Renewable Energy Models

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    RENEWABLE ENERGY MODELS

    Presented by:

    Melissa Summers, Jesse Lee and Gitanjali Mukherjee

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    AGENDA

    Case study 1:

    y Sky Link

    Case study 2:

    y Fabio Rosa Case study 3:

    y Sun Stoves

    Group discussions

    Discussion ofcommon strengths

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    SKY LINK INNOVATORSWaste, Its Not

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    BACKGROUND

    Build biogas plants in Kenya

    y Started in 2007

    y 200 biogas plants in domestic use,

    5 schools and 1 prison

    y Currently benefiting 5,200 people

    y Grown quickly since its inception

    Winner: Ashden Awards 2010

    y Sky LinkMovie

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    SKYLINKINNOVATORS

    Mission

    y Sky Link Innovators aims to develop biogas

    technology as a commercially viable source of energy,

    and to tackle the issues of deforestation, indoor air

    pollution and access to affordable energy.

    Overview

    y Construction materials sourced locally

    y Flexible financing system and aid in finding loans

    y One year of guarantee and frequent check-upsy Locals trained in maintenance of systems

    y Community leaders trained as consultants

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    IMPACTS

    Wood use reduced by 800tonnes/year

    CO2 emissions reduced by

    1,100 tonnes/year More free time allows

    children to attend school

    Residue is a nutrient-richfertilizer

    Employment opportunities Improved Hygiene:

    Smoke free environment

    Improved sewagemanagement

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    CHALLENGESAND OPPORTUNITIES

    High cost of domestic systems (US$1,850)

    Short term financing options: pay back is about 4 years on

    average with savings not spent on fuelwood and fertilizer

    Option to pay off part of cost with labor

    Help customers borrow from local Savings and Credit Society

    Maintenance of systems

    Sky Link provides free maintenance for 1 year

    Trains community leaders as technicians

    High upfront cost and lack of consumer awareness

    Planned education campaigns and advertising

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    FABIO ROSALets Go Solar

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    BACKGROUND

    Working with government to bring cheap

    electricity to rural areas since 1983

    Under existing system, providing electricity to

    one rural household cost US$ 7,000 Help to bring electricity to 42 municipalities with

    up to 90% cost reduction

    Privatization of electricity market lead to

    modification of business models

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    SUN SHINESFOR ALL INITIATIVE

    Mission

    y The mission of the for-profit

    venture, dubbed The Sun

    Shines for All (TSSFA) is to

    provide affordable energy

    solutions to the portion of

    Brazils population that

    does not have access to

    electricity. That is,

    Brazilians primarily inrural, off-grid communities.

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    TSSFA

    People not interested in solar panels, but they

    are interested in electricity

    Product Basic kit: 4 fluorescent lights, a 12-

    volt outlet, all necessary wiring, a battery andpanel. Free battery change after 3 years

    Pilot-run: target market is low-income region

    of Encruzilhada do Sol

    y 25% of the population lacks access to electricity

    Lease not selling use contract

    Break-even point: 6,000 units leased

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    IMPACTS

    Improved quality of life

    Opportunity for incomegeneration

    Reduce massive exodus

    to cities

    Reducing carbon

    emissions Close the circle of

    product life

    y Recycling

    Natural managed

    grazing techniques

    SocialEnvironmental

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    CHALLENGES AND OPPORTUNITIES

    Challenges

    y A decentralized

    system depends on the

    reliability of the

    workers

    y Disruption by the

    expansion of electric

    companies

    Opportunitiesy Stay on top of new

    technologies for cost

    reduction

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    SUN OVENSINTERNATIONAL INCWhats Cooking?

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    BACKGROUND

    2.5 billion people rely on biomass sources for energy

    like firewood, charcoal and animal dung

    y This has significant effects on human health

    y

    Also serious financial effects Founded in 1985 by restauranteur, Tom Burns

    Portable models have been shipped to more than 125

    countries

    Paul Munsen took over in 1998 and moved the plantfrom Milwaukee to Illinois

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    GOALS AND OBJECTIVES

    Develop and implement

    comprehensive solar cooking

    programs

    Decrease developing worldsdependency on biomass for

    primary cooking fuels

    Benefit the environment

    Raise standards of living

    Improve health of world

    population

    Make some money in the

    process of all this

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    BUSINESS MODELS

    Markets

    y Developed Country Markets

    green consumers, food

    enthusiasts and emergency

    preparedness

    y Developing Country Markets

    poor families

    Models

    y

    Entrepreneurialy NGO

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    BUSINESS MODELS CONT

    Designed, built and

    assembled in IL

    Website distributedvia third party

    shipping. US and

    overseas

    Marketed on Sun

    Ovens website andvia word-of-mouth

    Designed, built and

    assembled in IL

    Local entrepreneur identifiedand qualified

    Entrepreneur due diligence

    for licensing contract

    Design and initial lot of ovens

    shipped to entrepreneur

    Initial help with marketing

    and education provided

    Entrepreneur establishes

    plant and starts selling

    Developed Countries Developing Countries

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    FINANCES

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    MEASURING IMPACT

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    INNOVATIONS

    Subsidizing the poor

    Design for imitation but

    keep their edge

    Turning demonstrationto down payment

    Managing non-

    traditional challenges

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    CHALLENGES

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    GROUP DISCUSSION

    In small groups, please discuss the

    commonalities found in the three case studies

    presented that are also shared by other

    successful models you are aware of.

    y What makes these models successful?

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    COMMON STRENGTHS

    Community involvement/ownership

    Local involvement in systems

    Flexible pricing/financing schemes

    y Appropriate to target market

    Adaptable, flexible, ready to change as needed

    Simple designs/technologies are easily replicable

    Never sacrifice the social impact for profit

    y Patient in awaiting returns on investment