This is my final project submission for the course ' Unlocking investment and finance in emerging markets and developing market economies' course by World Bank

1. FINAL PROJECT
For the final project of the “Unlocking
Investment and Finance in emerging markets
and developing economies "course , a fictional
company by the name “ Renew Power To You
Co Ltd” has been taken. But the EMDE country
that is to be invested in is selected as India and
the values presented are as got from various
actual sources. This presentation mainly
includes the initial stage of an investment
proposal.
Viewpoint – Direct Investor

3. MISSION AND VISION
• We are a multinational company looking to invest in the renewable
energy sector.
• We believe that renewable is the way of the future
• We are particularly focused on solar energy and wind energy.
• Looking forward to investing in EMDE countries
USAID has published a new analysis of the post-2020 climate action plans
of selected developing countries. The most commons sectors with
mitigation actions outlined were Energy, Land Use, Land Use Change, and
Forestry (LULUCF) and Transport. 30 out of 37 countries analyzed identified
the energy sector as a priority area for action.
(Source: United Nations Climate Change)

5. INVESTING PRINCIPLES – ESG INVESTING
Will be investing by incorporating the ESG principles in the following ways
• Will incorporate ESG issues such as climate change, demographic
trends, consumer preferences(renewable energy and costs etc) and
regular monitoring and feedback of project incharges.
• We incorporate ESG components in our annual financial reports
• Have collaboration with partners who follow ESG principles and avoid
collaboration with those who don’t.
• Revisiting ESG principle implementation on a regular basis
• The project will be evaluated on the basis of Net present value and
Internal rate of return mehtods

6. WHICH COUNTRIES CAN WE INVEST IN
For this we have taken cues from the EY Renewable Energy country
Attractiveness Index recai May 2019
The index uses various parameters to assess the attractiveness of a country’s
market which include economic stability, investment climate, clean energy
gap, affordability, security and supply, political stability, energy market
access,infrastructure, technology potential among few others.
The top 10 countries in the Index are-
1. China (mainland)
2. US
3. France
4. India
5. Australia
6. Germany
7. Japan
8. UK
9. Argentina
10. Netherands

7. RENEWABLE ENERGY MARKET IN INDIA
• India is expected to overtake Chine and become the largest growth
market by the late 2020s. (Source: BP Energy outlook 2018)
• The renewable energy share in India in India’s energy mix is also slated
to increase to 13% in 2040 from 2% in 2016.
• Over the next 4 years renewable energy sector is projected to attract
investments pegged at US $80 billion.
• As the Indian economy grows, the electricity consumption is projected
to reach 15,280 TWh in 2040.
• Renewable sources are expected to help meet 40% of India’s power
needs by 2030.
• India is looking at US$500 billion worth of investment in creating
renewable energy generation capacity with tendering of 500GW by 2028
in addition to $250 billion investment in grid expansion and
mordernisation ( Institute of Energy Economics and Financial Analysis).
• Upto 100% FDI is allowed under automatic route for renewable energy
generation and distribution projects .

8. WHY INDIA?
Apart from the potential of renewal energy in India discussed in the
previous slide, let us look at more factors that led to the decision to invest
in Indian renewable energy sector.
• Ranked 4th on the EY Renewable energy country attractiveness Index in
2019 and has been consistently ranking in top 5 in the last few years.
• China is currently the largest renewable energy produucer but is the
country has been holding back subsidies to bring down a 100 billion
yuan deficit in a state-run renewable energy fund. (July 2018- Quartz
India)
• Government of India is looking to have at least 175GW of installed
renewable energy capacity by 2022. This target has been revamped to
225GW - Out of which 100 GW solar power and 60 GW Wind energy.
• India receives about 300 days of sunlight a year(being a tropical
country) and has large hydropower potential in its north eastern states.
• More than 122 countries came together to form the ISA (International
Solar Alliance) which a framework agreement to focus on solar power
utilization. This was initiated by India. This indicates India’s intent to
take a lead in the renewable energy sector.
• Easily available labour force

10. THE INVESTMENT
After careful deliberation the company has come to the conclusion that it will be
making a greenfield investment for this project because
• The company has expertise in the renewable energy segment-it is one of the
best in the industry.
• Control over manufacturing and operations
• Government regulations favour FDI (renewable energy + creation of jobs)
The obstacles/ challenges faced by the project are-
• High risk ( Greenfield investment is the riskiest form of foreign investment)
• Poor balance sheet of power distribution companies which may cause delay
in payment to the project developer.
• Lack of proper power evacuation infrastructure
• High project finance cost – at 13% interest rate- one of the highest in the
world
• Currency risk
The challenges can be overcome by
• For the high risk the company can seek help from MIGA’s Guarantee Facility,
Risk Mitigation facility or perhaps make use of blended finance from WB
• Some risks can be diversified by taking smaller projects in low risk
countries alongside.

11. PLAN AND MONITOR - KEY PERFORMANCE
INDICATORS FOR THE PROJECT
KPIs for solar project
• Performance ratio
• Plant availability
• Greenhouse gas equivalency
• Mean time to repair, mean time between failures
• Direct capacity-direct current
• AC capacity
• Peak irradiance
• Variance between actual and expected KWh
• Peak solar hours