Distribu(ng
energy
to
rural
Africa, ba5ery
by
ba5ery
h5p://egg‐energy.com/ 
 info@egg‐energy.com

From
dim,
unsafe,
expensive,
 pollu(ng
&
unreliable
energy…
…
to
safe,
bright,
affordable,
 accessible
electric
services

Innova(on
1:
Understanding
a
misunderstood
customer

h5p://waterwellness.ca/2010/04/28/perspec(ves‐of‐poverty/

3
Environmental
Protec(on
Agency
(December
2002).
"Community
Water
System
Survey
2000"
Sarah
McGregor.
Running
Water
Remains
a
Pipe
Dream
for
Many.

IPS.
May
27,
2008

h5p://www.businessweek.com/smallbiz/resources/rate_report/borrowers.htm
Kessy
&
Urio.
The
Contribu-on
of
Microfinance
Ins-tu-ons
to
Poverty
Reduc-on
in
Tanzania.
REPOA
(2006).

REEEP
&
Barefoot
Power.
50
ways
to
end
kerosene
ligh-ng .
2009

Collins
et
al.
PorBolios
of
the
Poor:
How
the
World’s
Poor
Live
on
$2
/day .
2009

Innova(on
2:
Finding
good
opportuni(es
in
underserved
markets

1.6
billion
people
lack
access
to
electricity
500
million
live
in
Sub‐Saharan
Africa
14

The
African
con(nent
is
a
largely
untapped
market
for
 energy
distribu(on
Tanzania:
Op(mal
entry
 point
•   Large
market:
7
million
households
without
electricity
•   Favorable
government
policies
•   Promising
trends:
GDP
growth,
poli@cal
stability
Last
Mile
Distribu(on
Challenge
•   88%
of
Tanzanian
households
lack
access
to
electricity,
yet
80%
live
within
five
kilometers
of
the
grid
Expensive
&
Unsafe
Power
Op(ons
•   Families
use
kerosene
for
ligh@ng

and
disposable
baPeries
for
electronic
 devices
•   Available
power
solu@ons
are
expensive,
low‐quality,
unsafe,
and
pollu@ng
•   Mobile
phone
charging
costs
are
high
Target
Market
15

EGG‐energy
is
targe(ng
the
$715
million
off‐grid
market
in
Tanzania
Three
Customer
Segments
Rural
Homes
 Small
Businesses
 Low
Income
Urban
Homes
•   25
million
people
•   $500
million
/
year
•   75,000
businesses
•   $15
million
/
year

 with
high
growth
poten(al
9.5
million
people
•   9.5
million
people
•   $200
million
/
year
Immediate
opportunity
to
expand
to
neighboring
countries:
$2
billion
market
across
East
Africa
Target
Market
16

EGG‐energy’s
ba5ery
subscrip(on
service
links
low‐ income
households
and
businesses
to
electricity
sources
Genera(on
 Distribu(on
 Consump(on
EGG‐energy
Charge
&
Swap
Sta(ons
 sell
baPery
subscrip@ons
that
connect
 low‐income
households
and
small
businesses
to
power
genera@on
sources.
We
currently
use
electricity
from
the
grid,
and
plan
to
use

 distributed
renewable
sources
in
areas
far
from
the
grid.
Solu(on
17

Innova(on
3:
U(lizing
proven
technology
&
business
models
in
new
 ways

EGG‐energy’s
business
model
has
four
key
components
Our
Solu(on
19

We
offer
a
comprehensive
energy
solu(on
Electricity
•   The
customer
buys
a
baPery
subscrip@on
•   The
customer
can
swap
a
depleted
baPery
 for
a
freshly
charged
one
at
a
distribu@on
 sta@on
Appliances
•   Customers
choose
from
a
selec@on
of
EGG‐approved
LED
lights,
mobile
phone
 chargers,
radio
adapters
and
auxiliary
 equipment
Installa(on
•   EGG‐energy
technicians
work
with
the
 customer
to
determine
op@mal,
customized
 system
•   Technicians
install
the
system
and
are
 available
for
maintenance
and
repairs
Solu(on

Our
services
are
low‐cost,
enabling
customers
to
save
 significantly
over
current
energy
expenditures
Annual
Non
Heat‐Related
Energy
Expenditures
for
Typical
EGG‐energy
Customer
$125
$103
(18%
Savings)
$59
(53%
Savings)
Current
EGG‐energy
Service
(1st
Year)
EGG‐energy
Service
(Aker
1st
Year)
Upfront
cost
comparison :
$26‐76
for
EGG‐energy
Service
vs.
$1,000+
for
grid
connec@on
Solu(on
21

