Access to Energy for the Base of the - Ashoka

Philip LaRocco, Founder and CEO
What should MNCs do to have the largest impact
possible on access to energy for the BOP?
Phil LaRocco: They should select one or two markets and
facilitate social entrepreneurs to grow distribution channels
for SHS, LED devices and cookstoves. This would include
providing enterprise and customer microfinance, training
programs and sourcing of quality products at the lowest
price possible using economies of scale. It is a low-cost,
low-risk approach with rapid impact.
Project ability to solve the problem
� Issues faced by clean energy start-up firms in
developing countries:
� Few available sources of capital (investors
perceive too high transaction cost compared to
funding needs)
� Dependence on unreliable and non sustainable
subsidies
� Difficult access to methodological support on
financing topics
� Needs addressed by E+Co: firms initial, grow-up
and working capital, business development services
and strategy advices
� Down to BOP500 end-customers served by
E+Co’s investee enterprises, e.g.,:
� Toyola efficient cookstoves
� Wilkin Solar LED lanterns
� 2007 triple bottom line (social, environmental and
financial) impact of E+Co’s investee enterprises:
� Provided modern energy to 4.3m people
� > 4,000 jobs supported ($10m payroll)
� C0 2 offset 3.4 million tons
� Reforested land 280 ha
� $183m mobilized capital (8% from E+Co)
Project economic viability Project scalability
� E+Co 2007 financials:
� $5.4m revenue (covering costs)
� $15.4m mobilized capital in energy projects (12%
equity, 88% loans)
� Dependence on subsidies:
� Part of E+Co liabilities from investors accepting
below market returns
� Part of E+Co assets were granted from partner
organizations
� Ability to attract funding:
� Over 40 foundations / development agencies
supported E+Co funding
� Goldman Sachs committed to buy E+Co carbon
offsets
Sources: Interviews with E+Co Founder and CEO; E+Co 2007 Annual Report; www.eandco.net
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� E+Co operates on 3 continents:
� Main countries of operation covered by its
network of offices
� Leverages branches and skills of partner
organizations as much as possible to extend its
footprint
� Market environment: E+Co invests on markets with
rule of law to ensure contracts enforcement
� Regulation: E+Co works with agencies like UNEP
and national governments to create favorable
regulatory environments
� Fund-raising is still a bottleneck especially to invest
in enterprises’ second stage of growth
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