buksh foundation

TABLE OF CONTENTS

• About Buksh Foundation

• Overview since inception

• Need for renewable energy in Pakistan

• ADB’s Contribution in Pakistan

• Buksh Foundations Contribution in Pakistan

• ADB and Buksh Foundation Collaboration

Lighting a Million Lives Project Micro Grids Project Objectives

•How to Catalyze Investments?

• Conclusion

‘Empower the underprivileged, to make them productive and to create equity in the society; to achieve scale sustainably, to be innovative in our approach and to create measurable impact on the global economy as a whole.’

MISSION

Buksh Foundation believes in taking responsibility to improve all aspects of the world in which we operate- social, environment, economic by providing demand-driven solutions. Our aim is to work to create a better future every day.

VISION

FOCUS ON

TRIPLE BOTTOM LINE RETURN APPROACH

• Social Impact + Financial Return + Environmental Benefit

SOCIAL GOALS

• Inclusion- Innovation

Expanding outreach to peri-urban, rural areas, under-electrified areas

• Development- Impact

Provision of auxiliary services like Business Development Services,

industry linkages and financial education

• Empowerment-Sustainability

targeting socially marginalized groups such as women and rural farmers

working with ‘self-entrepreneurs’

Creating self sustaining alternates for facilitating those living at the bottom

of the pyramid- Improving the standard of living

• Demand-driven Impact: focus on rural off grid renewable energy

• Stability and Growth

Promoting stability and growth in conflict areas, through community led

projects

TABLE OF CONTENTS









• Conclusion

Penetration into D I Khan for LAMLPartnership with Kiva for clean energy loansBecame proud member of Italian Development Committee Lahore Chapter

BUKSH FOUNDATION OVERVIEWBuksh foundation is a not for Profit Microfinance Institution set up in April 2009. The organization has successfully completed more than 4 years of operations

2009 Inception of Buksh Foundation as not for Profit MFI Partnership with Pakistan Poverty Alleviation Authority with

initiation of MFI Dispersed Productive loans with most innovative psychometric

model

Partnership with Deutsche Bank NY

Scaled up Micro entrepreneur Loan

Started Credit life insurance

2010 Partnership with Agrow Pvt Ltd and Ravi

Motors Dispersed Transport Loan Pioneered Clean Energy loans

2011

Paradigm shift towards Impact Investment Launched 'Lighting a Million Lives' Project-

for rural off grid electrification Scaled up to 100 + villages with Robin hood

approach

2012Pilot project of 'Drop of Sun'- solar filtration water plant

for provision of clean waterImplemented Solar Mobile Charging StationsPartnership with UBL Omni for Branchless Mobile Banking12 districts covered by LAML

2013

2014

Awards/Certifications & Networks:

Members of: Bloomberg Pioneer Energy Sustainable Energy for all- UN Foundation World Savings and Retail Banking Institute AEDB- Energia ADB - Energy for all

“ Commitment to Microfinance Professionalism” Hanson Wade 2010“ CITI- PPAF Micro Entrepreneurship Award ”January 2010“Women in Business, Architects of Change “ Wibcon 2010 ““Best Social Performance “ Global Microfinance Achievement, CS 2011”“UN HABITAT certification 2013”“Global CSR Summit 2014- ‘ Best Community Award’

EXISTING DONORS / PARTNER

TABLE OF CONTENTS









• Conclusion

WHY USE RENEWABLE ENERGY IN PAKISTAN?

• Pakistan is facing acute energy shortages; demand and supply gap has increased to almost 7000 MW

•Growth in population is exceeding 190 million

• 63% individuals live in rural areas in 50,000 villages completely detached from the national electricity grid

•Government cannot provide national grid to remote areas

•This depicts electricity load shedding province wise. •41% of the respondents face 8 to 12 hours of load-shedding at home per day while 42% of employed professional face 4 to 8 hours of load-shedding at workplace every day.

