Cambridge | Jan-14 | Distributed Energy for Rural Africa: Azuri's IndoGo solar home system

Distributed energy for rural Africa

Powering the Un Grid

January 2014

© Azuri Technologies Ltd

Huge off-grid solar requirement in Africa

600M people lack access to electricity ~$17Bn/year on kerosene for lighting - Consumes 30% disposable household income - Harmful to health, dangerous

600M+ mobile subscribers ~$15Bn spend charging phones - 70c/phone/week - Time consuming, trips to market

Massive Commercial Opportunity ~$30Bn/year


Sustainable Technology needs a

Sustainable Business Model

Power is a pay-as-you-go Service…. …..Solar is all UP FRONT + Maintenance/Repair


Solar as a service

Affordable Clean Quality Aspirational


Indigo – simple pay-as-you-go energy

Eight19 Ltd - CONFIDENTIAL


Technology that saves money

Customer cuts weekly energy spend by 50% or more

AND

has 8 hours of light for 2 rooms + mobile phone charging too

Without Indigo

• $10/month for Kerosene

• $0.20/charge for mobile

Total:

~$13/month

With Indigo

• $10 install (one-off fee)

• $1.50/week top-up

Total:

~$6/month


Beyond lighting

• 7 out of 10 of the fastest growing countries in 2013 are in Africa

• “African Middle Class” defined by ADB as income of $2-20/day

• 40% of Africans under age of 14

• Population to grow 50% by mid century

• Huge demand for affordable consumer electronics

• Information, entertainment, knowledge, entrepreneurship


Technology problem or business problem?

• In most cases, the fundamental technology exists today – Old world view: recycle out of date technology at low cost

– New world view: use the latest technology to meet the market need

• But the packaging is different – Drones to deliver medicines

– Phones to pay bills

– LED lights

• Technology can help address market failures – Internet creates a viable market for crops

– Shampoo in sachets

• We can’t assume the past is a predictor of the future – Leapfrog opportunity in developing countries


Example: “un-grid” Vision of the Future

Energised home Conventional Grid – Connection ~$400-800

– Bottom-up view of power

– Losses in distribution

– Centralised purchasing

Distributed Power – Un-Grid delivers power now

– New generation of low power, low

voltage appliances

– Vision of future power usage

– Just as mobile replaced the landline

TV, Radio

Lights

Phone

Internet Tablet White

Goods

DC Power


Field Data: Households saving money and time

3% 5% 3% 5%

6%

92% 86%

Now I have Indigo, myhousehold and I are

saving time

Now I have Indigo, my household’s expenditure

on lighting and phone charging has decreased

StronglyAgreeAgree

Disagree

StronglyDisagreeBefore: 2.3USD/week

Now: 0.3USD

• 100% strongly agreed with the statement “Now I have Indigo, I am using less kerosene”


Productive day extended by up to 3 hours

Children spend 2 hours on average additional homework

Eliminates kerosene fumes, fire risk and CO2 burden

Saves customers money from the outset

Social impact


Fishermen in Sierra Leone use Indigo to fish at night

New Opportunities


Stallholders use Indigo to light their shops after sunset


Delivering Aspiration

Cambridge | Jan-14 | Distributed Energy for Rural Africa: Azuri's IndoGo solar home system

Small Business & Entrepreneurship

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