Distributing Solar

We speak with Abhishek Jain from the Council for Energy Environment and Water in India. We discuss energy access, productive energy use, solar water pumps, and the electricity sector in India.Visit us at www.distributingsolar.com Contact us at podcast@distributingsolar.comFollow us on Twitter and LinkedIn Show notes: (1:40) Introduction to CEEW, the Council on Energy Environment and Water - a not-for-profit think tank. Abhishek's focus on energy access, productive livelihoods, and food systems(6:00) Their work in international topics, outside of India(7:45) India's energy landscape and the significant progress in recent years: estimated 97% electrification rate in India; improving availability (~21 hours/day) and the ongoing need for reliability(10:45) Most electrification conducted by the national, government-led efforts; ~0.5% of population received electricity from decentralised energy solutions(12:45) Powering Livelihoods program, focused on productive energy use and solar powered solutions, in partnership with Villgro; working with existing enterprises to expand their deployment (focused on agribusiness and textiles); collecting data to provide evidence for the viability of the sector(16:30) The types of solutions they work with: solar water pumps, cold storage and biomass, drying machines, sorting machines, processing machines, expelling machines; spinning machines, solar looms etc. The pipeline of solar powered productive energy use appliances(21:00) Supporting the enterprises to adapt to a post-COVID environment; engaging with government agencies and financial players(23:30) The focus on gender within their work: ensuring greater gender inclusivity in their program(25:00) Existing limited irrigation in agriculture; the diversity in groundwater health across India - some areas are facing water stress, but other areas have the potential to improve their use of water resources(28:40) CEEW's tool to assess whether water pumps should be used in a specific areas, and what additional technologies should be deployed alongside water pumps(31:00) Dual electricity distribution network: one for agriculture and water pumps, one for household use(33:00) Water-as-a-Service solutions and business models

We speak with Waringa Matindi, CEO of Village Energy, a Ugandan company providing custom solar installations for rural businesses, institutions & agriculture that enable improved incomes, job creation, and access to services. We speak about Waringa’s experience as a new CEO, how gender equality interacts with energy access, the cultural differences between Kenya and Uganda, and even blockchain and cryptocurrency!Recorded in June 2020Visit us at www.distributingsolar.comContact us at podcast@distributingsolar.comShow notes: (1:10) Waringa's background in the development sector, gender equality, and her desire to work in reducing poverty. The focus of Village Energy in increasing revenues and incomes(3:30) Village Energy's focus on customised installations for productive energy use; working mostly with businesses (schools, SMEs, health centers)(6:30) Most of their customers are off-grid, replacing diesel generators; some customers are looking for greater reliability(7:40) The use of remote monitoring to ensure the solar system is being used correctly, not being overused and reducing the quality of the battery; can provide alerts for upcoming payments(10:51) Village Energy's hub and spoke model: the need for local offices to build trust with customers, provide reliability and engagement with customers(14:20) Waringa's experience becoming a new CEO; the contrast of working in business vs. the development, non-profit sector. The social impact of Village Energy's work in changing the lives of their customers(18:20) Village Energy's business model as fully for-profit, however some customers find additional sources of funding from grant sources; schools and health centers which are able to provide better services due to access to electricity. The benefits of street lighting to provide greater safety(21:15) Their experience with Binance Foundation, installing solar for schools - working with cryptocurrency(25:15) The contrast between Kenyans and Ugandans: Kenyans being more straightforward and direct; Ugandans being very polite and kind(30:30) The interconnection between gender and development, and energy access: the importance of gender and equality, dirty cooking fuel's impact on women; the ability for energy access to provide additional income for women; the lack of DC productive use appliances that are focused on women's needs (37:00) Their goals for the coming years, to grow their current business; to install 1,200 systems(38:40) The impact of the solar off-grid sector(39:40) The need for patience in the solar sector(40:00) The need to make difficult decisions earlier(41:10) Recommended books: The Hard Thing about Hard Things, by Ben Horowitz; Building a Cash Cow in Kenya by Nat Robinson; How Will You Measure Your Life by Clayton Christensen (43:30) Their excitement about Li-ion technology that will enable the solar sector to change and improve their business model 

