presentation by jeffery dickinson

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TBLI Asia 2006, Bangkok, May 25-26 1 How triple bottom How triple bottom line investments line investments contribute to a contribute to a modern rural energy modern rural energy sector sector Jeffery Dickinson E+Co - Asia

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Jeffery Dickinson, Asia Regional Manager - E+Co - Thailand

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Page 1: Presentation by Jeffery Dickinson

TBLI Asia 2006, Bangkok, May 25-26

1

How triple bottom line How triple bottom line investments contribute to investments contribute to

a modern rural energy a modern rural energy sector sector

Jeffery DickinsonE+Co - Asia

Page 2: Presentation by Jeffery Dickinson

TBLI Asia 2006, Bangkok, May 25-26

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300+ million households lack access to any source of modern energy.

Energy infrastructure will likely pass them by.

Their basic sources of energy are threatened.

There is a limited flow of investment to support companies willing to serve these people.

The Energy PoorThe Energy Poor

Page 3: Presentation by Jeffery Dickinson

TBLI Asia 2006, Bangkok, May 25-26

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Increases in quality of life and economic development are merely a wish rather than a reality.

But technologies exist, business models exist, ability and willingness to pay exist.

…the small, local enterprise is the key to bringing energy access.

Without Modern Without Modern Energy…Energy…

…But they can afford it.

Page 4: Presentation by Jeffery Dickinson

TBLI Asia 2006, Bangkok, May 25-26

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Clean EnergyClean Energy

Solar PV and thermal, hydro, biomass, biogas, wind, efficiency equipment.

Will improve the lives of the energy poor … If financing is available for local entrepreneurs.

Requires combination of patient capital + services, local presence

Page 5: Presentation by Jeffery Dickinson

TBLI Asia 2006, Bangkok, May 25-26

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A new investment space…A new investment space…Not charity - Combines public and private sector approaches and resources.

Blends resources from different sources.

Provides services and capital – the services provided both before and after investment reduce risk.

Still at the infant stage of cobbling together the value chain that would make it easy for investors to connect with specific opportunities. But the sector has good examples to look to and is gaining strength.

Page 6: Presentation by Jeffery Dickinson

TBLI Asia 2006, Bangkok, May 25-26

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Vacvina - VietnamNational Association of Vietnamese Gardeners following a market approach to the sale of household biogas systems. Uses pig manure to produce methane sufficient for the cooking needs of a rural household. Provides clean cooking fuel, displacing fuelwood and coal briquettes and reducing indoor air and water pollution and methane emissions More than 9,000 digesters installed in the last 5 years

HighlightsE+Co Financing:US$ 82,000

Co-Financing: US$ ±400,000

Jobs Created: 200

Environmental Impact:Emissions reduced by 80,000 tons CO2E per year through the displacement of fuelwood and coal briquettes.

HighlightsE+Co Financing:US$ 82,000

Co-Financing: US$ ±400,000

Jobs Created: 200

Environmental Impact:Emissions reduced by 80,000 tons CO2E per year through the displacement of fuelwood and coal briquettes.

Page 7: Presentation by Jeffery Dickinson

TBLI Asia 2006, Bangkok, May 25-26

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SELCO IndiaSuccessfully marketing small-scale photovoltaic (PV) power systems since 1995.

Sold 30,000 PV systems on a cash basis.

Also partnering with rural banks and micro-finance organizations to provide credit to customers.

With improved lighting households and enterprises are able to earn higher incomes.

HighlightsE+Co Financing: US$ 107,500

Co-Financing: US$ 4.5 million

Jobs Created: 143

Environmental Impact:Emissions reduced by 2,000 tons CO2 per year.

HighlightsE+Co Financing: US$ 107,500

Co-Financing: US$ 4.5 million

Jobs Created: 143

Environmental Impact:Emissions reduced by 2,000 tons CO2 per year.

Page 8: Presentation by Jeffery Dickinson

TBLI Asia 2006, Bangkok, May 25-26

8

SME Renewable Energy Co. SME Renewable Energy Co. CambodiaCambodia

Company marketing biomass gasifiers to rural industries, a spin-off from the NGO SME Cambodia

Provides grid quality electricity to rural communities, energy savings to small industries

HighlightsE+Co Financing: US$ 96,250

Co-Financing: US$ 94,850

Jobs Created: 7

Environmental Impact: Emissions reduction by 200 tons CO2 per year through the displacement of diesel.

HighlightsE+Co Financing: US$ 96,250

Co-Financing: US$ 94,850

Jobs Created: 7

Environmental Impact: Emissions reduction by 200 tons CO2 per year through the displacement of diesel.

Page 9: Presentation by Jeffery Dickinson

TBLI Asia 2006, Bangkok, May 25-26

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New Types of Returns……Pays inNew Types of Returns……Pays in

Dollars, Euros, BahtkWh of clean energy generateLiters of clean waterTons of carbon avoidedNew jobs created

The strength is that the new investment vehicles measure and evaluate these benefits with the same rigor as they count financial returns.

The “triple bottom line” is now practical.

Page 10: Presentation by Jeffery Dickinson

TBLI Asia 2006, Bangkok, May 25-26

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120 investments $16.7 million in 35 countries

Co-financing $111 million from third parties

17 Enterprises Written Off $1.1 million

19 Loans Repaid in Full $2.3 million; ROI 10.2%*

Projected Weighted Average IRR, after write-offs: 8.4%*

Modern Energy Services 2.8 million people * ROI excludes enterprise development costs and a portion of operating costs, which are

funded separately through contracts and grants

E+Co Portfolio Performance E+Co Portfolio Performance January 1998 - January 2006January 1998 - January 2006

Page 11: Presentation by Jeffery Dickinson

TBLI Asia 2006, Bangkok, May 25-26

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E+Co’s Triple Bottom in Asia

Financial   Social & Economic   Environmental

Approved Investments  

People with Access to Modern Energy

Services Households served  CO2 Offset

Annually/tonsCO2 Offset for Life of

Project/tons

$ 2,752,332   1,696,437 339,287   1,119,561 11,416,216

Leveraged from Entrepreneurs  

Clean Energy Generated/MWH

Clean Energy Enterprises  

Value of CO2 Offsets for Life of

ProjectKerosene Displaced/liters

$ 1,799,104   184,533 29   $ 57,081,080 5,100,000

Leveraged from Third Parties   Jobs Sustained Improved Income  

Barrels of Oil Displaced

Dollar Value of Oil Displaced

$ 59,893,193   698 $ 2,123,100   83,757 $ 5,862,990

Potential Amount of Growth Capital    

Women Community Shareholders      

$ 350,000     46      

Page 12: Presentation by Jeffery Dickinson

TBLI Asia 2006, Bangkok, May 25-26

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www.energyhouse.com

Regional Office Asia: Jeffery Dickinson, BangkokE-mail: [email protected] +66 (2) 650 9147

Office Western China: Ms. Wu Jing, YunnanE-mail: [email protected] +86 (871) 312 0934

Regional Office Europe: Paul van Aalst, The NetherlandsE-mail: [email protected] :+31 (20) 4715257

Office United States Steve Cunningham, New JerseyE-mail: [email protected] : +1 (973) 680 9100