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DISTRIBUTED SOLAR ENERGY IN BRAZIL: FABIO ROSA’S APPROACH TO SOCIAL ENTREPRENEURSHIP

DISTRIBUTED SOLAR ENERGY IN BRAZIL: FABIO ROSA’S APPROACH TO SOCIAL ENTREPRENEURSHIP

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Approximately 25 million people in Brazil do not have access to electricity. Fabio Rosa, a local social entrepreneur, is working to fill this need through innovative distributed solar energy business ventures. Rosa founded both a for-profit corporation, Agroelectric System of Appropriate Technology (STA) and a not-forprofit organization, the Institute for Development of Natural Energy and Sustainability (IDEAAS).
Through IDEAAS, Rosa developed a business plan for an innovative venture,
dubbed “The Sun Shines for All” (TTSFA), which would lease a basic photovoltaic solar home system to rural Brazilians for US$10/month plus an initial installation fee – little more than what people were already spending on non-renewable forms of energy. Additionally, Rosa established a separate initiative, called Quiron, to address the unique needs of those who cannot afford to pay the TSSFA prices.
Instead of subsidizing the purchase of solar energy services for those who cannot afford its cost, Rosa would leverage his solar energy services to provide incomegenerating opportunities to those that needed it. The Quiron project is an integrated project for sustainable rural development, income generation, employment of renewables for domestic and productive use, biodiversity management, forestation and carbon credits.

This case presents the business details of the nascent TTSFA and Quiron ventures, including a triple-bottom-line summary of early results (economic, environmental, and social impacts). The case also presents the risks and hurdles inherent in these projects, as well as implications for their potential scalability to other countries/regions. Through this case, students may gain insight into both the challenges and significant opportunities in addressing the needs of low-income consumers in emerging markets.
Approximately 25 million people in Brazil do not have access to electricity. Fabio Rosa, a local social entrepreneur, is working to fill this need through innovative distributed solar energy business ventures. Rosa founded both a for-profit corporation, Agroelectric System of Appropriate Technology (STA) and a not-forprofit organization, the Institute for Development of Natural Energy and Sustainability (IDEAAS).
Through IDEAAS, Rosa developed a business plan for an innovative venture,
dubbed “The Sun Shines for All” (TTSFA), which would lease a basic photovoltaic solar home system to rural Brazilians for US$10/month plus an initial installation fee – little more than what people were already spending on non-renewable forms of energy. Additionally, Rosa established a separate initiative, called Quiron, to address the unique needs of those who cannot afford to pay the TSSFA prices.
Instead of subsidizing the purchase of solar energy services for those who cannot afford its cost, Rosa would leverage his solar energy services to provide incomegenerating opportunities to those that needed it. The Quiron project is an integrated project for sustainable rural development, income generation, employment of renewables for domestic and productive use, biodiversity management, forestation and carbon credits.

This case presents the business details of the nascent TTSFA and Quiron ventures, including a triple-bottom-line summary of early results (economic, environmental, and social impacts). The case also presents the risks and hurdles inherent in these projects, as well as implications for their potential scalability to other countries/regions. Through this case, students may gain insight into both the challenges and significant opportunities in addressing the needs of low-income consumers in emerging markets.

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Published by: THE NIKOLA TESLA INSTITUTE on May 21, 2014
Copyright:Traditional Copyright: All rights reserved

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C04-001
F
ABIO
OSA AND
S
OCIAL
E
NTREPRENEURSHIP
 
 A
 
EACHING
 ASE FROM 
 
ENAN 
-F 
LAGLER
B
USINESS
S
CHOOL
 
NIVERSITY OF
ORTH
 AROLINA
 
D
ISTRIBUTED
S
OLAR
E
NERGY IN
B
RAZIL
:
 
