New Energy Nexus Indonesia officially announces 10 startups that will join the Bali Women Climate Entrepreneur Project. This acceleration and incubation program offers four months of tailored business support for women-led climate entrepreneurs in Bali to enhance their business. With this program, New Energy Nexus Indonesia aims to close the gender gap and increase women’s participation in  clean energy and climate solutions sectors, helping to improve women’s response and adaptation to climate change.

The Bali Women Climate Entrepreneur Project is supported by the ClimateWorks Foundation and is part of the Bali Climate and Development Initiative (initiated by New Energy Nexus Indonesia, WRI Indonesia, and IESR). The project runs in collaboration with Pratisara Bumi Foundation.

“There are undeniably still many challenges women have to face in the climate space, but we hope that these 10 incredible startups with females in leadership positions will inspire the next generation of women to begin their journey toward making a difference.” Rainy Putri, Program Manager at New Energy Nexus Indonesia and  Co-Leader of this project.

Women are paving the way to become leaders in their communities. From early ideas to later-stage, here are the 10 startups selected to be part of the project.

Griya Luhu

Aims to change people’s behaviour and awareness of sustainable waste management using user-friendly and straightforward mobile applications to help improve waste segregation at home. Learn more about Griya Luhu.

Prawita Tasya, Executive Director & Co-founder, Biorock Indonesia

Biorock Indonesia

Engages with local communities and the government to protect and restore coral reefs so these underwater ecosystems can thrive, while also  providing livelihood and economic benefits to  local communities. Learn more about Biorock Indonesia.

PT. Kolaborasi Bumi Pertiwi

Aims to replace coal with “imitation” coal that contains more heat calories than real coal.

GO EV

Offers a digital platform to rent electric vehicles in Bali at affordable prices.

Go Sustainable

Aims to increase public awareness of environmental impact  from food production by encouraging restaurants to add a  ‘climatarian’ menu (ingredients used must be plant-based, locally sourced, unprocessed, minimally packaged, and organic).

Bendega

Aims to empower coastal communities and fishers with knowledge, facilitation, training, and support with IT tools to adopt green-blue habits.

Nadea Nabilla, Co-founder at Azura (right) with local fisherfolk in Bali.

“Seeing the environmental damage worsen especially in coastal areas like Bali, we aim to empower coastal communities and fishers with knowledge, facilitation, training, and support with IT tools to adopt green-blue habits. As the only female leader among my colleagues, I truly believe that an inclusive environment, as well as being surrounded by supportive male allies can significantly improve our business and create a greater impact for the community.” Nungky Adzani, CMO at Bendega. Learn more about Bendega.

Tri Hita Consulting

Encourages and supports their clients to create an impact through sustainable business practices, deployment of green technology, policies to promote the energy transition, and sustainable investment in Southeast Asia’s emerging markets. .

360E.io

Aims to herald a new era of green investments with an intuitive and easy-to-use app that lets you perform all green investment transactions on the go. Learn more about 360E.io.

Gumitri

Acts as an intermediary between organic rice farmers and the market to support organic farming practices and food security in local villages.

Azura Indonesia

Delivers a solution for the coastal community with their MantaOne electric long-tail boat engine – offsetting 345 kilograms  of carbon footprint per month. Learn more about Azura Indonesia.

“Bali is one of the most popular tourist destinations in Indonesia. Considering its potential and emerging opportunities in climate sectors, such as sustainable tourism, we need to make sure that female talents in the sectors are able to fully participate in the shift toward sustainable tourism in Bali.” Diyanto Imam, Program Director, New Energy Nexus Indonesia.

In 2018, Indonesian women made up only 12% of all STEM graduates. In the global energy industry, only 11% of energy startup founders are women – these statistics need to change. As a pioneering clean energy and climate innovation ecosystem builder, New Energy Nexus Indonesia is breaking the status quo. The Bali Women Climate Entrepreneur Project is only the beginning of our efforts to disrupt the rooted beliefs that the clean energy and climate tech sectors are the ‘boys club’.

About New Energy Nexus Indonesia

New Energy Nexus is the world’s leading ecosystem of funds and accelerators supporting diverse clean energy entrepreneurs, from emerging tech through to clean energy deployment and adoption. In Indonesia, New Energy Nexus works to support the development of ecosystems that can support the needs of innovators, startups, entrepreneurs, and other stakeholders in the clean energy and climate solutions sectors.

Learn more: New Energy Nexus Indonesia.

New Energy Nexus CEO, Danny Kennedy, takes a hands-on look at Azura – a startup in Indonesia opening an ocean of opportunities for marine electrification.

I saw the future last July behind a Circle K near Denpasar in Indonesia. For those of you that have been to Bali any time this century you might know these countless convenience stores. These are fillup shops for the 4 million scooter and moped riders across the island. Not only can you get your expensive gas for your motorbike, but you can also buy all kinds of goodies inside. This includes some crazy coffee boba caramel combo drinks I have not had anywhere else. But I digress.

