Given the scale of energy access challenge in India, there is a strong case for affordable, commercial, clean, off-grid energy solutions. The market is large enough to attract private sector & significant market niches exist which could be served commercially. However, inherent market failures hem private sector and limit innovation & scale-up. IFC is well placed to tackle these issues in a programmatic manner, by strengthening industry through targeted support for key first mover companies, developing a robust quality-framework, better market intelligence, and increased awareness. Company level & sector level interventions described below are envisaged in this project.

1) Company Level

The project will select and support few companies to promote & scale high potential or innovative business models with targeted advisory services/capacity building to develop scalable & replicable business plans attractive to investors and/or grant support for pilot projects. Areas explored cover market intelligence, operations modeling, feasibility studies, pilots, information systems, training (technicians, staff, entrepreneurs etc. Cooperation agreements and scope will be negotiated after project approval (see List of organization & activities List iDocs). Efforts will be made for specific TA from above and other services to be developed into standard offerings to companies.

2) Sector Level

(a) Quality Assurance will & address market spoilage to help stakeholders differentiate good products from bad. Demand for this intervention has been confirmed extensively by different stakeholders during pre-implementation. QA will cover sector, policy, regulatory & company level interventions and support. - Engage with the MNRE (Ministry of New and renewable Energy) & BIS (Bureau of India Standards) to work towards harmonizing QA and work on their current prescriptive methodology - Identify product testing agencies for appliances and provide capacity building of labs with technical assistance and for equipment to enable local Indian institutions to perform testing under LAQTM, IEC global standards and/or a harmonized version of this - There will be some engagement on a South-South basis to explore opportunities for manufacturers, distributors and other stakeholders across the continents in the context of this program. (b) Market Intelligence: - Conference & website for industry mobilization -Overview of regulatory and investment climate in the relevant markets

(c) Knowledge Management: Roll out an awareness campaign in target states on benefits of RE over traditional systems through existing companies marketing efforts, and to periodically disseminate market intelligence information to various stakeholders. This will include knowledge sharing with other off grid lighting interventions by government, donors, agencies, associations and NGOs to ensure that the work is complimentary.