A Case Study under the Premises of ShARE - An international Consulting Think-Tank to understand & quantify the emergence of Startups in the Renewable Energy Sector.

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What are the Future Prospects of
Start-ups in Renewable Energy
Sector?
19 March, 2017
Presentation By-
Sharat Sawhney
Energy Network
IIT Roorkee

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Executive Summary
⚫ With the increasing population (Annualgrowth rate of 1.13%)and corresponding
demand,therehas been a rapid depletion ofthe non-renewable sourcesof energy.
⚫ Thus,thereis an urgentneed to overcome these demandsby the use of renewablesources
of energy whose potentialis untapped.
⚫ To accomplishthis huge task of transforming energydependency,there is an inevitable role
of start-upsespecially in India.
⚫ Certain Indian Start-ups suchas SELCO and HPS have shownthis transformation in the
unexploitedsourceof solar energy and bio-gas(in particular).
⚫ However,mostof the startups in India show no interestto enterprise in renewableenergy
sector.
⚫ Investments byVCs can help energy startupsto flourish and expandtheir outreach.
⚫ The involvementof startups in renewable energy sector in India can lead to a plethoraof
economic benefits.

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With the increasing population (Annual growth rate of 1.13%)and corresponding
demand,there has been a rapid depletionof the non-renewable sources of energy.
⚫The global annual energy demand growth is practically always greater than 1%,
which shows that the vast reserves of fossil fuels would not help us too far.
⚫The world population is predicted to reach 10 billion by 2050 which puts us into
great trouble in terms of energy dependency.
⚫Thus, there must be carved out a way to this energy scarcity.
Global annual energy demand growth in
period ending.
Source: BP, IEA

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Thus,there is an urgent need to overcomethese demands by the use of renewable
sources of energy whose potential is untapped.
⚫As indicated in the graph,
renewable sources ofenergy
have a much greaterpotential
than conventionalsourcesof
energy.
⚫By 2040,mostof the energy
dependencywould be and needs
to be based on renewable
sourcesof energy.
⚫Thus,we mustfocus our
attention on renewable
resourcesand its development.
Source: IEA World Energy Outlook
2015
0 5000 10000 15000
Oil
Nuclear
Gas
Coal
Renewables
TWh energy
Global Electricity Generaion By Source
Change to 2040
2014

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To accomplish this huge task of transforming energy dependency, there is an
inevitable role of start-ups especially in India.
•A broad base of processes, practices
and tools, in any industry that
supports a sustainable business
approach, including but not limited to:
pollution control, resource reduction
and management, end of life strategy,
waste reduction, energy efficiency,
carbon mitigation and profitability.
•With rapid growth of Indian economy,
demand for energy is increasing
exponentially. At the same time, there
is a push from global community to
curb pollution and take measures to
control environmental degradation.
This has compelled Government of
India to shift attention towards
generating energy through renewable
energy sources and encourage
adoption of cleantech.
•The government has decided to
spend USD 20 billion for hydro
projects by 2020 and USD 200 billion
to add 150GW of power capacity over
a period of 5 years.
What is CleanTech? CleanTech needs and happenings
Startups could bring not only the
technological upliftments in
renewable energy sector but would
also pave the way for social poverty
elimination through jobs, and trans-
formation in energy dependency.
Source:TechStory

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Certain Indian Start-ups such as SELCO and HPS have shown this transformationin
the unexploited source of solar energy and bio-gas (in particular).
⚫SELCO India has played an instrumental
role in improvingliving standards ofpoor
householdsin ruralIndia especially in the
state of Karnatakathrough solarenergy
based interventions and low smoke cook
stoves
•SELCO India has been awardedthe
prestigiousAshden Awards(also known as
the Green Oscars)twice,in years 2005and
2007.SELCO India was foundedin 1995 by
Dr.Harish Hande an alumnus ofIIT
Kharagpurwith INR 15,000 fundingfrom its
co-founderMr.Neville Williams. SELCO
India has installed solar lightsystems in
125,000housesand plans to aims to reach
over 200,000 householdsby 2014.
⚫HPS providesend-to-endrenewableenergy
solutions byinstalling 25-kWto 100-kW
‘mini power plants’and then wiring villages
and hamlets of up to 4000 inhabitantsto
deliver electricity on a pay-for-use basis.
•HPS uses a biomassgasification based
proprietaryelectricitygeneration process,
that generateselectricity using 100%
producer gas based system (“singlefuel
mode”).
•HPS distributes electricity directly to
householdsand smallbusinesses while
keepingcosts low by runninginsulated
wires along bamboo poles to subscribing
households,businesses and farms.
•HPS TotalLandedCostof Installation <
$1,300 per kW *
SELCO-Selco Solar India Husk Power Systems
Source: selco-india, huskpowersystems.com