We
use
technology
appropriate
for
our
business
and
 constantly
seek
improvements
Enabling
 technology
•   Sealed
lead
acid
baPeries
(absorbed
glass
mat)
•   Informa@on
Technology
(databases,
netbooks,
etc.)
•   Mobile
voice
and
data
networks
Technology

 poten(ally
 applicable
 to
EGG
Technology
 designed
for
 developing
 countries
•   BaPery
technology
(Li‐ion)
•   Other
energy
storage
(super‐capacitors)
•   Distributed
genera@on
(small
hydro
or
wind)
•   Mobile
money
systems
•   Low
cost
solar
systems
(Barefoot
Power,
Schneider
Electric)
•   Integrated
baPery
systems
(BBOXX,
Fenix)
•   Solar
system
metering
(Simpa
networks)
22

Innova(on
4:
Maintaining
a
big
vision
while
dealing
with
the
 challenges
of
building
a
company

1934,
USA :
less
than
14%
 of
farms
had
electricity
2011,
Tanzania :
less
than
14%
 of
popula@on
has
grid‐electricity
1952,
USA:
100%
 of
households
and
to
turn
it
into
useful
electric
services
21 st 
century,
East
Africa?
that’s
 the
we
want
to
write!
Source
US
rates:
US
DOE
 hPp://tonto.eia.doe.gov/cneaf/electricity/chg_stru_update/appa.html
Tanzania
rate:
World
Bank
‐
 hPp://www.esmap.org/esmap/sites/esmap.org/files/TEDAP%20SPPs%2011‐18.pdf
24

EGG‐energy
delivers
a
triple
bo5om
line
Social
Returns
*
•   
Over
427
direct
jobs
created
•   
Valuable
training
provided
to
employees
•   
Improved
customer
produc@vity,

 health
and
educa@onal
outcomes
•   
Entrepreneurial
opportuni@es
created
* :
benefits
calculated
over
a
6
year
period
Environmental
Returns
*
•   
9.9
million
liters
of
kerosene
displaced
•   
22,200
tons
of
avoided
CO
2
 emissions
•   
Crea@ng
a
plakorm
to
enable

 renewable
electricity
genera@on
Economic
Returns
•   $8.8m
in
revenues
in
2015
•   Posi@ve
cash‐flows
in
2014
•   Low
funding
need
26

Recent
Highlights
(March
2011)
Building
the
Team
•   
In
February
2011,
EGG‐energy
hired
Solomon
Faraji
as
Chief
Opera@ons
Officer
in
Tanzania.

A
UK‐educated
engineer,
Solomon
has
experience
managing
both
a
sales
team
in
the
UK
and
a
team
of
engineers
responsible
for
the
upkeep
of
 mobile
phone
towers
in
Tanzania.

He
is
responsible
for
management
of
the
Tanzanian
staff,
sales,
distribu@on,
and
 partnership
development.
•   
EGG‐energy
currently
employs
8
Tanzanians
and
2
fellows
from
the
USA.
•   
We
are
in
the
process
of
formalizing
our
advisory
board
in
the
USA
and
Tanzania.
Augmented
Controls
•   
Yi
Wang,
an
EGG
Fellow,
has
been
working
on
formalizing
our
processes
and
controls
and
guiding
the
development
of
 the
IT
system
to
make
this
efficient
and
effec@ve.

She
has
completed
the
first
itera@on
of
our
franchise
opera@ons
 manual
and
is
using
it
to
set
up
our
new
sta@on
(opening
March
2011).
•   
We
are
using
local
banks
to
manage
cash
and
are
in
the
process
off
integra@ng
mobile
money
transfers.
Partnership
Development
•   
Product
and
sourcing:
EGG
is
currently
tes@ng
products
from
BBOXX
and
exploring
product
op@ons
from
Barefoot
Power.
We
are
also
in
con@nued
talks
with
Schneider
Electric
regarding
product
development.
•   
Community
and
micro‐financing:
Natalie
Bonilla,
an
EGG
Fellow,
is
developing
links
to
MFI
and
community
groups.
•   
Mobile
phone
companies:
Yi
is
developing
a
proposal
to
work
with
a
telecom
company
to
expand
our
footprints.
•   
Opera@ons:
EGG
is
looking
to
open
a
second
charging
sta@on
in
March
2011
and
currently
has
5
distribu@on
sta@ons.
Investor
Developments
•   
EGG‐energy
seeks
to
close
its
seed
round
in
2011.
Current
discussions
include
par@cipa@on
from
an
angel
investor,
a
 major
bank’s
social
investment
fund,
and
founders’
investments.

