Smart Renewables Energy solutions Pvt LTD: Scaling Solar Product Financing through additional two MFI
The energy crisis in Pakistan haunts 65% of the people in the country. 144 million people either have no access to the power grid or suffer over 12 hours of daily power outages. Pakistanis who do not have access to the grid are often poorer than those on the grid. Meanwhile, household electricity consumption continues to grow at an average rate of 10pc annually.
The average shortfall is 4000 MW and can rise up to as high as 7000 MW in the coming years. The energy crisis has cost the national economy dearly, not only the loss to GDP in terms of missing energy due to the demand-supply gap but also the loss to industrial and commercial activities due to load-shedding and flight of capital from the country. Safe estimates suggest that it has cost the national economy over $100 billion.
What problem are you trying to solve? Who has this problem?
Dependence on imported fuel to generate electricity did not help minimize the problem due to rising prices of imports, and unsustainable government subsidies have thus far cost the exchequer more than $20 billion. Worsening crisis of recent years has given way to urgency among industrialists and stakeholders on diversifying the country’s energy mix and solar power has emerged as a popular answer to the growing deficit.
The Pakistan Economic Forum claims that if industry were to utilize a modest 17.1pc of today’s technological efficiency and 1% of the 770 billion square meters in total available space, we could generate more than 300,000 MW of electricity. Pakistan’s energy layout is roughly drawn in the ratio 53:47 on-grid to off-grid. While on-grid continues to be the focal point of government action on power distribution to already served areas, off-grid presents almost 40,000 villages consisting of 69 million people who do not receive any form of power from present capacity.
These people often use alternative equipment such as harmful kerosene lamps, alkaline battery lights, candles and torches to meet their daily requirement. This along with mobile phone charging in nearby towns at Rs20 per charge approximates to an annual off-grid spend of around $1.2bn. There is also an estimated on-grid spend of $1.1bn every year because of power outages and interrupted energy supply to connected communities.
SRE Solutions has been selling IFC Lighting program Certified products for over a year through one MFI.. We import and distribute products to MFI branches on one month credit. The MFI further funds the products cost into 12 months installments and takes complete risk while lending. Meanwhile, SRE covers warranty claims and the marketing. The model combines our technical knowhow with Micro-Finance facility to address affordability barrier.
The off-grid market is 36% of the population of the country and is growing at 3% p.a. The predominantly agricultural based economy, has in excess of 1 mn tube wells to support irrigation, most of which can be shifted from being diesel powered to solar. Moreover, 45% of the population lacks excess to clean water which is another area where solar products can be of use.
Our un-matched agreement with 2 MFIs reduces operational costs by 50%; thus, resulting in a better ROI. Moreover, the IFC certified products allow diverse - ranging from low value solar lamps to high value water wells. SRE's vision for 2021 is to push out energy poverty in 200,000 households with SRE products. Our partnerships with two new MFIs will increase reach to 200 MFI branches across Pakistan.
Solar panel: 2W 6V , 0.5m cable, Ligh...
Solar Home System (DC).
Powering 15 Watt Fan, two LED Bulbs o...
Solar Home Generator ( DC+ AC).
Solar Panel: 150W, 10 m cables, Batte...
Solar Water Pumps.
2-3 HP pumps solar PV panels & Contro...
Solar Powered Aerator.
Capacity of 420 watts of high efficie...
Provides modern energy access to 700,000 households.
Reduces greenhouse gas emissions by 1,300,000 Tonnes of Carbon Dioxide per year.
Creates 37 new jobs during the lifetime on the project.
Improves the health conditions of 4,770,000 people.
Out of the total number of beneficiaries of the project, 2,400,000 are women.
Train over 9000 youth, men and women on Solar products uses & its peddlers, establish 8 Renewable Energy Centers with sales of over 572,000 Solar products through MFI.
Imran Mukhar Mirza, Regional Sales Manager Central
· Imran is an Electrical Engineer and candidate for MBA with 4 years of experience with a leading Solar EPC as Solar Engineer & Sales Manager. He has worked not only as Solar Application Engineer but also played instrumental role in the development Government and Reseller Segment Business in Punjab with the EPC.
Wasiq Hasan, Supply Chain Manager
· He has a proven record of handling imports of direct material. Managing inventory, vendors & End-to-End shipment of one of the biggest national manufacturing FMCG. Wasiq has also worked abroad with MNC i.e. Marina Home LLC, supervising their Warehousing & Logistics. He holds B.S (IE & M) & MBA (Supply Chain Management) from Institute of Business Management, Karachi
Usman Ghani, Manager Engineering
· Usman is an Electrical Engineer & Diploma holder from UET Lahore with nearly 4 years overall experience. He has spent 2 years on large Solar Engineering projects with a leading Solar EPC in Pakistan.
Shyam Lal, CFO
· Mr. Lal was associated with leading Financial Institutions in various senior management positions PwC New York, USA as
Manager Financial Services in their Assurance Department and with KPMG-UAE & KPMG Pakistan.
Nadeem Hussain, Chairman, Director
· Nadeem Hussain is the founder and ex-CEO of Tameer Micro Finance Bank. Tameer Bank is Pakistan's first private sector
microfinance bank and world leader in branchless banking.
Masood Khan, CEO
· Overall 26 years’ experience in marketing and business development for Energy markets esp. in Middle-east South Asia for
Royal Dutch Shell Group. He played key contributing role in business development with Nizam energy for 3 years.
Efram Ferrari (IFC Lightining Pakistan -Islamabad)
· Global Lighting, Market Research, Promotion
Sono Khangrahni (Thardeep Micro Finance Foundation)
· Micro Finance & Alternate Energy
Kabeer Naqvi (Ubank MicroFinance Bank)
· Micro Finance
Nadeem Hussain (Planet N Group)
Naeem Zameendar (Acumen Fund)
Mr. Nadeem Hussain (Planet N Group)
Acumen (Acumen Fund Inc)