Distributing Solar Distributing Solar

In this episode, we speak with six panellists working in energy access: Amaury Fastenakels: Chief Marketing Officer, BBOXX, Michael Sudarkasa: Chief Executive Officer, Africa Business Group, Karl Skare: Managing Director of Global Partnerships and Strategy, d.light, Raghav Sachdeva: Chief Investment Officer, Nithio, and Emily McAteer: Founder & CEO, Odyssey Energy Solutions.
We discuss options to finance energy access in emerging markets, ranging from equity, debt, special purpose vehicles, results based financing and much more.
This episode was part of the Ross Energy Week event in 2021.

In this episode, we speak to Naomi Kioi from Greenlight Planet, one of the largest solar companies in Africa. Greenlight Planet is a social-mission, for profit company which has sold over 1.3m of their Sun King products since 2009 working in Kenya, Tanzania, Uganda, and Nigeria, expanding at a rate of over 65,000 new solar installations per month.
We discuss:
The growing influence of telecoms companies in off-grid energyHow energy access companies are partnering with telecoms companies to expand their customer reachGreenlight Planet's goals and how to market solar energy to off-grid customers
Show notes:
(1:30) Introduction to Greenlight Planet and their focus on SDG 7; their vertically integrated business with manufacturing and distribution(4:00) Intro to the role of telecoms in the energy access sector: focus on hard to reach areas where telcos have a physical presence; leveraging the data that telco markets have on customer information(7:30) Greenlight Planet's partnerships with telcos - how they work(11:00) Use of telco data to provide customer financing and alternative payment solutions(13:50) The opportunity of energy access to help telcos diversify their revenue base and customer services(23:00) The goals of Greenlight Planet and plans for the coming years(27:00) The impact of COVID-19 on off-grid energy - increase of digital and mobile payments; more pre-purchase of energy(30:00) Naomi's background and her work in Greenlight Planet - how to market solar to customers(38:00) Partnerships as the way to accelerate the deployment of solar in off-grid energy

We speak with Cameron Smith, Product Management Lead at ZOLA Electric, on the process and challenges of developing energy solutions for emerging markets.
We discuss:
The types of products ZOLA Electric has developedChallenges of product management for energy solutions Differences in customer needs and demands across various geographies.
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Show notes: 
(0:30) Introduction to ZOLA Electric (3:00) Understanding the customer from off-grid to on-grid customer. Primary energy solutions: ZOLA Flex - core product, DC infrastructure with solar and battery, with DC appliancesZOLA Infinity - can be a off-grid/on-grid solution, for a customer with some access to grid electricity, able to work with an AC system; modular energy systemFlex Power - a new product to serve both AC and DC customers, that can work also within a distributed grid (7:40) The product development and management process: collecting demographic data, user needs, comparing with existing market offering. Higher end markets with a greater focus on product differentiation to existing solutions. (10:30) Expectations management: how to set / meet customers' expectations with regards to electricity availability; limitations with regards to product lifespan, availability of electricity; shifting customers from a power focused mindset to an energy focused (taking into account storage also). (13:00) Challenges of working with older appliances with higher energy consumption. The 'benefits' of working with newer DC systems where you can also control the energy demand(14:40) Challenges of developing products that can meet the variability of grid power quality; variable wiring or electrical systems(16:00) How to manage the power challenges for product development - both operational and technical solutions(17:00) How to think about hardware, software, firmware developments(19:00) ZOLA'S geographical coverage, moving towards a distributor model and its ability to help ZOLA expand globally(20:50) Difference between customer demands by geography - e.g. greater need for air conditioning solutions for East Africa; differing penetration of smart phones(21:40) Customers benchmarking against a Tesla Powerwall solution(34:00) Challenges of working in West Africa, greater awareness of fraud, preference of financing solutions to ensure the product is working as expected; differing willingness to provide personal information to banks(36:00) East Africa: more trusting environment, greater focus on building education and awareness of solar products and solutions(37:00) Cameron's background and previous interest in global development; challenges of providing energy solutions that can meet customer needs (42:00) The shifting focus towards peri-urban solutions, more people interested in global systems(44:30) Customer facing brand changing to "ZOLA" Electric - that resonates across Africa, not just in East Africa and Swahili(46:20) Future focus of ZOLA: greater focus on Infinity product, greater focus on microgrid systems and distributed grid solution - Infinite Grid product(50:00) Recommended books: 'Territories of Differences' by A. Escobar for greater awareness of cultural differences(52:20) Advice: make sure you have a good understanding of the end user(53:00) Predictions: Greater focus on microgrids, more focus on peri-urban customers

