Overview and Updates

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1 Overview and Updates

2 Contents Genesis and Approach Focus Areas and Key Projects Decentralized Renewable Energy Access Roadmap for 24*7 Power in Karnataka Value Added Tax on Renewable Energy Energy Entrepreneurship and Ecosystem Development Skill Development through ITIs Financing for Energy North East ecosystem for energy access Social Enterprise Issues Impact Investing in the Social sector Global Replication: Exploring Ecosystem in Africa

3 About SELCO Foundation and Policy Group Three fold mandate: Plugging gaps in the ecosystem Develop holistic linkages Replicate concepts and processes DECENTRALIZED RENEWABLE The Policy ENERGY Group ACCESS within the Foundation is one of the teams charged with plugging the gaps in the ecosystem from a policy perspective based on inputs from the Foundation s R&D Labs, practitioners and stakeholders in the sector. This includes facilitating the creation of more practitioner friendly, field-driven policies that make better integration and implementation of decentralized sustainable energy solutions possible.

4 DECENTRALIZED RENEWABLE ENERGY ACCESS Approach

5 DECENTRALIZED RENEWABLE ENERGY ACCESS Differentiators - SELCO Policy Group

6 Policy Focus Areas DECENTRALIZED RENEWABLE ENERGY ACCESS ENERGY ENTREPRENEURSHIP& ECOSYSTEM GLOBAL REPLICATION SOCIAL ENTERPRISE

7 Key Projects DECENTRALIZED RENEWABLE ENERGY ACCESS Energy Planning with Karnataka Govt Value Added Tax National Solar Mission Low Carbon Development ENERGY ENTREPRENEURSHIP and ECOSYSTEM Skill Development Financing for End users and Entrepreneurs National Clean Energy Fund Ecosystem Needs in North East SOCIAL ENTERPRISE ISSUES Impact Investment Reporting Framework- Impact assessment Due diligence processes for Investments GLOBAL REPLICATION- Ecosystem Approach in African regions

8 ENERGY INTEGRATION PLAN: Roadmap for 24*7 Power in Karnataka Project Outline: Part of a study commissioned by Karnataka Electricity Regulatory Commission (KERC) Chairman Required analyzing data on the Availability and Adequacy of electricity in districts across Karnataka. Gaps identified and a plan to integrate Decentralized Renewable Energy solutions such as Solar Water pumping, Micro grids, Energy for livelihood applications proposed. Inputs have been incorporated in the Roadmap on 24*7 Power report for Karnataka State. Energy Access mapping study undertaken in 5 districts of Karnataka Asked by KERC to be part of 24*7 Power report Data collection and Analysis for districts across Karnataka First Draft of Report with Energy availability map and DRE recommendatio ns Final report submitted and Launch of Report expected Proposal for similar intervention in Tamil Nadu (WRI) Advocacy on the need for similar analyses in other States July Nov Dec Mar May June

9 ENERGY REGULATIONS: Value Added Tax on Renewable Energy in Karnataka Project Outline: SELCO Foundation has been working over the last 2 years to facilitate the Exemption of VAT on Renewable energy devices and spare parts in Karnataka state. In addition to increasing the system cost for low income households, this taxation is contradictory to the intentions of the government which also provides subsidies. On 13 th March,, the Chief Minister of Karnataka announced the exemption of VAT on Solar panels and solar invertors as part of the year s State Budget. Moving forward, the team will work on ensuring a similar exemption for all RE devices when the new GST regime comes into place (in FY ) Meeting with then Energy Minister and then CM about the VAT removal Meeting with Energy Secretary; Draft Solar Policy provides for VAT exemption on Solar Suggestion on VAT exemption on Solar rejected by Finance dept Meetings with Energy, Finance Dept, Commercial taxes dept VAT exemption announced in Budget FY -16 Advocate for GST exemption on RE devices at National level 2013 Jan Dec- Mar June- Dec

10 NETWORK FOR SECTOR: Creation of Clean Energy Access Network (CLEAN) Project Outline: SELCO Foundation is one of the founding members of the Clean Energy Access Network (CLEAN) and currently serves on the Advisory Group of the Network. CLEAN is an all India representative organisation for decentralized clean energy entrepreneurs and related stakeholders. Technology, scale and business model agnostic, and includes both electricity and non-electricity energy usage. Delivers five core sets of services,: information and networking; technology development and innovation, skills and training, opportunities for policy advocacy and increased access to finance. Alliance Charter to create network signed by 10 organizations Final Proposal submitted and Funder agreements signed CEO officially on board CLEAN Meetings with key stakeholders; Projects started CLEAN to be officially launched and Membership drive Policy team to deliver on North East policy ecosystem gaps Jun- Jul Dec - Mar April June-July