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However,mostof the startups in India show no interestto venture in renewable
energy sector.
•Commercialization barriers faced by
new technologies competing with
mature technologies
•Price distortions from existing
subsidies and unequal tax burdens
between renewables and other energy
sources
•Failure of the market to value the
public benefits of renewables
•Market barriers such as inadequate
information, lack of access to capital,
"split incentives" between building
owners and tenants, and high
transaction costs for making small
purchases
•Array Converter (Module-level power
electronics) bankrupt, IP to VC
investor
•Avancis (CIGS) discontinuing
production
•Bosch (c-Si PV module) exits module
business
•Concentrator Optics (CPV) bankrupt
•Cyrium (CPV semiconductors)
bankrupt
•Direct Grid (microinverters) closed
•EiQ (Module-level power electronics)
closed
•GreenRay (microinverters) closed
•Helios Solar (c-Si modules) bankrupt
•Hoku Solar (silicon) bankrupt
Hurdles for Start-ups Failed Solar Start-ups
Source: UCUSA

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Investments by VCs can help energy startups to flourishand expand their outreach.
•VentureCapitalists have
decreasedtheir investments
over the long run in renewable
energysector.Thereason is
high-risk and low profit margin.
•Valued at around $7 trillion
globally,energy is the most
valuablemarketsegmenton
earth.Deliveryof usable forms
of energy to the world’s seven
billion people is responsible for
10% of the world’s annualgross
domestic product.
•Accordingto the International
EnergyAgency,globalenergy
demandwill grow by more than
30% by 2035.
•To meetrising energydemands,
the world mustinvest$37 trillion
in related production and supply
infrastructureacrossall sectors
of the energy industryover the
nexttwo decades.
Source:MIT
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
2007 2008 2009 2010 2011 2012 2013 2014
$Billion
Investments by VCs in
Energy Sector

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The involvementof Startups in renewable energy sector in India can lead to a
plethora of economicbenefits.
•Making the switch from fossil fuels to renewable energy
sources could provide the much-needed kick to the economy.
According to a 2007 study from the University of Tennessee,
the state of Pennsylvania could generate about 44,000 new
jobs and increase net farm income by $460 million by
adopting renewable energy.
•Among all renewable sources of energy, bioenergy arguably
has the most lasting influence, locally and regionally. This
could be due to the fact that the fuel is created, prepared and
transported within a small area. It is also extremely labor-
intensive.
•Production of renewable energy isusually more efficient
compared to traditional energy.
•The American Wind Energy Association claims that a
sufficient number of wind plants – that could be built in four
years – could eliminate the gas shortage. All other forms of
renewable energy sources also turn out to be way cheaper
than traditional non-renewable sources.
•What this meansfor consumers is that they can save money
on their utility bills.
•Dependence on fossil fuels continues to distort the energy
market resulting in a significant number of people having no
access to power. I
•It is estimated that almost 1.3 billion people across the world
had no access to electricity in 2011.
•A total of 2.6 billion people relied on traditional biomass for
cooking for the same year.
•The vast majority of these individuals were in Asia and sub-
Saharan Africa. Renewable energy can reach even these
deprived areas.
•For many years, environmentalists have argued for the
adoption of renewable energy asa replacement for traditional
energy resources. Today, governments and corporations are
singing the same tune simply because it makes good
business sense.
•Investing in renewable energy can also have a massive impact
on the government’s expenses. For example, Germany isa
major net importer of power. As per estimations, the country
could be using only renewable energy by 2050 that could help
it save billions of dollars as it would not need to import
energy.
Increase in Jobs Lower Consumer Expense
Universal Access to Energy Good Business Sense
Source: UCUSA, RNP

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Q&A
The choice before us is simple. Will we continue to subsidize the dirty fossil fuels of the past, or will
we transit to 21st century clean , renewable energy?
-Elizabeth Warren
!&?
Thank You