Post on 02-Jan-2017
GhamPower:EPCtoEnergyServices
AnjalNiraula,GMGhamPower
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GhamPower:SolarEPCTransitioningtoDeveloper/EnergyServicesModel
• Startedin2010– Developscommercialsolar+ruralmicrogrids– Focusonbusinessesandproductiveuse
• 1.2mWinstalled;900+projects:– UNICEF(42kW)– Nepal’sfirstsolarmicrogridsinKhotang(70kW)
• Powers2Ncell telecomtowers– RatnanagarHospital(21kW)
• Currentprojectpipelineworth$10million,including:– 515kW/$900kcontractforCIAAbuilding– 115kW/$160kcontractforTeachingHospital
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EnergyCrisisinNepal16HourDailyBlackouts
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7MillionWithoutElectricity
21MillionGridConnected
500MWEnergyDeficit
531MWPrivatelyOwnedDieselGenerators
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StartedwithSolarHomeSystemsResidentialSystems– DirectSalesorFinanced
Price:$1,000- $5,000Size:200watts– 1kW
• ForUrbanHouseholds• 5-yearbankfinancingorcashpurchase• Unpredictableinstallationlaborcostsdependingonhousewiringconditions
• Highsupportcost• Difficulttoscale
SmallHospitals/ClinicsAllRightsReserved©2010-2016,GhamPower
FoundScalewithProductiveEndUse(PEU)
Water Pumping
GrindingMills
• Systemsize/revenuehigherwhensolarpowersbusinesses• Increaseinincome>energytariff• Projectsizes:$5k- $20k• PPA/Leasespreferable,butlackofcustomercreditscoresahurdle
inbundlingprojectsandraisinginvestment
Petrol Pumps
43KWSystematUNICEFHQOfficeComplexinKathmandu
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StartedDeveloping/DeployingCommercial&IndustrialSolar
Size:30kWandhigherPrice:$50k+
DieselUsage:50+%ReduceCosts:20+%
• HighlymotivatedcustomersforleaseorPPAmodels
• “Chickenoreggproblem”– needtosetupaninvestmentfundbeforeapproachingcustomers
• Needtobeatbankinterestrates
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Supportedby
Developed/Deployed70kWMicrogridPilot
• Longdevelopmenttimenotsustainable
• Solution:phasedapproach->startwithPEUanchorloads,thenextendtomicrogrids
ProjectFinancingKeytoScale:DirectSalesModel
• Paymentterms:10-20%upfront;remainder@completion
• Needbankdebttofundinstallationfor1-3months– 70%ofprojectvalueinlettersofcreditorcash– 5-10%performancebond
• Bankdebtsrequire30%cashasequity+assetsonbalancesheet– Requiremuchlesswithacreditguarantee(local/international)
• Weareconstrainedbyourcurrentcreditlineof$250k(andcashposition),notbyourpipeline
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ProjectFinancingKeytoScale:Pay-As-You-Go(PAYG)/LeaseModel
• MultipleprojectsbundledintoSPV– Equityinvestment=30to50%ofprojectcost– 50to70%inbankdebt– SPVhiresGhamPowertoinstall&maintainprojects
• SPVearnsongoingincomefromenergycustomers– Customerspayflatfeepermonth– SPVpaysannualorquarterlydividendtoinvestors– TargetIRR:15%orhigher
• Customerscomparelease/PPAratestobankfinancedrates– Needtobeatbankfinancing,AND– Generatesavingscomparedtocurrentenergycosts
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Raisingfundstoimplementprojects• Bankshesitantinlendingtoruralcustomers– Nocreditratings– Lackofbranchesinruralareas
• MFI’sconstrainedtolend>$2000
• CurrentlydevelopingbundleofprojectsforPEUapproach– Specificgeographicareas– Developingdealer/agentnetwork– Aggregatingprojectstogetherforinstitutionalinvestors
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ProjectName Size(kW) Value EstimatedClose EstimatedInstallationStartChitwanMedicalCollege-Hostel 70 205,000$ 2016-April 2016-JuneChitwanMedicalCollege-Hospital 650 1,200,000$ 2016-June 2016-SeptemberCIAA 514 980,000$ 2016-April 2016-JunePackage1 2,000,000$ 2016-October 2017-JanuaryPackage2 1,000,000$ 2016-October 2017-January
Total 5,385,000$
CurrentPipelineValueEstimate:$10million
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SystemType #ofProjects ProjectValue
C&I 47 3,342,076$
Microgrid 24 638,340$
PEU 113 603,318$
SHS 3 7,019$
GrandTotal 187 4,590,753$
$5mmfromCurrentCustomerProposals
$5mmfromTenders/RFP’s– announced andupcoming
*
*Alreadyawarded
Team:GhamPower
JeevanBaidyaInstallationsManager
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SandeepGiriCEO
Siliconvalleyentrepreneur;originallyfromNepal;launchedmultiplesuccessfulsoftwareVenturesasCTO/CEOsince2001;lastcompanyacquiredbyOracle
Renewableenergyexpert.ResearchedrenewableprojectsforNAST.Master’sDegreeinRenewableEnergyfromUKandGermany.
AnjalNiraulaGeneralManager
Sudeep TuladharOperationsManager
7+years’experienceinmanagingoperationsinlargescalemanufacturingandconstructionProjects.MBAfromAIM,Master’sDegreeinProductionEngineeringfromMNNIT,India.
5+yearsofhands-onexperienceinbothurbanandruralsolarPVprojectdevelopment,executionandinstallation.
SocialEnterprisewithStrongPartners
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Technology Finance DevelopmentAgencies/Funds
Wayforward
• DifficultexecutinglargeprojectsasEPC– Workingcapitalissues
• Microgridà difficultwithoutcontinuoussubsidy&clarityinpolicies
• PEUapproachofmicrogrids easiertoscale• FinancialsupportrequiredforbothEPCandEnergyservice
models• Raisingadditionalfunds
– Optiontoinvestasconvertiblenote,SeriesAordirectlyintoprojects
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