F
ABIO
OSA
S
A
PPROACH TO
S
OCIAL
E
NTREPRENEURSHIP
 
Authors
Yerina Mugica, under the direction of Professor Ted London, Kenan-Flagler Business School, University of North Carolina, Chapel Hill
Abstract
Approximately 25 million people in Brazil do not have access to electricity. Fabio Rosa, a local social entrepreneur, is working to fill this need through innovative distributed solar energy business ventures. Rosa founded both a for-profit corporation, Agroelectric System of Appropriate Technology (STA) and a not-for-profit organization, the Institute for Development of Natural Energy and Sustainability (IDEAAS). Through IDEAAS, Rosa developed a business plan for an innovative venture, dubbed “The Sun Shines for All” (TTSFA), which would lease a basic photovoltaic solar home system to rural Brazilians for US$10/month plus an initial installation fee – little more than what people were already spending on non-renewable forms of energy. Additionally, Rosa established a separate initiative, called Quiron, to address the unique needs of those who cannot afford to pay the TSSFA prices. Instead of subsidizing the purchase of solar energy services for those who cannot afford its cost, Rosa would leverage his solar energy services to provide income-generating opportunities to those that needed it. The Quiron project is an integrated project for sustainable rural development, income generation, employment of renewables for domestic and productive use, biodiversity management, forestation and carbon credits. This case presents the business details of the nascent TTSFA and Quiron ventures, including a triple-bottom-line summary of early results (economic, environmental, and social impacts). The case also presents the risks and hurdles inherent in these projects, as well as implications for their potential scalability to other countries/regions. Through this case, students may gain insight into both the challenges and significant opportunities in addressing the needs of low-income consumers in emerging markets.
Keywords:
Social entrepreneurship, Fabio Rosa, solar energy, Brazil, entrepreneur, sustainable development, rural development, microenterprise, international development, electric industry, triple bottom line
©2004 Kenan-Flagler Business School, University of North Carolina, Chapel Hill, NC, USA.
This case is intended to serve as a basis for class discussion, rather than to illustrate the effective or ineffective handling of an administrative situation.
No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form by any means without permission.
 Available online at www.cse.unc.edu 
Clarifications or comments may be directed to cse@unc.edu.
 
 
This case was prepared by Yerina Mugica under the direction of Professor Ted London, UNC’s Kenan-Flagler  Business School, as a basis for class discussion rather than to illustrate the effective or ineffective handling of an administrative situation.
Distributed Solar Energy in Brazil: Fabio Rosa’s Approach to Social Entrepreneurship
 
 
Table of Contents
Background...................................................................................................................................................3 Fabio Rosa................................................................................................................................................3 Past Success.........................................................................................................................................3 STA IDEAAS............................................................................................................................................5 STA...........................................................................................................................................................5 IDEAAS...................................................................................................................................................5 Brazil’s Rural Energy Market.......................................................................................................................6 Origins of The Sun Shines for All Initiative (a BOP business)....................................................................7 The Sun Shines for All Business Model.......................................................................................................8 Mission.........................................................................................................................................................8 Overview.......................................................................................................................................................8 Pilot Project..............................................................................................................................................9 Marketing...............................................................................................................................................10 Target Market.....................................................................................................................................10 Product / Pricing.................................................................................................................................10 Promotion / Placement.......................................................................................................................11 Supply Chain..........................................................................................................................................12 Human Resources...................................................................................................................................13 Financing................................................................................................................................................13 Program Results Triple Bottom Line.......................................................................................................14 Financial Projections..............................................................................................................................14 Social Impact..........................................................................................................................................15 Environmental Impact............................................................................................................................15 Challenges...................................................................................................................................................16 Key Lessons................................................................................................................................................16 Opportunities..............................................................................................................................................17 Venture Scalability/Transferability........................................................................................................18 Risks...........................................................................................................................................................18 Origins of the Quiron Project (a BOP not-for-profit).................................................................................18 The Quiron Project Business Model...........................................................................................................19 Marketing...............................................................................................................................................20 Market Research.................................................................................................................................20 Products..............................................................................................................................................21 Pricing................................................................................................................................................21 Placement...........................................................................................................................................21 Financing................................................................................................................................................22 Program Results Triple Bottom Line.......................................................................................................22 Financial Projections..............................................................................................................................22 Social Results.........................................................................................................................................22 Environmental Impact............................................................................................................................22 Challenges...................................................................................................................................................23 Key Lessons................................................................................................................................................23 Risks...........................................................................................................................................................23 Exhibit 1......................................................................................................................................................25 Map of Brazil..........................................................................................................................................25 Exhibit 2......................................................................................................................................................26 Supply Chain Process.............................................................................................................................26 Exhibit 3......................................................................................................................................................27 Distributed Energy Business Model.......................................................................................................27

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