2. Where should your clean energy access business
be located?
A BLIND FOLDED DART GAME?
300 million people do not
have grid access
3. We propose a analytical methodology based on
multiple criteria to identify target markets
Un-electrification Banking access Economic activity Grid expansion
High
implies
Demand for
products
High
implies
Availability of
finance
Strong
implies
Willingness to
invest
Slow
implies
Lesser
competition
1 2 3 4
4. Our methodology –
Filtering districts to identify target market
Un-
electrification
Banking
access
Economic
activity
Grid
expansion
Alldistricts
High un-
electrification
High banking
access
Strong asset
growth
Slow grid
expansion
Target districts
321 districts
67.6 million
households
(HH)
162 districts
32.9 million
households
(HH)
116 districts
22.5 million
households
(HH)
80 districts
15.9 million
households
(HH)
1 2 3 4
5. Steps to identify target market – case study for Uttar Pradesh
Check for Un-electrification status1
This is the starting point…
6. Steps to identify target market – case study for Uttar Pradesh
Check for banking penetration2
Higher banking penetration
= Better chances of a loan
7. Steps to identify target market – case study for Uttar Pradesh
Check for asset growth3
Stronger growth of TV
and Vehicles ownership
= Better ability to buy
8. Steps to identify target market – case study for Uttar Pradesh
Check for grid expansion4
Slowly expanding grid =
Lesser competition for
decentralized options
9. Steps to identify target market – case study for Uttar Pradesh
Combine all criteria to identify Target districts
High un-electrification
+ High banking penetration
+ Strong asset growth
+ Slow grid expansion
10. Focus on a district rather than spread resources across districts
Case study for Rural Gorakhpur – Eastern Uttar Pradesh
68% un-electrification
79% banking penetration
12% TV ownership growth
11% Vehicle ownership
growth
4.9% grid expansion
Is a target market withRural Gorakhpur
INR 38 Crore
or
USD 6.3 million
Target Market size
10% of un-electrified HHs
38,000 solar systems
20 watt systems at INR 10,000
Build district level operations and relations
11. How to pick the “one” district? Look for clusters
Bihar
Districts are concentrated in a region forming a cluster
Target
13 rural districts
5.14 mn rural HHs
90% average rural un-
electrification
0.7% average
rural solar penetration
12. How to pick the “one” district? Look for clusters
Uttar Pradesh
Districts are concentrated in a region forming a cluster
Target
15 rural districts
4.62 mn rural HHs
76% average rural un-
electrification
0.7% average
rural solar penetration
13. Cluster spreading across states
Target
28 rural districts
9.7 mn rural HHs
61% of the identified
market across 10 states!
Eastern Uttar Pradesh to Western Bihar
14. How to pick the “one” district? Look for clusters
Orissa
Districts are concentrated in a region forming a cluster
Target
4 rural districts
0.66 mn rural HHs
64% average rural un-
electrification
0.6% average
rural solar penetration
15. How to pick the “one” district? Look for clusters
Districts are concentrated in a region forming a cluster
Madhya Pradesh
Target
11 rural districts
0.51 mn rural HHs
42% average rural un-
electrification
0.8% average
rural solar penetration
16. How to pick the “one” district? Look for clusters
Chhattisgarh
Districts are concentrated in a region forming a cluster
Target
3 rural districts
0.1 mn rural HHs
30% average rural un-
electrification
3.7% average
rural solar penetration
17. How to pick the “one” district? Look for clusters
Maharashtra
Districts are concentrated in a region forming a cluster
Target
9 rural districts
1.16 mn rural HHs
26% average rural un-
electrification
1.4% average
rural solar penetration
18. Focus on district – potential is huge!
And
From a micro to a mainstream market the
way is to navigate across a cluster
Focus instead of spreading thin with limited resources
19. About New Ventures India
WRI incubated New Ventures
program in 1999
Six local chapters, India chapter
created in 2006
Promoted environmental SMEs
by enabling access to finance
WRI transitioned New Ventures
to local partners in 2011
India partner is Regain Paradise
Research Consulting
We facilitate investments in
environmental businesses
New Ventures Local chapters
Clean energy and water access
We facilitate investments and partnerships
20. Looking to invest in Clean Energy and Water access?
We identify promising environmental enterprises
We help you invest in the right technology and enterprise
Investors
Facilitated investments of USD $49.4
million across 22 environmental
enterprises
Corporations
Forged and identified partnerships
between large corporations and
environmental enterprises
We are your TRUSTED partner