DC MICROGRIDS
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1.3 billion people still lack access to electricity
Electricity is not affordable
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Electricity is not reliable
Electricity is not scalable
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For 1 in 5 people worldwide, electricity is not
Affordable
Reliable
Scalable
Electricity access is a significant challenge OPPORTUNITY
Electricity access is a significant challenge
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OPPORTUNITY
Solar Lanterns Solar Home Systems Grid Extension
# Eligible
Consumers 561M 478M 95M
Est. Market
Size $4B $8B $2B
What is a microgrid?
Microgrids have the potential to electrify 145M to 410M people
Existing solutions do not meet all three needs
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Affordable
Reliable Scalable
DC
Microgrids
Scalable: Microgrids enable higher tiers of electricity use
0.001 0.01 0.1 1 10 100
Macrogrid (U.S.) Macrogrid (developing world) Microgrid Solar home system Solar lantern
Per capita electricity use (kWh/day/person)
AC microgrids can be improved
Not affordable
• Larger solar arrays
Not reliable
• Central storage
Not scalable
• Inverters
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How is our system different?
AC DC
+ -
Power Generation: Solar PV
Inverter
Battery Bank
CHARGEBOX™ enables benefits of the DC system
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• Steps Down Voltage
• Payment System Compatible
• Charge Meter
• Wireless Communication
• Lithium-based Storage
48V DC
12V DC 5V DC CHARGE CREDIT
DC microgrids succeed where others fail
Device / Solar Kit
Solar Home System
AC Microgrid
DC Microgrid + CHARGEBOX
AFFORDABLE
RELIABLE
SCALABLE
Higher distribution efficiency in DC microgrids
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AC Microgrid DC Microgrid
73% 79%
81% 98%
AC microgrid efficiency excludes AC/DC rectifier losses
A more efficient system is more affordable
0 200 400 600 800
0 5 10 15 20 25
Energy Consumed (kWh / year)
Capacity (cubic ft) AC Refrigerators
DC Refrigerators
Microgrids are the most affordable option for the desired level of service
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Phone charging, lighting
Entertainment Comfort and productivity
LCOE ($ / kWh)
Level of Service
Solar Home Systems
Microgrids Solar
Devices
DC microgrids will be cost competitive
Technology Levelized Cost of Electricity ($/kWh)
Solar Lantern ~ $10.00
Solar Home System ~ $1.00
AC Microgrid ~ $0.50 - $1.00
Grid Extension ~ $0.10
DC Microgrid ~ $0.50
How can we make microgrids more affordable?
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Number of Rural Households
Income Level
Solar Home Systems
$80-120/year Microgrids
$100-150/year Solar Lamps
and Kits
$30-80/year
A reliable system prevents brownouts
A scalable system supports projected growth in energy demand
22 -4
-2 0 2 4 6 8 10
1980 1990 2000 2010
Annual Percentage Change
Real GDP Growth
Emerging market and developing economies Advanced economies World
A scalable system can be tailored
Why is the market ready now?
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Decreasing PV costs
Decreasing storage costs
Rise of pay- as-you-go
Initial markets were evaluated using 3 criteria
Strong Partners Value
Energy Efficiency High WTP
Islands are an attractive premium market
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World Bank Islands Sustainable Energy Finance Project
10-30% of GDP spent on imported fuel (diesel) 70% Pacific
Islands lack electricity access
Path to market
Market Size
1 years 3 years 5 years
$1B
Islands
$1.6B
Peri-urban
$4B+
Rural electrification
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For 1 in 5 people worldwide, electricity is not
Affordable
Reliable
Scalable
CAN BE
One step closer to universal electricity access
Sherry MBA 2015
THANK YOU
John GSPP /
ERG 2016
Sara MBA 2015
Tia MBA 2015
Nick MBA 2015
Molly MDP 2015 Achintya Madduri
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Questions?
Microgrids let customers move up the energy ladder
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Solar home systems
$8
Grid extension
$2 Microgrids
$4 Solar lanterns
$4
# of People (M) Market Size ($M)
Market size estimates (lower bound)
Solar home systems
478
Grid extension
95 Microgrids
145 Solar
lanterns 561
Addressable market, by technology
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$0.24 $0.51
$0.08 $0.06
$0.09 $0.11
0.0 0.2 0.4 0.6 0.8
DC Microgrid AC Microgrid
LCOE ($/kWh)
Generation and Storage Distribution Labor and Transportation
Better service at the same LCOE
$0.41 $0.45
DC is more efficient, especially at night
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Battery costs expected to decrease
Market Segment Service Offering Financing Method Payment Collection
Pay per use
Rental/
Pure Lease
Rent-to-own/
Lease financing Tier 2: Basic
Household Needs
Tier 3: Small Productive Power
Tier 4: Large Productive Power Households
Commercial
Manual
Scratch Card
Mobile Money
Business model choices
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Competitive Landscape
Company Country Technology Payment Collection
Business Model
DESI Power India Micro/mini-grid Manual/cash Lease time/energy Devergy Tanzania Micro/mini-grid Scratch card Pay per use
Energa Senegal Micro/mini-grid Scratch card Pay per use Fenix International Uganda Device/solar kit Mobile money Pay per use Husk Power India,
Uganda
Micro/mini-grid Mobile money Lease time/energy
Mera Gao Power India Micro/mini-grid Manual/cash Lease time/energy d.light design SSA, Asia Device/solar kit Mobile money Lease time/energy Off:Grid Electric Tanzania Solar home
system
Mobile money Lease time/energy
BBOXX SSA Solar home
system
Mobile money Lease time/energy
Value Chain of a Microgrid
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