http://SBLF.SustainabiltyOutlook.in

Financing Decentralized Renewable Energy (DRE) and Energy Efficiency for Industrial Applications

• Chair: Dr GC Datta Roy, CEO, Development Environergy Services Ltd. (formerly Dalkia Energy Services Ltd)

• AK Singhal, National Project Manager, UNDP-GEF Project on Global Solar Water Heating

• Arvind Patel, MD, SLT Solar

• Sunil Dhingra, Senior Fellow and Internal Resource Advisor, TERI

• Kunal Upadhyay, CEO, Infuse Ventures

• Bhoo Thirumalai, CEO, Aspiration Energy

• Pawan Mehra, MD, cKinetics

Chair: Dr GC Datta Roy, CEO, Development Environergy Services Ltd.

• Development Environergy Services Ltd. (DESL) is a member of the French MNC Veolia Environment, (VE) world’s largest environment and energy services business group.

• Since the launch of the business in 1999, DESL has continuously re-invented itself as a differentiated service provider with pioneering introduction of new technology and business processes and development of sustainable market for energy efficiency and renewable energy development services in India and across the globe. Since its inception, DESL has delivered over 300 projects including Energy Efficiency, Renewable Energy Development, Cogeneration and Captive power Projects-size ranging from 1 MW to 50 MW and fuel ranging from coal and biomass to wastes.

Dr AK Singhal, Advisor MNRE, National Project Manager, UNDP-GEF Project

• In August 2012, the United Nations Development Programme (UNDP) and the Ministry of New and Renewable Energy, Government of India (MNRE),launched a GEF-financed renewable energy power project designed to tap India’s vast solar energy potential.

• The project titled ‘ Market Development of Concentrated Solar Technologies for process heat applications’ will continue till March, 2017.

• Project that aims to increase the use of concentrating solar heat (CSH) technology systems to meet India’s rising industrial energy and heating needs.

• Focuses on India’s industrial sector, including industries such as pharmaceuticals, chemicals, metal treatment, textile, food and dairy industries.

Arvind Patel, Managing Director, SLT Energy

• SLT Energy provides absolute solution in the field of renewable energy resources. Company engages into manufacture and selling of solar thermal energy application equipments. SLT Energy provides a wide range of artifacts in the field of solar Energy.

• Company provides complete solution in the field of solar energy and biomass (A Hybrid system).

• Initially the company started its business with the production of white coal and solar water heater and is exploring manufacturing other solar products like solar water purification systems, solar heating and drying system for industry, detoxification of effluents, solar water pumps and solar electricity generation etc.

Sunil Dhingra, Senior Fellow and Internal Resource Advisor, TERI

• The Energy and Resources Institute, commonly known as TERI, established in 1974, is a research institute based in New Delhi

• It focuses on energy, environment and sustainable development, devoted to efficient and sustainable use of natural resources.

• Sunil Dhingra focuses on Biomass Energy Technology Applications and is part of the Energy Environment Technology Development Division

Kunal Upadhyay, CEO Infuse Ventures

• Infuse is a venture catalyst.

• Housed at IIM Ahmedabad's Centre for Innovation Incubation and Entrepreneurship (CIIE), it partners with exceptional entrepreneurial teams in India to help create, build and scale new cleantech business.

• It provides entrepreneurs with hands-on business and mentoring support, a world-class ecosystem of Indian and global partners, and seed & early-stage capital.

Bhoo Thirumalai, CEO, Aspiration Energy

• Aspiration Energy is an innovative Solar Energy Services company, offering solar solutions for industrial process heating on a unique monthly performance based energy charges model - PAYS (Pay As You Save)

• It is a National award winner from MNRE - UNDP for implementing large scale Solar Thermal ESCO projects.

Pawan Mehra, Managing Director- US, cKinetics

• cKinetics is a specialized Sustainability Advisory Firm providing end-to-end solutions to investors and businesses operating in emerging markets.

• cKinetics works mainly with export oriented industries that are looking to create a competitive edge as they address global opportunities.

• Focus areas

– Resource Efficiency: Energy, Water, Carbon, Waste

– Renewable Energy

– Smart Infrastructure

Setting the context- Video

Setting the context

cKinetics: providing end-to-end Sustainability solutions

cKinetics is an operational consulting and strategic services firm shaping scalable sustainability solutions and low carbon growth practices within industries.

Target

• cKinetics works mainly with export oriented industries that are looking to create a competitive edge as they address global opportunities.

Focus areas

• Resource Efficiency: Energy, Water, Carbon, Waste;

• Renewable Energy

• Smart Infrastructure

cKinetics services offered

Sustainability business

advisory services

Market access and insight Investment and risk advisory

Energy, water and waste

audits and baselining

Energy-Carbon-GHG

Accounting

Techno-commercial

feasibility of energy-water-

waste solutions

Reporting into global

systems: CDP, GRI, etc.

Life cycle assessments and

sustainability design

Market intelligence on

sustainability issues: relevant

to exports

Creating collaboration

platforms

Climate change impact

assessments and adaptation

and mitigation strategies

'State of the Sector' reports

Energy/ sustainability project

financing: business case and

business plan development

for financing

Programmatic financing/

financing design for clusters

Investor community:

Portfolio risk measurement

on account of sustainability

•cKinetics services its clients through offices in New Delhi, India and California, USA •Clients include brands, retailers, manufacturers, investors and government agencies

Why should factories look at distributed renewable energy as an option?

• Increasing cost of diesel and coal

• Customer is asking for cleaner fuels

– Carbon footprint

– Certify zero Carbon products

• Have a back-up or an alternative source of energy

• Mandate from customer

• Legal mandate (PAT?)

• Own plan and management direction

– Source of innovation

Solar Air-

conditioners

Biomass for

energy

Solar Thermal

hot water and

steam

Solar Air-dryers

Mid-sized Industrial sectors with attractiveness for DRE

Sector Impact of DRE on process

Financial attractiveness

Market size Market pull Attractiveness

Textile Processing

Pulp and paper

Pharma

Leather

Food processing

Dairy

Textile weaving

Electro-plating

Auto components

Low High

Source: ongoing cKinetics survey of industrial DRE applications

In a survey cKinetics conducted in 2011 for the textile sector we saw a significant variation in emission intensity based on factories using DRE

Significant variation in CO2e per Joule of energy for garment houses, processing units

These were also factories that were financially stronger

=

So, while the DRE opportunity might be attractive, it has NOT taken off. Why?

LONG TERM Financing

or

Innovative financing required

Business case takes effort to develop:

Systems, record keeping are missing

and

Measurement and verification systems needed

… again from the 2011 survey we did, we fund that preparedness to track energy and other resource utilization low

cKinetics works with factories to create viable pathways to use DRE

• Building the business case

including financial returns • System design and layout • Market survey of

equipment manufacturers and EPC contractors

• Financial advisory including structuring investment approaches and facilitating FI engagement

• Facilitating fuel linkage supply if biomass

• Facilitating capacity building for O&M

• Communication support during the guarantee period

Baseline and setting systems

Opportunities to enable

savings through DRE switching

Co-generation

Electricity

Thermal

708 Hemkunt Chambers

89 Nehru Place

New Delhi 110019

INDIA

+91.11.40507277

262 Ventura Ave

Palo Alto

California 94306

USA

+1.650.331.1931

www.cKinetics.com