Access to Energy for the Base of the - Ashoka

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� Financials:
Tri Mumpuni, Founder
What is an example of the difference a hydro
plant makes?
Tri Mumpuni: "In one village, the government was going
to give $500K to build a school. Instead, we built a hydro
plant with the money, and the money the village gets from
selling electricity to the grid is used to fund the school in
a sustainable fashion."
Project ability to solve the problem
Project ability to solve the problem 1
� Problem and magnitude: 33k villages (105m people)
without electricity in Indonesia
� Ability to serve the poorest:
� Average income approx. $1 - $2; some less than
$1 a day (BOP500)
� Everyone in the village is connected and pays the
monthly tariff
� Needs addressed: electricity for household use and
income generation (agricultural processing)
� Sustainability:
� Maintenance cost included in monthly operating fee
� Impact:
� Electricity for 60 villages
� Each village receives a gross monthly income of
about $3,300 from selling to the grid
� Income from sales to the grid is invested in
community projects
Project economic viability Project scalability
� $250 - $300k 100kW plants are built with 50%
grant money, 50% private investment from local
enterprises
� Monthly tariff covers operating cost
� Dependence on subsidies:
� Current plants have been jointly financed with
grants and some private-public partnerships
� Ability to attract funding:
� Looking for social venture capital to expand
� Strong demand from un-electrified villages in
Indonesia, once awareness of hydro power has
spread
Sources: Hystra analysis; Interview and meetings with management (incl. Tri Mumpuni, Founder)
★★★
★★✩ ★★✩
� Regulation questions resolved
�� As of 2004 government has committed to buy small
scale and medium scale hydro power for the grid
� Prices for power sold to the grid are locked in for
15 years
� Difficult negotiations with government, which
wants plants to be built by contractors who offer
kickbacks
� Main constraints are due to difficulty acquiring
financing:
�� Estimated financially viable, e.g., paying back a
loan of 8% interest in 7 - 8 years, but banks are
unwilling to loan without collateral or at interest
rates below 17%
� Buy-back rates from government utility are low