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New Ventures INDIAIdentifying target markets for
Clean Energy Access
Products and Services
Where should your clean energy access business be located?
A BLIND FOLDED DART GAME?
300 million people do not have grid access
We propose a analytical methodology based on multiple criteria to identify target markets
Un-electrification Banking access Economic activity Grid expansion
Highimplies
Demand for products
Highimplies
Availability of finance
Strongimplies
Willingness to invest
Slow impliesLesser
competition
1 2 3 4
Our methodology – Filtering districts to identify target market
Un-
elec
trifi
catio
n
Bank
ing
acce
ss
Econ
omic
ac
tivity
Grid
ex
pans
ion
All d
istr
icts
High un-electrification
High banking access
Strong asset growth
Slow grid expansion
Target districts
321 districts67.6 million households
(HH)
162 districts32.9 million households
(HH)
116 districts22.5 million households
(HH)
80 districts15.9 million households
(HH)
1 2 3 4
Steps to identify target market – case study for Uttar Pradesh
Check for Un-electrification status1
This is the starting point…
Steps to identify target market – case study for Uttar Pradesh
Check for banking penetration2
Higher banking penetration = Better chances of a loan
Steps to identify target market – case study for Uttar Pradesh
Check for asset growth 3
Stronger growth of TV and Vehicles ownership= Better ability to buy
Steps to identify target market – case study for Uttar Pradesh
Check for grid expansion4
Slowly expanding grid = Lesser competition for decentralized options
Steps to identify target market – case study for Uttar
Pradesh
Combine all criteria to identify Target districts
High un-electrification + High banking penetration + Strong asset growth + Slow grid expansion
Focus on a district rather than spread resources across districts
Case study for Rural Gorakhpur – Eastern Uttar Pradesh
68% un-electrification
79% banking penetration
12% TV ownership growth11% Vehicle ownership
growth
4.9% grid expansion
Is a target market with Rural Gorakhpur
INR 38 Crore or
USD 6.3 million
Target Market size
10% of un-electrified HHs 38,000 solar systems
20 watt systems at INR 10,000
Build district level operations and relations
How to pick the “one” district? Look for
clusters
Bihar
Districts are concentrated in a region forming a cluster
Target
13 rural districts
5.14 mn rural HHs
90% average rural un-electrification
0.7% average rural solar penetration
How to pick the “one” district? Look for
clusters
Uttar Pradesh
Districts are concentrated in a region forming a cluster
Target
15 rural districts
4.62 mn rural HHs
76% average rural un-electrification
0.7% average rural solar penetration
Cluster spreading across states
Target
28 rural districts
9.7 mn rural HHs
61% of the identified market across 10 states!
Eastern Uttar Pradesh to Western Bihar
How to pick the “one” district? Look for clusters
Orissa
Districts are concentrated in a region forming a cluster
Target
4 rural districts
0.66 mn rural HHs
64% average rural un-electrification
0.6% average rural solar penetration
How to pick the “one” district? Look for clusters
Districts are concentrated in a region forming a cluster
Madhya Pradesh
Target
11 rural districts
0.51 mn rural HHs
42% average rural un-electrification
0.8% average rural solar penetration
How to pick the “one” district? Look for clusters
Chhattisgarh
Districts are concentrated in a region forming a cluster
Target
3 rural districts
0.1 mn rural HHs
30% average rural un-electrification
3.7% average rural solar penetration
How to pick the “one” district? Look for clusters
Maharashtra
Districts are concentrated in a region forming a cluster
Target
9 rural districts
1.16 mn rural HHs
26% average rural un-electrification
1.4% average rural solar penetration
Focus on district – potential is huge!
And
From a micro to a mainstream market the way is to navigate across a cluster
Focus instead of spreading thin with limited resources
About New Ventures India
WRI incubated New Ventures program in 1999
Six local chapters, India chapter created in 2006
Promoted environmental SMEs by enabling access to finance
WRI transitioned New Ventures to local partners in 2011
India partner is Regain Paradise Research Consulting
We facilitate investments in environmental businesses
New Ventures Local chapters
Clean energy and water accessWe facilitate investments and partnerships
Looking to invest in Clean Energy and Water access?
We identify promising environmental enterprises
We help you invest in the right technology and enterprise
Investors
Facilitated investments of USD $49.4 million across 22 environmental
enterprises
Corporations
Forged and identified partnerships between large corporations and
environmental enterprises
We are your TRUSTED partner