Schneider Electric’s Bip-Bop Programme Innovation Challenge

Schneider Electric Page 2 - India – june 2008 – Bip Bop presentation IMC – A.Sahu / A.Comparet The Context ●1.6 billion people, or 300 million households, have no access to electricity ●500 million live in India; ●100 million live in Indonesia, and a similar number in Bangladesh; ●70 million live in Nigeria, and a similar number in Pakistan and ●550 million live in Sub-Saharan Africa. ●These poor families spend between 10 and 20 euros per month on energy ●At the same time, we stand at a turning point in the history of our planet. Energy plays an increasingly important role. Although the use of energy has a significant impact on the climate – a global common good – energy is still not accessible to more than 1.6 billion people.

Schneider Electric Page 3 - India – june 2008 – Bip Bop presentation IMC – A.Sahu / A.Comparet The Challenge ●Two major issues have to be solved ●Decrease CO 2 emissions ●Support the poorest in finding their way to development ●For nations, business and consumers, this means: ●Efficiency, using less energy and using it more effectively, for the planet and all its inhabitants, delivering more with less ●Economic development, along with a strong commitment to energy efficiency, contributing to projects bringing the best of energy to the greatest number of people, improving standards of living and finally, alleviating poverty

Schneider Electric Page 4 - India – june 2008 – Bip Bop presentation IMC – A.Sahu / A.Comparet Schneider Electric’s Bip Bop programme ●Schneider Electric has developed a sustainable programme to bring safe, clean electricity to the people who need it most worldwide ●With the strong willingness to involve local communities and local stakeholders in each country, the BipBop programme addresses three key issues to provide sustainable access to electricity ●the lack of appropriate equipment through the development of an adequate offer ● the lack of financial resources available for innovative energy entrepreneurs through funding ●and the skills and expertise shortage through technical and business training ●This strategy builds upon a profitable and responsible vision and is called BipBop – an acronym standing for Business, Investment and People at the Bottom of the Pyramid.

Schneider Electric Page 5 - India – june 2008 – Bip Bop presentation IMC – A.Sahu / A.Comparet Schneider Electric’s BipBop programme

Schneider Electric Page 6 - India – june 2008 – Bip Bop presentation IMC – A.Sahu / A.Comparet Innovative Solutions Required to provide safe and reliable electricity to People at Bottom of Pyramid ●Home Lighting system based on renewable energy ●Design of home lighting system ( Light + Power Source ) based on renewable energy, which can light two –three rooms with % availability. ●The consumer should not spend more than Rs 3 /day for the above system, which includes the initial investment. ●Prepaid Reliable Power Solution for Villages for their compete electric energy Rs 3/ Unit ( KWh) ●The power system should be able to meet the complete electrical need of the house holds, agricultural loads and other economic activity.. ●The electric supply should be available 24 hrs -365 days ●The system should be managed by local entrepreneur ●The households should be able buy their daily electrical energy from the local entrepreneur.