BEYOND PROFIT E-MAGAZINE

ISSUE 11 February 10 February 23, 2011

on

run renewable
Harness the power of the wind The growing energy demand Eliminating kerosene and diesel

R U N

O N

R E N E W A B L E

CONTENTS

06 06 COVER STORY 13 13 12 08 FACE-TO-FACE 09 SPOTLIGHT 10 12 14 13 14

DATA
India's signicant energy demand is an opportunity to include alternative energy into its energy mix.

Indias exponential growth will result in an energy gap that could be lled by renewable energy sources if the country plays its cards right.

Anish Thakkar of Greenlight Planet talks about how the company is sidestepping a large challenge.

A village in southern India is the rst to sell power generated from its self-run biomass plants.

TOP 5
Innovators are constantly inventing new ways to create and store energy. We look at ve new ideas in clean energy.

CASE STUDY
ONergy, a for-prot social business, is trying to cure rural India of its dependence on kerosene and diesel.

REPORT REVIEW
IFMR estimates the market potential for clean energy to be more than US$2bn in rural India alone.

www.beyondprot.com

R U n

on

R E n E w A B l E

COMMENT

Managing Editor Chesta Shah Editorial Team Nisha Kumar Kulkarni Abby Callard Marketing Manager Ritika Ranjan Office Coordinator Veena Shetty Design Studio ASG Infinite Publisher Intellectual Capital Advisory Services Pvt Ltd (Intellecap) 512, Palm Spring, Near D-Mart, Link Road, Malad (W) Mumbai 400 064, India For contributions, email: publications@beyondprofit.com To subscribe: Log on to: www.beyondprofit.com Call: +91 22 4035 9222 Email: subscribe@beyondprofit.com For marketing and advertising: Email: advertise@beyondprofit.com Call: +91 22 40359205 For more information, visit: www.beyondprofit.com
Disclaimer The views and opinions expressed by the authors are not necessarily those of Intellecap, and they assume no responsibility for the same. All rights reserved throughout the world. Reproduction in any manner is prohibited.

Dear Reader,

focus
shift in
By McKinsey estimates, India will have to triple its current capacity to As always, we want to hear from you! If you have any comments, Sign up to receive the newsletter in your inbox.*

the need for a

keep up with the growing energy demand. In this issue, we explore how India can use renewable energy to meet this demand as well as look at some innovative approaches to providing the bottom of the pyramid with clean energy.

thoughts, or feedback, leave a comment on a specific post or get in touch.

Editorial Team

*UPDATED MARCH 9, 2011: It has come to the attention of the Beyond Profit editorial team the original text of this letter incorporated paragraphs published in other sources without attribution. Beyond Profit regrets this breach of journalistic standards. Appropriate actions have been taken, and the text has been replaced. We would like to reassure our readership that our content writers will continue to maintain the utmost journalistic ethics.

ISSUE 11 | FEBRUARY 10 FEBRUARY 23, 2011

R U N

O N

R E N E W A B L E

FEEDBACK

ideas@beyondprot.com
Great post and an eye opener for those of us in the US and India! I actually just moved to Spain and I noticed the abundance of wind farms. There are many instances of solar panel plots that feed energy to the farms. Speaking of economic benets, the company that has been the front-runner of renewable energy production in Spain is Madrid-based Acciona. (Look to Spain for Energy Inspiration, blog posted on January 20, 2011) Imran Said via beyondprot.com In Focus on Africa, Beyond Prot went beyond reporting the lifechanging effects of ARV drug therapy and challenged the social enterprise community to create an ef cient distribution solution for this medication. This is the future of social entrepreneurship literature and it's inspiring to watch it develop. (Focus on Africa January 27-February 9, 2011) Aunnie Patton via email. To succeed is to fail. Brilliant ideas come from those who are willing to strive for results others are unaware of! The light bulb didnt become light by itself or a lot of hard work. Good article! (Failure is an option, blog posted on January 21, 2011) Lisa Danzer via beyondprot.com

ISSUE 10 | JANUARY 27 FEBRUARY 9, 2011

MARK YOUR CALENDER

Limited Partners Summit 2011 Hosted by VCCircle February 17-18, 2011 Mumbai, India

BEYOND PROFIT RECOMMENDS

Disseminating Orphan Innovations Stanford Social Innovation Review The social sector creates social innovations, but pays scant attention to spreading it. Disseminating innovations often requires customizing the program to new circumstances, not replicating.

