Husk PowerSystems

Puneet RustagiPuneet RustagiOctober 2011

Understanding Base of the Pyramid

Phrase refers to about 4 billion peoplewho live on less than US$8 per daywith close to 2 billion living on less thanUS$2 per day;

A US$5 trillion market opportunitycompared to the lower middle incomesegment which forms a US$12.5 trillionmarket;market;

Huge suppressed demand due to non-

availability; real market potentialalmost double (at US$10 trillion) themeasured opportunity;

Most of this population is in Asia(over 50% in China and India) and areoften rural;

Key segments of opportunity

EnergyMarket potentialof over US$500

bn

WaterMarket potentiallow at US$20 bnbut due to non-priced delivery

Opportunities in

physical infrastructure

such as low income

housing (US$350 bn),

transportation

HealthcareMarket potential

of over US$150 bn

Food /Consumer

goodsMarket potentialof over US$3 tn

transportation

(US$180 bn), ICT

(US$60 bn) as well as

education and

financial services also

exist…

Access to Energy - Huge problem & market opportunity

Over 1.4 billion people in the

world lack access to energy;

Spends about $500 billionannually on energy;

Opportunity of over US$1trillion considering a lot ofsuppressed demand;suppressed demand;

Energy requirements excludestransportation;

Energy is a key enabler for allother activities andconsumption will increase asother activities increase;

Asia and Africa are and will

continue to remain the keymarkets with a spending shareof close to 90% (about US$440bn);

Several approaches and models…

SocialEnterprises

CommercialEnterprises

Solar /LED

Lanterns

SolarHome

SystemsMicroGrids

MicroHydros

Other solutionssuch micro windturbines are alsoprevalenthowever theyhave verylimited

Non-profit

Grants• Donors• Bilateral Agencies• CSR Foundations

BiogasPlants

SmokelessCook

stoves

Soft Loans• Bilateral Agencies• Development Finance

Institutions• Nationalized Banks• Certain Social Investors• Corporate Foundations

Social Investors• IFC• Acumen Fund• LGTVP• ResponsAbility• OPIC• Cooperative Banks

Commercial Investors• Venture Capital Funds• PE Funds• Commercial Banks

*Microgrids include biomass based, biogas and solar plants

Hydroslimitedapplications

The energy problem in India and the story of Bihar…

India has more than 125,000 un-electrified

villages which spend about US$100 bn on

different energy requirements;

Continuing energy demand supply gap has

amplified the problem of access to energy;

Bihar

Economic powerhouse of the last millennium; Economic powerhouse of the last millennium;

Home to about 10% of India’s population (105

million people); equivalent to combined size of

UK and Spain;

Has less than 1% of the country’s energy supply;

Continuing failure of grid based electricity and

evolution of off-grid energy industry;

Lighting up yourinner self

(attaining Zen orenlighteningyourself) isyourself) iseasier than

lighting up yourhouse

Founded in 2007, first 40kWe went live in Aug2007

Strategic partnership with Shell Foundationand IFC for capacity building, establishingheath and safety procedures and traininginfrastructure.

Globally recognized leader in off-grid biomass based power systems

Introduction to Husk Power Systems

infrastructure.

Secured commercial capital in December 2009from firms around the world

Manages 72 power plants as of June2011; allof them are in Bihar, India

Serves more than 300 villages and over150,000 low income households in India

Trained over 300 operators and mechanics

Vision: Integrated approach to rural development

Husk

WaterPurification

SupplyChain

Linkages

Access toenergy Husk

PowerSystems

Linkages

EmpoweringWomen

MicroEnterprises

energy

Solving Access to Energy ProblemPaddy Fields

Rice Mill

Farmers supply all their paddycrop to the rice mill for

processing;Husk is transported using

tractors / bullock cartsfrom the rice mill to the

plant

HPS provides electricity for 6-

8 hours each day and charges

US$2.3 – US$2.7 per

household per month for

lighting up 2 CFLs and one

mobile charging station

Rice Mill

Husk Power Plant

Husk Storage Space

The entire distributionnetwork is set up by HPSand the cost is included

as part of the project cost

Husk Power model vs. Conventional utility

Serviceavailabilityfees vs. perunit charges

Decentralizedsolution due

to lowelectricitydemand

Prepaid vs.Postpaid

Platform playvs. service

play

BOP Business Strategies…

Affordability is the key; use of technology and breakthrough

innovation has an important role to play;

Localizing value creation;

Establishing supply chains for access in both directions; utilizing

existing supply chains as platforms and refining / strengthening

them for your product / service delivery;them for your product / service delivery;

Stakeholder management is very important – co-existence is the

key;

Japanese companies / institutions can play an

important role in technology, R&D as well as financing;

Thank you!!Thank you!!Puneet Rustagi

Director, Business Planning & StrategyHusk Power Systems

For further details mail to:rustagi@huskpowersystems.com