ALTERNATE ENERGY: SOLAR ENERGY

Solar energy is the best alternate and the only solution for the current energy crisis in Pakistan:

•The solar energy intensity in the Sun Belt is approximately 1,800-2,200 KWh per square meter (95% of total area) with an annual sunshine duration of 8 to 8.5 hours approximately more than 2300–2700 hours per annum

CAN BE MADE ACCESSIBLE TO REMOTE AREAS

SELF- RELIANT AND EFFICIENT

SUSTAINABLE & LONG TERM

ECOLOGICALLY FRIENDLY

TURNKEY MODELS-EASILY SCALABLE

STEP TOWARDS SOCIO-ECONOMIC DEVELOPMENT

TABLE OF CONTENTS

•About Buksh Foundation








• Conclusion

ADB’s Contribution In Energy Sector of Pakistan:

ADB's contribution to the Energy Sector of Pakistan

Approved Loan $400 million

Total Programme Amount $1,200 million

2013Power Distribution Enhancement

Investment Program - Tranche 4


Investment Program - Tranche 3

2011Power Transmission Enhancement

Investment Program - Tranche 3PATRIND HYDROPOWER PROJECT


Investment Program - Tranche 2PAK: ZORLU ENERJI POWER PROJECT

ADB’s Contribution to the Energy Sector of Pakistan:

Total Funding75%

Approved loan25%

Total Programme Funding

TABLE OF CONTENTS

•About Buksh Foundation








• Conclusion

Lighting a Million Lives- to provide solar energy access to rural, un-electrified villages

Solar Mobile Charging Station- in junction with the LaML model to provide mobile charging facilities in rural, un-electrified villages

Drop of Sun- solar water filtration plant to provide access to clean water in off grid areas

Individual Solar Home solutions- 500WT up to 1KV generation plant off grid PV.

Micro Grid- Centralized solar generation and decentralized storage for better standard of living

Solar Agri- Tube wells- solution to 88% of energy deprived agriculture sector of Punjab

Residential/ Commercial and Industrial solar Hybrid Systems

Energy Conservation Solution- efficient building design/ energy audits

Solar ATM’s- Converting ATM’s on solar energy for efficient usage in off-grid areas-zero downtime for commercial Banks.

10 MW Solar Power Plant- Pakistan’s 1st solar PV plant technology contributing to 0.14% of the total energy shortfall

30MW Solar-PV Plant

Smart Grids- integrates information technologies with our current electrical infrastructure, empowering smarter energy choices to the operating DISCO’S

Liaison with Government Projects- Housing Societies –Grid Connectivity Survey –State Owned Commercial Plazas –Rural Electrification of Villages

Buksh Foundations Contribution in Energy Sector of Pakistan:

MICRO LEVEL

MACRO LEVEL

MESO LEVEL

Lighting a Million Lives- to provide solar energy access to rural, un-electrified villages

Solar Mobile Charging Station- in junction with the LaML model to provide mobile charging facilities in rural, un-electrified villages

Drop of Sun- solar water filtration plant to provide access to clean water in off grid areas

Individual Solar Home solutions- 500WT up to 1KV generation plant off grid PV.

Micro Grid- Centralized solar generation and decentralized storage for better standard of living

Solar Agri- Tube wells- solution to 88% of energy deprived agriculture sector of Punjab

Residential/ Commercial and Industrial solar Hybrid Systems

Energy Conservation Solution- efficient building design/ energy audits

Solar ATM’s- Converting ATM’s on solar energy for efficient usage in off-grid areas-zero downtime for commercial Banks.