MOST READ ONLINE

Global Social Entrepreneurship Programs These ve social entrepreneurship programs at top schools around the world are empowering people with skills to bring about market-led development. Learning in Action Now in its third year, Yale School of Managements (SoM) fall course on Global Social Entrepreneurship (GSE) connects student teams to ve social enterprises based in India. Top 5: Affordable Housing in India These ve affordable housing projects are giving low-income households the chance to live in 200-700 ft apartments at an average monthly payment of US$90.

http://events.vccircle.com/vccircle_intro.php?event_id=33&ntype=1#
Green Investment Congress Organized by The Ideas Exchange March 3-4, 2011 Mumbai, India

http://www.ssireview.org/articles/entry/ disseminating_orphan_innovations/
Interview: Acumen Fund's Sasha Dichter on trends to look for in 2011 Dowser Acumen Fund's director of business development on new ways to fund social enterprises and why creating a social metric system in imperative.

http://www.greeninvestmentsindia. in/2011/

http://dowser.org/interview-acumenfunds-sasha-dichter-on-trends-to-lookfor-in-2011/

Facebook
F o l l o w u s o n

Twitter

LinkedIn

www.beyondprot.com

R U N

O N

R E N E W A B L E

COVER STORY

energy gap
how to
India has a unique opportunity to bridge its energy gap with renewable sources. By Abby Callard
Image Credit: Flickr User Yodel Anecdotal

bridge the

Indias wind power potential is estimated at 65 gigawatts.

India is on the road to development. Urban populations are growing exponentially, rural villages are being electried and the emerging middle-class is aunting its newfound wealth. But this growth begets challenges. One of the pressing challenges will be providing energy to all that requires it. McKinsey estimates that by 2017, Indias energy demand could be as high as 335 gigawatts (GW)up from just 120 GW in 2008. In order to meet this demand, India will have to triple its current capacity. Not an easy task. However, this seemingly difcult challenge also presents a

great opportunity. Like other developing countries, India has the option of meeting its growing energy demand by employing clean energy solutions. In a way, starting off right is easier than trying to implement new technologies after the fact. This is the dilemma facing many developed countriesthe United States, Japan and Germany. If India harnesses its enormous clean energy potential, it can become a leader in the renewable energy race. The Creating a Clean Energy Century report by progressive think tank The Third Way estimates the global energy market at US$6 trillion. While the majority of energy is still

produced by fossil fuels and other nite resources, the share of clean energy is set to grow. Global investment in clean energy is on the rise. Bloomberg New Energy Finance reported that the investment in 2010 was at US$243bnup from US$186.5bn in 2009. The Third Way report also ranked countries based on clean energy investment as a percentage of GDP. Spain led the pack at 71%, closely followed by China at 70%. India reported investment at 19% and the U.S. at 13%. While India is on the right track, the country has only begun to take advantage of its renewable energy potential. According to McKinsey, India only utilized 4%

