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The Promoter
The promoter is an award winning electrical Infrastructure, renewable energy and civil engineering contracting company based in South Africa. The company currently has a footprint in South Africa, Australia, Zimbabwe, Rwanda and Swaziland. The company was recently incorporated in Zambia to offer innovative and sustainable renewable energy solutions to the agriculture industry as well as to low income rural and peri-urban populations and meet the challenge of profitably selling this expensive, inaccessible, high technology equipment to people with meager incomes. The company believes that access to renewable energy services can offer direct benefits such as mechanization of agriculture, lighting, cooking and powering of appliances and tools but more important is the fact that renewable energy services can have indirect benefits such as improved education, health, cleaner and a safer environment as well as induced benefits such as the creation of employment and enhancement of local Micro/agro enterprises through mechanization of agriculture.
The proposed project involves the supply of electricity to the farm blocks using containerized solutions generating electricity from solar energy. The proposal offers various economic benefits in the energy sector by meeting the country’s growing energy needs as well as cost effectively contributing to the diversification of the economy through the provision of reliable power supply to the agricultural sector around the regions in which the proposed mini solar plants (microgrids) will be located. The project will be the first of its kind in Zambia. These farm blocks are currently not serviced by the country’s National power utility company, ZESCO. Given the vast resource endowment in terms of land, labour and water, Zambia has the potential to expand its agricultural production through this project.
The Micro Grid Solution
The promoters will establish containerized solar power facilities in targeted farm blocks. Each container will be generating electricity through PV modules. Each container will come with 6 x Schneider XW+ inverters (continuous power output 41kW, peak 51kW for 30 minutes), with up to 45kWp of PV and 84kWh of battery backup. Split over two containers, the battery backup will be 170kWh, assuming lead-acid battery technology. If a client chooses lithium technology, the promoters can fit 250kWh in a single container. Generated power will be distributed via step up transformers on to 33kV and 11kV overhead lines and via step down transformers to demand sites through OHL operating at 4kV. Each customer will have a prepaid meter installed at sites of demand. Installations, operations and maintenance of the facilities will be carried out by the promoters on an ongoing basis. Customers will be required to make upfront capital contributions which will be built into connection costs. The power for center pivot irrigation power packages will be engineered, constructed, and field-tested to handle the operating stresses for each farmer.
The aim of the project is to supply solar energy from containerized power systems to Government farm blocks that are far or do not have access to the national Grid. Surrounding rural households as well as government institutions such as schools and clinics that form part of the farm blocks and not connected to the national grid will also benefit from the project as they will be supplied with power at affordable fees with no or little upfront costs and pay for power under a model known as Pay-As-You-Go, PAYG. Given that these areas have no access to the grid, solar powered containerized systems will prove to be a turning point in community improvement and increasing quality of life. The modular infrastructure of these systems are based upon shipping containers, and can be engineered into impressive solar schools, mobile clinics, and mobile police stations that provide electricity and immediate access to technology.
Apart from providing power to the farms, the impact of the containerized systems into local communities will be tremendous. They will act as an enabler of positive social change such as community safety, providing comfortable learning environments, and convenience to local services. For example, a containerized school serves as an education space during the day, but can be used as an information center after hours by parents in the community. Mobile police units are stationed in rural areas to encourage crime reports and to establish local police patrol. Medical procedures can now be performed in rural areas where it may have been unavailable or difficult to access. Conventional power infrastructure development models used by developed nations do not apply in the provision of power to the selected farm blocks, because the average consumption is uncertain and set to grow, while long-term infrastructural project financing demands predictable utilization.
Business Model and Strategy
The business model that the promoters propose is energy-as-a-service under a utility type service. This model has incorporated critical financing (from shareholders and funders), service provision, distribution, marketing, pricing, revenue collection, training, affordability, asset/ equipment reliability, ownership and monitoring features. The proposed model involves generation and distribution of solar power to the identified farm blocks through containerized Distributed Renewable Energy Systems, DRE or micro-grid solutions with capabilities to electrify a huge number of farms per block, households, institutions and payments collected through elected community representatives or a billing system through meters. The Power generated from the DREs will be distributed in the farming blocks via overhead distributed lines at 33kV and 11kV and connected to demand sites via .4kV overhead lines through step down transformers. These containerized systems will have countless solutions and able to cater for other multiple uses such as electrification of clustered households/villages through a communal billing system while being used as service and community centers as well as “village shopping centres” with say a bakery, grocery, salon, butchery etc. These containers can also be engineered into a solar school, mobile medical clinic, serving very remote
areas or even a mobile police station.
Under the proposed model, power will be Generated from a containerized DRE system and distributed to farming blocks (and dedicated productive establishments) and surrounding households, government institutions and with consumption of energy recorded via a metering system and payments collected as cash. The promoter will offer its end users installation, as well as continuous operation and maintenance services. To enjoy the energy service, customers must settle monthly bills generated by the promoters or buy prepaid units to input into prepaid meters. The promoters will sign a contract with the end user. The payments made will not only cover the costs of the hardware but also the costs of operating the system and after-sales services, as well as taxes and duties if any. Incomes and profits will be generated through a carefully designed margin structure on energy sales allowing the promoters to make enough money to sustain the viability of the business.
In developing the business model, the company has:
The promoter is an award winning electrical Infrastructure, renewable energy and civil engineering contracting company based in South Africa. The company currently has a footprint in South Africa, Australia, Zimbabwe, Rwanda and Swaziland. The company was recently incorporated in Zambia to offer innovative and sustainable renewable energy solutions to the agriculture industry as well as to low income rural and peri-urban populations and meet the challenge of profitably selling this expensive, inaccessible, high technology equipment to people with meager incomes. The company believes that access to renewable energy services can offer direct benefits such as mechanization of agriculture, lighting, cooking and powering of appliances and tools but more important is the fact that renewable energy services can have indirect benefits such as improved education, health, cleaner and a safer environment as well as induced benefits such as the creation of employment and enhancement of local Micro/agro enterprises through mechanization of agriculture.
