Sulico is social venture to provide community-centric solar energy production and distribute energy as a service in rural Africa. At the MIT Global Challenge: http://globalchallenge.mit.edu/teams/view/125
2. A Global Problem 1 in 3 people rely on Kerosene 20% of global lighting spend… …0.1% of the world’s light Sub-Saharan Africa: $9.2b market, and growing Tanzania: 7.2mhouseholds without grid access, $790m market
3 stories one by one. This is the community health center atMsanga, Tanzania, which is going to be the site of our pilot. The lady you see is the midwife, she was telling us she delivers on average one baby a week under kerosene lightThis is a school teacher in Msanga. He makes a relatively decent living for the area, but typically spends upto 15% of his income on energy. To give you a comparison point, imagine spending £7000 a year on your electricity billThere are around 2000 children in Msanga who study under kerosene light. The WB estimates one of these lights to emit equivalent of 2 packs of cigarettes a day. On top of that, the light that they generate is 1/30 of the WHP recommended reading light.
This is not a problem local to Msanga. 1 in 3 people in the world do not have access to the grid. 20% spend, 0.1% of light. This stuff is expensive and inefficient.We are going to focus on SSA, where the market for off-grid electricity is 9.2b, and growing. Things are not getting better.
So what is our solution?Community-based charging station. Distribute the energy as a service by allowing people to charge batteries and appliances. We will offer a range of services for different segments of the village with different needs and affordability.Click to show lanter:For the poorest segment, we offer a rechargable lanternFor the middle segment represented with the school teacher, we install their homes with a few efficient lights, and give them a large but portable battery that gives them lighting and electricity for their mobiles and radios for a week. When the battery runs out, they bring it back to recharge itFor the highest usage income segment or the highest usage segment, such as the community centers, we offer a larger battery inverter pack, which allows them to run various electrical applicances.>>> This segmented offering is the first thing that makes us DIFFERENT. It allows us to get closer to each customer needs and affordability and get the scale we need to make the charging station economically viable. Our innovation is not in the products, these products are rapidly becoming commodities. Our innovation is in the business model. (click to see grid photo) The second thing that is different about us is our plan to co-locate with the higher usage customers or connect them with wires in the long run, and build a micro-grid from the bottom up. We think that’s essential for our long term competitive advantage and allows us to move towards more value added offerings.If time: As customer’s needs grows, we can grow with them, through a modular installation
We think we have a solution that has the potential to change this for 250,000 people. Pilot + 2 rounds of investment totaling 3.3m. IRR, signficant social IRR of …
The team (PhD student at MIT with PV specialty, 4 MBAs 3 with engineering background, one community development expert from Harvard Kennedy school, 5 of us have had on the ground experience in Africa, half of us have actually lived in Africa before)…. advisors, and partners