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Renewable Energy Solutions for East Africa<br />

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A recent study concluded that renewable energy is more economical than conventional power for off-grid generation of less than 5 kilowatts – exactly the sort of power needed by the majority of African users.<br />African Competitiveness Report 2009<br />

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The Context<br />East Africa’s Energy Situation<br />

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Power Landscape in Kenya<br />Production<br />Mostly hydro – has been a problem in recent drought years<br />Geothermal, Wind, Thermal (Gas Turbines)<br />Centralized production not expected to keep up with increasing demand – production shortfalls are common<br />Distribution<br />Rural power access: 0.5% – 5% <br />Reliability issues: over 7 outages/month where there is power<br />Despite efforts of the Rural Electrification Authority, distribution network is expanding at a snail’s pace<br />There is a large and increasing demand for off-grid, renewable energy systems that can provide reliable power.<br />

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Renewable Options<br />Solar<br />Wind<br />Pros<br /><ul><li>Easy to ship

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Relatively inexpensive to import from China

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Can produce power day and night

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Can be manufactured with mostly local materials

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Economically attractive</li></ul>Cons<br /><ul><li>Capital and technically intensive to manufacture

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Must be imported

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Only generates power during daylight hours

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Reduced productivity in rainy seasons

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Difficult to import due to bulk

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Slightly more complex installation process (mounted on mast/tower)</li></li></ul><li>Regional Wind Potential<br />

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Regional Solar Potential<br />

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Ideal Solution?<br />Integrated renewable energy systems:<br />Solar<br />Wind<br />+<br />

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The Problem<br />Why Don’t More Kenyans Have Access to Renewable Power?<br />

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What’s Holding Back Solar?<br /><ul><li>Consumer education – people do not understand renewable energy systems well enough to make an informed decision about investing in one

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Access to credit – many off-grid consumers need financing to afford 10-20 years of power in one up-front payment

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Logistical support and rural access – coordinating suppliers, installers, and transporters to install systems in rural areas can be difficult for the consumer</li></li></ul><li>What’s Holding Back Wind?<br /><ul><li>Expensive to import due to bulk

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Those that are imported tend to be low quality

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Slightly more difficult to install than solar panels

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Consumer education – people do not consider the wind option because of the lack of marketingof wind power products

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All of the problems that hinder propagation of solar systems (consumer education, lack of credit, and logistical challenges)</li></li></ul><li>The Essential Problems<br />The Four “Gaps”<br />Affordability Gap – consumers need a more affordable renewable energy option (wind).<br />Expertise Gap - consumers need to better understand renewable energy systems and their benefits and limitations.<br />Credit Gap – consumers need access to financing to afford the front-loaded cost of renewable energy.<br />Logistics Gap – coordinating multiple suppliers, transporters, and installers is daunting. Consumers need a one-stop-shop solution.<br />

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The Solution<br />WindGen Solves the Challenges that Limit Both Solar and Wind Systems<br />

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The WindGen Solution<br />The Four “Gaps” - Resolved<br />Affordability GapWindGen manufactures a more affordable, locally produced source of renewable energy in our wind turbines<br />Expertise GapWindGen provides enhanced marketing, consulting, and energy auditing services <br />Credit GapWindGen partners with local credit providers who provide financing for renewable energy consumers<br />Logistics GapWindGen provides consulting, delivery, installation, and equipment procurement – everything our clients need in one place<br />

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Two Concurrent Approaches<br />1<br />Domestic Manufacturing of Small Wind Turbines<br />2<br />Enhanced One-Stop-Shop Distribution of Integrated Renewable Energy Systems<br />

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1<br />Domestic Manufacturing of Small Wind Turbines<br />

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1<br />Domestic Manufacturing of Small Wind Turbines<br />Good for the Consumer<br /><ul><li>Local production solves the problem of high shipping costs for imports substantially lowering the cost per watt

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Provides a complement to solar panels to create integrated wind/solar systems

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Gives a locally produced, cost-effective renewable energy option</li></li></ul><li>1<br />Domestic Manufacturing of Small Wind Turbines<br />Good for Kenya<br /><ul><li>Can be produced almost completely from locally available materials

