SELCO Foundation

Sustainable Energy + Livelihoods

Sustainable Renewable Energy Interventions for Micro-

Entrepreneurship, Livelihood and Community Development
Entrepreneurship and Micro-
Businesses for a using
Decentralized Renewable Energy
SELCO Foundation
2023
Micro-Entrepreneurship, Livelihood and Community
Development requires an enabling ecosystem
Linkages
Backward and forward
linkages as well as market
linkages for carrying out
livelihood activities.
Access to services provided
under other enabling
ecosystem pillars -
Technology, Infrastructure,
Financing & Policies.
Technologies Infrastructure
Energy efficient Energy efficient and climate responsive
technologies with reliable built environments for carrying out
energy for productive and business activities effectively - for
less laborious work housing of machines, storage, etc.
Training and
Capacity Building
Needs of Entrepreneurs For business plan
& Enabling Ecosystems development, operational
efficiency, asset
management, financing,
marketing, growth, etc.
Financing Policy
For purchase of assets, Supporting policies for
working capital, issuance of financing or
growth & expansion sales of end products,
along with appropriate expansion and linkages
supporting policies
Holistic Sustainable Energy Led Solutions
and Models for Livelihood Development

1 2 3
TECHNOLOGY &
INFRASTRUCTURE
Energy Efficient +
FINANCE & BUSINESS
MODELS
Backward & Forward
+ OWNERSHIP & SOCIAL
MODELS
Appliance, Energy System
and Building/Space Linkages, Capital & Working Individual, Community,
Design Capital Financing, Collective, SHG, FPO
Trainings
Designing
Templates
for Micro-
Businesses
Approaches for SDG7 driven Technologies with Enterprises
1. Enterprises providing services
to other enterprises – Tertiary
Sector
Those engaged in livelihoods like
agriculture and small livestock
may require myriad extension
services where other enterprises
can come in. Livelihood
practitioners also would require
clean energy services at the last
mile
For example, after harvesting black
pepper or paddy, some women
may provide machines on rental to
others for threshing and
winnowing. Another example is of
Pashusakhis where vaccination
services are provided to livestock
rearers
Pashusakhis can provide vaccination services
to women at the last mile and store vaccines
using improved Solar Powered Vaccine
Carriers and Refrigerators
Enterprises providing on
farm technologies on
rent, or post harvest
processing technologies
as service provisions in
local areas
Clean Energy Enterprises,
provide last mile services for
solar energy installations and
servicing
2. Augmenting existing livelihood
Traditional Eri spinners in
practices of women, and small Kamrup have at an average
scale enterprises increased yarn production
from Eri silk cocoons from
Many opportunities exist to help 250g to 1 kg per month.
improve productivity, reduce drudgery
and diversify businesses of existing
livelihoods and small enterprises. Many
of SELCO’s existing intervention areas
may fall under this gambit. For example,
women from across tribal communities in
Assam engage in Eri spinning and rearing
at home. Introduction of mechanised Solar Powered Sewing
spinning machines powered by solar have Machines can halve
helped double/quadruple incomes from time taken per cloth or
this activity. double the productivity
 Example of a rice based
entrepreneur promoted by ASRLM
3. From Livelihoods to Enterprises – with the addition of Solar
(Individuals) Powered Rice Processing
Machine, the entrepreneur can
reduce their cost of business
Many of the same enterprises discussed (Currently they are availing
in point 2, have the aspiration to scale up services from the nearby village,
with their own machine, they may
their businesses but lack the skills to even be able to scale up
formalise their traditional livelihoods. The production)
women may require soft support moving
towards formalising their enterprises. In
addition they would also require
additional hardware technologies and
access to energy to improve quality of
produced commodities, as backward
linkages (To support raw material in
their businesses and reduce costs of
production) or forward (To further
processes their primary goods and add
value/additional incomes).
4. Collectives and Scaled
Enterprises – In the Future
Many existing collectives and
enterprises may be practicing
businesses at scale. Similar to point 3
above, they may require soft and
hardware support to efficiently carry
out business activities and manage
their groups. This would particularly
involve capacity to manage the
collectives and companies registered
(Good governance practices) drawing
from lessons in collective formation
from other geographies. In addition
they may require larger scale
technology to capture larger markers.
Aggregation, storage and
marketing of horticultural
produce/vegetables etc can be
enabled via DRE based solar
powered cold storage units. It will
help attain better market values,
however maturity of business
practices is required for
successful utilisation.
Other examples - Dairy
Cooperatives under NDDB, Other
Agriculture based FPOs, Large
Handloom Collectives (Aided by a
Market Linkage), etc.
Solution and Innovations an be Provided
across Livelihood Sectors

