AVPN Webinar

29 Jan 2015
Shell Foundations
approach to
venture
philanthropy
Richard GomesShell Foundation

avpn.asia

Catalysing Inclusive Energy

Markets:
Learning, Expectations &
Outcomes
Richard Gomes, January 2015

Our A2E Journey: 2000 to 2014

1 2000 to 2007: Learning from Pilots

Total
Impact

2 2007 to date: Product & Service

Pioneers

NEW
Impact
Grow - Replicate - Influence

1
Catalyse

Pilot

Create
Pioneer

Scale

Tackle Market
Barriers

Market-Building

Our A2E Journey: 2000 to 2014

1 2000 to 2007: Learning from Pilots

Total
Impact

2 2007 to date: Product & Service

3

Pioneers

2010 to date: Market Enablers &

Catalytic Institutions

Pioneer
Impact

SIX LESSONS FOR

MARKET GROWTH
NEW

Grow - Replicate - Influence

1
Catalyse

Pilot

Create
Pioneer

Scale

Tackle Market
Barriers

Market-Building

1.

PIONEERS REQUIRE
EXTENSIVE EARLYSTAGE SUPPORT

Test, Adapt and Validate New

Models

Patient & Flexible Suppo

Smart Subsidy
Business Skills

Market Linkages

6 to 10 Year
$5m - $20m

2.

EARLY ADOPTERS
WILL NOT BE POOREST
OF POOR

Market Reality & Expectations

Proven demand where value can be
demonstrated
yet barriers to purchase for BOP constrain
initial sales

2 3 Years

3.

URGENT
INNOVATION IS NEEDED
ACROSS THE WHOLE
ENERGY VALUE CHAIN

Three Value Chain Barriers

4.

A NEW RANGE OF
FINANCIAL SOLUTIONS
ARE REQUIRED

Financing Gaps
Specialist
Incubators

Uncollateralised
Debt

Impact
Valuation

Tiered Structures
Diverse Use of Grant
Private Public Partnerships
NEW

Grow - Replicate - Influence

1
Catalyse

Pilot

Create
Pioneer

Scale

Tackle Market
Barriers

Market-Building

5.

EARLY INVESTMENT
IN HUMAN CAPITAL IS
CRITICAL TO LONGTERM SUCCESS

Talent Development
- You Get What You Pay For
- Skills Gaps Across the Organisation
- New Models for Talent Acquisition Needed

Financial Performance

6.

GLOBAL
INSTITUTIONS ARE
NEEDED FOR SYSTEMIC
CHANGE

Systemic Change
Public sector
buy in critical
to catalyse
inclusive
markets
Early success of
pioneers is key
to market
validation

WHAT NEXT?

Strategic Partnerships to
Catalyse
Markets
INCUBATE
VALIDATE
SCALE
Sangam
(Equity for
Energy SMEs)

Redavia
Redavia
(Solar
(Solar Grids)
Grids)

Logistimo
(Distribution)

Transist
(China Incubation)

Emergence
Emergence
Bioenergy
Bioenergy
(Biogas)

BIX Fund
(Carbon
pre-finance)

Energy Access Fund

(Working
Capital)
FactorE
(Incubation)

GOGLA
(Off-Grid Lighting)

Households
Community Services
Productive Use

Dharma
(Last mile
distribution)

d.Light
(Solar energy)
M-Kopa
(Mobile product
payments)

GACC
(Clean Cookstoves)

Envirofit
(Cookstoves)

IntelleGrow
(Debt for
energy SMEs)

Husk
Husk Power
Power
(Off
(Off grid
grid power)
power)

Cumulative Impact

2014

2018 Target

Jobs Created

14,000

78,000

16m

125m

Carbon Reductions

3m tonnes

20m tonnes

Leverage

US$ 110m

US$ 475m

Livelihoods Improved

ENJOY THE DAY

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