In
addi@on,
EGG‐energy
will
be
par@cipa@ng
in
the
Unreasonable
Ins@tute
in
summer
2011
and
Summit
at
Sea
in
April
2011.
•   
EGG
received
dona@ons
from
the
Segal
Family
Founda@on
and
the
Tsadik
Founda@on.
27

We
plan
to
expand
to
eight
charging
loca(ons
within
12
months
Charging
Center
Distribu@on
Center
Proposed
Charging
Center
Proposed
Distribu@on
Center
Current
Customers
Expansion
Plan
28

Investor
Deck
Slides

Vision
EGG‐energy
provides
affordable,
clean
and
reliable
electric
services
that
reach
everyone.
EGG‐energy’s
current
solu(on
EGG‐energy
offers
a
baPery
subscrip@on
service
that
connects
low‐income
households
and
small
enterprises
to
 electricity.
We
rent
out
small
electric
baPeries
that
can
power
lights,
radios
and
mobile
phones.
Customers
 exchange
depleted
baPeries
for
freshly
charged
ones
at
EGG
distribu@on
centers.
Upon
achieving
larger
 penetra@on
rate
and
s@mula@ng
customer’s
ability
to
pay
for
these
services,
EGG
will
build
an
electric
grid.
Target
Market
Annual
spending
on
kerosene
for
ligh@ng:
Sub‐Saharan
Africa:
$17bn;
EGG‐energy
2015
target
revenue:
$7m
East
Africa:
$2bn;
 
Tanzania:
$715m
Success
to
Date
EGG‐energy
has
raised
cash
and
in‐kind
services
from
a
private
investor
and
mul@ple
 compe@@ons.
These
funds
have
been
used
to
operate
a
pilot
site,
provide
2000
people
with
 electricity,
partner
with
 5
distribu(on
centers
 and
hire
 8
local
employees .
Investment
Opportunity
EGG‐energy
seeks
to
close
its
seed
round
in
2011
and
A
round
funding
in
2012 .
EGG‐energy
will
achieve
profitability
within
2
years
and
posi@ve
cash
flows
within
4
years.
Within
4
years,
EGG‐energy
plans
to
run
137
Tanzanian
sites,
serving
90,000
customers.
EGG‐energy
also
generates
significant
social
and
environmental
benefits.
30

Management
team
brings
broad
and
relevant
exper(se
to
EGG
EGG‐energy
Inc.’s
Management
Team:
5
co‐founders
Jamie
Yang
CEO
•   PhD
in
Engineering,
MIT
•   Prototyping
for
microbial
fuel
cell
start‐up
•   Residing
in
Tanzania
since
June
2009
Alla
Jezmir
Director
of
Capital
Raising
&
Corporate
Development
•   Business
Development,
AES
•   MBA/MPA
,
HBS

&
HKS
•   SME‐consul@ng
in
Kenya,
India,
&
Swaziland
•   Cleantech
IB
&
Social
Impact
Inves@ng
Blandine
Antoine
Director
of
Strategy
•   4 th 
year
PhD
candidate,
MIT
engineering
•   Energy
technologies
•   Energy
ins@tu@ons
in
developing
countries
Rhonda
Jordan
Director
of
Human
Resources
•   4 th 
year
PhD
candidate,
MIT
engineering
•   Rural
electrifica@on
and
power
system
 regula@on
experience
in
Tanzania,
UNEP
•   Summer
Financial
Analyst,
Goldman
Sachs
Jukka
Valimaki
CFO
•   Management
Associate,
Elsevier
•   MBA
(concentra@on
in
Finance),
MIT
Sloan
•   Project
management
&
business
dev.
experience
in
consumer
services
Mark
Yen,
Benjamin
Lambert
and
Emmanuel
Cassima@s,
EGG‐energy

 co‐founders,
are
suppor@ng
the
team
in
an
ad‐hoc
advisory
manner
31

EGG‐energy
Tanzania
Ltd:
a
talented
team
on
the
ground
EGG‐energy
Tanzania
Ltd.
Management
Chanika
Sta(on
Team
Solomon
Faraji
EGG‐energy
Tanzania
Ltd.
COO
•   B.S.
in
Mechanical
Eng.,
Univ.
Wales,
UK
•   Management
of
field
technicians,
TZ
•   Customer
facing
experience
in
service
industry
Yi
Wang
Manager
of
Opera(ons
&
Strategic
Partnerships.
EGG‐Fellow
•   B.S.
in
Engineering
and
Management,
MIT
•   Financial
Analyst,
Morgan
Stanley
•   MIT
Development
Lab
Brazil
Team
Member
Natalie
Bonilla
Manager
of
Distribu(on
&
Expansion
Strategy.
EGG‐Fellow
•   MA
Interna@onal
Rela@ons,
Univ.
Kent
Brussels
•   Renewable
energy
project
management
•   Worked
with
rural
communi@es,
Guatemala
Micah
Bruxvoort
Chanika
Opera(ons
•   MDiv,
BA
with
minor
in
Interna@onal
Development,

