1. COVER 1 Rural Electrification using Biomass Husk Power Systems (HPS) Power to Empower Mario Ferro Kolkata CUTS seminar 25 June 2011

2. My Village and 24,999 other Villages at Night 2 More than 125,000 villages in India after sunset

3. Conventional Solutions Can’t Deliver += Over 550,000,000 rural Indians without reliable power 3

4. 4 The Main Challenges Which technology? How to attract and retain customers? Where to find funds?

5. The Solution? 5 We explored the options …

6. The Solution Requires 6 Technology Supply Chain Operations Revenue & Funding Creativity Innovation Partnership

7. The Solution - Technology and Supply Chain 7 Distributed Generation Non-conventional Technology Renewable Resource

8. The Solution - Technology and Supply Chain 8

9. 9 ~132MT rice produced ~ 40MT husk ~27,000,000 MW Rice Production Rice Belt Plenty of rice husk to serve 125K un-electrified villages in India Source: World Energy Outlook 2006, World Resources Institute 125,000 villages starving for power 18,000 “not reachable” $102B rural power mkt. Replacing diesel and kerosene Rural Power Market Yellow – low per capita electricity The Solution - Technology and Supply Chain

10. The Solution - Supply Chain and Operations 10

11. The Solution - Operations and Revenues 11 BOOM – Build Own Operate Maintain Company’s ownership, operation, maintenance BOM – Build Own Maintain (only for individuals willing to either to be operators or tariff collectors) Operations by local entrepreneur Entrepreneur’s share of capital cost – Rs 2.0 lakh – Rs 2.5 lakh HPS share of the capital - rest HPS owns the plant machinery and cables BM – Build Maintain Agencies own and operate the plant (for large orders i.e > 50) Cost per 40 kVA plant (including training and knowledge transfer) ~ Rs 15 lakh MNRE Subsidy Rs 15k / kW + Rs 3.0 lakh for more than 3 km of distribution 3-4 month’s gap between inception of project and release of subsidy Fee to cover plant repair and non-regular maintenance HPS to aid monetization of additional streams Special Incentive Scheme from UP NEDA for HPS Projects

12. 12 Revenue RHC Electricity Gen. CER Sales Product Fulfilment 50% 4% 25%21% 2014 2010 95% 0% 5% RHC – Rice Husk Char can be used as base material for a variety of products such as – Incense Sticks, Fire Bricks, Briquettes for home cooking, Silica etc The Solution - Revenues Plant level

13. 13 Access to finance – HPS has launched a model for partnership with rural unemployed youth/diesel gen set operators In this model, the Entrepreneur invests ~Rs 2.5 lakh upfront and a fixed monthly fee for the operating rights of the plant A major roadblock is the funding arrangements for these entrepreneurs Some linkages with financial institutions and extension of rural credit schemes HPS has also launched a franchise model where interested individuals may own and operate a plant Government of India provides a subsidy of ~Rs 7.5 lakh per plant which is realized after 6-7 months A facility for bridge financing would be great step forward The Solution - Funding

14. 14 The Solution - Funding Ministry of New & Renewable Energy, Govt. of India

15. Summary 15 Find the most appropriate technology for your specific context Innovate Build your own capacity (training) Which technology? Challenge Our experience How to attract and retain customers? Let the customer chose Affordability Quality of service Partner with local entrepreneurs Where to find funds? Check all the available public schemes Generate positive cash flow with different complementary revenue streams Look for committed private investors

16. Husk Power Systems Inception in Aug’ 2007 ( first in the world to successfully operate 100% Rice Husk based electricity generation using gasifiers) More than ~75 operational plants Catering over 400 villages /hamlets Capex ~$1 / Watt for Generation and distribution Cheaper than the conventional thermal World class team (IITs, ISB, Oxford, UT Austin, Darden, RPI) Over 40 months of operational experience A comprehensive training program HPS university curriculum to train operators, mechanics, managers and entrepreneurs A series of Technical Innovations Pre-paid meters, smart monitoring / smart grid, dry exhaust gasifier, absorption chiller, Incense Stick maker A motivated team of more than 250 on-ground employees Excellent Investing partners IFC, Acumen Fund, Oasis Funds, LGT VP, DFJ, CISCO, Shell Foundation, MNRE Very strong commitment to HSSE 16 World Leader in decentralized generation and distribution

17. 2007 Dec 2008 Dec 2012 3 Power plants Master RamBalak Ji, 15th Aug.2007 19 Power Plants 50 Power Plants 500 Power Plants Raj Kundra, Acumen Fund No. of Plants Employ 700 operators, 35 cluster level managers, 10 mid-level managers and 5 senior managers Dec 2009Aug 2010 India got independence from England 60 years ago, but this village got its independence today. My colleagues at Acumen and I have watched this team progress from a prototype of a new business model to bring electricity to rural villages in India, to now a full scale company that has now deployed over 24 individual systems serving over 50 individual villages in rural Bihar. Won $100K in prize money in business plan competitions in US. HPS set up with 4 Co- Founders Won Global Business Plan Competition and received a $250K investment from DFJ and Cisco Installed over 30 new plants and launched 3 Business models for future growth 2014 Power Plants Dec 2014 Create 10,000 Jobs in rural India, save 72,000 tons of CO2 per year and lighten 1 million Households 17 First 40KVAplant Husk Power Systems - Growth Over 5 yrs of perseverance pays off. Rice Husk gasification proves to be a solution to the problem of rural electrification

18. Husk Power Systems – Value for Money 18 Reliable electricity Cheaper and quality products of general consumption at door-steps Livelihood generation for 100’s of households Operators Electricians Rent Collectors Managers Husk loaders Incense Stick Makers Hassle-free sale of Rice Husk for Rice Millers Dignity and Pride

19. 19 Phone No. +91-612-2283333 for partnerships: projects@huskpowersystems.com for general query: info@huskpowersystems.com Husk Power Systems – Contacts

20. HPS Sends over 250 kids to school 20

21. Back Up Slides 21

22. 22 Capex ~15 lakh + taxes for 30 kVA ~16 lakh + taxes for 40 kVA Opex ~50 kg / hr of Rice Husk (or other biomass) 1 Operator + 1 electrician / collector + 1 husk-man Maintenance/repair of wear and tear ~8,000 – 10,000 per annum Total of less than Rs 30,000 per month Revenue Upto 20 kW of electricity to sell More than 2 tons of RHC per month Consumable –fulfillment More than Rs 60,000 pm if all the above streams realized Bonus of CDM The Solution - Financials

23. Husk Power Systems reliable, renewableaffordable In pursuit of bringing Power to Empower millions of rural population, We provide reliable, renewable and affordable electricity that wows the world It involves changing paradigms It involves inventing machines and gadgets It involves finding different ways to think 23