On 22 February 2016 in New Delhi, Lab Members selected four ideas to move forward with further analysis and design development in the next phase of the India Lab’s inaugural cycle. The four selected ideas are:
- Loans4SME: A peer to peer lending platform to help small and medium enterprises operating in renewable energy and energy efficiency raise debt finance, using a credit rating algorithm that could significantly expand investment sources. The idea proponent is Aurus Lending Solutions.
- Rooftop Solar Private Sector Financing Facility: A facility to provide debt financing for rooftop solar PV projects that provide power to private sector offtakers using an aggregation and securitisation model. The idea proponents are the IFC and Azure Power.
- P50 Risk Solutions: A facility to reduce the cost and increase the amount of long-term debt for renewable energy projects by transferring resource risk from banks to insurers through a blending of commercial and donor capital. The idea proponents are P50 Risk Managers and Swiss Re Corporate Solutions.
- Renewable Energy Integrated Hedging, Equity, and Debt Fund: A fund to facilitate large-scale international institutional investment into renewable energy by managing currency risk and aligning the cost of capital with risk profile during and post construction. The idea proponent is RR Corporate Ltd.
Joint Secretary of MNRE Mr. Tarun Kapoor announced the selected ideas and joined the Lab Members in applauding the swift progress made since the India Lab launched in November of 2015. In selecting the four most promising ideas, Lab Members emphasized the importance of ideas which can be replicated and scaled up, and that can not only drive more private investment but also leverage public finance.
This Lab Members meeting served as a milestone to mark the closing of the call for ideas and the beginning of the next phase. During the call for ideas, the India Lab received 61 ideas for innovative finance instruments to drive investment in renewable energy and green growth in India. The Lab Secretariat screened these ideas using a set of indicators for the India Lab’s overarching criteria – transformative, innovative, catalytic, and actionable – that had been predetermined and approved by the India Lab. This screening resulted in a list of 30 ideas that were then passed onto the Lab Members to review. The Lab Members then voted on a shortlist of eight ideas, ahead of this meeting, and finally selected four ideas at the meeting to move on for further detailed analysis and development.
Lab Members will now form working groups around each of the ideas, to assess stakeholders, risk maps, potential impact, and implementation opportunities and barriers, with the output of instrument designs and implementation plans for each idea. This will continue through June of 2016, at which point the ideas may be endorsed by the India Lab and taken forward for piloting.