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Technically intensive enough to require capital and expertise to manufacture, but nowhere near the sophistication necessary to manufacture solar panels

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Puts Kenyan power production into the hands of Kenyans – reduces reliance on Chinese imports

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Adds jobs to the Kenyan economy

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Gives government a local product to buy when contracting off-grid projects (schools, hospitals, etc.)</li></li></ul><li>1<br />Domestic Manufacturing of Small Wind Turbines<br />Turbine Distribution Channels<br />Sold to distributors of electrical products for off-the-shelf retail purchase by homeowners, businesses, and NGOs<br />Sold directly to the government for contracted off-grid projects<br />Sold directly to consumers by WindGen, employing our innovative approach to renewable energy sales to access the off-grid consumer end of the energy market<br />

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2<br />Enhanced One-Stop-Shop Distribution of Integrated Renewable Energy Systems<br />

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Enhanced One-Stop-Shop Distribution of Integrated Renewable Energy Systems<br />2<br />What:<br />WindGen Power Products sells complete, integrated (solar/wind) renewable energy systems including in-building wiring. The wind components of the system will be built around our own turbines, and the rest of the components will be purchased from local electronics distributors.<br />Why:<br />We think more off-grid consumers deserve access to renewable energy, and we think we can access this market better than anyone else because of our approach to marketing and selling these systems.<br />

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Enhanced One-Stop-Shop Distribution of Integrated Renewable Energy Systems<br />2<br />How:<br />We will access a larger portion of the off-grid market than anyone has before by:<br />Consumer education & enhanced rural marketing<br />Partnering with credit providers to finance the purchase of the systems<br />One-stop-shop: we will provide all necessary components as well as installation and transportation services<br />

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Our Kenyan-based solution…<br />… is the first to provide a viable wind option for small renewable energy systems<br />… provides a locally built, cost-effective renewable energy option<br />… enables affordable integrated wind/solar renewable energy systems<br />… propagates use of renewable energy by targeting the lower end of the market and solving the problems of credit and logistics<br />… takes Kenya’s off-grid energy production out of the hands of China, and into the hands of a Kenyan company<br />

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The Team<br />WindGen’s Management<br />

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Alastair Smith<br />Founder and Director<br />Alastair completed his studies at Harvard in the spring of 2010. As a Mechanical Engineering major, Alastair utilized his interest in wind turbines and his engineering knowledge and skills to design, develop and build the first vertical axis portable wind turbine as his senior thesis. This unit is currently on permanent display at Harvard’s Pierce Engineering Labaratory.<br />Alastair’s previous experience with wind turbines included summer work at Clipper Wind Power (now a part of United Technologies) and studying Wind Turbine construction at the Evergreen Energy Institute. At WindGen, Alastair is responsible for all day to day operations including engineering, design, procurement, manufacturing, installation and maintenance. Alastair is also a director of Kenyan based alternative energy solutions provider, ABA Energy Solutions.<br />

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Sam Slaughter<br />Founder and Director<br />Sam brings a wealth of practical East African alternative energy experience. Since graduating from Harvard in 2009 with a degree cum laude in mechanical engineering, Sam has been directly involved in the marketing and installation of numerous solar power solutions through ABA Energy Solutions, a company which he co-founded in 2009. <br />Sam also has sector experience working for the energy group at UBS Investment Bank in 2008. After living and working in Kenya for a year Sam is familiar with doing business in the country, and has relationships with several WindGen partners in the renewable energy space.<br />

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Henry Waweru<br />Founder and Director<br />Henry is a Kenyan-American dual citizen who returned to Kenya five years ago to raise his family, after living in Dallas for 15 years. Since returning to Kenya, Henry has directed the Kenyan operations for Eunivy Resources, a German company that is exploring the potential for big wind energy farms in Kenya. He is very familiar with the renewable energy landscape in Kenya.<br />Henry has excellent relationships with officials in the Ministry of Energy and Rural Electrification Authority, as well as private sector players relevant to WindGen. As the owner and manager of a software company in Nairobi, Henry is also very familiar with running a business in Kenya.<br />