RENCO

Total Green Energy Solutions

Provider
RENCO Technologies Private Ltd.
Chennai
www.rencotech.`com
044-2498 8950
 About RENCO

A Green Energy “One Stop Center Service” Company

Established in Chennai in July 2001.

The first Private Sector Company in South India

specializing in ‘Carbon Credits’.

Works in conjunction with M/s RENCO USA INC.

The Pathfinders of ‘Green Energy Projects’ & ‘Carbon Credits’ in India

RENCO’s Mission
 RENCO’s Services
RENCO’s One Stop
Service Center
Carbon Services

ESCO Biz Model

Energy Finance
 Carbon Transaction Advisory Services
Preparation of PIN/PCN
RENCO’s One Stop Document
Service Center
Preparation of Project
Carbon Services Design Document

Carbon Transaction Obtaining the Host

Advisory Services Country Approval
Carbon Footprint Obtaining ‘Validation of the
Studies Project’ by a ‘Designated
Operational Entity’
Go Carbon Neutral
Registration with CDM
Executive Board
ESCO Biz Model
Identifying Potential
Energy Finance Buyers for Sale of CERs

Verification by a ‘Designated
Operational Entity’ and obtaining
the CERs from CDM EB.

For the Voluntary Markets such as Gold Standard, Voluntary Carbon Standard (VCS) and Chicago Climate
Exchange (CCX) the process is very similar without the role of the Executive Board & MOEF- Govt. of India
 Carbon Footprint Study
RENCO’s One Stop Brand Threat
Service Center Value Future
Regulations

Carbon Services Emission Supply

Sources Chain
Disruption
Carbon Transaction
Advisory Services Calculation
Carbon Footprint
Studies

Go Carbon Neutral Carbon

CSR
Footprint
Reduction
ESCO Biz Model Closed
Loop
Implement
Manufactur
ation Analysis
Energy Finance ing System Cost
savings

Carbon
Credits
 Go Carbon Neutral
RENCO’s One Stop
Service Center Measure Save Offset Reduce Repeat

Carbon Services
Carbon Neutral Standards
Carbon Transaction
Advisory Services

Carbon Footprint
Studies
The Gold Standard
Go Carbon Neutral

ESCO Biz Model

ISO14064 Voluntary Carbon Standards
Energy Finance

Carbon Neutral.com The Carbon Standard

 RENCO’s ESCO Biz Model
RENCO’s One Stop
Service Center
Carbon Services

ESCO Biz Model

Energy Efficiency
Projects
Renewable Energy
Projects

Energy Finance

ESCO is an Energy Services Company

 ESCO Savings
RENCO’s One Stop
Service Center
Carbon Services

ESCO Biz Model

Energy Efficiency
Projects
Renewable Energy
Projects

Energy Finance
 Non ESCO vs. ESCO Biz Model
Non-ESCO (Own) ESCO –SPV Third Party
RENCO’s One Stop
Service Center Total Financial Risk Shared Financial Risk

Carbon Services Carbon Credits Headache Minimizing the risk in Carbon

Credits (VER values considered
ESCO Biz Model for calculations)
Going away from Core SPV is a specialists company
Energy Efficiency Competence(Time & Cost Over with all skill sets
Projects
run)
Renewable Energy
Projects Future Power prices remain a a) Future Prices are projected
question mark for the 1st 10 years
Energy Finance b) The rest of 15 years of life
of the equipment costs only
the O&M cost considered.
Hence Power generation
cost is negligible
No Green Company Green Company & Potential
Increase in Export Sales
Revenue
 Energy Efficiency Projects
RENCO’s One Stop
Service Center
Carbon Services

ESCO Biz Model

SUGAR CEMENT
Energy Efficiency
Projects
Renewable Energy
Projects

Energy Finance
IRON & STEEL TEXTILE

FERTILIZER PETROCHEMICALS
 Renewable Energy Projects
RENCO’s One Stop
Service Center
Carbon Services

ESCO Biz Model

Energy Efficiency
Projects
Renewable Energy
Projects BIOMASS WIND

Energy Finance

SOLAR
 RENCO’s Participation in Equity Finance

RENCO’s One Stop

Service Center Under its ESCO Biz Model, RENCO brings in
Carbon Services Equity Capital for eligible Green Energy Projects

ESCO Biz Model

Justification of RENCO’S approach to invest in
Energy Finance ‘Last Stage Equity’

