Renewable Energy Solutions for East Africa

A recent study concluded that renewableenergy is more economical than conventionalpower for off-grid generation of less than 5kilowatts – exactly the sort of power needed bythe majority of African users.

African Competitiveness Report 2009

East Africa’s Energy Situation

Mostly hydro – has been a problem in recent drought years

Geothermal, Wind, Thermal (Gas Turbines)

Centralized production not expected to keep up with increasing demand – production shortfalls are common

Distribution

Production

Rural power access: 0.5% – 5%

Reliability issues: over 7 outages/month where there is power

Despite efforts of the Rural Electrification Authority, distribution network is expanding at a snail’s pace

There is a large and increasing demand for off-grid, renewable energy systems that can provide

reliable power.

Pros

Cons

Solar Wind

• Easy to ship• Relatively

inexpensive to import from China

• Can produce power day and night

• Can be manufactured with mostly local materials

• Economically attractive

• Capital and technically intensive to manufacture

• Must be imported• Only generates power

during daylight hours• Reduced productivity

in rainy seasons

• Difficult to import due to bulk

• Slightly more complex installation process (mounted on mast/tower)

Integrated renewable energy systems:

Solar Wind+

Why Don’t More Kenyans Have Access to Renewable Power?

∙ Consumer education – people do not understand renewable energy systems well enough to make an informed decision about investing in one

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

∙ Logistical support and rural access – coordinating suppliers, installers, and transporters to install systems in rural areas can be difficult for the consumer

∙ Expensive to import due to bulk

∙ Those that are imported tend to be low quality

∙ Slightly more difficult to install than solar panels

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

∙ All of the problems that hinder propagation of solar systems (consumer education, lack of credit, and logistical challenges)

1. Affordability Gap – consumers need a more affordable renewable energy option (wind).

2. Expertise Gap - consumers need to better understand renewable energy systems and their benefits and limitations.

3. Credit Gap – consumers need access to financing to afford the front-loaded cost of renewable energy.

4. Logistics Gap – coordinating multiple suppliers, transporters, and installers is daunting. Consumers need a one-stop-shop solution.

WindGen Solves the Challenges that Limit Both Solar and Wind Systems

1. Affordability GapWindGen manufactures a more affordable, locally produced source of renewable energy in our wind turbines

2. Expertise GapWindGen provides enhanced marketing, consulting, and energy auditing services

3. Credit GapWindGen partners with local credit providers who provide financing for renewable energy consumers

4. Logistics GapWindGen provides consulting, delivery, installation, and equipment procurement – everything our clients need in one place

Domestic Manufacturing of Small Wind Turbines

2Enhanced One-Stop-Shop Distribution of Integrated Renewable Energy Systems

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Domestic Manufacturing of Small Wind Turbines1

1Domestic Manufacturing of Small Wind Turbines

Good for the Consumer

∙ Local production solves the problem of high shipping costs for imports substantially lowering the cost per watt

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

∙ Gives a locally produced, cost-effective renewable energy option

1Domestic Manufacturing of Small Wind Turbines

Good for Kenya

∙ Can be produced almost completely from locally available materials

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

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

∙ Adds jobs to the Kenyan economy

∙ Gives government a local product to buy when contracting off-grid projects (schools, hospitals, etc.)

1Domestic Manufacturing of Small Wind Turbines

Turbine Distribution Channels

1. Sold to distributors of electrical products for off-the-shelf retail purchase by homeowners, businesses, and NGOs

2. Sold directly to the government for contracted off-grid projects

3. 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

2Enhanced One-Stop-Shop Distribution of Integrated Renewable Energy Systems

Enhanced One-Stop-Shop Distribution of Integrated Renewable Energy Systems

2

What:

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.

Why:

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.

Enhanced One-Stop-Shop Distribution of Integrated Renewable Energy Systems

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How:

We will access a larger portion of the off-grid market than anyone has before by:

1. Consumer education & enhanced rural marketing

2. Partnering with credit providers to finance the purchase of the systems

3. One-stop-shop: we will provide all necessary components as well as installation and transportation services

… is the first to provide a viable wind option for small renewable energy systems

… provides a locally built, cost-effective renewable energy option

… enables affordable integrated wind/solar renewable energy systems

… propagates use of renewable energy by targeting the lower end of the market and solving the problems of credit and logistics

… takes Kenya’s off-grid energy production out of the hands of China, and into the hands of a Kenyan company

WindGen’s Management

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.

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.

Sam brings a wealth of practical East Africanalternative energy experience. Since graduating fromHarvard in 2009 with a degree cum laude inmechanical engineering, Sam has been directlyinvolved in the marketing and installation ofnumerous solar power solutions through ABA EnergySolutions, a company which he co-founded in 2009.

Sam also has sector experience working for the energy group at UBSInvestment Bank in 2008. After living and working in Kenya for a yearSam is familiar with doing business in the country, and hasrelationships with several WindGen partners in the renewable energyspace.

Henry is a Kenyan-American dual citizen who returned to Kenya fiveyears ago to raise his family, after living in Dallas for 15 years. Sincereturning to Kenya, Henry has directed the Kenyan operations forEunivy Resources, a German company that is exploring the potentialfor big wind energy farms in Kenya. He is very familiar with therenewable energy landscape in Kenya.

Henry has excellent relationships with officials in the Ministry ofEnergy and Rural Electrification Authority, as well as private sectorplayers relevant to WindGen. As the owner and manager of asoftware company in Nairobi, Henry is also very familiar with runninga business in Kenya.