Inclusive Business Development Workshop: UNDP/GCN Korea Best Practices and Learnings of an Inclusive Business: Sunlabob Renewable Energy Andy Schroeter, Co-founder and CEO Sunlabob Renewable Energy, Ltd. Lao PDR
Sunlabob Renewable Energy Laos-based social enterprise that specializes in renewable energy & clean water projects in developing regions of the world. Solutions & Technologies: Solar PV Mini-hydro power Water purification Energy efficiency Operating in: Southeast Asia Africa India Pacific Islands
Launching of Sunlabob 2001: The first commercial company working in the field of renewable energy in the Lao PDR Aim: Provide renewable energy solutions to rural areas not yet connected to the national grid. Founders: Andy Schroeter and Saleumphone Vongsakhampui
Evolution: Models for a Viable Inclusive Business 2000 2012 Renting Solar Home Systems (SHS) Selling light per hour with Solar Lantern Rental System (SLRS)
Evolution: Models for a Viable Inclusive Business 2000 2012 Selling electricity in villages with Village Hybrid Grids (VHG) Selling drinking water, purified by solar power
IB Model Example: Solar Lantern Rental System loans Investment Fund Sunlabob owns Charging station in the village rents Private Investors Public Donors Trust Fund grants Village Energy Committee Village Energy Fund owns re-invests Village Technician manages Lamps in the village Exchange Cycle with recharging fee Investments Returns
Sunlabob Today: Viable IB Model Sunlabob value prop: combining high-quality hardware with focus on community-based capacity building and village energy enterprises Ensures operational longevity and social/economic sustainability Driven by respect of the beneficiary as a local partner, not a customer Upfront: ownership of fixed assets paid for by public/private funder then transferred to community Establishment of Village Energy Technicians (VET) and Village Energy Committees (VEC) Lines of business: Fee-for-service (selling electricity, not hardware) International Competitive Bids (ICBs) Direct sales (turn-key) Consulting energy efficiency, project development, policy development etc.
Viable IB Model: Generating Financial Return Financial return to Sunlabob: Sunlabob business model hinges on the upfront profit of project development (not the self-sustaining village operation) Only profit gained through operational longevity of a project is the after-sales servicing after conclusion of warrantee Financial return to Village Energy Enterprise (VEE): Long-life of project ensures long-term profitability to VET and community
Viable IB Model: Creating Social Impact Sunlabob s work in Laos and around the world have collectively impacted 600,000+ direct beneficiaries in remote, off-grid areas In Laos, direct impact on lives of approximately 250,000 people: 25,000 households (circa 150,000 beneficiaries) 36 villages given access to clean drinking water (circa 14,400 beneficiaries) 160 health posts electrified (circa 80,000 beneficiaries) 3 village micro-hydro plant (circa 11,000 beneficiaries) 27 lantern-charging stations (circa 8,000 beneficiaries) 20 irrigation systems for agriculture use (circa 3,000 beneficiaries) 30 public schools electrified (circa 3,000 beneficiaries) more.. Internationally, Sunlabob has reached approximately 320,000 direct beneficiaries: 12,000 households electrified in Cambodia (circa 70,000 beneficiaries) 1500 households electrified in the Marshall Islands (circa 75,000 beneficiaries) 64 schools electrified in Uganda (circa 7,000 beneficiaries) 6 solar power plants at training centers in Liberia and Sierra Leone (circa 2,300 beneficiaries) more
Catalyzing Social Change Entrepreneurship Direct jobs (Village Technicians) Longer business hours Increased mill production Better agricultural output Education Night classes, evening homework enabled Access to more information Health Refrigeration of vaccines and health supplies Medical facilities open longer hours Other Benefits Mobile phone access Television and home electronics
Integrating CSR Internally Internally: Sourcing local products whenever possible Using only ISO certified suppliers Commitment to reducing CO2 emissions Reintegrate victims of trafficking into society Equal Opportunity Employer Recycling waste materials into its assembly process
Developmental Impacts MDG 1: Eradicate extreme poverty and hunger Local businesses & opportunities for income-generating activities Providing access to information (mobile/radio/tv) MDG 3: Promote gender equality and empower women Employees: rehabilitation in partnership with an NGO Villagers: majority of the workforce in 2 /3 of villages MDG 7: Ensure environmental sustainability Reducing kerosene consumption and CO 2 emissions Reducing indoor air pollution and risk of household fires Providing the opportunity to enter the carbon markets MDG 8: Develop a global partnership for development Involvement and empowerment of local communities South-South cooperation
Sunlabob Growth Plans Current: growth stage Inclusive Business 2011 turnover: USD 5.9 million Objectives: Expand ICBs and direct sales to new markets, more beneficiaries Expand fee-for-service model But challenges exist for Sunlabob, which are shared by other IBs.
Inclusive Business Challenges Lack of available project finance In need of guarantors to IB loans Lack of government policies to support IB growth in most developing markets Many IBs in need of professional mentorship and capacity building Better platforms to match IB companies with impact investors and corporate programs
Thank You - 감사합니다 Thank You! Sunlabob Renewable Energy Ltd PO Box 9077, Vientiane, Lao PDR Tel: (+856 21) 313874 Fax: (+856 21) 314045 contact@sunlabob.com www.sunlabob.com