The proposed project involves the supply of electricity to the farm blocks using containerized solutions generating electricity from solar energy. The proposal offers various economic benefits in the energy sector by meeting the country’s growing energy needs as well as cost effectively contributing to the diversification of the economy through the provision of reliable power supply to the agricultural sector around the regions in which the proposed mini solar plants (microgrids) will be located. The project will be the first of its kind in Zambia. These farm blocks are currently not serviced by the country’s National power utility company, ZESCO. Given the vast resource endowment in terms of land, labour and water, Zambia has the potential to expand its agricultural production through this project.
The Micro Grid Solution
The promoters will establish containerized solar power facilities in targeted farm blocks. Each container will be generating electricity through PV modules. Each container will come with 6 x Schneider XW+ inverters (continuous power output 41kW, peak 51kW for 30 minutes), with up to 45kWp of PV and 84kWh of battery backup. Split over two containers, the battery backup will be 170kWh, assuming lead-acid battery technology. If a client chooses lithium technology, the promoters can fit 250kWh in a single container. Generated power will be distributed via step up transformers on to 33kV and 11kV overhead lines and via step down transformers to demand sites through OHL operating at 4kV. Each customer will have a prepaid meter installed at sites of demand. Installations, operations and maintenance of the facilities will be carried out by the promoters on an ongoing basis. Customers will be required to make upfront capital contributions which will be built into connection costs. The power for center pivot irrigation power packages will be engineered, constructed, and field-tested to handle the operating stresses for each farmer.
The aim of the project is to supply solar energy from containerized power systems to Government farm blocks that are far or do not have access to the national Grid. Surrounding rural households as well as government institutions such as schools and clinics that form part of the farm blocks and not connected to the national grid will also benefit from the project as they will be supplied with power at affordable fees with no or little upfront costs and pay for power under a model known as Pay-As-You-Go, PAYG. Given that these areas have no access to the grid, solar powered containerized systems will prove to be a turning point in community improvement and increasing quality of life. The modular infrastructure of these systems are based upon shipping containers, and can be engineered into impressive solar schools, mobile clinics, and mobile police stations that provide electricity and immediate access to technology.
Apart from providing power to the farms, the impact of the containerized systems into local communities will be tremendous. They will act as an enabler of positive social change such as community safety, providing comfortable learning environments, and convenience to local services. For example, a containerized school serves as an education space during the day, but can be used as an information center after hours by parents in the community. Mobile police units are stationed in rural areas to encourage crime reports and to establish local police patrol. Medical procedures can now be performed in rural areas where it may have been unavailable or difficult to access. Conventional power infrastructure development models used by developed nations do not apply in the provision of power to the selected farm blocks, because the average consumption is uncertain and set to grow, while long-term infrastructural project financing demands predictable utilization.
Business Model and Strategy
The business model that the promoters propose is energy-as-a-service under a utility type service. This model has incorporated critical financing (from shareholders and funders), service provision, distribution, marketing, pricing, revenue collection, training, affordability, asset/ equipment reliability, ownership and monitoring features. The proposed model involves generation and distribution of solar power to the identified farm blocks through containerized Distributed Renewable Energy Systems, DRE or micro-grid solutions with capabilities to electrify a huge number of farms per block, households, institutions and payments collected through elected community representatives or a billing system through meters. The Power generated from the DREs will be distributed in the farming blocks via overhead distributed lines at 33kV and 11kV and connected to demand sites via .4kV overhead lines through step down transformers. These containerized systems will have countless solutions and able to cater for other multiple uses such as electrification of clustered households/villages through a communal billing system while being used as service and community centers as well as “village shopping centres” with say a bakery, grocery, salon, butchery etc. These containers can also be engineered into a solar school, mobile medical clinic, serving very remote
areas or even a mobile police station.
Under the proposed model, power will be Generated from a containerized DRE system and distributed to farming blocks (and dedicated productive establishments) and surrounding households, government institutions and with consumption of energy recorded via a metering system and payments collected as cash. The promoter will offer its end users installation, as well as continuous operation and maintenance services. To enjoy the energy service, customers must settle monthly bills generated by the promoters or buy prepaid units to input into prepaid meters. The promoters will sign a contract with the end user. The payments made will not only cover the costs of the hardware but also the costs of operating the system and after-sales services, as well as taxes and duties if any. Incomes and profits will be generated through a carefully designed margin structure on energy sales allowing the promoters to make enough money to sustain the viability of the business.
In developing the business model, the company has:
- Formed strategic and long term partnerships with technology providers who will design optimal DRE systems for the project using sophisticated software program and have studied business cases for the model. The equipment/technology offers reliability and product guarantees as that is essential for loan repayment to funders over a long term in line with the company’s proposed business model.
- Incorporated in Zambia an existing Foreign Energy Service Company with a local presence to provide long-term maintenance and operation.
- Set appropriate tariffs and collection/payment arrangements. These set tariffs will cover loan repayments, ongoing maintenance and operating costs, taking into consideration the variations that occur in O&M costs with changes in system load. Tariffs will also be affordable to the end users. The promoter’s aim will be to achieve and establish a sustainable business with customers able to access a reliable energy source for less than US$0.50 per day. The company is aware there could be some operational and financial challenges to prevent the proposed business model from blossoming as anticipated, as such, they are open to discussions and further fine tuning of their proposed model at due diligence.