In this episode, we speak with Manuel Wiechers from Iluméxico about last mile electrification in Mexico. We discuss the challenges of providing energy access to remote communities in Mexico and Latin America, the regulatory setting for energy in Mexico, the challenges for the off-grid sector in portfolio management, and their shifting business model to a servicing and PAYG model.Recorded in June 2020Visit us at www.distributingsolar.comContact us at podcast@distributingsolar.com Show notes: (1:30) How Manuel got into the energy and solar sector; how he started Iluméxico after working at GE's wind division(5:00) Energy access and electricity sector in Latin America, how the market differs from the energy needs in Sub-Saharan Africa and Asia(7:15) Iluméxico's business model and product offerings: Tier 3 & Tier 4 solar home systems for households, large energy systems that can be upgradable Last-mile service company, with a utility business model PAYG payment options in remote regions without connectivity requirementsRemote monitoring capabilities for energy systems(13:10) Their decision to develop their own hardware and software solutions, or to partner with other providers; the development of their new product, El Colibri (18:00) Their progress to date, and the impact on customers and communities; their rapid scale in the past two years, installing over 24,000 systems; their partnership with government to reach last-mile customers; productive energy use and benefits of electricity(23:00) The benefits and drawbacks of working with government agencies: the ability to reach customers more quickly, subsidising the cost of solar systems, the emphasis on development but poorer payment rates. The actions of recent government policy changes in the energy sector, and the impact on Iluméxico (29:00) The progress towards 100% electrification in Mexico by 2025 (30:45) About rural, remote communities in Mexico; low income, primarily indigenous communities; their current reliance on diesel and candles (33:40) Their experience in the Colombia; their work in Colombia with higher energy users (36:20) The need to build trust with rural communities; not taking any payments until devices are installed; avoiding affiliations with political entities(39:10) The biggest challenges within the off-grid energy sector (there are many!); the need to focus on portfolio management, ensuring high repayments from customers(43:30) Financing for Ilumexico, between debt, equity and grants; the unsuitability of VC funding in many contexts; the need for grants and subsidies to reach some of the most remote customers(47:00) How to ensure higher customer repayments; looking at data (but with limited results); customer segmentation and ensuring high quality customers; focus on service provision; the need for flexible payments(51:30) Their work around productive energy use: providing refrigeration services; agri-processing; connectivity; schools and health clinics(53:40) Their goals for the coming years: looking to expand to other countries in Latin America, other last-mile electrification opportunities even in the USA(56:50) Where the name Iluméxico comes from(59:15) What Manuel does when he's not working(1:03:00) Nancy Wimmer's Green Energy for a Billion Poor(1:04:00) Advice for an entrepreneur or investor(1:05:00) Predictions for the next 3-5 years: the significant impact of failure in the off-grid sector, the challenge of proving the off-grid business model; the potential for the future through partnerships 

We speak with Henry Louie, Professor in the Department of Electrical and Computer Engineering at University of Seattle, and author of 'Off-Grid Electrical Systems in Developing Countries'. We discuss the technical considerations for off-grid electrical systems, common pitfalls or misunderstandings in off-grid energy systems, his work with the non-for-profit organisation 'KiloWatts for Humanity', and the importance of considering the potential negative impacts of well-meaning efforts. This is the shorter version of our conversation; full conversation available also.Recorded in May 2020Visit us at www.distributingsolar.comContact us at podcast@distributingsolar.com

