india energy access summit - the climate group · india energy access summit ... august 10-12, 2016...

INDIAENERGYACCESSSUMMITSustainingIndia'sDevelopmentalGoalsthroughCleanEnergyAccessCONCEPTNOTE|AUGUST10-12,2016VENUE|LEMERIDIEN,8WINDSORPLACE,NEWDELHI-110001IntroductionTheClimateGroup,inpartnershipwithMinistryofNewandRenewableEnergy(MNRE),CleanEnergyAccessNetwork(CLEAN)andSouthAsiaNetworkforCleanEnergy(StANCE),organizedthefirsteverIndiaOff-GridEnergySummitinNewDelhi,Indiaonthe19thofAugust2015.Thesummitprovidedamuchneededplatformforadiversesetofparticipantsincludingpractitioners,investors,donorsandfunderswhoassembledtodiscusstheenergyaccessframeworkoftheGovernmentofIndiaandarriveatacollectiveroadmapforthedecentralizedrenewableenergysectorinIndiatorapidlyprogressandcontributetonationalprioritiesonequitablesocialandeconomicdevelopment.Thesummitbroughttogetherover300delegatesincluding100+decentralisedenergypractitioners,policymakers,donors,fundersandpolicyandregulatoryexperts.SomeofthekeylearningsthatweregeneratedfromthefirstIOGEShavebeenlistedbelow:•Thekeyingredientsofasustainablebusinessmodelincluderobusttechnology,affordableend-userfinancingandgooddistributionnetworks.Itiscriticaltonurtureaprolificrangeofpartnershipstoachievethisincludingstronggrassrootsorganizations,technologydevelopersandlocalfinancinginstitutions.•LongtermbusinesssustainabilitycanbeachievedonlyiftheproductandserviceofferingswithintheDREspacemovebeyondbasicserviceslikelighting/cookingandmobilechargingtosolutionslikechilling,waterpumping,heatingandahostofotherproductiveuses.Thiscanonlybeachieved

byconsistentbusinessinnovationandbydrivingdemandfortheseserviceshigheruptheenergyladder.

