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INDIA ENERGY ACCESS SUMMIT Sustaining India's Developmental Goals through Clean Energy Access CONCEPT NOTE | AUGUST 10-12, 2016 VENUE | LE MERIDIEN, 8 WINDSOR PLACE, NEW DELHI - 110001 Introduction The Climate Group, in partnership with Ministry of New and Renewable Energy (MNRE), Clean Energy Access Network (CLEAN) and South Asia Network for Clean Energy (StANCE), organized the first ever India Off-Grid Energy Summit in New Delhi, India on the 19th of August 2015. The summit provided a much needed platform for a diverse set of participants including practitioners, investors, donors and funders who assembled to discuss the energy access framework of the Government of India and arrive at a collective roadmap for the decentralized renewable energy sector in India to rapidly progress and contribute to national priorities on equitable social and economic development. The summit brought together over 300 delegates including 100+ decentralised energy practitioners, policy makers, donors, funders and policy and regulatory experts. Some of the key learnings that were generated from the first IOGES have been listed below: • The key ingredients of a sustainable business model include robust technology, affordable end-user financing and good distribution networks. It is critical to nurture a prolific range of partnerships to achieve this including strong grassroots organizations, technology developers and local financing institutions. Long term business sustainability can be achieved only if the product and service offerings within the DRE space move beyond basic services like lighting/cooking and mobile charging to solutions like chilling, water pumping, heating and a host of other productive uses. This can only be achieved

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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.