We speak with Henry Louie, Professor in the Department of Electrical and Computer Engineering at University of Seattle, and author of 'Off-Grid Electrical Systems in Developing Countries'. We discuss the technical considerations for off-grid electrical systems, common pitfalls or misunderstandings in off-grid energy systems, his work with the non-for-profit organisation 'KiloWatts for Humanity', and the importance of considering the potential negative impacts of well-meaning efforts. Recorded in May 2020Visit us at www.distributingsolar.comContact us at podcast@distributingsolar.comShow notes(1:30) Henry Louie's background, how he started working in the off-grid energy industry(6:00) Background to the textbook: intended audience, why he wrote the textbook, and the need for a single textbook to pull together the key technologies and concepts for off-grid energy sector(11:00) Typical sources of training for people working in the sector(14:30) Other types of training events that Henry Louie has provided, and what he typically covers(16:40) Factors to consider when selecting the generation source for off-grid systems (considering wind, diesel, solar etc.)(22:50) Common misconceptions or misunderstandings encountered in the sector (over-engineering systems, over-reliance on surveys to estimate electricity load) (29:20) His work with Kilowatts for Humanity (KWH); reasons they separated the non-profit from the university and the importance of ensuring long-term commitment to off-grid energy projects; the importance of using local installers; how to ensure sustainability of off-grid systems (37:50) Quick introductions to some electrical concepts: AC-DC coupling Load factorGrid tied invertersBypass diodes(41:40) Process of writing the textbook(44:50) Other considerations for off-grid energy systems, e.g. use of donated equipment, ensuring the use of local installer companies and the need for capacity building, the potential unintended consequences of good intentions. (52:40) The choice of 'developing countries' for the title of his textbook(55:30) How to access a copy of the textbook(56:20) Where the name KWH came from(57:15) Recommended books: Out of Poverty by Paul Polak; The Impact of Electricity: Development, Desires and Dilemmas by Tanja Winter(59:15) Hopes for the off-grid sector in the next 5 years: the need to discuss e-waste; the ethics of switching off systems when payments are delayed.

We speak with Andreas Lehner, co-founder of Trine. Trine is a crowdfunding platform that enables retail and institutional investors to invest in off-grid solar projects in Sub-Saharan Africa, Asia and Latin America. They provide debt financing for energy projects, and have raised over EUR36 million to date. We discuss debt finance to provide working capital for companies working in growing and emerging markets, the trends towards sustainable and impact investing, and why the global financial investment landscape needs to change.Recorded in May 2020Visit us at www.distributingsolar.comContact us at podcast@distributingsolar.comShow notes: (1:35) Andreas Lehner's background and how he came to start Trine(4:25) Trine: how does it work and what do they do(6:30) Alternatives to debt financing for solar in emerging markets: primarily high-interest inflexible funding from local banks, or philanthropy and donations(8:55) Trine's flexible financing approach, e.g. just-in-time financing, with more efficient deployment of capital (10:30) Offering match funding, co-funding with institutional investors, first-loss and guarantees to investors(15:45) Trine's early days and their plans for their coming years: how impact investing will become the new normal(18:40) Social and environmental impact of Trine's borrowers, in particular for BBOXX in the Solar Home System (SHS) space(21:30) Trine's partners, e.g. BBOXX, Greenlight Planet, Yellow Solar, Kingo, Daystar Power. How their partners work with Trine and the due diligence process (usually 2-3 months from start to finish)(26:30) How it works for retail investors(30:15) Trine's growth: balancing between both sides of the marketplace of borrowers and lenders(32:00) Their customers, repeated customers and investing behaviour(33:40) Geographical focus and countries they've invested in; their interest in the mini-grid sector and West Africa(35:40) Learnings as a founder and a company(39:45) Merging commercial and retail investors; expanding to commercial and institutional funders to increase their impact(43:45) Trine's equity fundraising for themselves as a company(45:20) Trine's longer-term vision and plans(47:00) Andreas' perspective on the sustainable and impact investment landscape; the need for a new way of investing (50:10) The impact of COVID-19 to date (as of May 2020) (53:00) Where Trine's name came from(53:45) Advice to an entrepreneur: focus on your customer; reach out if you want to learn something(56:40) Predictions for the next 5 years: consolidation in the off-grid sector; growth of the mini-grid sector; C&I sector; productive use of energy. 

