Unleashing Entrepreneurship Unleashing Entrepreneurship Service and Investment Service and Investment

InnovationsInnovations

E+Co

Christine Eibs Singer

chris@energyhouse.com

383 Franklin StreetBloomfield, NJ, USA 07003www.energyhouse.com

April 2005

E+Co OverviewE+Co Overview

E+Co pioneered the enterprise centered model of investment, which combines the delivery of services to and investment in developing country small and medium energy enterprises that deliver modern energy to households, businesses and communities, creating:

-economic opportunity;

-quality of life improvements;

-positive environmental impacts

Enterprise Centered ModelThe Basic Theory

Investors Donors Philanthropies

Services

SMEEntrepreneurs

Capital

Their Customers

Public Purpose Specialty Organizations

E+Co Portfolio Performance Summary January 1998-May 2004

• 87 investments $8.8 million in 35 countries

• Modern Energy Services 1.65 million people

• 17 Enterprises Written Off $1.02 million

• 11 Loans Repaid in Full $1.4 million; ROI 9.8%*

• Projected Weighted Average IRR on Total Portfolio, after write-offs: 7.4%

* ROI excludes enterprise development costs and a portion of operating costs, which are funded separately through contracts and grants

Energy Enterprise DevelopmentEnergy Enterprise DevelopmentThe Path to ScaleThe Path to Scale

Identifying energy SME business models that work.

Experimenting with service + investment models and identifying those thatwork.

Elaborating energy SME business model and service + investment models into systems and experience…creating a value chain.

Engaging others to adopt both business and service investment models; building participants in value chain

Filling gaps in and gaining experience with the Value chain

19901990 20002000

Significantly expanding participation in the value chain

2010 ?2010 ?

E+Co’s Plan: 2004-2008E+Co’s Plan: 2004-2008

• $84 million invested in 200+ clean energy enterprises

• Leverage >$900 million of co-financing

• Establishment of Local Funds and Affiliates– Central America– Asia– West Africa

E+Co M&E MetricsFinancial Environmental

Clean Energy Promotion

Amount of Money E+Co Invested in clean energy enterprises

Amount of Energy Generated using clean energy Number of Jobs Created Tons of CO2 offset

Number of different Technologies Supported

Amount of Money E+Co Leveraged from Entrepreneurs

Number of Households and People served

Number of businesses with women Ownership

Tons of SO2 or NOx offset

Geographic Distribution of RE Technologies

Amount leveraged from 3rd parties

Number of Productive Use Applications

Number of entrepreneurs receiving EDS

Improved Access to Water

Number of RE Products Sold

Potential Amount of Growth Capital Improved Income

Number of Entrepreneurs trained Reforested Land

Number of RE Policy Activities

Annual Revenue Generated from clean energy enterprises

Number of Clean Energy Enterprises Operating

Number of Business Plans Completed

Amount of energy saved from EE initiatives

Number of Awards Received

Number of Financial Institutions Trained and Engaged in RE financing

Number of NGOs receiving capacity building for RE EDS and Financing

Number of Toolkits/Manuals distributed

Number of Customers installing EE equipment

Number of Articles Published and Conferences Attended

Social

Nicaraguan-based Clean Energy Company

Solutions to lighting and water needs • Nicaragua: 50% of population has no

access to any type of electricity services and 75% of the rural areas are still un-electrified.

• TecnoSol, promotes solar, wind and hydroelectric and provides energy alternatives for the lighting, refrigeration, water pumping and irrigation needs of businesses and communities.

• TecnoSol has installed almost 3000 systems, primarily on a cash basis. Over next 2-year period, plan to install >6400 systems.

• The company has experienced accelerated growth and it forecasts a 100% increase in sales in the coming years.

Tecnosol HighlightsE+Co Financing: US$300,000Term: 6 yearsJobs Created: 13 Impact: PV systems replace use of kerosene and candles.

Tecnosol HighlightsE+Co Financing: US$300,000Term: 6 yearsJobs Created: 13 Impact: PV systems replace use of kerosene and candles.

TECNOSOL

E+Co’s Value Add

Enterprise development services assisted with the market study for the company’s expansion; including accounting and business infrastructure.

Seed capital to finance additional inventory purchases to expand their market and provide short-term credit to its customers.

Growth Capital approved in November 2004 to open 4 branch operations in rural areas.

E+Co’s Value Add

Enterprise development services assisted with the market study for the company’s expansion; including accounting and business infrastructure.

Seed capital to finance additional inventory purchases to expand their market and provide short-term credit to its customers.

Growth Capital approved in November 2004 to open 4 branch operations in rural areas.

Honduran Hydro Enterprises produces Triple Bottom Line Impact

La Esperanza is a 12.8 MW run-of-river hydro-electric project utilizing an abandoned powerhouse foundation.

La Esperanza produces triple bottom line benefits: financial, social and environmental. Permanent jobs, improved roads, reforestation, potable water and displacement of environmentally negative greenhouse gases.

La Esperanza I and II HighlightsE+Co Financing: US$450,000Term: 4 yearsCo-Financing: $12.6 millionJobs Created: 40 direct, 120 indirect Environmental Impact: -Planting of more than 18 hectares of new forests.-Displacing 35,000 tons of greenhouse gases annually that would result from the traditional use of fossil fuels.

La Esperanza I and II HighlightsE+Co Financing: US$450,000Term: 4 yearsCo-Financing: $12.6 millionJobs Created: 40 direct, 120 indirect Environmental Impact: -Planting of more than 18 hectares of new forests.-Displacing 35,000 tons of greenhouse gases annually that would result from the traditional use of fossil fuels.

La Esperanza Hydro Facility

E+Co’s Value Added•EDS for business plan preparation •Catalytic Seed Capital for construction of the first powerhouse •Follow-on investment to assist in securing financing for full construction •Assessing and quantifying its carbon offset potential; packaging, selling and registering the FIRST small scale CDM project, which should close in 2004.

E+Co’s Value Added•EDS for business plan preparation •Catalytic Seed Capital for construction of the first powerhouse •Follow-on investment to assist in securing financing for full construction •Assessing and quantifying its carbon offset potential; packaging, selling and registering the FIRST small scale CDM project, which should close in 2004.

-New Finance Paradigm-New Donor Paradigm

Thank you

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