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Business, Innovation & People at the Base of the Pyramid. Lighting Africa Conference 18-20 May 2010 Gilles Vermot Desroches Senior VP, Sustainable Development. Agenda. Schneider Electric at a glance. Schneider Electric & access to energy: BipBop. Focus on Lighting solutions.

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business innovation people at the base of the pyramid

Business, Innovation & Peopleat the Base of the Pyramid

Lighting Africa Conference

18-20 May 2010

Gilles Vermot Desroches

Senior VP, Sustainable Development

agenda
Agenda

Schneider Electric at a glance

Schneider Electric & access to energy: BipBop

Focus on Lighting solutions

The outlook in Africa

schneider electric at a glance
Schneider Electric at a glance

The global specialist in

Energy management

Billion global sales in 2009 (in€)

  • Making energy:
  • Safe
  • Reliable
  • Efficient
  • Productive
  • Green

34% of sales in new economiesx2 compared to 2004

Covering

World final energy consumption

people in 100+ countries

Energy production

& transmission

Energy usage

Sales devoted to R&D

Years of history through innovation and leading brands

A Recognised Sustainable commitment

schneider electric in africa
Schneider Electric in Africa*

2,000people in 15+ countries

14regional offices

6factories

6logistics centres

Power Technics Ltd: Our partner in Kenya

*non consolidated all SE entities and subdisdiaries – based on estimates

slide5
2 billion people worldwideforced to rely ontraditional biomass sources due to the lack of clean and safe cooking fuels

1.5 billion peopleare heavily impacted by lack of access to electricitySource: IEA/OECD World Energy outlook 2009

bipbop programme promoting development through combined initiatives
BipBop programme: promoting development through combined initiatives

BusinessBuild an investment fund to support the creation of companies dedicated to electrical business for the Base of the Pyramid

InnovationBuild adequate offers/solutions to be a champion in the electrical distribution field for the Base of the Pyramid

PeopleTrain young people from the Base of the Pyramid in electrical skills and sponsor them

bipbop objectives and achievements

B

I

Bop

P

BipBop objectives and achievements

2009

125

260,000

2,150

From 01/2009 to 12/2011 objectives

Business500 contractorsat the base of the pyramid* set up their activities in the electricity sector

Innovation1Mhouseholds from BoP equipped with adequate energy offers/solutions by 2011

People

10,000young people from the base of the pyramid trained in energy skills

http://barometer.schneider-electric.com

focus on business a dedicated impact investment fund schneider electric energy access seea
Focus onBusinessA dedicated “impact” investment fund:Schneider Electric Energy Access - SEEA

Creation: July 2009

Current size: € 3.5M

  • Schneider Electric: €3M
  • Schneider Energie Sicav Solidaire: 500K€

Targeted size:10M€

Return objective: 5%

In France: Euribor + 100

Internationally: 5 à10%

Investment time: 5 - 7 years

Promotethedevelopment of businessthat provide energy access in rural or suburban areas

Supportthedeployment ofinnovative energy access solutionsthat use renewable energies for the Base of the Pyramid

Supportthecreation of companiesdedicated to electrical business by unemployed people

International

France

slide9

Focus onPeopleworldwide overview & categories

  • Training segmentation
  • Access level
    • India, Cambodia, China, Cameroon
  • Official diploma
    • Chile, Brazil, South Africa, Colombia, Tanzania, Algeria, China, Turkey, Cameroon
  • Train the trainers
    • Brazil, Algeria
  • Coming soon
    • Morocco, Kazakhstan, Yemen, Vietnam, Italy, …

part of a global BipBop projectlocal project coming soonmaybe

focus on innovation schneider electric covers access to energy needs
Focus on InnovationSchneider Electric covers access to energy needs

Individual lighting systems

Other projects to come via SEEA

In-Diya basic version

Solar Home Systems (SHS)

In-Diya upper different versions

Micro-grid solutions

MICST collaborative project

Innovative solar micro-grid engine

Madagascar Jirano project

Electrification of a 200 household village

Pre-payment solutions

innovation in diya can illuminate a room better than 11 watt cfl and provide back up for 8 hrs

Light output better than 11 watts CFL.