Apathy of Traditional Lenders
Equity Finance

Credibility or otherwise of Promoters
Arrange Project
Finance
The Policy Measures of Host Countries

The Uncertainty in the Legal Framework

Minimizing the Risk & Maximizing the Reward

Show its commitment to the success of the
Project
 Arrange Project Finance
RENCO’s One Stop RENCO shall facilitate the tie up of Project Finance through
Service Center the following:
Carbon Services • Project evaluation, customized structuring

ESCO Biz Model • Preparation of executive summary for initial screening

by prospective financial participants in the debt
Energy Finance requirement of the project

Equity Finance • Short listing of interested lenders

Arrange Project
Finance • Arranging detailed project appraisal

• Completion of financial closure for the debt

• Assistance in documentation and draw down of

approved facilities
 RENCO’s Other Initiatives
Village Electrification Programme

RENCO’s Village Electrification Project (VEP) is to

develop and install a Hybrid System of Renewable
Energy Technologies in rural villages as a driving
force for village women entrepreneurship, village
empowerment, poverty alleviation and economic
growth.

To promote a model village that adopts green

energy for their day to day use to meet their
energy demand.
 Differentiators
MoA with Focus on SMEs
 RE/EE Technology Providers Huge RE/EE Project Potential
 4 Project Promoters Bridging the gap due to lack of
for 12 Projects Financing & Technical Know-
how
Established Unique
Agreements Positioning

Thick Pipeline Strong

of Projects Resilient
 Strong BD& Management  Reinvented as unique
Channel Partners ESCO Company
 12 Committed Projects-  End to End Solution
12.8 MW Potential provider
 RENCO’s USP

Highly experienced Senior Management Team with

International experience, diverse background and world-wide
contacts in Green Energy / Carbon Credits Domain.

Name and Brand recognition amongst Indian and

International Companies in Green Energy / Carbon Credits
domain as a unique ‘One Stop Center” Solution Provider.
 RENCO’s USP – contd.

RENCO brings in three of the

four critical inter-
inter-dependent
factors through its ESCO
Business Model to ensure the
success of any Renewable
Energy Project.
 Competitive Analysis
RENCO is the “Total Solution Provider” in the Clean Energy domain in SME Segment,
which includes:

 Identifying the appropriate technology

 Investing in the Equity Capital
 Arranging Project Finance
 Providing Carbon Transaction Advisory Services

There are only a handful of companies who provide similar but “not exactly end-to-end
solutions” in the Clean Energy Domain for SME segment.

Comparisons are made with Capital Equipment Manufacturing companies like

Thermax, who use ESCO as a marketing vehicle for selling their boilers or their capital
equipments – not for promoting Clean Energy.

Similarly, some Consulting firms help companies to identify appropriate technology /

capital equipment and also arrange for Project Finance, but do not participate in the
Equity.

Others like Deloitte restrict themselves to Carbon Transaction Advisory Services.

 Three Years Growth Plan
1. GREEN POWER PROJECTS
RENCO is working to install 100.0 MW of renewable energy power plants (PP) by the
end of December 2013. The break-up of the 100.0 MW is as follows:

• 20.0 MW – Biomass based PPs

• 40.0 MW – Co-gen PPs in Process Industries (Sugar, Steel, Textiles and other
Process industries)
• 40.0 MW – Waste Heat Recovery based PP in Cement Plants

2. RETAIL OUTLETS
Establish -20- Retail Outlets all over India, which will promote and arrange the
installation of Kitchen Waste-based Biogas Plants, with a processing capacity of 0.5 tpd
(tons per day) to 2.00 tpd of waste per day and

3. DISTRIBUTED POWER GENERATION / VILLAGE POWER

Establish Small-scale Skid-mounted Biomass Power Units of capacities ranging from 11
KW - 100 KW for Rural Electrification. RENCO has already tied-up with a leading
Biomass Power Capital Equipment Manufacturer and also an established Channel
Partner with HQ in New Delhi and a network of 14 offices in North India.
 RENCO’s Committed Projects Portfolio
Total Project
Financial Arrangement (in Mn US $)
Cost
Time Project Capacity RENCO &
Sr No Project Promoter Sector Location Project
Frame Description (MW) its Debt
Mn US $ Promoter's
Associates Finance
Equity
's Equity
2*1.2 MW Technology provider
Vadodara,
1 Biomass + RENCO Biomass 2.4 3.77 0.41 0.34 3.01
Gujarat
2010- Q2 2011

