IFC Energy Access – Myanmar (Lighting Myanmar)

2

ElectricityAccessDeficit,Top20Countries(popula9onmillions),SE4A

MyanmarOneofLargestUnelectrifiedPopula9onsGlobally

DensityversusDistance

3

Ligh%ngEquity

Although one in three people obtain light with kerosene and other fuels, representing about 15% of global lighting costs, they receive only 0.2% of the resulting lighting energy services

4

Popula%on7Billion

85 99.8

15 0.2

EnergyCost TotalEnergyServices

100%=$230billion 100%=12,100Tlmh

KeroseneorotherFuelElectricity

Source:EvanMills,LawrenceBerkeleyNa9onalLaboratory

5

DrivingtheMarketTheLigh(ngGlobalExperience

Profi

tability

Breakeven

MaturityProofofconceptBusinessmodeldevelopment

6

Catalyzingmarketdevelopment

Market Intelligence

Quality Assurance

Business Support

Consumer Education

Catalyzing Venture

Financing

Catalyzing mainstream

Investment with Financial

Institutions

Ligh9ngGlobaloperatesalongthemarkettransforma9oncurve,focusingonspecificmarketsupport/developmentac9vi9es

Addressing regulatory constraints

Technology/Businessmodeladvancement

AdvisoryServices

Investment

QualityAssuranceisfounda9onaltogrowingmarket

0

5

10

15

20

2004 2006 2008 2010 2012 2014 2016 2018 2020

Totalverifiedgoodqualityproductsinservice(millions)

Ligh9ngGlobal IndependentCer9fica9onBody

7

Source:Ligh9ngGlobalIFCTeam

RealizedneedforQA:startedtodeveloptestmethod

Ligh9ngAfricaQualityTestMethod(LA-QTM)DevelopedandQAlaunched

~6productsmeetMinimumQualityStandards

~25productsmeetMinimumQualityStandards

~50productsmeetMinimumQualityStandards

CredibilityLigh9ngGlobalQAprogramhasfocusedonbuildingcredibility[rigorousandindependent]

Consumereduca9on

Investedheavilyinconsumereduca9oninafewmarkets

Stability

Needtomaintainstabilityintransi9on

QualityStandardsexpandtoinclude100wafsystems

ConsumerEduca9onCampaigns:Marke9ngCollabora9onwithourPartners

8

fd

IntegratedCommunica%

onPlan

VillageOutreach

CallCentre

Radio

MobileExhibi%on

WomenMee%n

g

SchoolConnec

t

RetailConnect

RadioSpots

LeadManageme

nt

Informa%onSharing

57 85 213 626

970

202

2010 2011 2012 2013 2014 2015

Kenyaconsumerawarenesscampaign

starts…

…andends

Source:Ligh9ngGlobal

Kenya:Ligh9ngAfricainterven9onsandsalesofligh9ngglobalquality-verifiedsolarlights(thousandunits)

(6mo.Results)

Ligh9ngGlobal’sstrengthcomesfromaprogramma9capproachthataddressesbothsupplyanddemand.

QualityAssurance

Policy&Partnering

withGovernment

MarketIntelligence

AccesstoFinance

BusinessDevelopment

ConsumerAwareness

Supply Demand

10

42,000productssold

20millionproductssold

2015

2009

2015

Ligh9ngGlobaloperatesin16countrieswith52quality-verifiedproductsfrom25manufacturerscurrentlyinthemarket.

11

12

13

<10Wp <100Wp

Pico-PVligh9ngproducts

SolarHomeSystems

“Off-gridsolar”referstothefollowingproducts:pico-PVligh9ngandSolarHomeSystems.

Whataboutlargersystems?HighEfficiencyDCAppliancesAreContribu9ngtoSolar

HomeSystemAffordability

$0

$200

$400

$600

$800

$1,0

00

$1,2

00

2017 projectionSHS with super-efficient

2014 - SHS with super-efficient appliances

2014 - SHS with standard appliances

2009 - SHS with standard appliances

Retail Price by Component ($ US)

Lights Battery PV Balance of System Appliances

60%declinein5years

AsthecostofSolarHomeSystemshasfallendrama9cally,theyhavebecomeaviablealterna9vetothegrid.

16

Tenyearsago,40Wsolarpanelpowered:•  asingle25Wincandescentbulbfor5

hoursperday

Themarketforenergyefficientappliancesisgrowinginresponsetorapidlyemergingwillingnesstopayforqualityenergyservices.

Today,same40Wsolarpanelpowers:•  fourLEDlightsfor5hours,andcolor

TVfor4hours,and•  phonechargerfor3hours,and•  radiofor6hours

17

We’reenablingBoPconsumerstoclimbtheenergyaccessladder.

Scale(~WaUs) 1–10 10–100’s 100’s–1000’s 106-1011

Topology DCOnly DC–someAC MostlyAC NearlyallAC

Loads

SE4ALLTiers

Lighting and Phone Charging Television and Fans

Range of Appliances Industrial Power

1 4 to 5 2 to 3 1 to 5

Scale(~WaUs) 1–10 10–100’s 100’s–1000’s 106-1011

Topology DCOnly DC–someAC MostlyAC NearlyallAC

Loads

SE4ALLTiers

Lighting and Phone Charging Television and Fans

Range of Appliances Industrial Power

18

US$10-120 US$140-1000 Highlyvariable Highlyvariable

Source:Ligh9ngGlobal,BloombergNewEnergyFinance

Es9matedsalesofBrandedpicosolarlights(millionsofunits,cumula9ve)

Note:DataisbasedonsalesdataofLigh9ngGlobalqualityverifiedproduct,conversa9onswithandannouncementsofothermarketplayersandBNEFes9matesforrepor9nggaps.

1.6 2.2 3.2 4.5 6.3 8.51.8

3.45.4

7.69.8

11.4

0.1 0.4 0.6 0.9 1.4 2.1 3.45.7

8.6

12.1

16.0

19.9

FY H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1

2009 2010 2011 2012 2013 2014 2015

AfricaAsia

Off-gridsolarligh9nginnumbers1.   20mbrand-qualityportablesolarlightshadbeensoldbyJuly2015.2.   89mpeopleinthedevelopingworldhaveatleastonesolarligh9ng

productintheirhouseholdalready,and21mpeoplehavebeenlivedtothefirstrungoftheenergyladderbypico-PVproducts.

3.  Consumerssaveonaverage$3.15foreverydollarspentonpico-PVinAfrica.

4.   87%ofdirectinvestmentsintooff-gridsolarcompaniesin2014and2015havegonetopay-as-you-gocompanies.

5.  Annualinvestmentsintothesector(incl.specialisedintermediaries)haverisenfiveen-foldsince2012,to$276min2015.

6.  Aboutoneinthreeoff-gridhouseholdswilluseoff-gridsolarby2020,accordingtoourbaselineforecast.

7.  Unitsaleswillgrowata34%CAGRinthenextfiveyears,accordingtoourbaselineforecast.

8.   15mTVsarelikelytobesolar-poweredby2020,accordingtoourbaselineforecast.

020406080

100120140160180200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2010 2011 2012 2013 2014 2015

PAYG

Cash sales

Investmentfunds

Note:showndataexcludesUSD40mofinvestmentswithundiscloseddateand$27mofaggregatedataforwhichtherecipienttypecouldnotbedetermined.

Source:BloombergNewEnergyFinance

TRACKEDINVESTMENTSINOFF-gridSolarbyrecipienttype(USDmcumula9ve)

Pay-as-you-gocompaniesraisedalmostthree9mesasmuchinvestmentascash

salescompaniesinhalfthe9me