Approach to innovation

Energy in the Developing WorldAn Indian Experience

Akira KirtonActing in Person

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This is about a “developing world”, not just “developing countries”…..

1.5billion people lack access to electricity

2.7 billion people across the world still cook on inefficient stoves

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This is about a “developing world”, not just “developing countries”…..

Chart Showing Human Development Index and Per Capita

Electricity Consumption

Show climate change

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This is about a “developing world”, not just “developing countries”…..

Four Key Drivers of the Energy Future

Show climate change

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This is about a “developing world”, not just “developing countries”…..

Energy Demand and GDP per Capita

Show climate change

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However so far this has been our view of the world, to understand the developing energy consumer, we need to understand his or her view of the world….

We need to treat people as energy consumers,

And we have to hear what they really want..............

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The “Fortune at the Bottom of the Pyramid”

This is the reverse of what has traditionally happened in this sphere...developing solutions from the 50,000ft above the

ground......

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Consumer centric development

2. Co-creation with our consumers

1Understand

“her” Life

v 3Affordable

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Consumer centric development at SCALE

Social + economic

Opportunity + model scalability

Scale Sustainability

3 Ps (People, Planet, & Profit)

Impact

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And this is what we heard from consumers…

Hierarchy of Energy needs

Entertainment

Refrigeration

Mobility

Heating

Lighting

Cooking

Power

Transport

Heat/Light/

Cooking

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There are serious problems in certain forms of cooking and heating applications…

How many persons die a year due to indoor air pollution?

“Indoor smoke contains a range of health-damaging pollutants, such as small particles and carbon monoxide, and particulate pollution levels may be 20 times higher than accepted guideline values.”

Source: WHO

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Really serious….

How many persons die a year due to indoor air pollution?

According to the World Health Organisation, close to 2mn persons die a year due to indoor air pollution

4th Largest Killer in the Developing World after

Malnutrition, Unsafe Sex, and Safe Water/Sanitation.....

(Source: WHO)

What Did We Do?

“Creating” a Channel and Social Value Chain

Fuel supply chain

“Partnering with the ecosystem – agricultural residues”

Partnering with the Indian

Institute of Science

Partnering with the

SSP

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What Can We Do?

September 21st 2010:

Global Clean Cooking Alliance….

Led by

the UN Foundation

Potentially involving: Shell Foundation, Morgan Stanley….

Aim to Raise $250mn to supply clean stoves to 100mn poor households by 2020

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What Can You Do?

•1. UN CDM Protocol and Voluntary Carbon Mechanism has not delivered a pragmatic framework to enable small-scale energy solutions....

•2. Developing Countries need help to consider how to improve their energy policy frameworks – especially those subsidising competing fossil based fuel options....

•3. Help in Development of the Global Clean Cooking Fund...

What Can You Takeaway? Three Biggest Insights

1. Consumer First...(CK Prahalad)

The consumer must be put at the heart of developments...

2. Small is beautiful...(Schumacher...)

Small steps can make a big difference...

3. SUSTAINABLE fuel supply

A Stove still needs a sustainable fuel supply

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Contact

First Energy India Mahesh Yagnaraman, Mukund Deogaonkar

World Economic Forum Roberto Bocca,Sandilya Vadapalli

Save the Children Linda Murray

Greenergy Tirath Magdani

Carbon Credit Farming Brian Sullivan,Sophie Lefevre

Small-scale projects/programmatic CDM development for

stoves

Ben Witchalls,Phillip Mann (Oxford ECI)