Embed Size (px)
DESCRIPTION
Presentation by Christine Eibs Singer, Deputy Executive Director - E+co - USA.
Citation preview
The “In Between" Space Can Investments that Combine Public Purpose and Business-
Like Behavior Produce Results?
TBLI Conference, November 2005
Christine Eibs Singer
Deputy Executive Director
www.energyhouse.com
E+CoE+Co, a public purpose investment company established in1994, delivers services to and invests in developing country small and medium energy enterprises that deliver modern energy to households, businesses and communities, creating: -economic opportunity; -quality of life improvements and -positive environmental impacts Triple Bottom Line Returns on Investment
E+Co operates in 20+ countries through locally based staff in Costa Rica, Brazil, Bolivia, South Africa, China and Thailand, with support offices in The Netherlands and US.
E+Co Overview• Business Development Services are provided Pre- and Post Investment
to support market and technology validation, financial analysis and structuring, business plan development, implementation and growth.
• Investments (equity and debt) at the early stage and structured based on local market conditions and enterprise needs.
• E+Co is technology neutral – the technology must be appropriate, available and affordable to its end-users.
• E+Co blends public and private resources. • Sponsors include social investors, charitable foundations, financial
institutions, multilateral banks and development organizations, bi-lateral agencies and multi-national corporations.
The E+Co Enterprise Centered Model
Lo
cal Partn
ers
Energy Services result in micro enterprises, productive uses and income generation
Tools & Training
Enterprise Development Services
Seed CapitalEnterprise Growth Services
Growth Capital
E+Co services and financing
Energy Services
Energy Entrepreneurs
Lo
cal
Par
tner
s
E+Co Portfolio Performance Summary January 1998-June 2005
• 112 investments $10.7 million in 35 countries
• Modern Energy Services 2.1 million people
• 17 Enterprises Written Off $1.1 million
• 19 Loans Repaid in Full $2.3 million; ROI 10.2%*
• Projected Weighted Average IRR on Total Portfolio, after write-offs 8.4%
* ROI excludes enterprise development costs and a portion of operating costs, which are funded separately through contracts and grants
Enterprise Investment Profiles
• Tecnosol, Rural Energy Services Company, Nicaragua
• Clean Thai, Waste to Energy Solution Provider, Thailand
• LaEsperanza, Hydro-Electric Power Plant, Honduras
Nicaraguan-based Clean Energy Company
Solutions to lighting and water needs • Nicaragua: 50% of population has no
access to any type of electricity services and 75% of the rural areas are still un-electrified.
• TecnoSol, promotes solar, wind and hydroelectric and provides energy alternatives for the lighting, refrigeration, water pumping and irrigation needs of businesses and communities.
• TecnoSol has installed almost 3000 systems, primarily on a cash basis. Over next 2-year period, plan to install >6400 systems.
• The company has experienced accelerated growth and it forecasts a 100% increase in sales in the coming years.
Tecnosol HighlightsE+Co Financing: US$300,000Term: 6 yearsJobs Created: 13 Impact: PV systems replace use of kerosene and candles.
Tecnosol HighlightsE+Co Financing: US$300,000Term: 6 yearsJobs Created: 13 Impact: PV systems replace use of kerosene and candles.
Thailand enterprise uses waste to displace oil usage Clean Thai and KWTE
HighlightsE+Co Financing: US$ 197,500Co-Financing: US$3,400,000Jobs Created: 20 Environmental Impact: 8 million liters of fuel oil displaced annually, emissions reduced by 250,000 tons CO2 per year
Clean Thai and KWTE Highlights
E+Co Financing: US$ 197,500Co-Financing: US$3,400,000Jobs Created: 20 Environmental Impact: 8 million liters of fuel oil displaced annually, emissions reduced by 250,000 tons CO2 per year
• Clean Thai uses proven anaerobic digestion technologies to recover and convert organic waste into biogas.
