Although installed costs of solar photovoltaics have declined by over 43 percent since 1998, many who rely on fossil fuels are still reluctant to make the change to solar. Now, through advancement in the research and development of using so called “quantum dots”, several scientists at UT Austin have demonstrated how to increase solar panel efficiency from 31 percent to 66 percent, harnessing the previously illusive “hot energy” from the sun’s rays. These advanced developments and efficiency increases will likely drive down the costs, making solar energy more affordable for all.

A newly developed $60m fund by the International Finance Corporation will promote innovation in clean technology for emerging markets. Individual investments are expected to be in the range of $3 and $4 million. The fund will also support startups’ endeavors to reduce greenhouse gas emissions.

Not surprisingly, the developing countries of the world are investing more and installing more clean technology than their counterparts in the developed countries. Specifically, China added 19GW of wind generating capacity, while India met targets of about 10GW. The Global Wind Energy Council wrote in its annual report that the demonstrated growth in wind capacity “puts an end to the assertion that wind power is a premium technology only for rich countries which cannot be deployed at scale in other markets.”

The Seventh Annual Conference on Clean Energy is happening in Boston on November 1.  The Massachusetts Technology Transfer Center and The Massachusetts Hydrogen Coalition host the event as part of Massachusetts Clean Energy Week. Our own Miguel Granier is a panelist on “Energy Solutions for Developing Countries,” alongside Sam White, Co-Founder of our portfolio company, Promethean Power. Check out the agenda for all the details, including pitch sessions and lots of exciting panels. 

It’s no secret that the two biggest obstacles to scaling clean technologies are cost and access. TreeHugger points out that it’s important to invest in renewable energy sources but also to experiment with pricing models that will allow people at all income levels to afford and access sustainable energy. Our portfolio company, Simpa Networks, tries to combat the financial barrier by allowing users to pay for energy just as they would with a mobile phone. Watch Brian Merchant’s interview with Paul Needham, Simpa Networks founder and a new PopTech Social Innovation Fellow.

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After a busy summer that included the official launch of our BETA initiative, we aren’t ready to slow down. This fall we continued our growth by opening our first in-country field office and welcomed a new team member.

Sean Smith, our Investment Analyst, has moved to Nairobi, Kenya, to open the first Invested Development outside of Boston. Sean will continue to source pipeline from around the world, but will add even deeper insight into the needs of the underserved on the Continent and the creative start-ups addressing them. If you’re in Greater Nairobi and would like to meet up with Sean, please reach out to us on Twitter.  Watch out for a post in the coming weeks from Sean on this blog as he gets settled and learns more about the innovation that’s stirring in Nairobi.

Back here in Boston, we’re very pleased to announce the addition of Alex Bashian to the Invested Development team. Alex joins us as the Senior Investment Analyst after several years of experience in finance and clean technology. He is a graduate of Columbia University’s esteemed MPA program in International Energy and Economic Policy, a recovering Wall Street analyst, and an experienced alternative energy consultant and advisor. We couldn’t be more excited about having him on board.

In addition to our growing team and global presence, we have some great things planned for the upcoming quarter. Make sure to keep up with us on Twitter and subscribe to our blog to stay updated with all the latest news. Thanks for your continued support of Invested Development. 

In that 2010 post, we also looked at the demonstrated market growth for mobile phones.  We consistently monitor the penetration rates of mobile phones in emerging markets. The World Bank Database is a reliable resource, currently offering data through 2009. Based on that data, we projected the penetration rates for 2010 and 2011(using a conservative diminishing returns formula for the falling year-on-year growth averages). The chart below shows the number of mobile phone subscribers per 100 people in Latin America & the Caribbean, India, and Sub-Saharan Africa. We compared these three emerging market regions with the United States, the European Union, and the world as a whole. 


Mobile Subscriptions per 100 Inhabitants

Over the next few weeks, we will post the different examples of mobile transaction systems and the ways they empower the world’s poorest citizens by creating exchanges.  Up first on the agenda is Mobile Money Transactions, check back next week for the first examples. 




Update:
Part 2 - Mobile Money
Part 3 - Information
Part 4 - Social Capital

Source: Wikimedia Commons

This week we’re highlighting the importance of enterprise level development and impact investing in India. Several newsworthy excerpts describe the myriad opportunities emerging from the growth of social enterprises, impact investing, and the use of technology in the region.

A massive existing population in India coupled with robust economic growth expectations and a changing investor appetite for disruptive innovation in emerging markets has driven growth in social enterprises opportunities. Impact investors are seeking cutting edge local entrepreneurs and business innovators in India for the development of the region. In late 2010, JP Morgan was one of the first to formally acknowledge that this sector is more than an emerging trend but rather a unique and emerging asset class all its own, a notion that supports the Times of India Social Impact Awards.  As the article reports, it is becoming increasing clear that the potential and support for impact investing in India is huge. This investment class is both a solution for the risk-averse private sector and compliments the already exhausted resources coming from many governments and donors.

The Indian government is buying £30 tablets, the “Aakash,” from a British manufacturer, DataWind. The government will use the tablets to supply rural schools and universities with modern technology “to help lift villagers out of poverty.” This is an effort to get 220 million children of India online and close the gap between the burgeoning rich and the underserved poor. Currently, “only 7% of Indians graduate from high school” and the government aims to increase enrollment to 30% by 2020.  DataWind tablets enable teachers to access important teaching resources and give students a taste of technology.

“Just as many [governments] in developing countries skipped landlines and went straight to mobile phones,” many developing countries will also skip coal and go straight to clean energy. Clean technology and alternative energy sources are the competitive choice for under electrified countries in emerging markets. Especially in India, where the population is so large, the benefits of clean and safe energy sources will be significant. For example, there are about 2.5 million burn cases in India alone each year due to the use of kerosene lamps. Also in India, solar panels are priced around $300, the equivalent of a year’s supply of kerosene. Strengthened with innovative financing solutions like the Simpa Regulator Simpa Networks, India may reach its goal to produce 15% of its total energy from renewable sources by 2020. With the support of the public sector and the private sector, the second most populous country in the world can electrify the country with sustainable solutions.

Aavishkaar, a Mumbai-based venture capital firm, has raised a new $62 million fund that will focus on early-stage firms serving the base of the pyramid in India. In a similar fashion to Invested Development, Aavishkaar India emphasizes the importance of solutions that are affordable and scalable. The fund will serve a wide range of industries in India, including: healthcare, water and sanitation, education, agriculture, and renewable energy. VineetRai founded Aavishkaar in 2001 with the vision of enabling and harnessing the entrepreneurial spirit found at the base of the pyramid to promote sustainable and self-sufficient economic development.