By Dirk Elsen, Director of Emerging Markets at Triodos Investment Management
Orb Energy - part of IntelleGrow's portfolio in India
'The numbers are staggering. Globally, 1.4 billion people do not have access to energy and another 1 billion only have poor access. Annually 2 million people die prematurely due to indoor air pollution and 1 million die from fires caused by kerosene lamps. These numbers fuelled us to use Triodos Bank’s 30-year experience in financing renewable energy in Europe and start looking for renewable energy investment opportunities in emerging and developing economies.
Access is impact
Access to renewable energy - wind, solar, biomass or hydropower - can make a big difference in the lives of many. The availability of energy has a direct impact on the broader level of development of a country or a region: social, economic and environmental. It very directly impacts the lives of people: their access to water, (agricultural) productivity, health and healthcare, and education, to name a few important aspects of daily life.
First investments in Kenya and India
The investment opportunities we look for range from larger infrastructural renewable energy projects to financial institutions or companies that offer renewable energy products. For example: solar panels through a leasing construction to households in rural areas. Our search has been successful. With Triodos Green Fund we are among the financers of Lake Turkana Wind Power , which is poised to provide 300 MW of clean power to Kenya's national electricity grid. And very recently Hivos-Triodos Fund provided a EUR 2.5 million loan to IntelleGrow in India. This financial institution provides debt funding to companies with high social impact. IntelleGrow’s loan portfolio consists for 23% of renewable energy projects; it finances solar panel leasing companies, and even a company that produces solar powered ATMs.
Broader agenda
This is a great way to let Triodos funds flow to areas where we can have a big impact through intermediaries on the ground who have ample knowledge of the local needs. We will continue pursuing this broader impact investing agenda in the years to come!'