We speak with Tonya James and Piper Foster Wilder and from 60Hertz. 60 Hertz develops maintenance software for off-grid microgrids in remote locations, including solutions for areas where mobile and internet connectivity may be poor. They’re based in Alaska, which is home to 13% of the world’s microgrids, and are expanding their operations and working on projects around the world. We have a wide ranging conversation, discussing why good maintenance processes are critical for remote microgrids, the challenges of integrating renewables to microgrids, their efforts to make their user interface and graphics as international and self-explanatory as possible, and the importance of keeping mental health considerations in mind when working in remote communities, where there is often a higher incidence of trauma. We also speak about what it’s like for them as a team of three women first-time founders, and the challenges around fundraising and building a company in the off-grid energy sector. 
We discuss:
Why an off-line maintenance solution is critical for remote minigrid operations The challenges of integrating renewables to microgridsTheir efforts to make their user interface and graphics as international and self-explanatory as possible The importance of keeping mental health considerations in mind when working in remote communities, where there is often a higher incidence of trauma. Show notes:
(1:40) Introduction to 60Hertz: maintenance for remote energy systems; existing alternatives, e.g. primarily paper and pencil(3:50) Why remote maintenance with off-line capability is important and the lack of good existing solutions, how 60Hertz's solution works(7:45) Alaska's microgrids, in a remote location, the cost of electricity for some communities in Alaska(10:00) Challenges for integrating renewables with diesel systems (12:30) 60Hertz international projects; the similar problems faced by microgrid operators globally(15:00) Their target markets, including military microgrids, and how Tonya's background helps with their work(18:30) How Tonya and Piper started 60Hertz and how they came to the off-grid energy sector(22:30) The largest challenges faced by Tonya and Piper: technical challenges, HR & people management, and difficulty of raising money; operational & change management, balancing personal life, family and work(30:00) Their plans for coming years: increasing functionality, making their software accessible to users with low literacy abilities, focus on women maintenance providers, their product roadmap(34:00) The challenges of mental health in some of their work; adverse childhood experience, workplace trauma, military trauma, which are more likely in remote microgrids(37:00) Their fundraising background for 60Hertz(40:30) Industry focus on starting projects, but not enough attention paid to the ongoing maintenance requirements and long-term efficacy of operations to achieve the goals; the opportunity for local buy-in when designing maintenance(44:45) Where the name 60Hertz comes from (45:45) Favourite books for 2020: Traction, Insight, Braver, Biography of Dolly Parton, Extreme Ownership, Drive, Reality-based leadership(49:00) Advice: Timeline is different for off-grid energy; importance of relationships(50:30) Predictions: Growth, rural areas teaching urban areas about energy management
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In this conversation, we speak with Brave Mhonie, General Manager of SunnyMoney in Malawi. SunnyMoney is the largest seller and distributor of solar lights in Africa, and is a social enterprise owned by SolarAid, an international UK-based charity. 

We speak about their business model innovations to enable Sunny Money to grow sales in a sustainable and profitable way; how SolarAid and SunnyMoney work together to innovate entrepreneurship in rural, remote locations, and the importance of education and SunnyMoney’s partnership with schools, teachers and the Ministry of Eduction in Malawi. We also speak about how the solar industry has changed in the past decade and how the promise and potential for clean energy shifted Brave's aspirations to work as a medical doctor, to having now worked over 10 years in the solar industry.