Calvin
College
•   Microfinance
research
•   Assisted
refugees
from
Bhutan,
Iraq
&
Burma
Mohamedi
Shabani
Jonathan
Mshandete
WyaP
Gordon
Abbas
Thabi@
Greyson
Kilagula
Idrisa
Gungulugwa
Electrical
Technician
Chanika
Sta@on
Manager
2010
EGG‐fellow
(Manager
Distribu@on)
Electrical
Technician
Chanika
Site
Manager
Electrical
Technician
from
back
to
front,
from
le0
to
right
(missing:
1
electrical
technician
and
1
office
assistant)

Our
advisors
and
board
provide
extensive
Africa‐specific
 knowledge
and
networks
Advisors
Jigar
Shah
 Carbon
War
Room
John
Schroder
 Professor
at
SAIS
at
Johns
Hopkins
John
Simon
 Total
Impact
Advisors
Board
of
Directors
The
Board
of
Directors
currently
consists
in
the
5
afore‐ men@oned
EGG‐energy
Inc.
Managers:
Blandine
Antoine
Rhonda
Jordan
Jukka
Valimaki
Alla
Jezmir
Jamie
Yang
Partners
Miguel
Granier
 Invested
Development
Andreas
Zeller
 Partner,
Open
Capital
Partners
IB
Energy,
LTD
 Consultant,
Distributor
of
Rural
Energy
Systems
in
Tanzania
TechnoServe

 Entrepreneurial
Services
in
the
Developing
World
Kickstart
 Develops
&
Markets
new
 technologies
in
Developing
World
ENEA
Consul(ng
Research
and
consul@ng
for
 sustainable
energy
projects
MIT
Public
Service
Center
Supports
student‐led
social
 enterprises
33

We
employ
a
comprehensive
strategy

 to
mi(gate
poten(al
risks
Risks
Business
Model
Imita(on
Mitigation
•   
Efficient
processes,
BePer
quality,
BePer
service,
Local
partners
Ba5ery
Thek
•   Annual
membership
set
at
baPery
cost
•   Conserva@ve
loss/the0
projec@on
(20%)
Employee
Risk
Corrup(on
Limited
Market
Informa(on
Exchange
Rate
Risk
•   Compe@@ve
salaries
and
Training
•   Local
management
•   Partner
with
pres@gious
local
ins@tu@ons
•   Maintain
policy
of
not
paying
bribes
•   On‐the‐ground
research
•   Local
partners
•   Regional
sourcing
•   Interna@onal
expansion
Solu(on
34

EGG‐energy
builds
sustainable
compe((ve
advantage
 vs.
Local
Compe((on
Scale
Distribu(on
Source 

in
bulk
at
lower
costs;

 access
to
capital 
unavailable
to
small
compe@tors
Establish
 preferred
partnerships 
with
distributors

 by
providing
them
with
a
large
and
reliable
source
of
business.
Global
Team
Diverse
skills,
interna@onal
 network ,
technological
 exper(se ,

 access
to
interna@onal
sources
of
capital
 vs.
Large
Entrant
Local
Networks
Op(mal
Sites
Captured
Local
Knowledge
Local
connec@ons
and
local
staff
 established
first
As
the
first
mover,
EGG‐energy
chooses
the
most
 lucra(ve
sites 

 in
terms
of
market
size
and
logis@cal
efficiency
EGG‐energy
will
develop
 brand
recogni(on 

 and
unparalleled
 knowledge 
of
its
customers
35

EGG‐energy
has
developed
a
realis(c
roadmap
for
growth
Geographic
and
Business
Line
Expansion
Stage
In‐Country
Expansion
Pilot
2011
‐
2015:
Proof
of
scale
Beyond
2015:
Proof
of
developing
 world
applica@on
Targets
2009
‐
2010:
Proof
of
concept
•   1
Charging
Sta@on
•   1,000
Subscrip@ons
•   137
Charging
Sta@ons
•   90,000
Subscrip@ons
•   Mul@‐Country
Roll‐Out
•   Entry
to
Power
Genera@on
Poten(al
Partners
Opera(onal
Partners:
•   Distributors
•   Energy
consultancies
•   Sourcing
companies
•   Grant
organiza@ons
Market
Awareness
Partners:
•   TechnoServe
•   World
Resources
Ins@tute
•   TaTEDO
Exit
Op(ons:
•   Power
company
•   Distribu@on
companies
•   Private
equity
•   IPO
36