Sam Parker The Business and Financial Models Workshop was held in Cambridge in January 2016. The workshop invited participants from business, academia and NGOs to address the following questions: o It is generally considered that private enterprises and independent power producers have a key role to play in bringing sustainable energy-enabled businesses to un-served rural communities. o What are the main opportunities and challenges in establishing viable business and financial models for these organisations, and what innovative approaches are emerging to meet these challenges? o What support can governments and development agencies usefully provide? More info: http://e4sv.org/events/smart-villages-in-developing-countries-business-and-financial-models-workshop/

1. HPS – Solar Plant

2. HPS – Biomass Plant

3. HPS – Small businesses at night

4. Envirofit: High quality, efficient and affordable clean cookstoves
1 million stoves milestone
17 million tonnes
CO2 emissions saved

5. Quality not Quantity
Just 3% of ventures reviewed
have the combination of
technical feasibility, potential
impact, and scalability to get
into our portfolio
3%
Venture Survival Rate
All of our ventures are
currently viable and active.
100%
Key Metrics
Early indicators show that our unique model is effective. We’ve already
reviewed hundreds of potential opportunities, have identified six disruptive
ventures and are on track to have 10 by the end of the year.
Follow-On Funding
Every single venture in our
portfolio has raised at least
2x our investment within 18
months.
Q1 Q2 Q3 Q4 Q5 Q6
Increasing Efficiency
Overhead dropped below
20%, meeting KPI target in
first year of operation
$2.6M
Direct Investments
$4.1M
Co-Investment
17%
27%
56%
Overhead
Venture Support
Direct Investment
$4+M
Current value of portfolio
More than Money
Our ventures receive direct
support from our experienced
team: with 114 staff days/year
devoted to each (on average).
Almost a third of our
resources goes directly to in-
kind support.
Portfolio
01. Pivot Works
Faecal sludge to pelletized fuel for
cement and brick kilns at a cost
below coal
02. Lightning Hybrids
Hydraulic hybrid retrofit for
trucks and buses with 30%
improvement in fuel
economy
04. SparkMeter
Low cost smart meters for
micro-grids and grid extension
using self-forming mesh
networks
05. Village Industrial Power
Modular 15kW biomass
powered steam systems for
small ag processing at $1/watt
03. Redavia
Rapidly deployable solar farms
for hybrid power systems using
a unique rental model
06. Agoro
Biomass based drop-in
replacement for nitrogen fertilizers
creating massive carbon savings &
increasing farmer revenue
08. Sistema Biobolsa
Robust, low-cost, and
scalable waste treatment +
biogas
100%
07. ColdHubs
Solar powered refrigeration for
produce markets.

6. SF learning so far - but not enough to reach SDG
Disruptive Innovation Demonstrate
Scale & Sustainability
Build Market
Infrastructure
Cook stoves
SHS
Mini-grids
Solar lanterns

9. To build market align around a govt-owned market plan
1
2
3
Growing Supply
- Early Innovation: Differentiated Incubation
- Market Pioneers: FMD
- Business Support vs Technical Assistance
- Attracting & Retaining world-class talent
- Effective (Integrated) Value Chain
- Effective Governance
Building Demand
- Map consumer preferences & purchasing process
- Social Marketing
- Willingness & ability to pay (consumer finance & credit profiling)
- Demand Aggregation
- Consumer choice (man/sp + product range)
Institutional Support
- Supportive policy environment
- Standards & regulation
- Industry benchmarks
- Interface with public utilities
- Transparent Market Data
Structured Finance
- Risk & Growth Capital for ALL stages
- Grant to Blend to Commercial
- Offsetting Risk (Grant to PRI)
- Working capital in value chain
- Debt & Equity
- Project Finance / Asset Finance
- Impact Monetisation

10. ad
Foundations Govts NGOs Impact Multilaterals Corporates Commercial
Investors / DFIs Investors
High Low
Long Short
Impact First Finance First
RISK:RETURN RATIO
TIME HORIZON
IMPACT EXPECTATION
…and play to our strengths