Husk Power Systems. October 2011

Transcription

1 Husk Power Systems Puneet Rustagi Puneet Rustagi October 2011

2 Understanding Base of the Pyramid Phrase refers to about 4 billion people who live on less than US$8 per day with close to 2 billion living on less than US$2 per day; A US$5 trillion market opportunity compared to the lower middle income segment which forms a US$12.5 trillion market; Huge suppressed demand due to nonavailability; real market potential almost double (at US$10 trillion) the measured opportunity; Most of this population is in Asia (over 50% in China and India) and are often rural;

3 Key segments of opportunity Energy Market potential of over US$500 bn Healthcare Market potential of over US$150 bn Water Market potential low at US$20 bn but due to nonpriced delivery Food / Consumer goods Market potential of over US$3 tn Opportunities in physical infrastructure such as low income housing (US$350 bn), transportation (US$180 bn), ICT (US$60 bn) as well as education and financial services also exist

4 Access to Energy - Huge problem & market opportunity Asia and Africa are and will continue to remain the key markets with a spending share of close to 90% (about US$440 bn); Over 1.4 billion people in the world lack access to energy; Spends about $500 billion annually on energy; Opportunity of over US$1 trillion considering a lot of suppressed demand; Energy requirements excludes transportation; Energy is a key enabler for all other activities and consumption will increase as other activities increase;

5 Several approaches and models Commercial Enterprises Social Enterprises Micro Hydros Micro Grids Solar Home Systems Solar / LED Lanterns Other solutions such micro wind turbines are also prevalent however they have very limited applications Biogas Plants Smokeless Cook stoves Non-profit *Microgrids include biomass based, biogas and solar plants Grants Donors Bilateral Agencies CSR Foundations Soft Loans Bilateral Agencies Development Finance Institutions Nationalized Banks Certain Social Investors Corporate Foundations Social Investors IFC Acumen Fund LGTVP ResponsAbility OPIC Cooperative Banks Commercial Investors Venture Capital Funds PE Funds Commercial Banks

6 The energy problem in India and the story of Bihar India has more than 125,000 un-electrified villages which spend about US$100 bn on different energy requirements; Continuing energy demand supply gap has amplified the problem of access to energy; Bihar Economic powerhouse of the last millennium; Home to about 10% of India s population (105 million people); equivalent to combined size of UK and Spain; Has less than 1% of the country s energy supply; Continuing failure of grid based electricity and evolution of off-grid energy industry;

7 Lighting up your inner self (attaining Zen or enlightening yourself) is easier than lighting up your house

8 Introduction to Husk Power Systems Globally recognized leader in off-grid biomass based power systems Founded in 2007, first 40kWe went live in Aug 2007 Strategic partnership with Shell Foundation and IFC for capacity building, establishing heath and safety procedures and training infrastructure. Secured commercial capital in December 2009 from firms around the world Manages 72 power plants as of June2011; all of them are in Bihar, India Serves more than 300 villages and over 150,000 low income households in India Trained over 300 operators and mechanics

9 Vision: Integrated approach to rural development Water Purification Access to energy Husk Power Systems Supply Chain Linkages Micro Enterprises Empowering Women

10 Solving Access to Energy Problem Paddy Fields Husk is transported using tractors / bullock carts from the rice mill to the plant Farmers supply all their paddy crop to the rice mill for processing; HPS provides electricity for 6-8 hours each day and charges US$2.3 US$2.7 per household per month for lighting up 2 CFLs and one mobile charging station Rice Mill Husk Storage Space The entire distribution network is set up by HPS and the cost is included as part of the project cost Husk Power Plant

11 Husk Power model vs. Conventional utility Service availability fees vs. per unit charges Decentralized solution due to low electricity demand Prepaid vs. Postpaid Platform play vs. service play

12 BOP Business Strategies Affordability is the key; use of technology and breakthrough innovation has an important role to play; Localizing value creation; Establishing supply chains for access in both directions; utilizing existing supply chains as platforms and refining / strengthening them for your product / service delivery; Stakeholder management is very important co-existence is the key; Japanese companies / institutions can play an important role in technology, R&D as well as financing;

13 Thank you!! Puneet Rustagi Director, Business Planning & Strategy Husk Power Systems For further details mail to: