How Does The Energy Market Adapt to Renewable Investments? Carbon trading and other policies empowering carbon clean technology affect the energy market. These new incentives for changing the energy mix being introduced in the market result in a more complicated system. This session will give insight in today’s energy market, carbon trading and future outlook.

1. Brighterlite: Bringing solar electricity
to 1 million Kenyans in less than 5
years
Jørund Buen
Co-Founder, Differ
ISES2013
14 June 2013

2. About Differ
> Norwegian company founded and run by successful people within
financial, renewable energy and energy efficiency businesses
 www.differgroup.com
> Our mission:
Spearheading the scale up of small-scale carbon reduction
 New ventures and finance
 Advisory and analysis
> Main focus on:
 Africa and Asia
 Renewables and energy efficiency
> Team members have founded and developed 10+ companies in the
renewable energy and clean tech sectors across Europe, Africa,
Asia and America – in particular:
 Renewable Energy Corporation (REC)
 Point Carbon
 Solar Vision (South Africa, installed 1000 solar systems/month in 2001)

3. Differ Business Development
Differ involves directly in business development with local players to
overcome barriers and to grow successfully together
> Business models & strategy
> Financing solutions
> Systems and technical solutions
> Sales and distribution
> Early stage of development
> Active involvement
> Long-term partnerships

4. Major recent technology/market shifts
 LED lights (90-95 % less kWh/yr) are becoming widespread.
 Mobile phones (~1 kWh/yr) reaches 80 % market penetration in
Africa.
 LED TVs (80-90% power reduction) now at similar price.
 A family can have telephones, radio, four lamps, PC and TV for
2 kWh/week !
 Cost is 50-85 % below IEA estimate in “World Energy Outlook”.

5. Solar Home Systems - Brighterlite
> Apply the idea from the Norwegian cottages – install SHS
 Light for reading
 Electricity for charging
 Replacing kerosene
> What’s different from Norway?
 They cannot afford the investment
 Not available in the shops
 Not reliable service and maintenance competence
> Suppliers in India, Thailand and Germany
 Importing to Kenya
 Assembled there
> Containers as service centers
> Payment via mobile phone

6. Opportunity: Social and business
entrepreneurship
 80% of Africans have mobile phones
 Only 40 % have electricity
 Light emitting diode (LED) lamps & TVs consume very little power (80-
95% reduction), and becoming cost-competitive; PCs as well
 A family can have telephones, radio, four lamps, PC and TV for 2
kWh/week, at 50-100USD/person: half the “World Energy Outlook” cost
estimate
 Socio-economic development impact of light, telephone, TV, PC and
internet is dramatic
 The private desire for the same is great!

7. Our perspective on solar PV rural electrification
• Solar photovoltaic (PV) module prices have
dropped by factor 5
• LED lamps & TV lower consumption by factor 5+
• Mobile payments ease rural high volume
business dramatically
The competitiveness of off-grid solar has dramatically improved
Differ and Basecamp competence & network will be used to:
- Offer low cost solar electricity to the main rural population of Kenya
- Use proven micro finance concepts to secure payments and avoid theft
- Build an effective, low cost organization
- Secure high volume, low cost purchasing

8. Solar home system roll-out in rural Africa:
Changing the game
FROM TODAY’S TOWARDS
Single system sales Minimum 300 units sale/area
High price Low price
No organized maintenance Organized maintenance
Expensive or no financing Large scale financing
High purchaser risk Informed vendor risk
Purchasing PV system Monthly purchase of PV energy
- Credit sale & maintenance
- Lease
- Fee-for-service
- Payment by mobile phone
- IT based customer system

9. Brighterlite initial product offering

10. Ongoing test sale very successful!
0
100
200
300
400
500
600
700
1 2 3 4 5 6 7 8 9 10 11
People w/solar
electricity
Signed contracts
• 100 % monthly payment rate requires successful concept, IT system and staff
• 100 % monthly payment rate so far achieved

11. Stepwise scale-up and roll-out
Step 1: Feasibility
study (done)
Step 2: Pilot
phase
Step 3: Large scale
roll-out
- Concept
demonstrated on
”home turf”
- Market exists
- M-PESA works
(330 customers)
(2000 people)
Concept scalability
- Statistical documentation
for scale-up financing
- 3 service centers on
”neutral territories” with
recruited organization &
customers
- 1500 customers (10 000)
Roll-out
- Direct transition
from pilot phase
- Target 1000 customers
per month asap

12. Importance of mobile payments
> ”Weak” bank regulations enabled Safaricom to offer simple banking
services over mobile, called M-PESA (mobile money)
 80% have mobile phones, 60% have M-PESA
 The rest know someone who does
> This is extremely practical
 Removes need for cash collection, lowers risk
 Can be done by practically every Kenyan, even illiterate people!
 Completed payments pop up on the screens in Nairobi and Oslo
headquarters shortly after completion
 Provides fantastic information and overview
> Increases need for central IT system to handle transactions

13. Further scaling through carbon finance?
> Today: The Clean Development Mechanism (CDM)
 Offsets emissions in developed countries on project basis
> Tomorrow: Climate finance and new carbon market mechanisms
 Sector-wide payments based on e.g. sold solar home systems meeting
requirements
Basic Standard Advanced Professional Full
Minimum Service Level (#/duration) (#/duration) (#/duration) (#/duration)
Indoor lamps 3 / 4 hrs 3 / 4 hrs 5 / 4 hrs 12 / 8 hrs Y
Cell phone or Radio 1 / Cont. 2 / Cont. 4 / Cont. 4 / Cont. Y
Television 0 1 / 3 hrs 1 / 8 hrs 1 / Cont. Y
PC or fan 0 1 / 3 hrs 2 / 8 hrs 3 / Cont. Y
Outdoor lamps 0 0 1 / 4 hrs 5 / 4 hrs Y
Refrigerator 0 0 1 / Cont. 1 / Cont. Y
Air cooling/heating N N N Y Y
Water pump N N N Y Y
Sust. Requirements (hours/yr) (hours/yr) (hours/yr) (hours/yr) (hours/yr)
Uptime
(guaranteed)
95% two
years after
installation
95% two
years after
installation
95% two
years after
installation
95% 99%

14. www.brighterlite.net