The future of electrification, behind a Circle K

New Energy Nexus CEO Danny Kennedy at a SWAP station in Bali

The first thing that struck me was the Swap station sitting on the forecourt by the front door. It’s a simple container for batteries to power the growing number of electric scooters in Indonesia. Each Swap station has three bins, two of which have batteries in various states of charge, while the other one is empty. A rider comes in to Circle K to fill up. They take their battery out, put it in the empty bin to charge. This automagically unlocks one of the other two batteries that has 100% charge. They take this “full” battery and put it into their bike, and in less than a minute they’re off to the races!

There are now 400 of these Swap stations in Circle Ks on Bali and Java, and growing. As the electric advantages of motorbike riding become known this company is going to crush it! To reiterate those advantages: e-scooters are better, faster, and cheaper. That’s right they perform better, take off quicker, are clean, quiet and most important cost less to fill and maintain. The Swap story above saves not only time but serious money for the rider.

Enter Azura: the startup electrifying Bali’s fishing craft

So minds blown, my team and I met the company we had come to see inside the Circle K.  Nadea Nabilla and her cofounder,  are electrification entrepreneurs with Azura (and in fact Nadea, just presented her innovation at the One Young World Summit by the Audi Environmental Foundation. These entrepreneurs are taking the same competitive advantage of electric motors to fisherfolk, with product offerings that are better, faster and cheaper than the infernal combustion engines that these folk have used for decades.

The design of the fishing craft is ancient and common across many of the thousands of islands in this archipelago nation. The modern engine was introduced last century and adapted to this design with a long drive shaft to get a propeller into the water over the gunnel. This is the “long tail motor” of many fishing craft, river boats and the like across Asia and Africa. The engine is often a heavy and rusted block of bits that break down a lot. And this connects to an old gas tank that costs a lot to fill.

Not so the electric version!

In Azura’s solution they have taken an off-the-shelf Mitsubishi electric motor. It has similar torque and power specs as the horsepower the engine puts out. It’s small and lightweight. The battery pack required to charge it for 75 miles of boat business fits in a single Pelican case. They can carry this into the compound to charge off the solar panels or older batteries bundled there. No muss no fuss. And the performance is better, faster, and cheaper.

Azura’s secret sauce

Azura’s battery pack case and a widget on the motor.

Azura’s secret sauce is a little widget that fits the electric motor to the propeller shaft. This may not be defensible but their true moat is the first mover advantage in a difficult but enormous market. I mean defensibility when I say moat but this is also to make a pun about Azura’s blue ocean opportunity. Replacing all the shitty engines on boats around Southeast Asia is a many hundred million addressable market and almost no-one is doing it! There is not a lot of blood in the water from cutthroat competition. It might actually be better if there was for Nadea and friends to have a bit of co-opetition to create supply chains and an e-boat ecosystem. For now they are the pioneers offering a better, faster and cheaper service, which should win.

Better and faster are obvious. Silence is golden to fisherfolk. And the process of fitting and fueling with solar is much easier and quicker in the daily routine for fisherfolk. Not to mention the take off speed an electric motor achieves compared to an old putt-putt two stroke! But cheaper it is not upfront. So when I say, these are cheaper it is a “total-cost of ownership” statement. Like many assets in the clean energy transition it comes down to OpEx versus CapEx. This is biz speak for Operating Expense versus Capital Expense.

A solution that pays back in 3 years (at least for now)

Upfront the electric bundle costs a lot – 10 times more than the old motor. As production scales and pieces of the kit get more standardized that cost will drop – like ICE cars and EVs. But for now, it is a lot. Yet over the life of the motor, which has fewer moving parts, needs no oil nor belts and thus little maintenance, it costs less to own and operate. And low to no fuel cost!

They “payback” in about three years. This means the savings make the upfront cost worth it in 36 months. So, what this bundle will need next is finance to speed up adoption. In many categories – like your cell phone – the way we pay for an expensive item is to put it on a monthly or “amortized” schedule. It is also how the car sold to the masses – a modern auto-loan pioneered by General Motors.

Nadea Nabilla, Co-founder at Azura (right) with local fisherfolk in Bali.

I expect Nadea and her team will be experimenting soon with financing options. She already has a rental agreement for some boats. And as she scales from 12 systems sold so far to hundreds and thousands and then hundreds of thousands it’ll get easier. The asset class will become better understood. The “performance” of loans and underwriting considerations such as how likely a fisherperson is to default will become known. Competition in debt products will come into the market and more and more boats will go electric!

It was so exciting to see this postcard from the future. Like Chinese cities today where the buses make no noise and spit out no fumes, I know someday soon I’ll be on an island in Asia with no motor noise. May it come soon! Full speed to Azura and their competitors.

Shine on!