Contact us at podcast@distributingsolar.com
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Follow us on Twitter and LinkedIn
Show notes:
(1:00) Introduction to Sunny Money; SolarAid's founding by Jeremy Leggett, focusing on trade rather than aid
(3:20) Sunny Money's approach to innovative business model and the evolution of go-to-market strategy; initial focus on pico solar and solar lights; how the industry has changed in the past 10 years enabling businesses to focus on distribution
(5:00) Their focus on seeding solar businesses in local areas, receiving investment from local businessmen to expand their reach across Malawi, providing working capital for SunnyMoney who continues to manage the business; a financing innovation for local businesses
(6:00) SolarAid's partial subsidy to provide a cushion for the costs to reach a remote customer; how to get a substantial presence in a rural community; operational expenses which are partially covered by SolarAid
(12:00) Customer engagement model; an initial deposit paid by customer; sales representatives act as area agents to manage cash collections, after-sales services, payment management 
(14:00) Mobile money's role; supported business, however some areas where mobile money is not available. The continued need to manage debt; the difficulty of managing payments during seasons when customers focus on buying farming materials 
(16:00) Overview of the solar industry in Malawi over the past 10 years: growing customer awareness and interest in larger systems; government's role in supporting the sector, removing VAT and various taxes
(17:00) The government's potential to help with consumer education, making consumers aware of other affordable energy solutions; the potential for government infrastructure development
(19:00) Diesel genset, batteries as alternative energy sources; dry cell powered torches
(21:00) Brave's route into Sunny Money, initially wanting to work as a medical doctor, and seeing the potential to improve health with solar power
(24:00) Challenges of managing people, importing goods, financing assets; it's a new sector so there are many challenges
(25:00) SolarAid support in funding; Developing financing business co-operatives with Global Distributor's Collective 
(27:00) Surprised by the government's interest in combating energy poverty 
(29:00) How they decide to expand: looking at income levels, population density, support and existing infrastructure and organisations that can help them
(30:00) Their partnership with the Ministry of Education; using teachers' development centers as distribution points
(34:00) Working with SunnyMoney in other countries
(36:00) Advice: Be patient and keep innovating! 
(37:00) Inspiring figures: Jeremy Leggett and the person who introduced him to solar in the first place
(38:00) Recommended books: Blue Ocean Strategy
(39:00) Predictions: the off-grid solar sector will grow very quickly, with growing demand for investments

In this episode, we speak with Maya Stewart, co-founder of Yellow Solar Power, a digital-first solar energy retailer in Malawi.

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Episode notes:
(1:15) Introduction to Yellow Solar Power, Maya's background in marketing and her start in solar lighting technologies, growing demand for solar technologies and shift towards SHSs; the lack of initial interest for off-grid companies to work in Malawi 
(4:30) Concerns by solar companies working in Malawi due its low GDP; the beginning of Yellow working to provide electricity to 4m households; their use of PAYG / mobile money technologies and platforms
(7:30) Their lean, bootstrapped approach to starting the company
(8:30) Yellow's agent network: trying to minimise transportation costs; investments in providing news, branding, information and training of their agents; a local-focused approach in high population density areas; agents as the central point of contact for their customers for a 24 month relationship
(13:30) Yellow's digital retail approach: a remote structure, all agents are online and on Whatsapp; applications are all digital
(15:30) Progress of Yellow: Started in 2018 and their faster than expected growth; the importance of fundraising and selling 20k units by September and expecting 50k units by December 2020
(18:30) Their agent scout approach, to bring on new agents
(20:00) Their decision to focus on Malawi; the impact of deforestation in Malawi on the lake and hydropower, reducing the output and reliability of hydro electricity
(23:00) The gender impact in energy
(27:00) How lighting affects women: the need for women giving birth to provide lighting, to look after the sick, to support girl's education, providing security
(29:30) Their approach for trying to encourage more women to join Yellow: the need to have a smart phone to be an employee; their Project Khumbo to encourage women to join; how women agents can relate well with customers and build a strong customer relationship 
(44:00) The impact of lack of education for girls in Malawi
(47:00) Maya's background, growing up in Kenya and her decision to move back to Malawi after university
(50:00) Where the name Yellow come from
(51:30) Recommended book/movie: 'The boy who harnessed the wind' - based in Malawi
(52:50) Advice: Understand your customer and know what they want and need; how solar can help to solve other social problems, e.g. urban migration
(56:00) Maya and her husband's love of travelling 
(58:00) Prediction: huge growth in off grid electricity in Sub-Saharan Africa, with huge opportunity