We speak with Richard Harrison, CEO of Smart Power Myanmar, a non-profit organization working to accelerate the adoption of decentralised renewable energy in Myanmar by providing data and evidence, convening key stakeholders, and offering financing solutions. We discuss the current energy landscape in Myanmar, the need for an integrated approach to electrification, the importance of offering financing solutions alongside electrification efforts, and the benefits of productive energy use.Recorded in May 2020Visit us at www.distributingsolar.com/podcast/smart-power-myanmarContact us at podcast@distributingsolar.comShow notes: (0:55) Richard's background and prior work in Myanmar(2:30) Introduction to Myanmar, its geographical, economic, and political background(8:05) Myanmar's electricity sector, progress in recent years, and electrification targets(11:40) Smart Power Myanmar's approach to accelerating electrification in Myanmar(13:55) Smart Power Myanmar's strategic focus and identified barriers to electrification (18:12) Approaches to providing commercial and consumer financing adopted by Smart Power Myanmar - equipment financing facility and the Energy Impact Fund(21:35) The origins of Smart Power Myanmar, and how the organisation came about(26:30) Overview of the Decentralised Energy Report for Myanmar(32:10) Minigrid operators, ESCOs, funding and subsidies for minigrids in Myanmar, and progress to date(35:45) Hydro minigrids in Myanmar (37:45) The integration potential between private minigrids and the public national grid(40:30) Productive Energy Use in minigrids, and the need for consumer financing solutions to support Productive Energy Use(44:50) Examples of productive energy users who have benefited from Energy Impact Funds(48:05) The impact of COVID-19 in Myanmar and for the energy sector(49:20) Recommended books: Hariri's Homo Deus, Richard Rhodes' Energy: A Human History, Gretchen Bakke's The Grid(51:00) Goals and hopes for electrification the next 5 years 

We speak with Leslie Labruto, Head of Energy Access at Acumen, about the equity investment landscape in off-grid solar. We discuss Solar Home Systems (SHSs), minigrids, impact investment, successful business models, challenges and opportunities in the sector, and what makes a great investment for Acumen.Recorded in 2019Visit us at www.distributingsolar.comContact us at podcast@distributingsolar.comShow notes:(0:55) Introduction to Leslie Labruto and how she got into the clean energy sector(2:20) Introduction to Acumen, their higher risk approach to investments, and commitment to the poor(3:30) Overview of the off-grid solar sector: pico appliances, solar home systems (SHSs), mini-grids -- the ongoing challenges around mini-grid business model(6:20) Discussion of the investment landscape in the off-grid solar sector, contrasting Mobisol, d.lights and positive signs from new funds (e.g. KawiSafi and Sunfunder); the need for more early stage investments(9:20) Acumen's approach to patient capital, investments, 1x returns -- what they look for in an investment(12:35) Acumen's energy investments to date; the challenge and need for solutions around clean cooking (14:30) Productive Energy Use: the opportunities and need for solutions that can support income growth; their focus on Pioneer Energy Investment Initiative (PEII) (17:30) The commercial viability of the off-grid solar sector, the need for operational excellence, strong unit economics for successful companies(19:11) Considerations around exits in the sector: the need for secondary sales to support the growth of the investment sector, the catalytic effect of secondary sales; the role of strategics (e.g. Shell, Total, Engie) in the sector(22:20) The intentions and interests of strategic, corporate investors in the energy access sector(23:50) The challenges for the mini-grid sector in particular; the ability for mini-grid sector to target poverty alleviation; the need for subsidies in the mini-grid sector and reframing of mini-grids as a public good(27:00) Results-Based Financing: demand from investors for RBFs(29:15) Lean Data, 60 Decibels, and focus on customers to determine the social and environmental impact of products and services; the use of Lean Data for due diligence purposes(32:50) Geographical areas of focus for Acumen(35:10) Predictions for the energy access sector: the need for reliability and developments in some geographical areas

