Community Solutions Initiative (CSI) HTC, PES & NPSS November 6, 2010 Ray Larsen

CSI Formation Spinoff from HTC Emphasis on Community scale and scalable solutions to Reliable Electricity Based on solar battery charging, home lighting model Community entrepreneur owned franchise Economics need to work for cost of candles and kerosene alternatives Aimed to scale to reach at least a million people Co-Chair with Robin Podmore of PES ~50 members, 65% IEEE, meet weekly 11/6/20102CSI AdCom Report November 6, 2010

CSI Product 1 kW peak power station with Base Station batteries Sub-Chargers for 40 home customer batteries Home lighting, charging kit provided Entire system self contained on mobile trailer Ultimately assembled in Haiti, towed to site for instant deployment Typical franchise grows to 5 stations, 200 home customers OR Home customers plus base load e.g. school, clinic, community center 11/6/20103CSI AdCom Report November 6, 2010

Relation to HTC Was running in parallel with R&D in HTC to build a custom controller for solar charging station HTC UN, Vodafone funds cut drastically in March 2o1o Total was $2M CIS through Co-Chair Robin Podmore found receptive home in PES NIO (New Initiative & Outreach) PES gave $25K maintenance fund; very little used to date Added $15K for Podmore small scale projects RE project has had no specific funding to date except speaker travel to PES General Meeting 11/6/20104CSI AdCom Report November 6, 2010

Deployment Programs HTC promoted deployment transition via NGO partnerships Formed partners in Haiti, Kenya, special Masters program at Denver University training managers of similar program Stems from UN Millennium Development Goals Once Haiti successful, opportunities identified in Kenya, Nigeria, Sudan, Phillipines…. 11/6/20105CSI AdCom Report November 6, 2010

1 kW Mobile Station Concept 11/6/20106CSI AdCom Report November 6, 2010

CSI 5 -1kW Station Concept 11/6/20107CSI AdCom Report November 6, 2010  Base Station Options  Home Battery Service

Market Survey: Distribution Distributed to 19 Rural Areas with No Electricity Service Distributed to 1 Suburban Area with Limited Electricity Service 30 Copies of Survey per Area 11/6/20108CSI AdCom Report November 6, 2010

Sirona Cares (NGO) - > Sirona Haiti (Franchise Company)  In Haiti 2 years  Promoting relief and business development  Parent Sirona Fuels (Bio) in SF  Jatropha farming in Haiti  Developed partners for electricity project  Market surveys done by partners  High enthusiasm to begin “We are dry soil waiting for the rain.” 11/6/20109CSI AdCom Report November 6, 2010

Market Survey: Preliminary Results 81 surveys completed while in-country (90% response rate for immediately surveyed regions) Expect to receive approximately 300 more by end of May Preliminary Results: (all prices are in gourdes)MinMaxMedian Willing to Pay Per Month for Electricity % of Income Spent on Electricity10%52%15% Cost to Use Charging Station Cost to Charge Cellphone57515 Price of Generator Fuel (gourdes/gallon) Monthly Cost of Candles Monthly Cost for Kerosene % of respondents did not have electricity. Approximately $10.50 US spent each month on electricity and lighting. 11/6/201010CSI AdCom Report November 6, 2010

Business Plan Outline Reach 1 million people in first 5 years 2-stage Pilot program to test technical, business models: 3 stations, grow to 15 stations total Pilots funded by donations, Pilot 1- $126K, Pilot 2- $296K Set up as franchises; will get some cost recovery Full production and deployment to be funded by social venture capital – foundations, Haiti Reconstruction Funds World Bank Total needs over first 5 years $35M raised via 10-year interest-bearing loans Ramp to 100 stations per month by year 3 Work through multiple NGO trusted partners 11/6/201011CSI AdCom Report November 6, 2010

Plan Details- Sirona Cares 11/6/201012CSI AdCom Report November 6, 2010

Details 2 – Sirona Plan Sirona Cares Foundation: Paul Lacourciere; p; CSI Co-Chair for Haiti: Philippe 1- CSI Co-Chairs: Ray Larsen, Robin Podmore, /6/201013CSI AdCom Report November 6, 2010

Summary Status – CSI Effort Technical model designed by chief engineer of Nextek Power Systems, solar power company in MI & NY Trailers being designed, built by Russell Engineering in CA, solar systems sales in CA, FL Design resources all pro bono to date Nextek donating equipment& work facility; Russell advancing funds, space, labor costs for trailer development Fast Track Plan Procure all Pilot 1 components before end 2010 Deploy first 3 units in Haiti in January 2011 Studying assembling Pilot 2 units in Haiti – save large trans- shipping costs of heavy components 11/6/201014CSI AdCom Report November 6, 2010

Summary - Funding Project applications sent to Haiti Interim Committee for Reconstruction, Clinton Foundation, Kresge Foundation, HTC, E4C Discussions with PES, NPSS re: potential funding Results to date: HTC obtained special funding of $50K for CSI; approved but not yet delivered. Must be spent by end Thanks to Russ Lefevre, Rich Baseil, others No answer yet from E4C; will also be year end funds; maximum $20K PES situation confused; some year-end funds available but caveats appear to rule out giving to CSI. Not hopeful short term Haiti Reconstruction funds hopeful for major investment Finishing pilot programs will provide much needed credibility, visibility, access to large funding sources 11/6/201015CSI AdCom Report November 6, 2010

Summary 2 Total need for Pilot 1: $125 K HTC award in hand: $50K Remainder needed: $75K If E4C comes through with $20K, remaining pilot 1 need is $55K The $50K will be spent primarily on parts for 3 units; one planning trip of 2-3 Sirona people to Haiti in November Will continue constructing 3 units with pro-bono donations from companies Currently have no operating funds past end of Dec 2010 Not funded: Setup operations and support staff in Haiti Shipping costs – very expensive; unit weight ~ 1T Set up assembly plant in Haiti Develop training materials, advance regional staff for growing rapidly Swat teams to work with locals 3-5 days each during initial startup; check back visit; emergency response 11/6/201016CSI AdCom Report November 6, 2010

Summary 3 Pilot 2 should follow smoothly once Pilot 1 is underway Expanding to 5 units per location very important test of growth model Need to be raising Pilot 2 funds as soon as Pilot 1 funded. Any excess funds raised from present applications will immediately be used to build more stations, preferably at assembly plant in Haiti Exploring local Haitian suppliers now for solar panels, batteries, utility trailers 11/6/2010CSI AdCom Report November 6,

11/6/2010 CSI AdCom Report November 6,