Danny Kennedy is CEO of New Energy Nexus

Bonus note: For those of you that think this is more about impact in the lives of the fisherfolk than a decarbonization strategy, think again. These small bite markets for petroleum products (scooters and fishing boats) are one of the last strongholds of growth for big oil. At the end of the day, the climate struggle is about putting fossils out of business. Do you know what the biggest force so far in barrels of oil per day consumption destruction has been in the energy transition? Tesla I hear you say. Perhaps BYD for buses? No. Rikshaws and tuktuks. 

See below for the latest data from BloombergNEF.

Rambu Yati Radandima, a finance manager in Indonesian start-up Sumba Sustainable Solutions (3S), is giving back to her community. A start-up with a focus on inclusive and sustainable innovations in Sumba Island, 3S provides local schools, villages and community health centres with access to solar power.

Rambu Yati’s work has personal meaning. She knows what it’s like to live without reliable access to electricity. Sumba, an island in the East Nusa Tenggara Province of Indonesia, has a unique geographical character that makes tapping into the national electricity grid difficult. In the past, over 500,000 families living there—roughly 38% of the island’s population—struggled with little or no electricity.

Rambu Yati says: “Life in the village was very different. Back in the 90s, my family relied on kerosene lamps to light up our home when we cooked or when we wove palm mats. We had to manually pound rice and corns because we had no access to milling machines.”

While the Indonesian government committed to electrifying the entire country by 2020 (RUEN 2017)[1], only 62% of the East Nusa Tenggara population has access to electricity, the lowest energy access level in Indonesia (IESR, 2019).

Stepping stones

In 2000, Rambu Yati enrolled in the Warmadewa University in Bali. She successfully graduated with an undergraduate degree in Agricultural Science. Today, as finance manager at 3S, Rambu Yati is involved in solving energy access issues in her community by providing solar-powered technologies to local institutions. An ethical, profitable business, 3S’s work focuses on bridging the energy gap in rural communities.

The distribution of solar-powered lighting solutions has significantly improved Rambu Yati’s community. Today, Sumba’s children can finally do their homework and study at night. Power has also improved people’s livelihoods, allowing more hours for local artisans to weave tenun ikat, a traditional handwoven fabric. Unique to Sumba, tenun ikat is part of Indonesia’s artistic heritage.

Mission for productivity

3S also provides solar systems for people’s homes and solar-powered productivity centres, which are energy hubs for the community. These solutions are powering livelihoods in Sumba by enabling villagers to mill crops and process bamboo. They are not only making people’s livelihoods more sustainable but are also improving the quality of life for many women in Sumba.

Before, women had to spend several hours a day pounding corn and were left with just half a day free. The solar-powered productivity centres enable villagers to make better use of their time. The men take corn to the mill while the women shell candlenut, which they can later sell at a higher price.

Renewable energy is also saving money and improving people’s health. According to the Indonesian Central Agency of Statistics, villagers typically spend 10% of their monthly living costs on expensive fossil-fuel-based lighting, like kerosene lamps, which emit harmful fumes that can damage the lungs.

With solar-power solutions, Sumba’s villagers now have a greatly reduced electricity bill. Rambu Ina is one of 3S’s local customers. She says: “In the past, we only used the kerosene candle for one hour because it was too expensive. In the evenings, now I have light for four or more hours. At night, often we sit around and talk to our neighbours while shelling our candlenuts or working on woven palm mats to be sold at the market.”

Work in progress

Rambu Yati aspires to keep helping Sumba’s local communities to access renewable energy, so they can increase their incomes and afford a better education for their children. Ensuring 3S has operational and financial sustainability is crucial so they can maintain the solar home systems and solar-powered productivity centres that the villagers depend on.

Like many other start-up employees, Rambu Yati struggled with data collection and creating a balance sheet that was fundamental to 3S’s growth. That’s where New Energy Nexus stepped in.

New Energy Nexus connected Rambu Yati and her colleagues to experts in HR, marketing communications and finance, through a programme called Mentor-in-Residence. Thanks to this programme, Rambu Yati now has the essential resources and skills to move forward. She can confidently draft financial forecasts to determine what the start-up needs to scale up, and ultimately, empower more villages with renewable energy.

3S is no longer a start-up struggling to survive but a sustainable business instilled with a healthy company culture that upholds transparency and communications between team members and stakeholders. And the skills Rambu Yati has learned in areas like communications are helping her nurture a new generation of skilled workers on the island.

She says: “Before we started with the New Energy Nexus accelerator, we were just dealing with problems as they came up, feeling like there must a better way. With New Energy Nexus’ guidance, we now have a clear plan for all parts of the business and our whole team is committed to achieving the goals that we have set together.

“I feel that we now have a shared responsibility to make our company vision and mission—to empower rural communities through access to energy and appliances for productive use—a success.”

[1] Indonesia’s National Energy Plan (Rencana Umum Energi Nasional (RUEN)).