• ThereisapivotalroleforNon-BankingFinancingCompanies(NBFCs)toplaywithintheDREspace.Ifappropriatepolicyincentivesandsoftertermsforcapitalaredevised,NBFCscanfundquiteafewenterprisestobringthemtoascalethatcanattractinvestmentbymainstreambankslikeYesBank,RBLetc.andthatcouldtakeakeeninterestinDREprojects/companiesfromaPrioritySectorLending(PSL)lens.• Thereisaverystrongneedtoinnovateatthedemandsideofrenewableenergytechnologies(particularlysolar).Weneedtofacilitateresearchanddevelopmentofultra-efficientappliancesthatcanworkonthelowestpossiblewattagewithoutcompromisingonthequalityoftheproductorservice.• Theroleofregulators(CentralandStateElectricityRegulatoryCommissions)shouldberelookedatwithadedicatedDRElens.Unlessthisisdone,littlecanbeexpectedfromindependentpowerproducers/DREentrepreneurstoscale-upenergyaccess.INDIAENERGYACCESSSUMMIT–TheNeedInviewofIndia’sIntendedNationallyDeterminedContributionagreedduringtheUNFCCC’sCoP21inParis,ithasbecomeevenmorecrucialtoensurethattheenergyandlifestyleaspirationsoftheIndianpeoplearemetthroughcleanandsustainableformsofenergy.While2015wasaremarkableyearforclimatechangebyvirtueoftheCoP21outcome,italsowasspecialbecauseofthelaunchofadedicatedSustainableDevelopmentGoal(SDG7)onAffordableandCleanEnergy.OneofthekeyoutputsfromtheIndianGovernment’sambitiouseffortsinthiscontextisthePowerforAllinitiativeoftheMinistryofPowerinpartnershipwithStateGovernments.Anotherprogressivestep,particularlyforrenewableenergymini/micro-gridsistherecentlylaunchedNationalTariffPolicythatconsidersmini-gridsforregulatedtariffsinruralareas.TheInternationalSolarAlliancerepresentsanotherproudachievementforIndiaanditscleanenergyambitions.Onthedemandside,arecentlypublishedreportbytheWorldBankestimatesaround89millionpeopleinthedevelopingworldhavingatleastonesolarlightingproductintheirhome.AccordingtotheGlobalLightingandEnergyAccessPartnership(LEAP),in2015alone,globalconsumersspentclosetohalfabilliondollarsonoff-gridfans,TVsandrefrigerators.By2020,themarketsizecouldreachupto$4.7billion,itadds.AlthoughthesefiguresareforglobalmarketstheyclearlysignifythecontributionsofIndianenterprisesadoptingamarketbasedapproachtoensuringuniversalenergyaccess.TheEn.lighteninitiativeestimateshowatransitiontowardsbetterquality,energyefficientLEDlightingsystemsintheoffgridsectorinIndiacouldresultinannualsavingsof6.7billionlitresofkerosene.Suchtransitionwouldavoid18.1milliontonnesofCO2emissionsannuallyandresultintoannualmonetarysavingsofaroundUSD2.8billion.Itwouldalsoprovidegreatersocialandhealthbenefitsbyimprovinglivingconditionsforthelocalpopulation,benefittingvulnerablesocialgroupssuchaswomenandchildren.(Refhere)Itisestimatedthattherearearound250privateenterprisesintheoff-gridsector–includingentrepreneursandnot-for-profitsworkingwithsolarlanterns,solarhomesystems,minigrids,picoandmicrogridswhichallplayavitalroleinextendingaccesstoenergy.Since2014,theCleanEnergyAccessNetwork(CLEAN)hasemergedasacollectivevoiceforthesepractitioners.CLEANcontinuestoworkwithmultiplestakeholderslikepolicymakers,investors,technologydevelopersandtrainingprovidersinordertostrengthenandsupporttheenergyaccesssectorinthecountry.

TheClimateGroupandCleanEnergyAccessNetworkwillorganizeaone-dayeventinpartnershipwiththeMinistryofNewandRenewableEnergy(MNRE),GovernmentofIndia.ItwillberelevanttotheIndiangovernment'sprioritiesanddirectlycontributetowardsdevelopinganationalenergyaccessroadmapbyhighlightingthecomplementaryrolethatDREsolutionsplayinensuringquality

andaffordabilityofenergyaccess.DayonewillbethemaineventofthisnationalsummitonIndia’senergyaccessbusinesscommunity.Twodaysflankingthemainevent(10thand12thAugustrespectively)willbemadeupofparallelsideevents,organizedinassociationwithprogrammepartners.OBJECTIVEIEAS2016willserveasaplatformtoshowcaseboththeachievementsandbestpracticesofdecentralizedcleanenergyentrepreneursaswellasthechallengesandissuesthatneedtobeovercometoenableDREtoplayatrulycomplementaryroletocentralizedenergyprovidersandmovetheconversationbeyondelectrificationtoincludevariousotherproductiveusesofenergy(includingthermal,coolingandotherprocessingapplications)inordertorealizeIndia'ssustainabledevelopmentalgoals.Thesummitwillcatalysesymbioticpartnershipsamongpractitioners,investors,policymakers,technologydevelopersandtrainingprovidersworkingtowardsachievinguniversalenergyaccess.Therewillbetwooverarchingthemesforthesummit:a)GridComplementaryRoleofDRE–Lookingatdecentralizedrenewableenergyasanintegralpartofnationalenergyaccessplans,whereinenergyaccessinitiativescomplementnationalgridextensionandthebusinessmodelstakecognizanceofthisalongwithend-usersatisfactionb)Aspirationalusesofenergy–Lookingatthelargerpicturetoenhanceproductivityatvariouslevelsthroughrenewableenergytherebycontributingtothenationalaspirationsofsocialandeconomicgrowth.Theproductiveuseofenergywillcutacrosslivelihoodsystems(bothfarmsectorandnon-farmsector),employmentgeneration,socialinfrastructure(healthcenters,educationalinstitutions,panchayatsetc.)andsoon.Withintheoverarchingthemes,themainsummitwillfocuson:c)Financingenergyaccessscaleup–Identifyingunderlyingchallengesaroundaffordablefinancinganddevelopingpragmaticsolutionstofacilitatescaleupthroughdebtwhichstillremainsthecriticalunmetneedofthesector,equityandsoftfinancing.