•Thailand’s largest cassava producer uses the biogas to power its production boilers and to generate electricity to be used by the factory.
•The factory is displacing 8 million liters of heavy fuel oil, generating 30,000 MWh of electricity each year.
•The result is multimillion dollars of savings in operating costs, significant annual carbon emission reductions and energy self-sufficiency.
Honduran Hydro Enterprises produces Triple Bottom Line Impact
La Esperanza is a 12.8 MW run-of-river hydro-electric project utilizing an abandoned powerhouse foundation.
La Esperanza produces triple bottom line benefits: financial, social and environmental. Permanent jobs, improved roads, reforestation, potable water and displacement of environmentally negative greenhouse gases.
La Esperanza Highlights:E+Co Financing: US$450,000Term: 4 yearsCo-Financing: $12.6 millionJobs Created: 40 direct, 120 indirect Environmental Impact: -Planting of more than 18 hectares of new forests.-Displacing 35,000 tons of greenhouse gases annually that would result from the traditional use of fossil fuels.
La Esperanza Highlights:E+Co Financing: US$450,000Term: 4 yearsCo-Financing: $12.6 millionJobs Created: 40 direct, 120 indirect Environmental Impact: -Planting of more than 18 hectares of new forests.-Displacing 35,000 tons of greenhouse gases annually that would result from the traditional use of fossil fuels.
La Esperanza Hydro Facility
E+Co’s Value Added•EDS for business plan preparation •Catalytic Seed Capital for construction of the first powerhouse •Follow-on investment to assist in securing financing for full construction •Assessing and quantifying its carbon offset potential; packaging, selling and registering the FIRST small scale CDM project, which should close in 2004.
E+Co’s Value Added•EDS for business plan preparation •Catalytic Seed Capital for construction of the first powerhouse •Follow-on investment to assist in securing financing for full construction •Assessing and quantifying its carbon offset potential; packaging, selling and registering the FIRST small scale CDM project, which should close in 2004.
Triple Bottom Line Reporting
• E+Co implements a Monitoring and Evaluation (M&E) Program that tracks the impact of modern energy delivered by E+Co investee companies along 30 social, environmental and financial indicators.
• Highlights:– 2.1 million people now have access to modern energy services– $120 million in co-financing leveraged– 480,000 tonnes of CO2 Offset Annually– 44.5 million liters of clean water pumped– 46,000 tones of firewood displaced– 6 million liters of kerosene displaced– >1,800 jobs sustained
5-Year Business Plan5-Year Business Plan
• $84 million invested in 200+ clean energy enterprises
• Leverage >$900 million of co-financing
• Establishment of Local Funds and Affiliates– Central America - Complete– Cameroon – In Progress– Ghana – In Progress
CAREC
• Central American Renewable Energy and Cleaner Production Facility • Innovative Mezzanine and Debt Facility• E+Co Capital Latin America – Fund Manager• First closing reached at $15 million; $20 million target
– Leveraged fund – 60% equity, 40% debt– USAID-DCA Principal Guarantee for Private Sector Debt
• 25-30 SME Investments• Market:: 20 million people lack clean energy in Central America
– 5000-5700 MW of new capacity over next 10 years, 50-60% in renewable energy; = ~$4 billion of
investment
• ~10% Return to Investors
For Further Information…
Contact:
Christine Eibs Singer
Deputy Executive Director
Tel: 1.973.868.6321
www.energyhouse.com
![SECTION DIVIDER - ENGINE 620DSL - AutoCD.BIZENGINE 620 DSLP TO NO H7] MFMF000 COMBINE COMBINE COMBINE,,,T TT - - - - 1637219 1637219 MASSEYMASSEYNN 9 9 MFMF000 COMBINE COMBINE COMBINE,,,T](https://img.pdfslide.net/doc/110x75/60fa78029790e3414c2da5c0/section-divider-engine-620dsl-engine-620-dslp-to-no-h7-mfmf000-combine-combine.jpg)
