1. Scaling-up of Service Delivery Models to meet Basic Needs in the Green Economy
THEMATIC Workshop
18th PEP Meeting, May
Shrashtant Patara

2. Functions of a “Market Maker” Initiative
Governments
Influence
Investors/Donor
Incubation Eco-system
Capacity Building
Management
Services
Sustainable Business Development
Aggregators
Development Alternatives
Innovation
Businesses
TARA
M&S Entreprises
Implementation
Local Communities
Impact
at scale
PROJECTS
MARKET

3. DEVELOPMENT ALTERNATIVES GROUP
“Not-for-Profit”
“Not-for-Profit”
“Pvt. Ltd.”
Development Alternatives
TARA
Business Affiliates
Innovation
Incubation
Implementation
15%
TARA
+ Prog. Parts
+ Co.’s
Policy Res.
TARA Machines (B2B)
Communication
TARAhaat
Implementation
TARAenviro/New co.(B2C)
85%
TNK
DESI Power
Bundelkhand
Tikamgarh, Datia (M.P)
Jhansi (U.P)
SPEED
IMEDF
TBRT
TBL
Social
Economic
Environmental
MARKET

4. SMART POWER FOR ENVIRONMENTALLY SOUND ECONOMIC DEVELOPMENT “SPEED”

5. 400 million without electricity
Problem Addressed
400 million without electricity
Majority in Rural areas
18,000 villages are off grid
Goal
Assured Energy Services
Poverty Removal and Economic Development
Through Business Investment

6. Opportunity to Leapfrog
Need for symbiotic working: SPEED as Enabler
Telecom towers
Rural Electrification
Lighting alone:
$ 3 billion annually
300,000 Telecom Towers
Fastest Growing Infrastructure
with
Skyrocketing Diesel Costs

7. SPEED – An Integrated Solution
Micro Utility
Mobile Phone Base Station
Produce Power 
Steady load
99.99% uptime
Distribute
Power
Candidate
Technologies
Tower Power Management System
Host Villages 
Varying load
Biomass Gasification
Public Use street lighting, schools, clinics
Solar PV
Community Distribution System
Marketing
Collections 
Biogas
Backup Genset
Microenterprise battery charging, agri-processing, manufacturing, irrigation 
Wind Turbine
Household Use lighting, communications
Investability and bankability enhancements for attracting private enterprise and private capital in Rural Electrification with load optimization

8. SPEED is different …. Ensuring financing solutions
Building local capacities to sustain projects
Assisting in finding appropriate technology & technology suppliers
Assist & Influence on creating right policy environment
Providing 360 degree assistance
Demand assurance through
Telecom
Enterprises
Households

9. Innovation around anchor load
SPEED in action …
Innovation around anchor load
…Selling water instead of electricity
Bara Plant, Araria, Bihar
Urja Gram – Rural Enterprise Zone
… enterprise zone in plant campus
Diyara Rasoolpur, Saran, Bihar
Pre-paid smart metering
… changing user behavior - pre-paid electricity
Mubarakganj, Faizabad, U.P.

10. stimulate large-scale deployment and investment in rural energy services

11. Multi-stakeholder Action
Industry Players - engineering transition to green energy & sustainable village projects
… tap high growth market opportunity
Policy Makers, Influencers & Strategists – creating favorable policy & regulatory environment
… drive private participation for value addition to local resources & rural communities
Financial Institutions – establishing specialized investment vehicles managing eco-system investment
… tap a global opportunity providing high financial RoI with socio-environmental returns

12. Technology to Market Initiative
Aqua+
Marketing Plan for 2011 ~ 12
Technology to Market Initiative
Innovation:
Product / Service Development
Incubation: Set up delivery channels and develop business models
Commercialization: Scaling up of Aqua+ business
Product Development
Establish delivery channels for Aqua+
Sell 1 million units of Aqua+
Design Social Marketing toolkit
Develop business model for Aqua+

13. Marketing Plan for 2011 ~ 12 Aqua+ Consumer Strategy for Growth
Delivery
Channel for Aqua+
Social Marketing for Aqua+
Direct Sales
Events / Demos
TARA
Channel Partner
Consumer
D2D Campaign
Channel Partner
TARA
Retail Sales
Wall Paintings

14. Marketing Plan for 2011 ~ 12 Aqua+ Scalability
Sold 100,000 bottles as pilot and established product acceptability
Challenge: Make the initiative self-sustaining by scaling up operations
Because the market exists…..
167 million families in Indian BoP1
1% market share X
1 bottle per month X
12 months per year X
= 20 million bottles per year
or Rs 600 Million in revenue per year
…. Power of enterprise will take service delivery to scale!
1 McKinsey Global Institute; Global Initiative; EIU

15. Portfolio Bundling Strategy
Public
Private [Equity/Debt]
Grants
Loans
(Zero/Low-Interest)
+15% Return
10-15% Return
5-10% Return
Concessional Finance
National/Local Capital
National/Local Capital
Financial Institution / Custodian of Capital
Asset Manager
Sustainable Development B-Corporation
[Implementing Authority / Delivery Mechanism]
Consortium / Shareholder Structure
Sponsor
IDB - Direct access/funding
Attract direct corporate sponsors for BOP markets/businesses/entrepreneurs; CSR funds or direct investment (LDA serves a separate de-risking function)
Sustainable Development Portfolio
Social
Programs
BOP Markets/Business
Integrated Systems / Public Goods / Networks
Direct Access Social Programs
Best in Class Clean Technology

16. Thank You!