1 Power to the People Renewable Energy for Underserved Communities Conference Sponsor: Networking Reception Sponsor: C AREER C ENTER Image Credits: blueEnergy

Manoj Sinha Co-founder, Husk PowerSystems April 22 nd, 2010 Center for Science, Technology, and Society

COVER 3 Husk Power Systems (HPS) Manoj Sinha 4/21/2015 Power to Empower

Mission Husk Power Systems provides reliable renewable affordable electricity that wows the world – customers by our exemplary service and operational excellence, employees by personal growth and empowerment, and our shareholders through profitability, social impact, and environmental sustainability Our target is to install 2,000+ plants in 5 years Power to Empower

$0.25/kWh Choices Considered 5 Source: Mini-Grid Report, WorldBank 2007 $0.50/kWh $0.25/kWh Husk Power looked at the options... Power to Empower

Husk Power Systems discovers easy to operate model 6 HPS Installation Cost < $1000 per kW Operational Cost is < $0.10/kWh HPS Installation Cost < $1000 per kW Operational Cost is < $0.10/kWh Husk Power looked at the options … then made our own. Power to Empower

Rice Husk – a Huge Biomass Energy Source 40 Million Metric Tons Power to Empower Enough to Light 145K Villages

HPS Plant Rice Mill Stored Husk To Industry Water Boiling Ash Husk Cement Plant CO 2 Broker HPS RHA Refinery RHA Gasifier Filters Generator Paddy Paddy Village Home Clusters To Households Pre-paid Meter To Irrigation Irrigation Pump Power to Empower Village Revenue RHA: Rice Husk Ash

Powering rural India one at a time Power to Empower

In last 2 years, HPS has consistently delivered on its promises and beaten internal targets Completed installation of 23 power plants and developed capabilities to install at a rate of one power plant/week Recruited, trained and deployed 20 technical operators in the last 6 months Hired four full time senior managers and one fellow from premier institutes in India (IITs and ISB) and USA (UT, Austin and Wharton) Completed formation of company structure by opening a Mauritius office and completing paper works Closed $1.3M of pre-Series A financing from a syndicate of four investors (Acumen Fund, Bamboo Finance, LGT and DFJ/Cisco) Completed due diligence required to get additional ~$550K of grant from Shell Foundation to implement Health, Safety and Environmental best practices 10 Power to Empower

Post closing of funding round, HPS is taking measures to significantly improve operations of existing and newly installed plants 11 Power to Empower 1.Set company wide operations’ metrics to improve the uptime for all the power plants 2.Documented more than 80% of all the current operating processes 3.Invested resources and capital to accelerate results driven R&D efforts 4.Initiated collaboration with suppliers to further reduce equipment cost and maintain leadership in installation cost/kW Initiatives Taken 1.Monitoring plants continually followed by auditing process make operators and managers aware of their responsibilities 2.Documentation reduces variations of operating and maintenance process from plant to plant 3.Collaboration with IDEO resulted in developing a very low cost pre-paid meter system that will further reduce the theft rate 4.Working closely with suppliers help in further reducing the cost and improving the quality of equipments Implications

The company is currently exploring multiple avenues to monetize alternate revenue streams 12 Power to Empower 1.Piloting a project with Airtel to become cell phone towers’ energy provider in rural areas 2.Partnering with Havells, an appliance company 3.Exploring must-have product development options with RHC (HPS’s waste) 4.Collaborating with established corporations both in India and USA to explore development of new products/services with a focus on rural areas New Business Development Activities 1.Provides a long term stable source of revenue and may give HPS an opportunity to become Airtel’s channel partner to distribute its products 2.Brings reliable and efficient CFLs at customers’ door-step and provide 10-20% cost advantage to beneficiaries 3.Develop new products such as Incense sticks (also called agarbatti) etc. that can be immediately monetized 4.Brainstorm sessions indicate HPS becoming a conduit to reliable rural demographics data for CPG companies in addition to developing local must-have products and services Long Term Impact

HPS Scaling Model 13 Power to Empower $70K $97K BizPlan plant 2 plants $550K Shell Foundation MNRE $550K Shell Foundation MNRE 7 plants $1,100K Seed Fin $1,100K Seed Fin 10 plants 1H H 2009 $1,000K Debt Fin $1,000K Debt Fin 1 plant/wk 2010 $5,500K Series A $3,200K Debt Fin $5,500K Series A $3,200K Debt Fin plants/wk $4,000K Debt Fin $4,000K Debt Fin 4-6 plants/wk plants / month Within “home” state Replicate other regions

Husk Power Systems – Impact Value Chain 14 Power to Empower INPUTS Renewable Energy Flexible Payments Buying local waste ACTIVITIES Capacity Building µEnterprise Dev Local Employment OUTPUTS # HH Lighted Reduced CO 2 Inc Hours for Biz OUTCOMES 40% Cash Savings Cash Surplus Education 1.5M people impacted (320,000 HH) 2,160 Jobs created in rural India 108,000 tons of CO 2 saved per year $20 Savings/HH/Year = $6.4M / Year

This is not just about money … “India got independence from England 60 years ago, but this village got its independence today.” - Master RamBalak Ji (in 2007) Power to Empower

16 Power to the People Renewable Energy for Underserved Communities Conference Sponsor: Networking Reception Sponsor: C AREER C ENTER Image Credits: blueEnergy