Agriculture Animal Husbandry Food Processing Crafts

Paddy Dairy Farming Roti/Chappati Pottery

Millet Poultry Farming Chips Cotton Textile

Flour Khowa Silk Textile

Spices Pedha Rope

Cold Storage Vermicelli Bamboo

More sectors continuously explored and

solutions developed with various technology
manufacturers and innovators as per users
needs and innovation potential
 OPPORTUNITY
Cold Storage
• TECHNOLOGY SOLUTION 1 Lower Food
Wastage
2 Entrepreneurship
Opportunity
Provide additional
• Customisable capacities as per business models - standard sizes available at 5 MT. Designed to store fresh fruits, By investing in a livelihood for individuals
vegetable, processed food and other perishable commodities. rigorous cold chain or groups to aggregate
• Provides Pre-cooling and storage of perishables. The system is a solar standalone operation and consists of solar + system, food wastage fruit, vegetables, spices
• DG/Grid hybrid operation. Maintain the temperature, humidity and air-quality parameters precisely as per the can be curtailed, and other commodities,
product requirement. Battery-less compressor operation (small battery for auxiliary loads and control system) and a
thermal backup due to the PCM plates (24-30 hours).
avoiding economic, store and further
nutritional and market them in local,
environmental losses regional, national or
export markets.

FINANCIAL MODEL - RECOMMENDATIONS

TOTAL COST - SUBSIDY % 90 % INTEREST

MODEL 1 SUBSIDY % 60 % INTEREST
10.5 % MODEL 2 RATE
10.5 %
INR 14,30,000 RATE
SUBSIDY SUBSIDY
8,58,000 EMI (INR) 11,000 AMOUNT/UNIT 12,87,000 EMI (INR) 3,800
AMOUNT/UNIT
(INR) (INR)

1,36,000 LOAN TERM

6,32,000 LOAN TERM
5 LOAN AMOUNT (YEARS)
3
LOAN AMOUNT (YEARS) (INR)
(INR)
 Owned and Run by -
Cold Storage MODELS AND LINKAGES FPO, Farmer Society

Local
Market
Farmers Regional/
Understanding cropping National
patterns and season - Aggregator
consultations/trainings on
modifications, additions if any
Markets
Working capital support and
Cold Storage
adequate technologies and
infrastructure to be able to
Unit Export
produce - like irrigation
systems, seeds, inputs
Viable product portfolio ,
Markets
Coverage over as many knowledge of production and
farmers as required to sustain hold timings, quantum of
maximum capacity of the cold production and batches,
chain throughout the year evacuation mechanisms, re-
cooling mechanisms,
transportation, packaging, etc.
Village
Processing Units

Requires long term, low interest infrastructural loan or grant for

start up capital as well as adequate working capital to hold stock.
Would also require access to reefer vehicles or other transport
 Our theory of change entails us to test and benchmark
technologies, as well as create packages and
processes to scale them with/via ecosystem partners

Stage 1 Stage 2 Stage 3

Identify problems and Work closely with Influence, equip and

benchmark technologies ecosystem partners to enable key ecosystem
and business models pilot and replicate stakeholders to build-in
that solve them. Test, solutions with appropriate sustainable energy
Prototype and Modify financing, ownership and programs and scale
technologies as required collaboration models solutions

Key Output Key Output Key Output

Packages (Tech Processes and Institutionalisation and
and Business Replication Models Partnerships for
Models) for Scale for Scale Sustainability & Scale
Millets
Millets Value Chain

Post harvest
Pre production Production Post Production Value Addition
Processing

Sowing/transplanting Packaging Drying Preparing

Seed Storage Irrigation management Fumigating Pre cleaning roasted millets,
Land preparation Weeding Storage Destoning millet flour,
Pest management Hulling millet
Disease management Polishing semolina, malt,
Harvesting Separating Idli dosa
Drying Pulverising batter, cookies,
Threshing bread
Winnowing etc.,
Grading
 Solar Powered Millets
Stregthen grassroot
infrastructure:
Decentralised small-
scale units can be hugely
beneficial to farmers and
in boosting the rural
economy. Farmers could
consume their own
produce, sell for higher
values and also use every
part of the crop within
their farms itself
Improve energy reliability:
India being in the
developing state of energy
infrastructure, the supply of
reliable electricity in rural
areas can transform
farming, processing and
value addition of millets
Opportunity
Reduce Malnutrition:
Decline of consumption
of small millets- other
than finger millets- in the
production regions.
Act on Gender
Inequality: Traditionally,
millets were dehulled
manually by women
which involves
significant drudgery
and time.
Reduce Carbon
Footprints: If millets
replace rice, they would
slash the energy use of
national cereal
production by up to 12%,
water-use by almost a
quarter, and
greenhouse gas
emissions by up to 13%.
Millet Processing Stage 2 and 3 Trajectory
Millet Processing Business Models