10 MW Solar Power Plant- Pakistan’s 1st solar PV plant technology contributing to 0.14% of the total energy shortfall

30MW Solar-PV Plant Location: Smart Grids- integrates information technologies with our current electrical infrastructure, empowering smarter energy choices to the operating DISCO’S

Liaison with Government Projects- Housing Societies –Grid Connectivity Survey –State Owned Commercial Plazas –Rural Electrification of Villages

Best Practices for Collaboration with ADB:

MICRO LEVEL

MACRO LEVEL

MESO LEVEL

TABLE OF CONTENTS









• Conclusion

ADB & Buksh Foundation Collaboration:

Centralized renewable energy provision with women social enterprise

Lighting a Million Lives

Population below the minimum line on the poverty score card

Completely off - grid areas

Minimal / Zero education levels

Centralized solar generation and decentralized storage for better standard of living

Micro Grid

Population above the minimum line on the poverty score card

Semi off- grid areas

Basic education levels

This collaboration aims to bring innovation in the clean energy finance industry by setting a pilot project targeting 2 tiered strategy based on poverty score card:

LIGHTING A MILLION LIVES PROJECT (LAML)

The project in collaboration with The and Energy Research Institute (TERI) India, aims to provide solar energy access to rural, un-electrified areas of Pakistan

The project holds multi fold benefits such as:

Build on local capacities: Create gender Equity Energy supply Introduce Modern Equipment Provide Technical Support Training at the grass root level Stabilization of Communities

Since the inception of this project following milestones have been achieved in Pakistan (December 2012):

95 villages have been electrifiedDirectly benefited 24,000 peopleIndirect beneficiaries 48,000 people95 light ladies have been created190 individuals transformed into technical entrepreneurs

LIGHTING A MILLION LIVES (LaML) PROJECT MODEL Patron

Funds, Dissemination,

Guidance

Entrepreneurs

Buksh FoundationOverall Campaign

Coordination, Steering, Monitoring

& Advancing, Communication &

Publicity

Product PartnersProduct Suppliers & Service Providers

CommunityUltimate Users &

Beneficiaries

• Financial Institutions• Corporations• International Development

Organizations• Angel Funds• Philanthropists

• Who ?• Village Women• Village Youth• School Teachers• Others

• Roles & Responsibilities• Operator (charging station &

lanterns)• Daily Operations & Management• Data Recording & Daily Book

Keeping• Local Level Communication• Expansion of the Charging Station

• Roles & Responsibilities• Maintains the ‘Robin Hood’

Approach• Scoping Studies• Selection of Entrepreneur• Custodian, Charging Station &

Lanterns• Synergizing with other

development Programs

SOLAR CHARGING STATION

1 village = 50 households

1 female entrepreneur

50 lanterns

5 solar panels

5 junction boxes

IMPACT GENERATION- Calculated as per 100 Villages electrified

• Promoted healthier environment as kerosene and cow dung other than being unhealthy alternates, also lead to frequent fire outrages and accidents in these areas

• Village enterprises are expected to generate enough income to expand and continue their operations through the revolving fund without any further investments by the public

• Every household has saved 400-500 rupees per month.

• Medical Provision has increased by 100%

• Female entrepreneurs increase their disposable income by 100% due to sustainable income generation mechanism

• Night cropping has increased leading to 5% to 7 % improvement in fertility of land

• Prevention of deforestation-Ensuring environmental stability by decreasing 1.5 tons of CO2 emission.

• Crime rate (theft and rape) has reduced by 8% to 10 % increasing night travel

• Increase in productive hours from 3 to 4 hours, leading to augmented productivity by a factor of 0.24% per year

• Infant mortality rate will go down from 6.3% to 5.7% due to saved child birth rates at night

• Increasing median years of education from 6.7 years to 8.5 years which has increased girls enrolment in school by 30%

After holistic field research and scoping studies sites for Solar Charging Stations are selected. Establishing 50 lanterns centralized station.

Female entrepreneurs are created through the construction of theses solar charging stations, establishing a permanent and respectable source of income- resulting in women empowerment.

Post Implementation Donor PR Campaign - creating good will and positive brand equity for the Private sector Organizations involved. Hence, generating win-win situation.

TABLE OF CONTENTS









• Conclusion

MICRO GRIDS:

Centralized solar generation and decentralized storage is a highly efficient solution to provide access to electricity.

