Tutorial: IEEE CSI Business Development Workshop Sirona Haiti Rural Electricity Franchises Commercialization

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TutorialIEEE CSI Business Development
WorkshopSirona Haiti Rural Electricity
FranchisesCommercialization Manufacturing

• Paul Lacourciere
• COO, Sirona Haiti S.A./Program Director, Sirona
  Cares

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Technology Overview
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Technology Overview Key Components
Generating Unit

• Electrical
• 4 Deep-Cycle Batteries
• 1 Primary Charge Controller
• 20 MPPT Battery Chargers
• Grid Connection Unit
• 6 240 Watt PV Solar Panels

• Hardware
• Panel Racking System
• Trailer/Containment Unit
• Stabilizers

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Technology Overview Key Components
Home Kits

• Home Battery Kit
• 18 Amp-Hour Battery
• Low-Voltage Disconnect Switch
• 2 x DC12V Outlets
• Volt Meter
• Light

• Home Lighting Kit
• 2 x 3.5 Watt LED Bulbs with Bases
• 1 DC12V Power Plug
• 30 Wiring

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Lessons From Original Design
Generating Units

• Base Electrical Design Excellent
• Racking System Designed for Mobility Easy
  Deployment Too Complicated and Costly to
  Manufacture
• Cannot Cost Effectively Permanently Integrate
  Trailer with Containment Unit

Home Kits

• Base Electrical Design Excellent
• Certain Components Were Extremely Expensive
• Battery Kit Wiring Challenging

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Decisions Regarding Manufacturing Efforts
Home Kits

• Key Issues
• Battery Kit Assembly Required Significant
  Training
• Cost of Shipping Components Higher Than Cost to
  Ship Completed Kits
• Integrated Parts Could be Purchased for Less Than
  the Individual Components

Result Importing Completely Manufactured Kits
Lowered Overall Costs
Generating Units

• Key Issues
• Leverage Existing Local Skills to Assemble Units
• Cost of Shipping Components Lower Than Cost to
  Ship Completed Units
• Local Labor Rates are Competitive With Global
  Rates

Result Local Assembly of Imported Components
Lowered Overall Costs
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Central Redesign Efforts
Home Kits
No material redesign efforts required.
Generating Units

• Revising Internal Electrical Layout To Be Easier
  to Install
• Redesigning Racking System to be Easier to
  Manufacture
• Simplifying the Containment Unit and Designing a
  Deployment Trailer

Objective

• Allow Low-Cost Local Assembly of Generating Units
• Establish Logistics and Supply Chains for
  Generating Unit Components, Home Batteries and
  Lighting Kits
• Minimize Fully-Load Cost of Deployed Franchises

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Logistics Supply Chain
Shipping
LEDs
Light Bases
Integration
Wiring
Shipping
DC Plugs
Deployment
Integration
Battery
Shipping
Integration
Home Kit
Battery
Shipping
Integration
PV Panels
Shipping
Electronics
Shipping
Fabrication
Steel
Shipping
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Scaling
Pilot 1 6 Units
Fully Complete Units and Home Kits Procured and
Shipped to Haiti Units and Kits Fabricated in
Long Island
Pilot 2 9 Units
Partially Complete Units Procured Final Assembly
in Haiti. Fully Complete Home Kits Procured
Commercial Fabrication
Unit Components Procured Complete Assembly in
Haiti Fully Complete Home Kits Procured
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Scaling
Small Scale Assembly Facility
10,000 square feet Shared Space 10 Units/Month
Large Scale Assembly Facility

• 25 Unit Production Lots
• Up to 100 Units per Month
• Stage 10 Units at a Time
• Substantial Storage Space
• Each 25 Units Requires
• 2,075 Home Kits
• 150 Panels
• 100 Deep Cycle Batteries
• 25 Containers and Racking Systems

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Scaling
Small Scale Assembly Facility
10,000 square feet Shared Space 10 Units/Month
Large Scale Assembly Facility

• 25 Unit Production Lots
• Up to 100 Units per Month
• Stage 8 Units at a Time
• Substantial Storage Space
• Each 25 Units Requires
• 2,075 Home Kits
• 150 Panels
• 100 Deep Cycle Batteries
• 25 Containers and Racking Systems

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Assembly Facility Project
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Sustaining Manufacturing Operations Sales
Funding
Organic Growth
Revenue Stream from Each Unit Funded by a Grant
can be Monetized to Fund an Additional Unit, and
That Process Repeated
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Sustaining Manufacturing Operations Sales
Funding
Sales
Supply Units for Other IEEE Project Participants
Grants

• Large NGOs With Funding to Supply Electricity to
  Certain Regions
• USAID
• Disaster Relief Organizations
• Market Development Interests

Large Lenders

• International Development Bank
• World Bank
• Overseas Private Investment Corporation
• Private Equity Groups

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Scaling and Replicating

• Project is Designed to be Scalable, Starting
  Small in Each Region and Growing
• Project is Designed to be Replicable, New Regions
  Can be Added Using the Same Model
• Primary Issue is Simply Time and Resources