ISSUE 11 | FEBRUARY 10 FEBRUARY 23, 2011

R U N

O N

R E N E W A B L E

COVER STORY

of its potential in 2008. Within that fraction, wind energy produced 8.7 GW, small hydro 12.4 GW, biomass 2.1 GW and solar 1.2 GW. The Way the Wind Blows While India has one of the highest solar intensities in the world, the high capital required has hindered solar power in India. While McKinsey estimates the potential at 200 GW or more, the technology will have to become more affordable for India to take advantage. Wind, on the other hand, is one of the easiest applications of clean energy to implement. Because of government tariffs and policies, wind is also one of the most attractive options in India. McKinsey estimates a potential of 65 GW, but the World Institute for Sustainable Energy, India, estimates that it could be as high as 100 GW. Currently, India is the fth largest producer of wind power after the U.S., Germany, Spain and China. India produced 11807 MW in 2009more than 40% in Tamil Nadu. Although wind energy has yet to penetrate the Indian market like other countries, a few multinational companies have staked claims on the Indian breezes. One such company, Acciona Energy, recently completed nancing for its third wind farm in India. The plant, located in Karnataka, will have an operating capacity of 56 MW and double the companys capacity in India. "India is one of the strategic growth countries for ACCIONA Energy, said Glen Reccani, Managing Director of ACCIONA Energy India Pvt. Ltd. Its stable regulatory climate is very conducive to investments in renewable energy. Putting the Pieces Together Another way Indian companies are attempting to bridge the power

gap is to operate across clean energy applications, to create a diversied portfolio. Orient Green, a top wind producer in India, is active in wind, small hydro and biomass. The company has a signicant wind power portfoliomeasuring an operating capacity of 134.6 as of early 2010. The company has another 623.5 MW in committed projects and projects under development. In order to strike a balance, the company is also creating a small hydro plant in Orissa with an estimated capacity of 15 MW. In the biomass space, it currently operates six plants with a capacity of 40.5 MW and has 18 more projects currently committed and under development. Greenko is another company aiming to diversify its clean energy portfolio. Currently, the majority of its holdings are in the biomass and hydro areas, but it will soon venture into the wind area. The com-

If I India harnesses its enormous clean it energy potential, it can become a leader in the renewable energy race.

capacitythe rst 65 MW to be in Maharastra. The project with implement GEs XLE series wind turbines that are especially suited for low-velocity wind like in India. Embrace the Challenge India has tremendous renewable energy potential and the demand to take advantage of that potential. If India can harness this possibility, the countrys inevitable energy gap can be met using renewable sources. How India embraces this challenge will impact the outcome. The Global Wind Energy Council (GWEC) estimates that if India continues on a conservative path, the wind energy capacity could be 24 GW by 2020 and 30.5 GW by 2030. If all planned policies are implemented and all current targets met, Indias wind energy capacity could be as high as 40 GW in 2020 and 108 GW in 2030. If, however, India absolutely commits itself to renewable energy, the GWEC estimates that the wind energy capacity could be 65 GW in 2020 and 160.7 GW by 2030. In order to be a leader in the renewable energy race, India needs to jump headrst into the challenge bp
FOR MORE INFORMATION Orient Green Greenko Acciona Energy

A man herds goats near a wind turbine in India.

pany has a 104.25 GW capacity in its hydro operational projects and another 304.35 in licensed projects. In biomass, it has a current operating capacity of 41.15 with another 47 in licensed projects. Greenko has partnered with GE to start a wind project that will eventually have a 200 MW

