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The Fund’s objective is to deliver high alpha returns to its investors by investing in and harvesting business growth opportunities created in the fast growing energy efficiency sector in India. |
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IndiaCo Ventures sponsored Energy Efficiency Fund is India’s first of its kind fund, an Investment strategy focused on Energy Efficiency as a whole and not just Clean Energy. |
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IndiaCo Energy Efficiency Fund (IEEF) is led by a team of financial and technical experts to execute the fund strategy. The fund would invest in technology (IPR, Patents, and commercially proven technologies) led companies that would aide in bringing a paradigm change to the way energy is utilized and or consumed. |
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IndiaCo uses a proprietary IPR (Intellectual Property) driven investment strategy and synthesizes that with financial growth for an enterprise to catalyze growth and return. |
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IndiaCo has received a grant from Asia Development Bank (ADB), United Nations Environment Programme (UNEP) and the European Investment Bank (EIB) designed to support the creation of the fund. This Support Program has been financed with the financial assistance of the European Union. The views expressed therein can in no way be taken to reflect the official opinion of the European Union. |
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 Introduction |
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India today is one of the top economic superpowers of the world with an average GDP of 8% in the last four years. India currently ranks as the world’s eleventh greatest energy producer and as the worlds fifth greatest consumer. |
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The growing population and economy needs a steady supply of energy to sustain. |
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Generation of more power is one way to bridge the gap between demand and supply. However, the gap can never narrow down unless the losses are curbed. The concept of energy efficiency is aimed at streamlining our energy usage habits in order to cut down the losses. Electricity consumption of India has been growing at an average rate of 6% per annum since 1970. |
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This sustained growth is the result of economic development and the increase in electrical appliances. In 2008, India consumed over 800 billion kilowatt hours of electricity. The demand for electricity is believed to cross 950 billion kilowatt hours by 2030. |
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Energy saved is energy Created! |
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| Sector Focus |
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The electricity consumption pattern of India shows that the biggest consumer of electricity is the industrial sector utilizing around 36% of the total electricity. According to a report by The Energy and Resources Institute, 70% of this electricity is consumed by the energy intensive sectors like fertilizers, cement, textiles, iron and steel and paper. Around 15-25% of this consumption is avoidable. The industrial sector is followed by the domestic and commercial sectors consuming 33% of the total electricity. |
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Use of lights during the daytime is the biggest contributor to the electricity consumption in the buildings sector. Also, HVAC and lighting together consume over 90% of the energy in commercial buildings. While in the domestic sector, lighting and fans are the major culprits. Over 20% of this energy consumed is due to inefficient equipments and non-optimized processes. |
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Areas Identified by IndiaCo that can provide the highest energy saving potential in the industrial and building sectors: |
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| Industrial Sector |
Indoor lighting |
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Outdoor lighting |
| Process control and automation |
Heating Ventilation and Air conditioning |
| Building Sector |
Indoor lighting |
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Heating Ventilation and Air conditioning |
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| The Fund |
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IndiaCo India Fund Trust has been formed in India as a contributory umbrella trust under the Indian Trust Act, 1882 and is registered in India under the Indian Registration Act, 1908. |
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IndiaCo Energy Efficiency Fund (“IEEF” or the “Fund”) is a seven-year, close-ended venture capital fund, which may be extended for two additional periods of one year each, formed for the purpose of making direct equity and equity-linked investments and debt investments in Portfolio Companies. The Fund will invest in businesses and companies in India operating in the energy efficiency industry. |
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The Fund will invest in equity and equity-linked instruments and such other instruments as may be decided by the Investment Manager and permitted under Regulations, if applicable. The Fund would prefer to consider investments at the operating company level. |
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The uniqueness of IEEF lies in the “growth stage-early stage partnership” ecosystem that it would create and consequentially enable effective utilization of technologies that enhance energy efficiency. |
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