Individual Entrepreneurs and Individuals, Social Entrepreneurs, Groups Groups and Cooperatives -
gorups - SMALL SCALE - Service and Co-operatives MEDIUM SCALE - Service LARGE SCALE - Production Model
based model (80 - 100 kgs) + Production based model (500 kgs) (up to 1000 kgs)

Processing Gross income :

100 kg @ INR 15,27,500
Processing 400
service ($19100)
kg per day as a
charge of 8 Net income:
trader model
rs per Kg INR 62,500
Processing 100 kg Processing
Gross income : ($780)
as service model capacity of
INR 20,000 @ service charge 1000 kg
, ($250)
Net income: INR
of 8 rs per Kg
Individual/SH
9,250 ($115)
Individual/ SHG G/FPO/FPC SHG
Gross income :
17 % to be /FPO/FPC
INR 70,000
60 % to be ($875) subsidised to
subsidised to Net income: 40 % Breakeven in
Breakeven in INR 23,000 subsidised to 3Y 18
($288) Breakeven in
3Y
3Y
SDG 7 + State Blanketing
Building an ecosystem for SDG7 driven solutions that enhance lives and livelihoods
for climate vulnerable populations using State Convergence as a key driver

• What is ecosystem?
Enabling conditions for local ownership, adoption and scale of need based SDG 7 solutions
(technology supply chain, financial inclusion, linkages, unlocking policies and building local
capacity building)

• Why state level?

-Population demography, density + Geographic terrain and climate vulnerability:
similar
- Administratively and stakeholder wise significant for ecosystem building

• What is SDG 7?
- Decentralised Renewable Energy packaged with
Energy Optimised Productive Appliances and built environment solutions
- Climate Smart technologies for livelihoods and health

• Why SDG7
Supply Side Strengthening : SOLUTION PROVIDERS:
- Climate Adaptation + Decentralisation Suppliers of Clean Energy: Enterprises, Service Associates, Business Associates
- Leading to future mitigation Banking Correspondents

• What is ‘Blanketing’
Demand Side Strengthening: LIVELIHOODS: SRLM/+
-Estimating the entire need and potential for SDG 7 Impact depth and reach within Users of Clean Energy: Micro and medium agri entrepreneurs, Self Help Groups,
the state and achieving that complete number phase by phase Cooperatives and Producer Companies

• Why ‘Blanketing’?
Demand Side Strengthening: HEALTH: State NHM+
To develop a template for achieving scale effectively with local ownership over time Users of Clean Energy: Public Health Centres, Health Staff, ANMS
Enterprise Ecosystems – Before situation

Growth Capital

Basic Modern
Capital Technology &
Energy

Advanced Digital
Skills Access

Access to
Basic Networks
Skills

RWE Financier Technology Philanthropy Govt.

Provider
Enterprise Ecosystems – After situation

Growth Capital
Basic
Modern
Capital
Technology &
Energy

Advanced Digital
Skills Access

Access to
Basic Networks
Skills

RWE SF Financier Technology Philanthropy Govt.

Provider
 Total Impact Reach (10% of total need):
SDG 7 + Entrepreneurship Large District- 320 champions
Medium District- 600 champions
Goal: Create a strong supply chain of SDG7 driven Small District- 240 champions
solutions by triggering the entrepreneurship ecosystem

• Types of Enterprises
• Clean Energy Enterprises
• Business Associates and Service Agents
• Technology Innovators, Manufacturers
and Suppliers

• Activities:
• Training
-quality, supply chain, servicing
and maintenance

• Incubation
- partnerships
- empanelment
- unlocking finance

• Trade Facilitation
- dealers, suppliers, franchisees etc
 • Government of India, Ministry of Health and Family Welfare

SELCO Foundation’s Health Portfolio •

•
National Health Systems Resource Center, India
World Health Organization
• International Renewable Energy Agency (IRENA)

USD 14 Million
Deployed Systems Across

16 States in India
1000+ 3000+ 25,000+ In some states 60%
(Deployed) (Next 6 Months) (Next 5 Years)
Govt. Leverage
Thank You! Useful Resources
Get in touch for Collection of 175 Livelihood
Appliances powered by Solar Energy
more information.
Links to video on Livelihood Solutions
www.selcofoundation.org
info@selcofoundation.org