Flickr User Braden Gunem

www.beyondprot.com

R U N

O N

R E N E W A B L E

FACE-TO - FACE

Greenlight Planet has found a way to make solar lanterns affordable for the rural poor in India. Director Anish Thakkar tells us how. By Abby Callard
How did Greenlight Planet Start? AT: We started designing electrication solutions for rural Orissa while working in the international development space in 2005. We wanted to design products actually affordable to poor village families, which they could afford to buy from their own modest savings, and which they trusted enough to actually spend their hard-earned money on. Were the rst low-cost solar lighting company to use Lithium Ion batteries, which have been engineered by our team to last for at least three years of daily use without any degradation in usability. Affordability is key in the solar market. What is the price of the Sun King? AT: The Sun King sells for `850 (US$18.63). How did you arrive at that price? AT: Grameen has done some studies on affordability on solar products and found that the 6-month break-even point was good. We put a lot of focus into designing a product that would arrive at that 6-month break-even mark. We found in the poorest states, like Uttar Pradesh and Bihar, the average spending on lighting is `100-150 per month. We eventually developed our product within the `850 price point. Unlike many solar products, the Sun King isnt subsidized. Why? AT: From our earliest work in the international aid community, we saw an immediate impact limitation to subsidy or donation programs. There simply arent enough well-intentioned donors, progressive government social programs or corporate social responsibility initiatives to address the needs of 1.5 billion off-grid villagers worldwide in a meaningful way. How many Sun Kings have been sold? AT: We've been accelerating toward an exciting milestone, which we're set to cross next month: 500,000 villagers using our Sun King solar lights worldwide! And where we are todaythe next 500,000 will come a lot faster. Can you explain your unique distribution method? Our sales channel is comprised of village-level direct sellers, called Sun King Saathis. These rural farmers, teachers and housewives earn strong supplementary incomesometimes outpacing their existing source of income by selling our products to families in their local communities. The beauty of the Saathis strength is his or her ability to sit with families within their Panchayat, night after night, and over a cup of tea actually show families how much light theyll get in their home bp Read the full interview online.

The Sun King gives off a bright, clean light.

Anish Thakkar (AT) is a Director of Greenlight Planet and graduated from the University of Illinois at Urbana Champaign.

There T simply arent t enough well-intentioned donors, progressive government social programs or corporate social responsibility initiatives to address the needs of 1.5 billion off-grid villagers worldwide in a meaningful way.

FOR MORE INFORMATION Greenlight Planet

ISSUE 11 | FEBRUARY 10 FEBRUARY 23, 2011

Image Credit: Greenlight Planet

making

affordable

solar

R U N

O N

R E N E W A B L E

SPOTLIGHT

alternative energy
in
The Kabbigere project in Karnataka demonstrates Indias forward-thinking attitude towards developing alternative energy sources. By Usha Ganesh
ption of six thousand rural householdshas been generated. This has helped ensure more reliable electricity supply in the area. Biomass is carbon neutral and environmentally friendly. Use of local eucalyptus and other trees for biomass has encouraged further greening of the area. Monitoring reports indicate that fty-one group biogas, or gobar gas, plants has helped 175 households cook with cleaner fuel without any increase to operational costs. One hundred and thirty borewells have been built in the village to meet its irrigation needs. Locals are regularly trained by the Indian Institute of Science in Bengaluru and employed in the power plants, increasing generation of skilled labor and employment opportunities. The biogas plants obtain the organic waste for fuel from nurseries set up by eightyone self-help groups, providing income generation opportunities for women from marginalized communities. India is the only country in the world to have an exclusive ministry for renewable energy development. Subsidies and scal incentives made available by the government for the promotion of renewable energy technologies in the country include an income tax holiday, accelerated depreciation, concessional custom duty and duty-free imports, capital/ interest subsidy and incentive for preparation of feasibility reports. The Kabbigere project is particularly relevant to countries like India, which face acute power shortages bp
www.beyondprot.com

india
Flickr User Land Rover Our Planet

Kabbigere village in Karnataka operates a similar biomass plant.

India is the only country in the world to count have an exclusive ministry for renewable energy development.

FOR MORE INFORMATION

Clean, Green and Bright Minstry of Nonconventional Energy Sources

In the remote Kabbigere village in Karnataka, southern India, greenery is conspicuous. What makes this seemingly non-descript village unique is that its locally elected government, or Gram Panchayat, is the rst in India to sell power to a power grid. Kabbigere Gram Panchayat sells power generated by its self-run biomass power plants at a rate of ` 2.85 (US$0.06) per kilowatt-hour (kWh) to the Bangalore Electricity Supply Company. The pioneering initiative is an outcome of a United Nations Development Program (UNDP)-led project called Biomass Energy for Rural India, implemented in partnership with the Global Environment Facility, the India-Canada Environment Facility, and the Government of Karnatakas Department of Rural Development and Panchayati Raj. Three small power plants, with a combined capacity of 1000 kilowatts (KW), produce electricity from locally produced biomass. Since 2007, about 400,000 kWh of electricity equivalent to the annual consum-

R U n

O n

R E n E W A b L E

DATA

numbers renewable energy in

by the india
Indias significant energy demand demonstrates the importance of investing in alternative energy sources. By Nisha Kumar Kulkarni
Indias global ranking in terms of energy use.

