partners of Maanaveeya Development & Finance
Loan
Loan
VLE setting up a micro grid
Channel partner of a SHS cos.
Smaller institutional end customers
Loan
SMEs direct
Larger institutional customers
Loans from Loans to
Another look at the Structure
What we cover
Long term working capital needs
VLE finance to set up micro grids
Institutional customers - schools, - health centers, - Micro enterprises
What we will not cover
End user finance - Solar Home Systems - Solar lanterns
Partnerships that can help us
Biomass Gasification Solar Micro Grids SHS companies Combined systems Solar Pumps
How we propose to go about it
Un-electrification High banking penetration Sluggish grid growthHigh asset growthTarget districts
Un-electrificat
ion
High banking
High asset
growth
Sluggish grid
growth
Target districts
• Interest support (to Maanaveeya)To bring down the costs of loan from the current higher cost loans of MFIs
• Technical assistance (to NVI)To develop the capacity of MDFPL and its MFI partners To develop the capacity of SMEs and their partners to work with MFIs
Support requested
MFI loans are three year – what is required is 5 year loans. The solution for this over the medium term is to get a line of credit to Maanaveeya
