Acumen Fund Announces New Energy Portfolio Investments in Power and Lighting Solutions for Low-Income Households

Innovative businesses provide scalable models for improving energy access and protecting the environment.

Hyderabad, India (PRWEB) November 4, 2008 -- Acumen Fund, a social venture fund that invests in sustainable, scalable businesses that provide affordable healthcare, water, housing, and energy services to underserved households in South Asia and Africa, announced today the following new investments as part of its expanding energy portfolio in India:

One in four people worldwide lack access to electricity. It is not clear how many Indians lack access to affordable, consistent power, though it can be safely estimated that about half the population - more than 500 million people - lacks access to a reliable energy source.

"Since launching our energy portfolio last year in recognition of the critical role that energy plays in all phases of development, Acumen Fund has been working to identify companies using entrepreneurial approaches to deliver clean, modern, high quality power solutions to the poor," said Jacqueline Novogratz, CEO of Acumen Fund. "SHREY and d.light are two such companies and we think they can be scaled up to serve as global models for delivering energy services to the poor."

Acumen Fund has been looking at various business models in the energy space, including decentralized energy generation and supply, as well as more efficient and affordable alternatives to current consumer products.

"We have found that providing renewable energy resources addresses several issues at the same time," said Raj Kundra, Director of the Energy Portfolio at Acumen Fund. "Providing access to reliable clean energy increases productivity and household income; it provides health benefits at the individual level by replacing kerosene usage; and it reduces global greenhouse gas emissions."

"There are many communities in India where the government has expanded the grid infrastructure but there is an inadequate supply of quality power," said Varun Sahni, India Country Director. "There are also many marginalized villages where access to the main grid may be an inefficient and expensive solution. Acumen Fund has been looking at business models relevant to both scenarios in an effort to find the most cost-effective way to bring reliable power to these communities."

Targeting low-income households in Himachal Pradesh, SHREY is a sister company of SBA Hydro, a hydro turbine manufacturer for mini- and micro-hydro plants. Set up as a project development company, SHREY plans to develop up to ten mini- and micro-hydro sites in communities with grid access but inadequate power supply. With Acumen Fund's investment, SHREY will be able to generate a reliable supply of decentralized power, feeding into the local grid, in areas which are typically "end-of-the-line." SHREY's work represents a public-private partnership at all levels--revenue and ownership sharing with local village panchayats, sale of energy to the state electricity board, and support in the form of a capital subsidy from the Ministry of New and Renewable Energy.

"Indeed, the additional costs of bringing energy to the rural poor combined with the enormous social and environmental benefits of doing so enable a compelling case for public-private partnerships and hybrid delivery models," says Jacqueline Novogratz.

This initial bundle of hydro power will serve 30,000 to 50,000 people, depending on consumption levels. "The business has tremendous potential for replication, and with Acumen's support, SHREY hopes to prove a model for decentralized generation that may be replicated across the Himalayan belt," said Varun Sahni, Director of Acumen Fund India.

d.light design is a lighting and power company that delivers affordable and high quality solutions to serve families living without adequate electricity. Their launch product range - a series of robust Solar LED lights with AC charging options - are designed as an affordable alternative to replace kerosene lanterns and are particularly targeted at off-grid customers, who need a product with a low-entry price (d.light's products range from - USD). The company uses high-powered LEDs that are 8-10 times brighter than a kerosene lantern, 30-50% more efficient than fluorescent lights, and can provide up to 40 hours of light on a single charge. Acumen Fund's investment will support expansion of d.light's global operations, and an Acumen Fund Fellow will also be working to support the company's scale-up through 2009.

"Affordable off-grid lighting is a critical demand in all the geographies where Acumen works, and with a global team focused on low-cost, high quality products, d.light is well-poised to scale in this market," said Raj Kundra.

"Acumen Fund's investments in SHREY and d.light - and the growth of our energy portfolio - reflect the growing number of viable businesses that address the critical power needs of these underserved markets," continued Raj Kundra. "Given the scale of those needs, we continue to look for opportunities to invest in innovative models that can reach millions of low-income customers."

To learn more about Acumen Fund and follow the progress of its investments in SHREY and d.light design, visit www.acumenfund.org.

About Acumen Fund:
Acumen Fund is a nonprofit venture fund that invests in market-oriented approaches to deliver critical, affordable goods and services to the world's poor. Acumen Fund focuses on the convergence of philanthropic capital and business expertise to produce sustainable, scalable enterprises that reach underserved markets and increase access to the opportunities of the global economy. For more information on Acumen Fund's activities and investments, visit www.acumenfund.org.

Acumen Fund in India:
Acumen Fund has been investing in India since 2001, focusing on a wide range of sustainable, scalable businesses that use market-based approaches to deliver products and services to millions of rural and urban poor. Investments made by Acumen Fund India in local enterprises include high-quality maternal and pediatric healthcare services; safe water for consumption and livelihood; and clean energy. Leveraging strong relationships with local academic institutions and businesses as well as the global Acumen Fund network, Acumen Fund India is actively exploring further investments in healthcare services, as well as potential investments in housing and energy services.

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Changing to an Energy Saving Light Bulb

Whether or not you believe in global warming I don't believe that anyone can dispute that using less energy is a good thing. One very easy way that you can become a little more green is by changing to an energy saving light bulb.

Replacing your old incandescent lights, the regular light bulbs that we all grew up with, and installing compact fluorescent light bulbs (usually referred to as CFL bulbs) in their place can result in some large changes. If you are currently using a 75 watt incandescent bulb then you can replace this with an 18 watt CFL bulb. This means putting out the same amount of light but significantly reducing how much energy you are using.

In fact if every household in America replaced just one light with a CFL bulb then we would be talking about an annual energy savings in the range of 700 million dollars. Saving that much electricity would prevent 9 billion pounds of greenhouse gas emissions from being released into the air each year. That is the equivalent of what is released by 800,000 cars.

So should you run out and replace all of your old bulbs right away? Truth is that it would save you money. An Energy Star approved light can cost anywhere between two and fifteen dollars. At the same time they save you approximately $30 over the life of the bulb.

I would recommend that for starters you just replace the bulbs in your house that are used the most and save the incandescent bulbs that you remove. You can use these bulbs in areas like closets or in the attic where they will rarely be used or are only used for a few minutes every day. This way you get you install your energy saving bulbs where it counts but you aren't wasting the old bulbs by just throwing them out.

One warning that you need to be aware of is that the CFL's do have a small amount of mercury in the light. This is not usually a big concern but if you do happen to break one you are going to want to be careful with the cleanup. There are also some states that require they are taken to a recycling center instead of being thrown out in the garbage.