Access to Energy and Sustainable Mobility: Landscaping Funding and Investments in India

About the Report

This report outlines the funding and investment landscape for two sectors of the Indian economy –

Access to Energy (A2E) and Sustainable Mobility (SM). It is organized in two main sections representing the two sectors. Each section can be visualized as a funnel including three main subsections – Sectoral Overview, Current Funding and Investment Landscape, and Takeaways for Investors and Funders.

Click on the image below to download the report

Key Highlights and Recommendations:

Access to Energy (A2E)

  1. There is a huge unmet demand for access to clean and efficient energy. This can be the best opportunity for investor to enter the sector.
  2. There are significant gaps between the availability and need for both debt and equity in the financing of DRE enterprises.
  3. The A2E sector has its own set of challenges and uncertainties hence it calls for ‘patient capital’ investment without unrealistic demands of high financial returns at market rate.
  4. There is a huge potential to exploit gaps in last mile connectivity, system integrators, and efficient appliances. All these areas are waiting for more enterprises to take up the challenges.
  5. Several state governments have come up, or are in the process of coming up with enterprises-friendly policies in mini-grids and DREs. That is likely to increase the number of enterprises in these regions.
  6. Investors with impact focus can make-up for the lacklustre financial returns by ensuring social returns as these have been generally high when measured in terms of impact of the lives of people and energy reach.
  7. Several start-ups are coming up with innovative business models in supply chain models and distribution mechanisms.
  8. Public-Private-Partnerships can leverage private sector’s higher ability to innovate and the public sector’s capacity to validate new markets.

Sustainable Mobility

  1. The existing transportation and mobility status in Indian cities are either highly stressed or in a state of complete breakdown.
  2. With increasing number of metros and subways being constructed all across the country in India, the need for last mile transport services will increase.
  3. Collaborative approach by OEMs, charging infra enablers, battery suppliers and smart grid service utilities are must to power EV’s business case in India.
  4. With lithium battery prices coming down, there is an ideal opportunity for entrepreneurs and investors to jump into the battery and storage space.
  5. Cab-aggregators have a great opportunity to work on sustainable mobility given the extensive market reach they have established.