Access to Energy for the Base of the - Ashoka

Ability to solve the problem Economic viability
� Problem and magnitude:
� 50% of 10m households in Karnataka lack grid
connection or have erratic grid supply
� Ability to target the poorest:
� SHS reach BOP2000 customers
� BOP500 customers reached through lanterns
� SELCO has also set up rental scheme for non
bankable urban poor (vegetable vendors, street
hawkers...) who can rent batteries on a daily
basis (~$0.06 per day)
� Needs addressed: lighting, communication and
income generation (working at night)
� Sustainability: battery replacement every 5 years;
panel guaranteed for 10 years
� Growth targets:
� Aiming for 200k more clients in 4 years, in current
geographies
� Currently focusing on Karnataka and Gujarat,
looking at Maharashtra
� Market environment:
� No grid expansion threat
★★✩
� Replicability in other geographies:
� Management believes that success lies in local
roots and is not considering expanding in other
geographies
� Willing to set up a $3m fund and open its books
to help entrepreneurs planning to replicate in
other geographies
Sources: Hystra analysis; Ashden awards; management interviews
Scalability
� Financials:
� $3.1m revenue in 2008
� Profitable between 2000 and 2005
� Small losses due to 45% price increase in panels
since 2005, ~$100k loss in 2008
� 27% gross margin on SHS (most common
product)
� Ability to attract funding:
�� Demonstrated ability to attract grants (e.g., World
Bank) and investors
� Received funding from E+Co, Good Energies and
other investors in mid-Jan 2009, indicating
attractiveness of model
� Investors are non-profit investors or agencies that
accept below-market returns
SELCO puts strong emphasis on tailor-made
installation, for instance offering 4 types of
lamps addressing different lighting needs
★★★
★★✩
63