This holds multi fold benefits such as:

Individual household energy supply Formalized structure of billing Diversified financial models Does not require highly skilled manpower for operation Minimum Technical Support Required Training at the grass root level Less investment for entrepreneur Stabilization of Communities

Micro Grid Model:Selection

of Area & Feasibility plans

Technical/

Operational

Training provided

to the the

community

Local Agent is selected

for prepaym

ent collectio

n by psychom

etric analysis

Implementation of DC Micro Grid

After Sales

Services provided

-On going

Training and

Support

Post Implementation

Donor PR Campaign Launch

Technical Specification

PV Module 30 W

Battery 30 Ah

Charge Controller 12V/24V-10A

Lights 3 ( 3 Watt Each)

Mobile Charging Facicility Yes

This DC Micro grid will serve 15 households and it will include :

MICRO GRID SYSTEM:

One Fan

Three LED Lights

One Mobile

Charger

Expected Impact :

• Sustainable Energy Alternate- Highly reliable due to absence of Inverter and centralized storage

•Generation Mechanism: According to the Pakistan Journal of Life and Sciences a 1% investment in electrical infrastructure, increases the total factor of productivity (TFP) by 0.24%. This will help create greater economic stability in the villages.

•Increase in Literacy Rate: with the median years of education increasing from 6.7 years to 8.5 years.

• Lowest cost / household and higher efficiency compared to electrification by Individual Solar Home System or AC Micro grid

• Can supply power for household need (Light, TV, Fan, Mobile charging), community need (Water pumping) and need of small business establishments

•Medical emergencies will be catered by 100%

•Mobile charging will allow 24 hour communication which will create linkages and reduce longer commutes

•Environment-Zero carbon emission by reducing usage of kerosene

TABLE OF CONTENTS









• Conclusion

Objectives of the Pilot Project:

This pilot will embark new prospects of financing for commercially and technically sustainable stakeholders. In this pursuit, we would like to launch 1st investment forum in Pakistan in collaboration with ADB by end of 2014 to catalyze clean energy finance

Developing SolutionsFor Targeted Community

Technically Sound

Financial Options- Tripartite solution

Based on Poverty Score Card

Determine- How Much Tariff Can Be Charged

Implement Community Centric Projects- By Conducting Social Mobilization

Analyze Complete Terrain and Impact Per Dollar

Implement Commercially Sustainable Technical Models

Consent Of Regulatory Authority Over Self Sustenance Projects

Equity Contribution By The Villagers

Subsidy By ADB For Practitioners

Involve Commercial Banks For Micro Grid Leasing

TABLE OF CONTENTS









• Conclusion

HOW TO CATALYZE INVESTMENTS?

DemandDriven

TechnicallyViable

SelfSustaining

CommerciallySustainable

TurnkeySolution

CATALYZING SUSTAINABLECLEAN ENERGY FINANCE

Commercial Financers &

Financial institutions


DemandDriven

TechnicallyViable

SelfSustaining


TurnkeySolution


Private Sector

Practitioners




DemandDriven

TechnicallyViable

SelfSustaining


TurnkeySolution


Public Sector

Regulators

Private Sector

Practitioners




DemandDriven

TechnicallyViable

SelfSustaining


TurnkeySolution


Technology Partners

Public Sector

Regulators

Private Sector

Practitioners




DemandDriven

TechnicallyViable

SelfSustaining


TurnkeySolution

Targeted Community


Technology Partners

Public Sector

Regulators

Private Sector

Practitioners



TABLE OF CONTENTS









• Conclusion

The need for diversifying sources of energy to help meet Pakistan’s energy requirements is urgent.

Therefore, it is necessary to increase investments that make possible the aggressive adoption of renewable energy and energy-efficient technologies across the region - and mitigate the effect of higher fossil fuel consumption.

CONCLUSION

THANK YOU!

Presented by:

FIZA FARHANCEO BUKSH FOUNDATION

[email protected]

buksh foundation

Small Business & Entrepreneurship