Green Village Electricity Project Nigeria:
Operational Report
An Initiative of GVE Projects Limited
RC1071222
Ifeanyi B. Orajaka & Chuka P. Eze
info@gve-group.com
www.gve-group.com
IEEE Smart Village Workshop, GHTC 2015, Seattle. 8th October 2015.
The Business Summary
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Executed Pilot Projects
Pilot (I)
Pilot (II)
Capacity: 6kWp
Capacity: 9kWp
Cost: USD 75,000.00
Cost: USD60,000.00
Location: Egbeke – Etche, Rivers State, Nigeria
Location: Egbeke – Etche, Rivers State, Nigeria
Year of Completion: September 2013
Year of Completion: March, 2015
Impact(s): 480people, 20 jobs, 91.3MT of CO2,
Impact(s):720people, 36 jobs, 136MT of CO2,
45% ($12) reduction in HH energy expenditure
45% ($12) reduction in HH energy expenditure
Pilot (III)
Pilot (IV)
Capacity: 9kWp
Capacity: 34kWp
Cost: USD 60,000.00
Cost: USD 220,000.00
Location: Egbeke – Etche, Rivers State, Nigeria
Location: Bisanti – Katcha, Niger State, Nigeria
Year of Completion: March, 2015
Year of Completion: September, 2015
Impact(s):720people, 36 jobs, 136MT of CO2,
Impact(s):1,600people, 90 jobs, 517MT of CO2,
45% ($12) reduction in HH energy expenditure
45% ($12) reduction in HH energy expenditure
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Revenue Model
GVE
Base Infrastructure
Modular Site of
34kWp Each
Site Setup Cost (Equipment Only):
$165,782.25
Service Offering per Site
AIPU:
Mini-grid
$690.76
(240 Clients)
Revenue Streams
Ave. Monthly ARPU:
$11.25
One-time Connection Fee:
$20.00
P.A.Y.G Utility Fee:
0.45/kWh (off-peak)
$0.75/kWh (peak)
Legend: AIPU: Average Investment Per User ARPU: Average Revenue Per User
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Project Heritage
• US$1.4million raised and committed to six pilot projects till date
• Rated by USAID and GIZ as the ideal model for advancing energy access in Nigeria
• Listed among Sankalp Forum’s top-60 promising Sub Saharan Africa SMEs 2015
• Model is Scalable to Meet Specific Community Needs
• Model has Directly Measurable Environ-Socio-Economic Impact
Awards:
•Finalist; West African Forum for Clean Energy Financing Business Plan Competition, Sept. 2015
•Finalist; City Mart/ City of Lagos Off-Grid Power Solution Challenge, June 2014.
•Winner; GE Africa/ USADF, Power Africa Off-Grid Energy Access Challenge, Nov. 2013.
•Winner; UNDP/ Bank of Industry –Nigeria, Access to Renewable Project Nigeria, Dec. 2012.
•Winner; IEEE Presidents’ Change the World Project Challenge 2009.
•The Project has been awarded 5 years pioneer status incentive
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Pilot Projects in Photos
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Pre-Implementation Scenario
Night view of
the
community’s
major pathway
before the
project
Project Impacts
• 460 Mini-grid Households (3,240 people)
• 110 Street lighting points along the main street of the four beneficiary
Communities.
• Enhanced security at night
• Extended business operating hours
• 41 PBK Clients now has clean Electricity/ Cell Phone Charging.
• Children gather around the street lighting points to study/ play at night.
• 182 Jobs Created during and after implementation
• $29,000 Created in Wealth in the four pilot communities during implementation.
• Knowledge transfer to locals
• 40% reduction in Energy related expenditure
• Cumulative annual reduction of CO2 emission by 880.32 MTs
Project Impacts Cont’d
Night view of the community’s
major pathway now.
Management Team (All under 30)
Ifeanyi Orajaka
MD/CEO
Chinedu Azodoh
C.F.O.
• B.Eng. Elect/Elect.
Engineering, FUTO Nigeria
• Certified Project Manager
• Experience with
ExxonMobil, Shell and NIIT
• GIS Rural Electrification
Planning Expert (7-Years)
• Member Global Shapers
• Management Trainings
• Master of Finance, MIT
Sloan, Boston
• B. Eng Illinois Institute of
Technology,
• Experience with Barclays
Capital, Goldman Sachs,
MediaBridge Capital
Advisers LLC. and BGL
Capital Nigeria
• President of NSBE, IIT
Chuka Eze
C.T.O.
Wale Bakare
• Executive Masters Project
Management; CUPE, UK.
• B.Eng. Elect/Elect.
Engineering, FUTO Nigeria
• Experience with Shell,
Interswitch, Nigerian
Breweries and Airtel
Nigeria
• GIS Rural Electrification
Planning Expert (7-Years)
• LL.B, & Chartered Arbitrator
• Lagos Business School
Alumnus
• Trade Sales Manager;
Nigerite Ltd. (Annual sales
portfolio of $30.8m)
• Channel Marketing Exec.;
Vlisco Netherland BV (Annual
sales portfolio of $6.15m)
E.D. Marketing
• Pioneer Company Secretary
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Our Corporate Team
Ifeanyi Orajaka
Chuka Eze
Chinedu Azodoh
MD/CEO
C.T.O.
C.F.O. (MIT- Sloan)
Ikechukwu Onyekwelu
E.D. Corp. Strategy
Wale Bakare
E.D. Marketing
Prof. Gloria Chukwudebe
Kalada Apiafi
Godwin Orajaka
Michael DeSa
Board Chairman
Non-Exec. Director
Non-Exec. Director
Advisory: Finance
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Challenges
– Complex Equipment Import documentation & Cost
– Delays between order, shipping, clearance & final delivery
– Lengthy & expensive customs clearances
– initial FOB prices
– Seasonality of final transport from POE to deployment site.
– Data Capturing and recording
– Absence of replacement parts for critical equipment
– Proper use of equipment by customer
– Operator education & adherence to business model.
-
Financial Constraint (Fund raising) for scaling the model
Lessons Learnt
• Demand still very huge and increasing
• Locals demand more energy for productive use and refrigeration (Tier 2
Energy Service level 200 – 800 Wh/d).
• More Co-ordinated Procurement and Equipment Logistics process
• Need to have handy replacement for critical equipment
• More customers are inclined to the prepaid metering & mini grid
• Need for a more robust field support mechanism
• Need for adequate funding for implementation , administration and
operational overheads
Current & Future Plans
• Ongoing analyses of pilot project outcomes and cash flow
• Implementation of Phases 2 & 3 of BOI Funded Project
• Continued Field Testing of Standardized procurement
procedure
• Continued Field Testing of Standardized shipping and delivery
procedure
• Continued R&D in Power station design & implementation
process
• Continued Optimization of cost and revenue collection
• Standardizing field support mechanism through effective
collaboration with CSI & manufacturers
• Reinforcing corporate relationship with stakeholders
• Developing ties with relevant manufacturers
• Sourcing of capital investment for expansion (grants, angel
investments, single digit debt financing)
• Introduction of Community Shared Ownership (CSO) model
• Extension of mini-grid power delivery to rural SMEs
• Implementation of Expansion Phase I (16 New sites).
Thank you!!!
Please do not hesitate to contact us for further inquiries and/or requests.
info@gve-group.com
www.gve-group.com
Twitter: @GreenVillageEle
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