We speak with Nicholai Lidow from LIB Solar about community solar in Liberia. We discuss the challenges of energy access and doing business in one of the poorest countries in the world, the trade-off between social and environmental impact, how rebel groups inspires his work (!), the challenges for equity finance in off-grid solar, and the potential for productive energy use.Recorded in 2019Visit us at www.distributingsolar.comContact us at podcast@distributingsolar.comWe discuss:Nicholai's background and why he entered the solar intdustryLIB Solar's business model and community-driven approach to solarLiberia's energy infrastructure and economic challengesThe opportunity in serving hard-to-reach markets and the importance of a community dynamicTheir deployment of minigrids and standalone SHSsLIB Solar's approach to productive energy use and the structural challenges that remainThe tension between social and environmental impact when serving rural off-grid populations with solar energy solutionsTheir approach to funding, focusing on debt and grants - rather than an equity, VC funding modelShow notes: (0:35) Nicholai Lidow's background and how he started working in the solar sector (via rebel group research!) (1:25) LIB Solar business and go-to-market approach(2:45) Background on Liberia, the energy infrastructure, and the potential for solar energy(6:30) LIB's business model: focus on particularly rural areas; "an African company using tech to scale"(9:30) The cost of a solar system to a customer, a longer payback period, and the benefit of using the US dollar in Liberia(11:55) LIB Solar's shift from a mini-grid approach to a solar home system approach; the downside of a community-based approach when some customers can't afford to pay(16:30) LIB Solar's payment collection approach(18:40) Productive Energy Use: the benefits of solar and lighting, but the less-discussed limitations of using solar to significantly approve the long-term livelihoods of rural communities(23:50) The tension between environmental impact and social/poverty impact for off-grid solar (27:30) LIB's focus on debt financing rather than equity financing; Why off-grid solar companies are not tech companies(32:30) Their plans for growth in Liberia, growing geographically and across other product lines(37:30) Books on rebel groups, and the lessons from rebel group structures that can be applied to off-grid solar(41:00) Advice for new entrepreneurs: good opportunities for local entrepreneurs and niche markets, amid industry consolidation; why there are so many foreign entrepreneurs in the African solar industry(42:50) Predictions for the sector: Basic solar lighting will grow more quickly than we expect, and the need to shift from pure solar, to financing and distribution of other products

We speak to Jay Patel from Enlight Institute about setting up a solar academy in Uganda. We discuss the need for training and development programs to develop technical and soft skills, the solar landscape in Uganda, and the broader demand for training services across other sectors.Recorded in April 2020Visit us at www.distributingsolar.comContact us at podcast@distributingsolar.comWe discuss:Uganda's energy and solar landscapeEnlight Institute's training provision and its growing focus on soft skills trainingThe human capital challenges faced by many solar companiesEnlight's business model and social mission Enlight's approach to coaching as a form for employee training and developmentShow notes: (0:55) Jay Patel's background and how he came to work in Uganda and solar industry, following his time at Google's sales team(3:05) Introduction to Enlight, the need for human capital, and Enlight's development of a solar academy(5:08) Overview of Uganda, and the energy and solar industry in Uganda(11:40) The transition of the off-grid sector from impact and philanthropy, to commercial and private sector; the challenges and dilemmas for the sector in reaching the poorest in society(15:35) Enlight's evolution from focusing on technical skills to soft skills and on-the-job training; the need for human capital in the solar industry, and the social cost of the lack of training (20:50) The shift in go-to-market strategy from individual youths, to working directly with companies and training their team(24:55) Enlight based in Uganda, but looking further afield(26:00) Technical training overview(28:13) Enlight's business model, their use of grant funding and longer-term aim of profitable job coaching(30:40) The challenges around high staff turnover in the sector, due to lack of training, or cultural issues(31:55) Enlight's team and recruitment approach, from Acumen's fellows etc. (34:20) Vertical integration vs. value chain fragmentation within the solar sector (36:05) Challenges of financing in the solar sector(39:13) Growing Enlight's business and using data to prove the value of on-the-job coaching(41:00) Jay's recommended books and sources: Green Energy for a Billion Poor; Sun Connect News; Next Billion(42:00) Advice for new entrepreneurs looking to enter the space: start engaging with the community and think about where you can add value(44:15) Prediction for the next 5 years: the distinction between on-grid and off-grid will start to breakdown