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

© Azuri Technologies Ltd

Sustainable Technology needs a

Sustainable Business Model

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

© Azuri Technologies Ltd

Solar as a service

Affordable Clean Quality Aspirational

© Azuri Technologies Ltd

Indigo – simple pay-as-you-go energy

Eight19 Ltd - CONFIDENTIAL

© Azuri Technologies Ltd

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

© Azuri Technologies Ltd

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

© Azuri Technologies Ltd

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• In most cases, the fundamental technology exists today – Old world view: recycle out of date technology at low cost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

© Azuri Technologies Ltd

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

© Azuri Technologies Ltd

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”

© Azuri Technologies Ltd

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

© Azuri Technologies Ltd

Fishermen in Sierra Leone use Indigo to fish at night

New Opportunities

© Azuri Technologies Ltd

Stallholders use Indigo to light their shops after sunset

© Azuri Technologies Ltd

Delivering Aspiration

© Azuri Technologies Ltd