Development of 85KwP Solar Minigrid GbamuGbamu, Ogun State Bolade A Soremekun

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Rubitec Nigeria Ltd Solar Mini Grid - Gbamugbamu

RUBITEC UTILITIES

COMMISSIONING Feb, 2018

Business Model: Private-Public Model Constellation of Stakeholders State Govt. Min. of Env. Equity from Rubitec Land Right & Building Permit ESIA Financing: Imported Generation Assets Imported Meters HH installations Owned by Govt. Transfer of asset ownership to Rubitec Financing: Local Distribution Assets Local Generation Assets (Diesel Genset) (owned by Rubitec) Labour Mini-Grid Operator Rubitec (Owns and operates all assets and recoups investment through tariffs) Rural Community & End users Prepaid electricity sales Backed by MoU with Community and Customer contracts Grant for pilot Debt Investors from Bettervest NESP Technical Assistance

Gbamugbamu Community – Ijebu East LCDA Population: 4,500 HH: 550 Economic Activities - Agriculture: Cocoa, Palm Oil, Kernel, Plantain, Cassava - Milling - Commercial - Hospitality - Public - Religious - Educational

Project Summary Status: Operating for 14 months Community profile Operational: The first mini-grid - in Gbamu Gbamu in Ogun State – was commissioned in Feb 2018. Community profile Gbamu-Gbamu is a large community of 550 households and 5,000 inhabitants located in Ijebu East LGA. It is an agrarian community producing, processing and trading with a wide variety of crops (cocoa, palm produce, plantain, kolanut, etc). The community is 13 km away from the Expressway Pilot project system configuration A system design based on the population of Gbamu Gbamu resulted in the following configuration of mini-grid: 85 kWp of PV, 67 kVA of Diesel Generator and 5.6 km of low voltage grid (covering 80% of the village). The mini-grid design is optimised to match the supply to the demand of the village. Financing Total project cost - NGN 200,000,,000 Grant Amount – 40% Debt : 45% Equity portion – 15% KPIs Tariff - NGN 175 Unlevered project IRR - 24.8% Equity IRR - 29.7% (10 years)

System Design (2) - Technical Layout Grid Design Overhead lines split into two parts (North and South). The 2 lines are carrying approximately the same load. Red and brown indicate three phase lines whereas single phase lines are marked blue, green and violet.  Grid Design Gbamu Gbamu Single phase LV [km] 2.7 Three phase LV [km] 2.9 Poles [no] 157

POWER PLANT

85Kwp Solar array

Pre-paid meters

5.2Km Grid

Productive Loads INTEGRATION Productive loads allow for economies of scale This in turn improves the profitability CHALLENGES Social Change of habits ECONOMIC Productive tariffs need to compete against diesel Investment hurdle related to mechanization TECHNICAL Load/Demand management, e.g. avoid pumps and/or mills etc. running on batteries

Commercial Customers: Hospitality

The Minigrid Value Chain

THE FUTURE: What Is The Demand ? IEA estimates that 140 M people in Africa will gain access to mini-grids in Africa. Requiring installation of 4000 – 8000 mini-grids a year in 25 years! Nigeria: 4000 sites – 13 Million people (GIZ mapping on GIS) Benchmark in Nigeria: Euro 572/house hold connection Investment need in Nigeria: 2 billion Euro Capacity need in Nigeria: 1,8 GWp

LESSONS LEARNT Mini Grid Development Process Training and Capacity Building – MG Skills Mini Grid Models Business Plans and Bankable Feasibility report Financing; Business Modelling Crowd Funding – long term viability? Community Relations Government Relations/Political skills/Soft Skills Logistics Productive loads allow for economies of scale This in turn improves the profitability Technology – containerized solutions, software, cost,

Thank You for Listening Bolade A Soremekun, CEO +234 8034499670 bolades@rubitecsolar.com b.soremekun@basconsultingltd.com