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Preparing for scale-up: Lessons from SolarAid’s experience of microbusiness solar 18 July 2007 Nick Sireau, Director John Keane, Programmes Manager
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"I'd put my money on the sun and solar energy” - Thomas Edison (1847–1931)
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The context Pilot projects Research Plans for scale-up Key points and questions Today’s session
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Set up in August 2006 Solarcentury gives 5% of profit Christian Aid funded pilot project Public launch October this year About SolarAid
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The context: solar energy and development
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Two billion people in the world have no access to electricity
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Four billion people live in the developing world The majority of these people live in; Africa Asia Latin America
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They also have the greatest exposure to sunlight
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Pilot projects: Solar micro business in Malawi, Tanzania and Kenya
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Why we did the pilot projects Testing the concept Developing processes Scoping for replicability and growth
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Solar microbusiness in Malawi Kaliya Youth Group
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Solar microbusiness in Malawi 1 W panel
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Solar microbusiness in Malawi LED light in kerosene lamp
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Solar microbusiness in Malawi Solar charger
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Solar microbusiness in Tanzania With disabled people
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Solar microbusiness in Tanzania Solar workshop
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Solar microbusiness in Tanzania Solar workshop
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Kenya: the Fomax success story Entrepreneurial founder Major demand Today: large sales force
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Summary of pilot project results Importance of entrepreneurial spirit Sourcing of materials Distribution and marketing Quality of training and monitoring/evaluation
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The importance of solid research
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Importance of research The importance of market research –A scale-up programme has to be grounded in strong research –Baseline study funded by TRAID –Building research into the programme
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Importance of research Research methods: 200 people surveyed University and local surveyors Four questionnaires: –Potential Customer Survey –Potential Supplier Survey –Raw Materials Components Supplier Survey –KALIYA Youth Group Survey
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Importance of research Research questions: –Demographics –Energy use –Interest in solar products
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Importance of research Research findings (1): –Product now being sold could be improved –Market for solar lantern and radio –Solar mobile phones: reduced market
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Importance of research Solar lantern
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Importance of research Solar radio
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Importance of research Research findings (2): –Need for quality products –Timing of project –Cities interested –Incentives for trainings –Cultural factors: status –Distribution centre
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Importance of research Implications for programme scale-up: –Price –Place –Promotion –Product
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Importance of research Implications for SolarAid: –Credibility –Similar studies for other countries –Ensures strong monitoring and evaluation
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Rolling out the scale-up
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Scaling up our work Pilot projects: 3,000 solar panels In three years: one million
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Scaling up our work Two scenarios for scaling up SolarAid: –Current plan: £250k year 1, £600k year 2, £1.2m year 3 –Faster growth from £4m in year 1, £8.3m in year 2 to £14m in year 3
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Funding our scale-up: Trusts and foundations for first phase Second phase: carbon markets and public Core: high net worth individuals Scaling up our work
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Key points and questions
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Identifying and nurturing entrepreneurs Piloting projects to test your model Developing strong market research Analysing social, economic and cultural factors Key scale up points
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Any questions?
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What advice could you provide for our scale-up? For group discussion
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How can successful pilot initiatives in market development be scaled up? How can the private sector support the development of small and medium-sized enterprises in low income countries? What role can NGOs play in scaling up market development initiatives? For group discussion
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Our vision A world where everyone has access to clean, renewable power
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