Light output

600 Lumens

630 Lumens

Luminous Efficiency

50 Lumens/Watt

140 Lumens/Watt

Highly energy efficient

Life (in hrs)

6,000

50,000

More than 20 years of life

Operating Voltage

AC, 90-270 VoltsDC, 12 Volt

Not affected by low voltage problem in India

AC,170-250 Volts

Innovation: In-Diya can illuminate a room better than 11 watt CFL and provide back up for 8 Hrs

Benefits

11 Watt

4.5/5.5 Watt

Back-up

Can give 8 Hrs back-up with 5 Ah battery

No back up

8 Hrs

innovation helping incremental scalability of electric installation in bop household
Innovation: Helping incremental scalabilityof electric installation in BOP household

Solar Home Solution

Need

Battery Rental

Grid connection

Two Lights

+ 1 Fan

+ 1 TV

Not Feasible

Two Lights

+ 1 Fan

Not Feasible

Two Lights

One Light

business model adapted to local realities
Business model adapted to local realities

Channel partners

Urban

Existing Distributors

and their retail network

PUSH

Asia Pacific

and their retail network

Retail Chains

Big Bazzar, E Zone

APC DistributionChannel

Rural

Existing Rural Retail

Network ( IOCL)

PULL

Partnership with

MFI, NGOs, Kerosene

Dealer Network

Partnership with trained electricians

people electricity trainings for young people from rural areas

2009

  • >300
  • Trained
  • All have a job
  • Employees
  • Entrepreneurs
  • 2012
  • 4,000 people trained
People: electricity trainings for young people from rural areas

Delhi

Patna

Bihar

Bhubaneswar

Orissa

Brahmapur

Hyderabad

Vishakhapatnam

Vijayawada

Bangalore

Andhra

Pradesh

Chennai

Madurai

Karnataka

Tirunelveli

Tamilnadu

Kanyakumari

Training centers opened during 2009

Training centers to be opened during 2010

supply chain supported by local people
Supply chain supported by local people

Household customers

Battery charging Station

Managed by trained electrician

Transport of batteries

Delivery of battery to the customer by entrepreneur

Business customer

in africa relying on our presence and experiments to develop bipbop eco system
In Africa, relying on our presence and experiments to develop BipBop eco-system

Conlog Pre-payment solution leader for more than 20 years

4 million systems installed

200,000 new households connected/year

Water of the Sun, Senegal (pilot), 2010

Integrated installation to automate water pumping via a solar system and adapted variable speed drive

Benefits: no battery, no separated elements, sustainable and massive time saving for village people

Partners: Caritas, ESIGELEC of Rouen - Electric Engineer School, ESP of Dakar – Polytechnic Engineer School

Jirano project, Madagascar, 2009

Off- grid solar facility for 120 inhabitants based on Schneider Electric know-how.

Benefits: Residents education program to maintain the facility, 1,400W peak power generation, 490W current usage, 12 new jobs created.

Partners: Ambatovy, Orange, Conlog by Schneider Electric,

Trainings, In progress:Tanzania

To come: Morocco, Algeria, Cameroon, South Africa

2010 2011 becoming an active player to deliver solutions for lighting africa
2010/2011, becoming an active player to deliver solutions for « Lighting Africa »

Efficient lighting and Solar home systems deployment:

In-Diya

Micro-grid solutions replication:

Madagascar, Senegal

Training people to develop technical and commercial skills

Achieve more while paying less,

For a sustainable development of BoP African people

thank you and you are welcome on our booth
Thank you and you are welcome on our booth

Gold contributor of Lighting Africa Conference 2010

For more information

schneider-electric.com

schneider-electric.com/bipbop

sdreport.schneider-electric.com

facebook.com/SE.bipbop