Gasifiers Technologies Pvt Ltd

2*1.2 MW RENCO Technologies

2 Biomass Pvt Ltd + Technology Biomass TamilNadu 2.4 3.77 0.34 0.41 3.01
Phase I Q4 2010

Gasifiers provider
Society formed for
development and Prakasam
5*1.2MWe
upliftment of Rural District,
3 Biomass Biomass 6.0 9.41 0.94 1.88 6.59
communities. Andhra
Gasifiers
Rehabilitation of Pradesh
Tribal Communities
0.5 MW Solar Pushkar,
4 Heritage Hotels Solar 0.5 2.71 0.54 0.27 1.90
Phase II Q2 2011- Q4

Power Rajasthan
0.5 MW Solar Udaipur
5 Luxury Hotel Group Solar 0.5 2.71 0.54 0.27 1.90
Power Project Rajasthan
2011

1.0 MW Solar Udaipur

6 Golf Villas Solar 1 5.08 1.02 0.51 3.56
Power Project Rajasthan

US$
US$
Total 12.8 MW 27.44
3.69 Mn
Mn
 Investments in RENCO & Funds required
INVESTMENT MADE
Since its inception in July 2001, RENCO has spent US $ 1.03 million (including the
revenues ploughed back) towards establishing the Brand Equity of RENCO and for
generating the solid pipeline of a variety of green energy projects (12 nos. of committed
projects as of now), and free of debt. The Directors & Shareholders of the Company have
total commitment to RENCO and have staked their lifetime savings in establishing the
Company.
INVESTMENT REQUIRED
RENCO needs US$ 3.70 million for investing in the 12 committed projects. (US$ 1.70
million by March 2011 and remaining US$ 2.0 million by September, 2011)

RENCO needs US$ 400,000 towards Working Capital for executing ESCO projects. This
will be used to hire qualified resources and pay consulting fees for external agencies for
data analysis, validation, registration and verification.

Total Requirement: US $ 4.10 Million (INR 18.45 Crores)

By December 31st, 2010 US $ 0.40 Million (INR 1.80 Crores)
By March 31st, 2011 US $ 1.70 Million (INR 7.65 Crores)
By September 30th, 2011 US $ 2.00 Million (INR 9.00 Crores)
Financial Projections (post-infusion) for 3 Years
 Risks & Mitigation Plan

Changes in the Regulatory Framework – Enable RE / EE Project self-

sustaining without Government subsidies or incentives.

Failure of the Project Promoter/s – Conduct serious due-diligence on

an on-going basis and have plan B factored in for any Third Party
takeover of the primary business.

Failure of Technology and / or the Technology Provider – Include

compensation clause for any failure and / or time / cost overrun on
the project and conduct serious due-diligence on an on-going basis.

Failure of RENCO if one of the moving parts did not fit together –Take
adequate project insurance cover; spread the risk across different
industry segment/s and different technology and technology
provider/s.
 RENCO’S Team
S.Rajha Gopalan - Founder & CEO
A British National, Graduate in Civil Engineering from India & Post-graduate Diploma in
Management Studies from UK. Has more than 30 years of wide experience in
International Marketing, RE Technology Transfer & Investment Promotion.

Mohamed Saloudeen - Director

A US National settled in USA. Has 20 years experience in Indian & International Banking
with specialization in Industrial Finance, Micro Credit, Retail Banking & Information
Technology.

B. Vijayakumar - M. Tech. - Technical Director

An Indian National, Post Graduate in Chemical Engineering has more than 30 years of
experience in Paper Industries & Power Plants with special emphasis on Energy
Conservation.

Sreedhar Patibandla - Advisor & Shareholder (based in NJ,USA)

A NRI, Graduate Engineer from Nagarajuna University and an MBA from T.A.PAI
Management Institute, Manipal. 18 years of experience in Enterprise Solutions -
ranging from US$ 5.0 Mn to 50.0 Mn in Sales & Solutions.
Thank You
Contact:
S Rajha Gopalan
Founder & CEO
Tel: + (91 44) 2498 8950 / 4218 7844

Mobile: + (91) 91766 50215

E-mail: rajha.gopalan@rencotech.com
Web: www.rencotech.com