community solutions initiative (csi) htc, pes & npss november 6, 2010 ray larsen

Humanitarian Technology Challenge (HTC)

Community Solutions Initiative (CSI)HTC, PES & NPSSNovember 6, 2010

Ray Larsen

CSI AdCom Report November 6, 2010 2

CSI FormationSpinoff from HTCEmphasis on Community scale and scalable

solutions to Reliable ElectricityBased on solar battery charging, home lighting

modelCommunity entrepreneur owned franchiseEconomics need to work for cost of candles and

kerosene alternativesAimed to scale to reach at least a million peopleCo-Chair with Robin Podmore of PES~50 members, 65% IEEE, meet weekly

11/6/2010


CSI Product1 kW peak power station with Base Station

batteriesSub-Chargers for 40 home customer batteriesHome lighting, charging kit providedEntire system self contained on mobile trailerUltimately assembled in Haiti, towed to site for

instant deploymentTypical franchise grows to 5 stations, 200 home

customers ORHome customers plus base load e.g. school,

clinic, community center11/6/2010


Relation to HTCWas running in parallel with R&D in HTC to build a

custom controller for solar charging stationHTC UN, Vodafone funds cut drastically in March

2o1oTotal was $2MCIS through Co-Chair Robin Podmore found receptive

home in PES NIO (New Initiative & Outreach) PES gave $25K maintenance fund; very little used to

dateAdded $15K for Podmore small scale projectsRE project has had no specific funding to date except

speaker travel to PES General Meeting11/6/2010


Deployment ProgramsHTC promoted deployment transition via

NGO partnershipsFormed partners in Haiti, Kenya, special

Masters program at Denver University training managers of similar program

Stems from UN Millennium Development Goals

Once Haiti successful, opportunities identified in Kenya, Nigeria, Sudan, Phillipines….

11/6/2010


1 kW Mobile Station Concept

11/6/2010


CSI 5 -1kW Station Concept

11/6/2010

Base Station OptionsHome Battery Service


Market Survey: Distribution• Distributed to 19 Rural Areas with No Electricity

Service• Distributed to 1 Suburban Area with Limited

Electricity Service• 30 Copies of Survey per Area

11/6/2010


Sirona Cares (NGO) - > Sirona Haiti (Franchise Company)

In Haiti 2 yearsPromoting relief and business developmentParent Sirona Fuels (Bio) in SFJatropha farming in HaitiDeveloped partners for electricity projectMarket surveys done by partnersHigh enthusiasm to begin

“We are dry soil waiting for the rain.”

11/6/2010


Market Survey: Preliminary Results• 81 surveys completed while in-country (90% response

rate for immediately surveyed regions) • Expect to receive approximately 300 more by end

of May• Preliminary Results:

(all prices are in gourdes) Min Max Median

Willing to Pay Per Month for Electricity 15 1000 150

% of Income Spent on Electricity 10% 52% 15%

Cost to Use Charging Station 10 275 50

Cost to Charge Cellphone 5 75 15

Price of Generator Fuel (gourdes/gallon) 100 350 200

Monthly Cost of Candles 20 550 100

Monthly Cost for Kerosene 20 2000 170

98% of respondents did not have electricity. Approximately $10.50 US spent each month on electricity and lighting.

11/6/2010


Business Plan OutlineReach 1 million people in first 5 years2-stage Pilot program to test technical, business models:

3 stations, grow to 15 stations totalPilots funded by donations, Pilot 1- $126K, Pilot 2- $296K Set up as franchises; will get some cost recoveryFull production and deployment to be funded by social

venture capital – foundations, Haiti Reconstruction Funds World Bank

Total needs over first 5 years $35M raised via 10-year interest-bearing loans

Ramp to 100 stations per month by year 3Work through multiple NGO trusted partners

11/6/2010


Plan Details- Sirona Cares

Pro Forma – System Operator Monthly Net Income Number of Units 1 2 3 4 5 Revenue Service Charges $400 $800 $1,200 $1,600 $2,000

Total: $400 $800 $1,200 $1,600 $2,000 Expenses Lease Payment $145 $291 $436 $581 $726 Franchise Fee $55 $110 $165 $220 $275

