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Why EGG Matters: An Introduction to EGG-energy

Why EGG Matters: An Introduction to EGG-energy

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Published by rlacombe

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Published by: rlacombe on Aug 20, 2010
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08/19/2010

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distributing power one battery at a time

1.6 billion people lack access to electricity

500 million live in Sub-Saharan Africa

2

The African continent is a largely untapped market for electricity distribution
Tanzania: Optimal entry point • Large market: 7 million households without electricity • Favorable government policies • Promising trends: GDP growth, political stability

Last Mile Distribution Challenge

90% of Tanzanian households lack access to electricity, yet 80% live within five kilometers of the grid • Families use kerosene for lighting and disposable batteries for electronic devices • Available power solutions are expensive, low-quality, unsafe, and polluting • Mobile phone charging costs are high

Expensive & Unsafe Current Power Options

The Need

3

EGG-energy’s battery subscription service links low-income households and businesses to electricity sources
Generation Distribution Consumption

EGG-energy Charge & Swap Stations sell battery subscriptions that connect low-income households and small businesses to power generation sources. We currently use electricity from the grid, and plan to use distributed renewable sources in areas far from the grid. Our Solution

4

EGG-energy is targeting the off-grid market in Tanzania
Three Customer Segments
Low Income Urban Homes

Rural Homes

Small Businesses

9.5 million people

25 million people

75,000 businesses

• $200 9.5 million million/year people

Immediate opportunity to expand to neighboring countries: $2 billion market across East Africa

Target Market

5

EGG-energy has 3 revenue drivers
• The customer buys an annual battery subscription • For a small fee, the customer can swap a depleted battery for a freshly charged one at a distribution station • Customers choose from a selection of EGG-approved LED lights, mobile phone chargers, radio adapters and auxiliary equipment • EGG-energy technicians work with the customer to determine optimal, customized system • Technicians install the system and are available for maintenance and repairs Our Solution

Electricity

Appliances

Installation

6

Our solution is more attractive than alternative light or power sources and holds no technology risk
Positioning Benefits
Convenient: small, portable, multiple posible uses. Affordable: 50% savings over current customers’ non-heat energy expenses; proven ability and willingness to pay. Clean: Our service displaces kerosene and disposable batteries. We maintain ownership of and Safe: Our AGM, sealed, lead-acid recycle our batteries. batteries neither spill nor leak.

EGG-energy

Affordability

Disposable Batteries Kerosen e Car Batteries

Solar Lanter ns

Solar Grid

Generat or

Ease and Quality of Service

Our Solution

7

EGG-energy delivers a triple bottom line

Social Returns *
• Over 875 direct jobs created • Valuable training provided to employees • Improved customer productivity, health and educational outcomes • Entrepreneurial opportunities created

Environmental Returns *
• 14 million liters of kerosene displaced • 32,000 tons of avoided CO2 emissions • Creating a platform to enable renewable electricity generation Economic Returns • $20m in revenues in 2014 (year 5) • Positive cash-flows in 2013 (year 4) Our Impact

*: benefits calculated over a 5 year period

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We initiated operations in Tanzania in June 2009 …
Apr 200 9
Operational Milestones

July 200 9

Oct 200 9

Jan 201 0

Apr 201 0

Arrived in Tanzania Won Harvard Business School Business Plan Competition Won Yunus Challenge of MIT IDEAS Competition Won KLI Africa Business Plan Competition

Opened Pilot Site Secured funding from Blue Sky Ventures Won 3rd place in Ignite Clean Energy Competition Won Pace University Pitch Competition

100th Custome r

200th Custome r

Won Richard Heinberg Sustainability Award CEO Jamie Yang selected as 2010 Echoing Green Fellow

Funding Milestones

Timeline

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… and plan to rapidly expand to seven charging locations

Charging Center Distribution Center Proposed Charging Center Proposed Distribution Center Current Customers

Expansion Plan

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In summary: we aim to bridge the Sub-Saharan power gap
EGG-energy’s Solution We offer an affordable battery subscription service that connects lowincome households and small enterprises to electricity. We install safe electric systems in our customers’ homes. We rent out small electric batteries that can power lights, radios and mobile phones. Depleted batteries are exchanged for freshly charged ones at our distribution centers. Target Market

Annual spending on kerosene for lighting: Sub-Saharan Africa: $17bn EGG-energy 2014 target revenue: $20m We have raised money and in in-kind services from a private investor and multiple business competitions. These funds have been used to operate a pilot site in Tanzania, acquire 250 customers and hire 7 employees.
Vision Success to Date

We envision safe electricity distribution that’s within everyone’s reach.

Executive Summary

11

Want to know more?
Come and visit us in Chanika !

http://egg-energy.com info@egg-energy.com

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