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Renewable Energy Solutions for Kenya

Renewable Energy Solutions for Kenya. The Context. Kenyan Energy Trends. 85% of Kenyans are Off-Grid. By Household. By Population. The Grid is Expanding Too Slowly. …and the Government Knows it. Bottlenecks in production as well as distribution

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Renewable Energy Solutions for Kenya

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  1. Renewable Energy Solutions for Kenya

  2. The Context Kenyan Energy Trends

  3. 85% of Kenyans are Off-Grid By Household By Population

  4. The Grid is Expanding Too Slowly …and the Government Knows it • Bottlenecks in production as well as distribution • Agencies like the Rural Electrification Authority (REA) and the Ministry of Energy (MoE) run programs to install off-grid systems in schools • 100-200 schools per year • Grid is extremely unreliable where it does exist

  5. The Middle Class is Growing …and disposable incomes are growing with it Source: McKinsey & Company, Lions on the Move: The Progress and Potential of African Economies

  6. Consumers are Aware Kenyans recognize the value of solar and wind energy • In 2006, Kenya was the global leader in the number of solar power systems installed per capita • Geographical location offers excellent wind and solar energy potential Source: The Rise of Renewable Energy, Daniel M. Kammen

  7. Credit is Becoming More Affordable …and its applications to small-energy are being realized • Commercial banks lending rates forecast to drop to 10% by 2015 (from 14.4% in 2010) • The first two Kenyan credit reference bureaus have been established in the past year • Microfinance organizations are beginning to offer loans specifically designed for off-grid energy systems Source: Economist Intelligence Unit, Country Report: Kenya, May 2011

  8. Small Systems Make Economic Sense “A recent study concluded that renewable energy is more economical than conventional power for off-grid generation of less than 5 kilowatts – exactly the sort of power needed by the majority of African users.” African Competitiveness Report 2009

  9. An African Paradigm? The Telecoms Case: Skip the centralized infrastructure, jump right to an agile, distributed solution Source: International Telecommunications Union World Telecommunication Indicators Database

  10. Regional Wind Potential

  11. Regional Solar Potential

  12. The Problem Why Don’t More Kenyans Have Access to Renewable Power?

  13. What’s Holding Back Renewables? • Affordability • Consumer Education • Credit

  14. WindGen Solutions • Affordability • WindGen’s domestically manufactured wind turbines provide power for up to 60% less cost than imported turbines or panels. • Consumer Education • There is no strong brand in the renewable energy space – it is highly fragmented and import-dominated. WindGen wants to be the first strong RE brand and make renewable energy a more accessible topic for the public. • Credit • WindGen is pursuing partnerships with microfinance organizations and banks to help consumers amortize their power investments.

  15. WindGen Solutions Wind Turbine Products

  16. Our Design Axial-flux permanent magnet alternator • Design pioneered by Hugh Piggott • Simple, robust and easy to fabricate • Tools required for fabrication are readily available in Kenya

  17. Two Turbine Models …for two market segments Twiga Turbine – 120w • Designed for affordability • Appropriate for small off-grid homes • Powers basic electrical amenities: lights, radio, tv, cell phones Rhino Rotor – 700w • Designed for versatility and lowest price per watt • Appropriate for larger homes, schools, clinics, or businesses • Can produce power for 60% less than imported solar or wind

  18. The Rhino Rotor 3m Diameter / 700w • Designed for larger off-grid homes and facilities like schools, clinics, or businesses • Significantly cheaper than solar panels or imported wind turbines on a cost-per-WH basis • Retail price between $1,200 and $1,400

  19. The Rhino Rotor 3m Diameter / 700w

  20. The Twiga Turbine 1.5mDiameter / 120w • Designed for small off-grid homes • Meant to be affordable for the lower end of the market who just want lights, radio, and maybe a TV • Comparable to solar panels on a cost-per-WH basis • Retail price between $375 and $450

  21. The Twiga Turbine 1.5mDiameter / 120w

  22. WindGen Turbines vs. Other Off-Grid Options Better Value than Imports

  23. Notes: Based on 200 KES/kwh ($2.50 USD/kwh) for generator power Imported solar and wind costs based on local retailers prices

