We speak with Leslie Labruto, Head of Energy Access at Acumen, about the equity investment landscape in off-grid solar. We discuss Solar Home Systems (SHSs), minigrids, impact investment, successful business models, challenges and opportunities in the sector, and what makes a great investment for Acumen.
Recorded in 2019
Visit us at www.distributingsolar.com
Contact us at podcast@distributingsolar.com
Show notes:
(0:55) Introduction to Leslie Labruto and how she got into the clean energy sector
(2:20) Introduction to Acumen, their higher risk approach to investments, and commitment to the poor
(3:30) Overview of the off-grid solar sector: pico appliances, solar home systems (SHSs), mini-grids -- the ongoing challenges around mini-grid business model
(6:20) Discussion of the investment landscape in the off-grid solar sector, contrasting Mobisol, d.lights and positive signs from new funds (e.g. KawiSafi and Sunfunder); the need for more early stage investments
(9:20) Acumen's approach to patient capital, investments, 1x returns -- what they look for in an investment
(12:35) Acumen's energy investments to date; the challenge and need for solutions around clean cooking
(14:30) Productive Energy Use: the opportunities and need for solutions that can support income growth; their focus on Pioneer Energy Investment Initiative (PEII)
(17:30) The commercial viability of the off-grid solar sector, the need for operational excellence, strong unit economics for successful companies
(19:11) Considerations around exits in the sector: the need for secondary sales to support the growth of the investment sector, the catalytic effect of secondary sales; the role of strategics (e.g. Shell, Total, Engie) in the sector
(22:20) The intentions and interests of strategic, corporate investors in the energy access sector
(23:50) The challenges for the mini-grid sector in particular; the ability for mini-grid sector to target poverty alleviation; the need for subsidies in the mini-grid sector and reframing of mini-grids as a public good
(27:00) Results-Based Financing: demand from investors for RBFs
(29:15) Lean Data, 60 Decibels, and focus on customers to determine the social and environmental impact of products and services; the use of Lean Data for due diligence purposes
(32:50) Geographical areas of focus for Acumen
(35:10) Predictions for the energy access sector: the need for reliability and developments in some geographical areas
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
My Favorite Murder with Karen Kilgariff and Georgia Hardstark
My Favorite Murder is a true crime comedy podcast hosted by Karen Kilgariff and Georgia Hardstark. Each week, Karen and Georgia share compelling true crimes and hometown stories from friends and listeners. Since MFM launched in January of 2016, Karen and Georgia have shared their lifelong interest in true crime and have covered stories of infamous serial killers like the Night Stalker, mysterious cold cases, captivating cults, incredible survivor stories and important events from history like the Tulsa race massacre of 1921. My Favorite Murder is part of the Exactly Right podcast network that provides a platform for bold, creative voices to bring to life provocative, entertaining and relatable stories for audiences everywhere. The Exactly Right roster of podcasts covers a variety of topics including historic true crime, comedic interviews and news, science, pop culture and more. Podcasts on the network include Buried Bones with Kate Winkler Dawson and Paul Holes, That's Messed Up: An SVU Podcast, This Podcast Will Kill You, Bananas and more.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.