Total: $200 $401 $601 $801 $1,001 Net Income: $200 $399 $599 $799 $999

11/6/2010


Details 2 – Sirona PlanPilot I Deployment Program Budget Summary Item Budget 1 Equipment $45,000 2 Development Costs $3,000 3 Administration $1,200 4 Shipping and Transportation $7,100 5 Travel Expenses $16,300 6 Stipends/Salaries $28,000 7 Contingency $25,000 Total: $125,600

Pilot II Deployment Program Budget

Summary

Item Budget 1 Equipment $175,500 2 Development Costs $13,500 3 Administration $1,800 4 Shipping and Transportation $17,200 5 Travel Expenses $23,600 6 Stipends/Salaries $39,700 7 Contingency $25,000

Total: $296,300

Projected Income Statement (000's)

Year 1 2 3 4 5

Revenue 214 968 2,919 5,775 8,659

Cost of Services 169 603 1,640 3,052 4,464

Gross Profit 45 364 1,279 2,723 4,195

G&A Expenses: 385 391 461 472 472

Interest Expense 29 128 377 722 994 Net Income Before Taxes (369) (154) 441 1,529 2,729

Provision for Taxes 0 0 0 550 982

Net Income (369) (154) 441 978 1,746

Sirona Cares Foundation: www.sironacares.org; Paul Lacourciere; p;

1-415-577-1397

CSI Co-Chair for Haiti: Philippe Barjon;

[email protected]; 1-917-375-3520CSI Co-Chairs:

www.communitysolutionsinitiative.org; Ray Larsen, [email protected], 1-650-888-9075Robin Podmore, [email protected], 1-425-985-0168

11/6/2010

http://www.sironacares.org/

mailto:[email protected]


Summary Status – CSI EffortTechnical model designed by chief engineer of Nextek

Power Systems, solar power company in MI & NYTrailers being designed, built by Russell Engineering in

CA, solar systems sales in CA, FLDesign resources all pro bono to dateNextek donating equipment& work facility; Russell

advancing funds, space, labor costs for trailer developmentFast Track Plan

Procure all Pilot 1 components before end 2010Deploy first 3 units in Haiti in January 2011Studying assembling Pilot 2 units in Haiti – save large trans-

shipping costs of heavy components

11/6/2010


Summary - FundingProject applications sent to Haiti Interim Committee for

Reconstruction, Clinton Foundation, Kresge Foundation, HTC, E4C

Discussions with PES, NPSS re: potential fundingResults to date:

HTC obtained special funding of $50K for CSI; approved but not yet delivered. Must be spent by end 2010. Thanks to Russ Lefevre, Rich Baseil, others

No answer yet from E4C; will also be year end funds; maximum $20K

PES situation confused; some year-end funds available but caveats appear to rule out giving to CSI. Not hopeful short term

Haiti Reconstruction funds hopeful for major investment Finishing pilot programs will provide much needed credibility,

visibility, access to large funding sources

11/6/2010


Summary 2Total need for Pilot 1: $125 KHTC award in hand: $50KRemainder needed: $75K If E4C comes through with $20K, remaining pilot 1 need is $55KThe $50K will be spent primarily on parts for 3 units; one

planning trip of 2-3 Sirona people to Haiti in NovemberWill continue constructing 3 units with pro-bono donations from

companiesCurrently have no operating funds past end of Dec 2010Not funded:

Setup operations and support staff in Haiti Shipping costs – very expensive; unit weight ~ 1T Set up assembly plant in Haiti Develop training materials, advance regional staff for growing rapidly Swat teams to work with locals 3-5 days each during initial startup;

check back visit; emergency response11/6/2010


Summary 3Pilot 2 should follow smoothly once Pilot 1 is

underwayExpanding to 5 units per location very

important test of growth modelNeed to be raising Pilot 2 funds as soon as

Pilot 1 funded.Any excess funds raised from present

applications will immediately be used to build more stations, preferably at assembly plant in Haiti

Exploring local Haitian suppliers now for solar panels, batteries, utility trailers

11/6/2010

CSI AdCom Report November 6, 2010 1811/6/2010

Psst…So gimme yer dough!

community solutions initiative (csi) htc, pes & npss november 6, 2010 ray larsen

Documents

csi adcom report

csi product

csi formation spinoff

home customers

solar charging station

receptive home

ray larsen slide

haiti successful