Building a Clean Technology Bridge to India

1
Building a Clean Technology Bridge to India

• Australia India Joint Business Council Summit
• Melbourne, 20 May 2008
• Peter Castellas
• Managing Director
• Cleantech AustralAsia

2
Overview

• Brief overview of Cleantech AustralAsia
• Clean Energy Finance and Investment Trends
• Overview of Asia Pacific Partnership project
• Findings of the Project major barriers
• 2nd India Cleantech Forum
• What may be coming

3
About Us

• Mission to accelerate the investment in and
  deployment of Cleantech in Asia Pacific to
  address Sustainable Development
• Niche Investment Bankingplacement, advisory
• Consulting--Asia Pacific Partnership
• 4th AustralAsian Cleantech Forum
• 11/12th March 2008, Melbourne
• 2nd India Cleantech Forum
• 10th/11th July 2008 New Delhi

www.cleantechforum.com
4
What is Cleantech?

• Broad range of products and markets, including
• technologies in alternative energy, such as
  wind, solar, or biomass power
• energy storage and energy efficiency
• advanced waste management and recycling
• smart-grid technologies for the utility grids
• electric or hybrid-electric transportation
• advanced materials, including biodegradable
  plastics
• water technologies
• alternative fuels, including bio diesel and
  ethanol
• green building technologies

4
5
Drivers for Cleantech in India

• Energy uncertainty
• Climate Change
• Energy Security
• Need for improved infrastructure
• Public Health and Environmental Degradation
• Sustainable Development Imperative
• Policy initiatives
• Resource availability

5
6
Total Global New Investment inClean Energy 2004
2007

• 1 of global fixed asset investment

• 19 of global energy industry infrastructure
  investment

• 250 of commercial aircraft investment

Source New Energy Finance, IMF WEO Database, IEA
WEO 2007, Boeing 2006 Annual Report
Adjusted for reinvestment. Geared re-investment
assumes a 1 year lag between VC/PE/Public Markets
funds raised and re-investment in projects.
7
New Investment by Sector, 2004 - 2007
Wind
VC/PE, Public Markets and Asset Finance only.
Excludes re-investment adjustment
Source New Energy Finance
8
New Investment in Clean Energy by Region 2004 -
2007
Adjusted for reinvestment. Geared re-investment
assumes a 1 year lag between VC/PE/Public
Markets funds raised and re-investment in
projects.
Source New Energy Finance
9
New Investment in Clean Energy by Asset Class
2004 - 2007
VC/PE
9.8bn
7.3bn
3.0bn
1.6bn
Excludes re-investment adjustment
Source New Energy Finance
10
Public Equity FUM 2004 - 2007
229 growth
20.4bn (29)
261 growth
23 growth
6.2bn (14)
1.7bn (10)
1.4bn (9)
Number of funds within bracketsIncludes
actively managed funds that have at least 50 of
their investments in clean energy
Source New Energy Finance Bloomberg
11
Carbon finance
Source World Bank UNFCCC New Carbon Finance
11
12
Cleantech Market Opportunities in India
Source U.S. Foreign commercial service and
U.S. Department of State as on 2006 Providing
knowledge based services for implementing
environmental initiatives
12
13
Asia Pacific Partnership Project

• Asia Pacific Partnership for Clean Development
  and Climate- APP, 7 countries
• Project aim to identify barriers increased
  innovation, investment and deployment of clean
  energy in India
• A global literature review
• Primary research on RE statistics and data
• Extensive one-on one stakeholder engagement
• Global on-line survey
• Additional research and technology mapping
• Development of case studies
• Synthesis and analysis

14
Findings- major barriers

• Need for clear consistent long-term government RE
  policies 95
• Subsidies may cause price distortions for RE
  technologies. 85
• The legal/regulatory environment is weak or
  unclear 69
• RE technology-specific barriers affect the
  economic feasibility of RE projects. 74
• There is a lack of early stage debt and equity
  financing. 73
• Small RE project developers find it difficult to
  obtain capital. 62
• Financiers inexperience in dealing with the risk
  profile of RE projects. 73
• There is a lack of RE industry information. 73
• There is a general lack of awareness and skills
  amongst all stekeholders. 68
• There is a lack of understanding of Indian
  business culture. 70

15
Actions/Solutions Policy
15
16
Actions/Solutions Technical
17
Actions/Solutions Finance
18
Actions/Solutions Market Knowledge
Outcome Access to information improves
investment climate
18
19
Actions/Solutions International collaboration
20
What may be coming

• Globalisation of technology transfer Bali
  roadmap
• Increased Incubation Programs
• Central Renewable Energy laws?
• Significant institutional investor interest in
  Cleantech
• Corporate investment strategies
• New professional services
• Shift in mentality of SMEs
• Cleantech Revolution!

21
Contact

• Thank you

Contact Peter Castellas peter_at_cleantechnology.com
.au www.cleantechforum.com Mobile [phone]