Cleantech Market Opportunities in India

1. Cleantech Market Opportunities in India US India Venture Capital Association 13th February 2008 Erin Iping Kuo Jeff Castellas Director, India CEO Cleantech AustralAsia

2. About Us • Mission to accelerate the investment in and deployment of cleantech in Asia Pacific to address Sustainable Development • Niche Investment Banking—placement, advisory • Consulting--Asia Pacific Partnership • 4th AustralAsian Cleantech Forum • 11/12th March 2008, Melbourne • 2nd India Cleantech Forum • 10th/11th July 2008 New Delhi • Online Cleantech platform @ www.cleantechforum.com 2

3. What is Cleantech? Broad range of products and markets, including: • technologies in alternative energy, such as wind, solar, or biomass power • energy storage and energy efficiency • advanced waste management and recycling • smart-grid technologies for the utility grids • electric or hybrid-electric transportation • advanced materials, including biodegradable plastics • water technologies • alternative fuels, including bio diesel and ethanol • green building technologies 3

4. Drivers for Cleantech in India • Energy uncertainty • Climate Change • Energy Security • Need for improved infrastructure • Public Health and Environmental Degradation • Sustainable Development Imperative • Policy initiatives • Resource availability 4

5. VC/PE Statistics • 2007 Indian PE deals ~$10 Billion across 245 deals, 1% of which were Clean tech • 2007 Indian VC/PE activity in Energy Efficiency $1.4 Billion • Typical Opportunity Size: $250m-5MM Sources: Sun Group, New Energy Finance 5

6. Examples of Recent Deals • In June 2007, Indian Luminous Power Technologies received INR 829m (USD 20.3m) from CLSA ARIA Investment partners and CLSA Clean Resources in series A first round financing. • In December of 2006, Indian electric car manufacturer, Reva Electric Car Company (RECC), received an investment of USD 20.0m from Draper Fisher Jurveston (DFJ) and Global Environment Fund. • As of 15 October of 2007, Vestas RRB India, the India-based manufacturer of wind electric generators, has received an investment of USD 55m from Merrill Lynch. 6

7. Examples of Recent Deals continued • In April 2007, Lakshmi Energy and Foods arranged project finance for its 30MW biomass plant in Khamanu district in the state of Punjab, India. Power Finance Corporation is acting as lead debt agent/arranger for this USD 112 million project. • In March 2007, Reliance Energy secured finance for their USD 202m 150 MW wind turbine capacity project in Sangli District in the State of Maharashtra. • On 5 July 2007, Indian hydro and wind project developer Bhoruka Power acquired SLS Power Industries for INR 800m (USD 20m). 7

8. Renewable Energy 8

9. Cleantech Market Opportunities in India Source: U.S. & Foreign commercial service and U.S. Department of State as on 2006 * Providing knowledge based services for implementing environmental initiatives 9

10. Technology Mapping, India-U.S. Collaborations—Solar PV Source: Pursuing Clean Energy Business in India. Cleantech AustralAsia, 2008 10

11. Technology Mapping, India-US Collaborations—Waste to Energy Source: Pursuing Clean Energy Business in India. Cleantech AustralAsia, 2008 11

12. Success Story Suzlon • wind • 1995 • September 2005, IPO, oversubscribed 46 times • Today 5th in world market share, $1.5 B in revenues • Sold over 3000 MW • Successful M&As of RE Power Systems AG, Hansen Transmission • End to end packaging, integration 12

13. Sectors with momentum • Sectors with momentum: • Waste treatment & site management • Management of existing waste infrastructure • Energy efficiency at plant and building level • T&D efficiency • Distributed power generation • Wind • Small Hydro Power 13

14. Challenges • Lack of Coordinated policy • Market distortions • Weak or unclear regulatory environment • Technology-specific barriers • Lack of access to affordable capital • Uncertainty surrounding son of Kyoto • Lack of capacity at all levels • Fragmented market sectors • Companies fall into two camps—no middle market • IP issues 14

15. Solutions • Consistent national and regional policies • Policy guarantees • Level the playing field • Protection in law • Investment grade data on RE • Technology mapping • Increased R&D collaboration • New products and Funds and financing arrangements • Package Solutions • Innovation in Carbon Finance • Capacity building for all RE industry participants • Standardized guides and case studies • Platforms for knowledge exchange 15

16. What may be coming • Increasing technology transfer • Central Renewable Energy law? • Feed-in tariff for solar? • Fuel blending standards for both biodiesel (5%) and ethanol (10%) • Consolidation • Increased Incubation Programs • Shift in mentality of SMEs 16

17. India Clean Tech Entry • 2nd India Clean tech conference in partnership with CII in Delhi, 10-11 July 2008 • India entry strategies for portfolio companies • Indian investment banking partner, Yes Bank: -Deep understanding of the clean & renewable energy space, -Setting up Clean Technology & Energy Fund, -Specialized Sustainable Investment banking practice which provides service to the companies in the Clean Technology and Clean Energy space -Service & transaction intermediary support to companies generating CERs -Buy side advisory services for Financial Sponsors in India 17

18. Contact Thank you! Contact: Erin Iping Kuo Jeffrey Castellas Mumbai, India Melbourne, Australia erin@cleantechnology.com.au jeff@cleantechnology.com.au Mobile: +91 99 2096 5752 Mobile: +61 4 0106 7252 18