5 40% 2.96 10.9% 75%

US$ BILLION
The percentage of Indias population that has little or no access to commercial energy. The approximate amount of financial investment in Indias clean energy sector in 2009. The percentage of Indias total electricity grid that comprises of renewable energy. The percentage of Indias grid-connected renewable energy that comes from wind power.

ISSUE 11 | FEbRUARY 10 FEbRUARY 23, 2011

10

R U N

O N

R E N E W A B L E

DATA

graphics
India is making serious strides towards including clean energy sources into its installed energy mix. Are there lessons to be learned by other countries? By Nisha Kumar Kulkarni
Installed Power Generation Capacity
Since 2002, the percentage contribution of various energy sources has generally increased, with the largest increase being with renewable sources. Thermal and nuclear sources have decreased by 0.5-1% since 2007. The Government of India is making strong efforts to realign its current and future energy demands with more sustainable, efcient sources. Data Source: Ministry of New and Renewable Energy, India

data

Indias Clean Energy Goals, 2012 2022

The Government of India has aims to increase the contributed capacity of alternative energy sources to the countrys energy mix over the next decade. Clean energy sources would ideally become larger parts of the countrys energy sources. The goal is to increase overall installed capacity by 15.9% by 2022. Data Source: Ministry of New and Renewable Energy, India

11

www.beyondprot.com

R U N

O N

R E N E W A B L E

TOP 5

new ideas in

energy
Photo Credit: Levant Website

clean
2
Self-powered Car Stereo
Levant Power Corp, founded by Shakeel N. Avadhany and Zackary M. Anderson, has developed a technology called Genshock that recovers energy from a vehicles suspension system and utilizes it for fuel economy gains and providing additional on-board electricity. According to Levant Corp, the technology has defense, trucking, consumer, transit and rail and industrial applications.

We look at emerging global ideas for clean energy. By Dipika Prasad

Photo Credit: HMX Systems Photo Credit: Mafuta Sasa

1
Fuel From Wasted Vegetable Oil
Mafuta Sasa Biodiesel Ltd, founded by Michael Mwakilasa in Tanzania in 2008, collects Wasted Vegetable Oil from restaurants and other food outlets, and processes it into biodiesel. The rm produces about 2,000 liters of fuel every week, which is sold at US$ 0.83 per liter, a little more than half the price of conventional fuel in Tanzania.

3
Eco-friendly Air-conditioning
Founded in 1998, HMX systems Pvt Ltd has created an entire range of air conditioning systems for large scale application that are eco-friendly. Its agship product, the Ambiator uses indirect and direct evaporative cooling technology and offers low cost, low carbon and 100% fresh air circulating temperature control.

Photo Credit: Avetec Energy Corporation

Avetec Energy Corporation, an Ontario based rm, has developed an Atmospheric Vortex Engine which uses a controlled tornado or vortex to produce clean carbon free electricity. The tornado is created by admitting warm or humid air tangentially at the base of a circular wall. A fullscale model would generate more electricity than wind turbines.

4
Tornado Technology

5
Electricity from Mud

A number of researchers around the world are working on creating large scale Microbial Fuel Cells that can generate electricity from decomposing organisms in mud. The fuel cells are envisaged to charge off damp ground close to rivers, or the ocean bed. The most commonly used bacterium is Geobacter that feeds on electrons, enabling it to "breathe in" carbon dioxide and "exhale" fuels.

