Barefoot power

Our customers will be rural villagers, or people near the grid who don't have access to electricity. These people rely on kerosene, and spend $2-3/week on a very poor energy service. Traditional solar lighting systems cost US$250 or more, so have 3-5 year payback periods, requiring loans. Our innovative business model splits the solar system in two, to start with a US$60 lighting kit and battery charger in the first year, encouraging cash payments and a 1-year payback. The solar panel may be added later, with a 1-2 year loan if required. In the 3-5 year, we can start investing in micro hydro and gasifier mini grids, more confident that they have established a good payment habit.

We will link with established NGOs and companies in developing countries who have established programs of work that can be expanded to village electrification. These local managers have motivation to encourage development of nearby villages, and are interested in renewable energy, as well as having a track record of business in the developing country. We will reach our customers via word-of-mouth and demonstration projects, local produce markets where there is a congregation of rural people, and near rural bus depots.

Most countries we are aiming at have little in the way of rural energy engineers, and kerosene is not considered a major competitor, as it offers such a poor hope for future energy.

Yes, I have one business partner, and several organizations looking to invest shortly. My partners' role is to bring higher political and environmental knowledge to the team. We are both located in Australia, but travel often to Pacific Island countries.

www.barefootpower.com has already established as a consultancy. Village electrification is an expansion from this first business model, and a third business line of 50-1000kW micro power stations is also planned in the next 2 years.

We plan to help 50,000 people convert from kerosene lighting to electric lighting within 2 years, or 10,000 households. Each distributor will earn around 10% commission, or US$7/lighting kit, and therefore may earn US$350/week if he can get 1 whole village electrified (50 kits/week, or 2000/year). It is likely that 5 distributors will be required, geographically spaced in different rural areas. Therefore, at least 5 full time sales jobs will be created, as well as 400 village battery charging station manager jobs created, 1 per village. Household and people being burnt from spilled kerosene lanterns will decrease, improving household safety, and lighting levels will decrease eye strain. Skills in small power station operation will be developed, including valuable track records established in revenue collection, which will be essential for expanding the power system to a mini grid. Converting all kerosene lighting (1 L/week/house = 500 t/year) to battery charging will decrease fossil fuel use by 70%, by efficiently loading a diesel generator in year 1. Fossil fuels will be eliminated after year 2 as solar panels are introduced, improving the environment and depedency on imported fuels.