11 SKILL DEVELOPMENT: Institutionalization of RE Technician course in ITIs Project Outline: Engaged in a project with Staff Training & Research Centre (STARC), Department of Employment and Training (DET) in Karnataka Goal Create a 4-6 month Renewable Energy Elective/Module which can be part of the Electrician trade in state ITIs- with State level certification. Content to cover theoretical and practical aspects of Solar, Grid integration, Wind and Pico hydro, with inputs from relevant Industry partners. Larger goal institutionalization of framework and curriculum through Ministries at National level Ministry of Skill Development and Entrepreneurship, Ministry of Human Resource Development etc. Skill development emphasized as a key need for sector ITI course suggested to Energy and Labour Department in Karnataka Meeting with Staff Training centre (in charge of course curriculum development) Meeting with Skill Development & Entrepreneurship Ministry MoU with Industry partners; Content developer identified Planning meeting with STARC and Stakeholders Final course and material submitted to STARC Approach National Ministries with finalized course and Case study June Nov Dec Mar April May June

12 FINANCING: National Clean Energy Fund and Capacity building Project Outline: Organizing 2 Banker/Policy maker meetings in the next 2 months with the objective of promoting financing for DRE solutions. Workshop 1: Innovative Financing and discusses challenges with Regional managers and Priority sector lending officers. Workshop 2: Aims to communicate these challenges and alternate policy models to Representatives from Apex banks and Policy makers. The Policy making bodies include Reserve bank of India (RBI), National Bank for Agriculture and Rural Development (NABARD), Ministry of Finance, SIDBI, Ministry of New and Renewable Energy (MNRE) and so on. Use workshops to begin suggesting alternative models for usage of National Clean Energy Fund, in the energy access and Entrepreneurship space Changes in National Solar Mission guidelines for off-grid Increase in cess on coal to Rs. 200, which goes to National Clean Energy Fund Possible removal of subsidy in Solar Mission suggested by MNRE Workshops with Financiers, CLEAN, Practitioners on NCEF, end user and Entrepreneur Financing Meeting with RBI, NABARD, Policy makers on needs of Financiers; Share final note on NCEF utilization possibilities with MNRE, Ministry of Finance Dec Mar April May

13 ECOSYSTEM BUILDING: Scenario and Gaps in North East India Project Outline: Undertaking an evaluation of the Ecosystem for energy services in certain specific regions in the North east. Regions to be finalized based on inputs from CLEAN s stakeholders in the region. Formulate an inclusive renewable energy implementation model that takes into account the complete ecosystem i.e. technology, finance (capital & end user), supply chain, capacity building, scalability/replicability, institutional aspects, policy framework and livelihood aspects of renewable energy application(s). These can then be implemented as part of CLEAN s activities in the region. SELCO Foundation supported Network- CLEAN is officially announced Discussions with Entrepreneurs to narrow down on key ecosystem factors Finalize list of Ecosystem factors and prepare for Field research and interactions Discussions with CLEAN practitioners on the ground to understand constraints Finalize report on Ecosystem gaps and ways to address them; Plan for interventions with CLEAN and partners Nov Jan- Mar April- May June-July

14 IMPACT INVESTING: Bridging Gaps in Sustainable Investments Project Outline: An insider s perspective of on-the-ground challenges faced in balancing the right mix of investments impact on missions of social enterprises Recommendations that could help guide the growing social investment arena on how to support the development of sustainable social enterprises Act on recommendations by incorporation into training programs for fund managers, conducting workshops that highlight the expectations gaps and dive into a deeper understanding of sustainable investing, tap into impact investment networks to advocate for these changes Deep dive into related aspects: fine tuning impact metrics (organization and end user) for social (energy) enterprises, note on due diligence process as per SELCO and incubatees experience (negotiation process, checklist and term sheet clauses). Workshop 1: Expectation Gaps among Investors and Practitioners Report: Bridging Gaps among Investors and Practitioners Due Diligence booklet for investors and practitioners Workshop 2: Defining Sustainable Investments for Social Enterprises Advocacy for these recommendations into ongoing discourse on impact investments Apr Oct Nov- Mar Apr Oct-Nov

15 GLOBAL REPLICATION : Exploring the Ecosystem in the Africa context Decentralized sustainable energy Social Enterprise issues Micro energy entrepreneurship Global Replication/Adaptation Project Outline: In-depth field research and analysis in 2 regions of Africa to better understand energy access ecosystem (potential regions marked in red on map) Ecosystem analysis and corresponding policy interventions Replication through local partnerships, workshops on learnings/best practices/failures from another context like India. Tentative plan on exploring Ecosystem aspects and Replication in African regions Conversations with Practitioners and previous workshop attendees on possible focus regions Based on previous experience and conversations, finalizing regions for focus Field research and Understanding of Focus regions; building partnerships Undertake Replication workshop in Africa with partners, entrepreneurs Identify and advocate for a Policy intervention based on learnings of region and replication possibilities Jan Mar Apr-Sep Oct-Nov Sep-Dec

16 Partners and Supporters