ISSUE 11 | FEBRUARY 10 FEBRUARY 23, 2011

12

Photo Credit: UMass, Geobacter.org.

R U N

O N

R E N E W A B L E

CASE STUDY

the

complete energy solution

For the millions of rural poor in India, kerosene subsidies make searching out healthier and cleaner options a touch decision. The mission of ONergy, a for-prot social business aiming to provide complete energy solutions, is to eliminate the dependence of kerosene and diesel in rural Indian villages. ONergy sets up renewable energy centers (RECs) to demonstrate different technologies and sell products such as solar lanterns. Partnering with local NGOs and micronance institutions (MFIs), the organization has set up three RECs in rural West Bengal. Co-founder Ekta Jaju estimates that these centers service up to 5,000 people. ONergy has sold 1,100 solar products and about 400 energy systems to date. One of the challenges, Jaju said was that the villagers were already familiar with solar technology and had some entrenched views about it. Solar had a really bad name in the minds of the peoplesomething that people would come and give you for a cheap price and disappear, said Jaju. To combat this negative image, ONergy created a service network of local entrepreneurs so that people had access to proper customer service. The company pledges to resolve issues within two days. Through this program, more than 60 entrepreneurs have been trained, and ONergy is actively working with 40. These entrepreneurs earn a commission for every product they sell as well as service fee for every service call. Most of the entrepreneurs use this as a supplemental income. These could be people who have a electric shop, who already have electrical skills. We just provide a little training, Jaju said. ONergy has just scratched the surface of its goal to reach 1 million people in ve years. This will require the creation of 25-30 RECs. ONergy also plans to expand into other states, such as Bihar, and partner with Husk Power Systems to recreate its model in West Bengal. A pilot phase for clean cooking technology has been launched in a few house already covered by the existing RECs bp
www.beyondprot.com
Image Credit: ONergy

ONergy is providing rural villages in West Bengal with a complete energy solution through renewable energy centers. By Abby Callard

ONergy demonstrates solar technology in a village.

Solar had a really ll bad name in the minds of the people something that people would come and give you for a cheap price and disappear

FOR MORE INFORMATION ONergy

13

F O C U S

O N

A F R I C A

REPORT REVIEW

how to

rural india
The Centre for Development Finance and the World Resources Institute estimate that the rural market potential for clean energy is up to `97.28bn (US$2.11m) annually. The Power to the People report, released last September examines the potential market for clean energy in rural India. Based on extensive eld research, the authors of the report break down the market potential for four areas of clean energy: decentralized renewable energy: biomass and small hydro, solar home systems, solar lanterns and energy-efcient cookstoves. The report does a great job of condensing important information into comprehensive and easy-to-read charts. One such chart lays out the pricing, potential, competitive advantages, business models, challenges and opportunities for all four areas. The ideas presented in this are expanded upon in the sections about each area of clean energy.
Image Credit: World Resource Institute

electrify
Within these sections, the authors feature 11 Indian enterprises already operating in the space. The report also proles four global clean energy ventures in Kenya, Brazil, Bangladesh and Cambodia. The international examples include successful practices and challenges faced by the enterprises. The report also includes sections on the role of government and non-prots. Non-prots can assist producers of clean energy products by leveraging their existing relationships with BoP customers to market products. Organizations that do this are termed market development organization (MDOs), and they can signicantly support clean energy penetration. The report presents comprehensive information about the investment potential in rural India in a concise and easy-to-read format which allows the reader to navigate through the multiple layers of data bp

A report by the Centre for Development Finance and the World Resources Institute estimates Indias rural market potential for clean energy at ` 97.28bn. By Abby Callard

A new report examines the clean energy investment potential in rural India.

The T report does a great job of d condensing important information into comprehensive and easy-to-read charts.

FOR MORE INFORMATION World Resources Institute Centre for Development Finance

ISSUE 11 | FEBRUARY 10 FEBRUARY 23, 2011

14

Highlight your enterprise Email: advertise@beyondprot.com