d)Policyandregulatoryframeworkforanenablingenvironment–Analysingrecentpolicyframeworksfromthepointofviewofthesectoranddiscussingthebestwaystosupportitbothatthenational,regionalandlocallevel.DATEANDVENUE—Date:August10-12,2016—Venue:LeMeridien,8WindsorPlace,NewDelhi-110001ORGANIZERS—PrincipalorganizersTheClimateGroupandCleanEnergyAccessNetwork(CLEAN)—InPartnershipwithMinistryofNewandRenewableEnergy,GovernmentofIndiaEXPECTEDOUTCOMES—Theroleofdecentralisedrenewableenergywithinthenationalmissiononenergyaccesswillbemappedandanorientationtowardsthefuturewillbearrivedat.

—Asetofatatleast5concreteactionitemstobetakenupwithcriticalstakeholdersincludingMNRE,MinistryofPower,bankers,investorsetc.willbeidentified.TARGETAUDIENCETheone-daysummitwillbringtogetheraround300participantsfromIndiaandtheworld:—Practitioners-Decentralizedenergysolutionproviders—Governmentinstitutions-ministries,statenodalagencies,policymakersandregulators—Investorsandfinancinginstitutions—Thinktanksandexperts—Industryassociationsandcorporaterepresentatives.ABOUTTHEORGANISERS—TheClimateGroupisanaward-winning,internationalnon-profitwithofficesinGreaterChina,NorthAmerica,IndiaandEurope.Ourgoalistohelpleaderstransitiontoaprosperouslowcarboneconomy,drivenbytherapidscale-upofcleanandrenewableenergy.Weworkinpartnershipwiththeworld’smostinfluentialbusiness,state,regional,financeandcivilsocietyleaders.Foroveradecadewehaveworkedtodemonstratetheeconomicandbusinesscaseforthelowcarboneconomy,andcreatethepoliticalconditionsnecessaryforastrongglobalframeworkthataddressesclimaterisksandmaximizesclimateopportunities.Theglobalclimatedeal,whichhasbeenstruckattheParisCOP,representsanewbeginning:thechancetoaccelerateourlowcarbonfuture.Weareworkingwithgovernments,businessesandinvestorstoimplementtheParisAgreement,holdingthemtoaccountwhereappropriatethroughreportingmechanisms,andensuringwebendtheemissionscurvedownwardstosecureathriving,cleaneconomyforall.—CleanEnergyAccessNetwork(CLEAN)isanallIndiarepresentativeorganizationlaunchedin2014withaclearmandatetosupport,unifyandgrowthedecentralizedcleanenergysectorinIndia.ItparticularlyaimstobringtogetherdiversestakeholdersacrossIndiaworkingtoimproveenergyaccessfortheruralandurbanpoorandcreateaninspiringmodelforcountriesaroundtheworldtofollow.CLEANistechnologyagnostic.Technologiesincludesolar,wind,bioenergy,picohydro.Thescaleofitsmembers’operationrangesfrompicosolutionstolarger,decentralizedsolutionsandtheyaremostlysmallandmediumenterprises.CLEANrecognizesthatoff-gridenergysolutionsmovebeyondbridgingtheenergygapbyaddressinglighting,cooking,pumpingneedsandsoontopositivelyaffectsoutcomesineducation,healthandagricultureandenhanceslivelihoodopportunities.Decentralisedcleanenergyhasanimpactontheoverallqualityoflife.