  24. Down-to-the-Batteries Cost Comparison:

  25. Go-to-Market Strategy Getting Our Solutions to the Consumer

  26. Three-Phased Approach 2011 - 2012 Contract-based Sales 2012 - 2013 Distribution Partners 2013 - Direct-to-Consumer

  27. Three-Phased Approach Contract-based Sales Distribution Partners Direct-to-Consumer Target Customers • Government (REA and MoE) • NGOs Distribution Strategy • Install full systems on a contract basis • Begin discussions with microfinance groups and banks Timing • 2011 – 2012 (underway)

  28. Three-Phased Approach Contract-based Sales Distribution Partners Direct-to-Consumer Target Customers • Retailers and distributors of renewable energy systems Distribution Strategy • Train retailers as agents who can also perform installation and servicing • Sell our turbines wholesale to these distributors and assist in their marketing – but they handle direct sales • Establish relationships with credit-providers on behalf of our customers Timing • 2012 – 2013

  29. Three-Phased Approach Contract-based Sales Distribution Partners Direct-to-Consumer Example Distributor: Chloride Exide • Strong regional presence • Experience with off-grid system sales • Existing installation and servicing teams • Already importer of non-turbine components (inverters, controllers, etc.)

  30. Three-Phased Approach Contract-based Sales Distribution Partners Direct-to-Consumer Target Customers • Direct sales to consumers through our own distribution infrastructure Distribution Strategy • Deploy WindGen distribution and installation network • Aggressive advertising strategy to make “WindGen” synonymous with “renewable energy” in Kenya • Close partnerships with credit-providers • Expansion into adjacent markets (Tanzania, Uganda, Rwanda, Ethiopia, Southern Sudan) Timing • 2013 -

  31. Risks

  32. Risks • Rare earth metal prices • Maintenance and durability in the East African climate • Protection of our design from imitators • Regional stability (2012 Elections)

  33. The Team WindGen’s Management

  34. Alastair Smith Founder and Director Alastair completed his studies at Harvard in the spring of 2010. As a Mechanical Engineering major, Alastair utilized his interest in wind turbines and his engineering knowledge and skills to design, develop and build the first vertical axis portable wind turbine as his senior thesis. This unit is currently on permanent display at Harvard’s Pierce Engineering Labaratory. Alastair’s previous experience with wind turbines included summer work at Clipper Wind Power (now a part of United Technologies) and studying Wind Turbine construction at the Evergreen Energy Institute. At WindGen, Alastair is responsible for all day to day operations including engineering, design, procurement, manufacturing, installation and maintenance. Alastair is also a director of Kenyan based alternative energy solutions provider, ABA Energy Solutions.

  35. Sam Slaughter Founder and Director Sam brings a wealth of practical East African alternative energy experience to the WindGen team. Since graduating from Harvard in 2009 with a degree cum laude in mechanical engineering, Sam has been directly involved in the marketing and installation of numerous solar power solutions through ABA Energy Solutions, a company which he co-founded in 2009. Sam also has sector experience working for the energy group at UBS Investment Bank in 2008. After living and working in Kenya for over a year Sam is familiar with doing business in the country, and has relationships with several WindGen partners in the renewable energy space.

  36. Henry Waweru Founder and Director Henry is a Kenyan-American dual citizen who returned to Kenya five years ago to raise his family, after living in Dallas for 15 years. Since returning to Kenya, Henry has directed the Kenyan operations for Eunivy Resources, a German company that is exploring the potential for big wind energy farms in Kenya. He is very familiar with the renewable energy landscape in Kenya. Henry has excellent relationships with officials in the Ministry of Energy and Rural Electrification Authority, as well as private sector players relevant to WindGen. As the owner and manager of a software company in Nairobi, Henry is also very familiar with running a business in Kenya.

  37. Mark Wopicho Project Manager Mark recently completed his studies as a part of the new Renewable Energy degree program at Kenyatta University in Nairobi. Before Kenyatta University, Mark attended Alliance High School – one of the most highly regarded secondary schools in the country. During the course of his studies Mark has served internships with a few different renewable energy companies, including one wind turbine company that provided solutions for off-grid telecommunication sites. Mark has great insight into the renewable energy market in Kenya and is heavily involved in the day-to-day operations of WindGen.

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