Green Village Electricity Project Nigeria: Operational Report

Ifeanyi B. Orajaka & Chuka P. Eze

info@gve-group.com www.gve-group.com

IEEE Smart Village Workshop, GHTC 2015, Seattle. 8th October 2015.

An Initiative of GVE Projects LimitedRC1071222

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The Business Summary

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Executed Pilot Projects

Pilot (III)

Capacity: 9kWp

Cost: USD 60,000.00

Location: Egbeke – Etche, Rivers State, Nigeria

Year of Completion: March, 2015

Impact(s):720people, 36 jobs, 136MT of CO2,

45% ($12) reduction in HH energy expenditure

Pilot (IV)

Capacity: 34kWp

Cost: USD 220,000.00

Location: Bisanti – Katcha, Niger State, Nigeria

Year of Completion: September, 2015

Impact(s):1,600people, 90 jobs, 517MT of CO2,

45% ($12) reduction in HH energy expenditure

Pilot (I)

Capacity: 6kWp

Cost: USD 75,000.00

Location: Egbeke – Etche, Rivers State, Nigeria

Year of Completion: September 2013

Impact(s): 480people, 20 jobs, 91.3MT of CO2,

45% ($12) reduction in HH energy expenditure

Pilot (II)

Capacity: 9kWp

Cost: USD60,000.00

Location: Egbeke – Etche, Rivers State, Nigeria

Year of Completion: March, 2015

Impact(s):720people, 36 jobs, 136MT of CO2,

45% ($12) reduction in HH energy expenditure

Base Infrastructure

Revenue Streams

Service Offering per Site

GVE

Mini-grid

(240 Clients)

One-time Connection Fee:

$20.00

Modular Site of 34kWp Each

P.A.Y.G Utility Fee:0.45/kWh (off-peak)

$0.75/kWh (peak)

AIPU:

$690.76

Ave. Monthly ARPU:

$11.25

Site Setup Cost (Equipment Only): $165,782.25

Revenue Model

Legend: AIPU: Average Investment Per User ARPU: Average Revenue Per User

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• US$1.4million raised and committed to six pilot projects till date

• Rated by USAID and GIZ as the ideal model for advancing energy access in Nigeria

• Listed among Sankalp Forum’s top-60 promising Sub Saharan Africa SMEs 2015

• Model is Scalable to Meet Specific Community Needs

• Model has Directly Measurable Environ-Socio-Economic Impact

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Awards:•Finalist; West African Forum for Clean Energy Financing Business Plan Competition, Sept. 2015•Finalist; City Mart/ City of Lagos Off-Grid Power Solution Challenge, June 2014.•Winner; GE Africa/ USADF, Power Africa Off-Grid Energy Access Challenge, Nov. 2013.•Winner; UNDP/ Bank of Industry –Nigeria, Access to Renewable Project Nigeria, Dec. 2012.•Winner; IEEE Presidents’ Change the World Project Challenge 2009.•The Project has been awarded 5 years pioneer status incentive

Project Heritage

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Pilot Projects in Photos

Pre-Implementation Scenario

Night view of the community’s major pathway

before the project

• 460 Mini-grid Households (3,240 people)

• 110 Street lighting points along the main street of the four beneficiary

Communities.

• Enhanced security at night

• Extended business operating hours

• 41 PBK Clients now has clean Electricity/ Cell Phone Charging.

• Children gather around the street lighting points to study/ play at night.

• 182 Jobs Created during and after implementation

• $29,000 Created in Wealth in the four pilot communities during implementation.

• Knowledge transfer to locals

• 40% reduction in Energy related expenditure

• Cumulative annual reduction of CO2 emission by 880.32 MTs

Project Impacts

Night view of the community’s major pathway now.

Project Impacts Cont’d

Management Team (All under 30)

Wale Bakare

E.D. Marketing

Chinedu Azodoh

C.F.O.

Ifeanyi Orajaka

MD/CEO

Chuka Eze

C.T.O.

• B.Eng. Elect/Elect. Engineering, FUTO Nigeria

• Certified Project Manager• Experience with

ExxonMobil, Shell and NIIT• GIS Rural Electrification

Planning Expert (7-Years)• Member Global Shapers• Management Trainings

• Executive Masters Project Management; CUPE, UK.

• B.Eng. Elect/Elect. Engineering, FUTO Nigeria

• Experience with Shell, Interswitch, Nigerian Breweries and Airtel Nigeria

• GIS Rural Electrification Planning Expert (7-Years)

• Master of Finance, MIT Sloan, Boston

• B. Eng Illinois Institute of Technology,

• Experience with Barclays Capital, Goldman Sachs, MediaBridge Capital Advisers LLC. and BGL Capital Nigeria

• President of NSBE, IIT

• LL.B, & Chartered Arbitrator• Lagos Business School

Alumnus• Trade Sales Manager;

Nigerite Ltd. (Annual sales portfolio of $30.8m)

• Channel Marketing Exec.; Vlisco Netherland BV (Annual sales portfolio of $6.15m)

• Pioneer Company Secretary11

Our Corporate Team

Wale Bakare

E.D. Marketing

Chinedu Azodoh

C.F.O. (MIT- Sloan)

Ifeanyi Orajaka

MD/CEO

Chuka Eze

C.T.O.

Ikechukwu Onyekwelu

E.D. Corp. Strategy

Prof. Gloria Chukwudebe

Board Chairman

Kalada Apiafi

Non-Exec. Director

Godwin Orajaka

Non-Exec. Director

Michael DeSa

Advisory: Finance12

– Complex Equipment Import documentation & Cost

– Delays between order, shipping, clearance & final delivery

– Lengthy & expensive customs clearances

– initial FOB prices

– Seasonality of final transport from POE to deployment site.

– Data Capturing and recording

– Absence of replacement parts for critical equipment

– Proper use of equipment by customer

– Operator education & adherence to business model.

- Financial Constraint (Fund raising) for scaling the model

Challenges

Lessons Learnt

• Demand still very huge and increasing• Locals demand more energy for productive use and refrigeration (Tier 2

Energy Service level 200 – 800 Wh/d).• More Co-ordinated Procurement and Equipment Logistics process• Need to have handy replacement for critical equipment• More customers are inclined to the prepaid metering & mini grid• Need for a more robust field support mechanism• Need for adequate funding for implementation , administration and

operational overheads

• Ongoing analyses of pilot project outcomes and cash flow• Implementation of Phases 2 & 3 of BOI Funded Project• Continued Field Testing of Standardized procurement procedure• Continued Field Testing of Standardized shipping and delivery

procedure• Continued R&D in Power station design & implementation

process• Continued Optimization of cost and revenue collection • Standardizing field support mechanism through effective

collaboration with CSI & manufacturers• Reinforcing corporate relationship with stakeholders• Developing ties with relevant manufacturers• Sourcing of capital investment for expansion (grants, angel

investments, single digit debt financing)• Introduction of Community Shared Ownership (CSO) model• Extension of mini-grid power delivery to rural SMEs • Implementation of Expansion Phase I (16 New sites).

Current & Future Plans

Thank you!!!

info@gve-group.com www.gve-group.com

Twitter: @GreenVillageEle

Please do not hesitate to contact us for further inquiries and/or requests.

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