Green Village Electricity Project Nigeria Operational Report An

Green Village Electricity Project Nigeria: Operational Report An Initiative of GVE Projects Limited RC 1071222 Ifeanyi B. Orajaka & Chuka P. Eze info@gve-group. com www. gve-group. com IEEE Smart Village Workshop, GHTC 2015, Seattle. 8 th October 2015.

The Business Summary 2

Executed Pilot Projects Pilot (II) Pilot (I) Capacity: 6 k. Wp Capacity: 9 k. Wp Cost: USD 75, 000. 00 Cost: USD 60, 000. 00 Location: Egbeke – Etche, Rivers State, Nigeria Year of Completion: March, 2015 Year of Completion: September 2013 Impact(s): 720 people, 36 jobs, 136 MT of CO 2, Impact(s): 480 people, 20 jobs, 91. 3 MT of CO 2, 45% ($12) reduction in HH energy expenditure Pilot (III) Pilot (IV) Capacity: 9 k. Wp Capacity: 34 k. Wp Cost: USD 60, 000. 00 Cost: USD 220, 000. 00 Location: Egbeke – Etche, Rivers State, Location: Bisanti – Katcha, Niger State, Nigeria Year of Completion: September, 2015 Year of Completion: March, 2015 Impact(s): 1, 600 people, 90 jobs, 517 MT of CO 2, Impact(s): 720 people, 36 jobs, 136 MT of CO 2, 45% ($12) reduction in HH energy expenditure 3

Revenue Model GVE Base Infrastructure Modular Site of 34 k. Wp Each Site Setup Cost (Equipment Only): $165, 782. 25 Service Offering per Site AIPU: Mini-grid $690. 76 (240 Clients) Revenue Streams Ave. Monthly ARPU: One-time Connection Fee: $11. 25 $20. 00 P. A. Y. G Utility Fee: 0. 45/k. Wh (off-peak) $0. 75/k. Wh (peak) Legend: AIPU: Average Investment Per User ARPU: Average Revenue Per User 4

Project Heritage • US$1. 4 million raised and committed to six pilot projects till date • Rated by USAID and GIZ as the ideal model for advancing energy access in Nigeria • Listed among Sankalp Forum’s top-60 promising Sub Saharan Africa SMEs 2015 • Model is Scalable to Meet Specific Community Needs • Model has Directly Measurable Environ-Socio-Economic Impact Awards: • Finalist; West African Forum for Clean Energy Financing Business Plan Competition, Sept. 2015 • Finalist; City Mart/ City of Lagos Off-Grid Power Solution Challenge, June 2014. • Winner; GE Africa/ USADF, Power Africa Off-Grid Energy Access Challenge, Nov. 2013. • Winner; UNDP/ Bank of Industry –Nigeria, Access to Renewable Project Nigeria, Dec. 2012. • Winner; IEEE Presidents’ Change the World Project Challenge 2009. • The Project has been awarded 5 years pioneer status incentive 5

Pilot Projects in Photos 6

Pre-Implementation Scenario Night view of the community’s major pathway before the project

Project Impacts • 460 Mini-grid Households (3, 240 people) • 110 Street lighting points along the main street of the four beneficiary Communities. • Enhanced security at night • Extended business operating hours • 41 PBK Clients now has clean Electricity/ Cell Phone Charging. • Children gather around the street lighting points to study/ play at night. • 182 Jobs Created during and after implementation • $29, 000 Created in Wealth in the four pilot communities during implementation. • Knowledge transfer to locals • 40% reduction in Energy related expenditure • Cumulative annual reduction of CO 2 emission by 880. 32 MTs

Project Impacts Cont’d Night view of the community’s major pathway now.

Management Team (All under 30) Ifeanyi Orajaka MD/CEO Chinedu Azodoh C. F. O. • B. Eng. Elect/Elect. Engineering, FUTO Nigeria • Certified Project Manager • Experience with Exxon. Mobil, Shell and NIIT • GIS Rural Electrification Planning Expert (7 -Years) • Member Global Shapers • Management Trainings • Master of Finance, MIT Sloan, Boston • B. Eng Illinois Institute of Technology, • Experience with Barclays Capital, Goldman Sachs, Media. Bridge Capital Advisers LLC. and BGL Capital Nigeria • President of NSBE, IIT Chuka Eze C. T. O. Wale Bakare • Executive Masters Project Management; CUPE, UK. • B. Eng. Elect/Elect. Engineering, FUTO Nigeria • Experience with Shell, Interswitch, Nigerian Breweries and Airtel Nigeria • GIS Rural Electrification Planning Expert (7 -Years) • LL. B, & Chartered Arbitrator • Lagos Business School Alumnus • Trade Sales Manager; Nigerite Ltd. (Annual sales portfolio of $30. 8 m) • Channel Marketing Exec. ; Vlisco Netherland BV (Annual E. D. Marketing sales portfolio of $6. 15 m) • Pioneer Company Secretary 11

Our Corporate Team Ifeanyi Orajaka Chuka Eze Chinedu Azodoh MD/CEO C. T. O. C. F. O. (MITSloan) Ikechukwu Onyekwelu E. D. Corp. Strategy Wale Bakare E. D. Marketing Prof. Gloria Chukwudebe Kalada Apiafi Godwin Orajaka Michael De. Sa Board Chairman Non-Exec. Director Advisory: Finance 12

Challenges – Complex Equipment Import documentation & Cost – Delays between order, shipping, clearance & final delivery – Lengthy & expensive customs clearances – initial FOB prices – Seasonality of final transport from POE to deployment site. – Data Capturing and recording – Absence of replacement parts for critical equipment – Proper use of equipment by customer – Operator education & adherence to business model. - Financial Constraint (Fund raising) for scaling the model

Lessons Learnt • Demand still very huge and increasing • Locals demand more energy for productive use and refrigeration (Tier 2 Energy Service level 200 – 800 Wh/d). • More Co-ordinated Procurement and Equipment Logistics process • Need to have handy replacement for critical equipment • More customers are inclined to the prepaid metering & mini grid • Need for a more robust field support mechanism • Need for adequate funding for implementation , administration and operational overheads

Current & Future Plans • Ongoing analyses of pilot project outcomes and cash flow • Implementation of Phases 2 & 3 of BOI Funded Project • Continued Field Testing of Standardized procurement procedure • Continued Field Testing of Standardized shipping and delivery procedure • Continued R&D in Power station design & implementation process • Continued Optimization of cost and revenue collection • Standardizing field support mechanism through effective collaboration with CSI & manufacturers • Reinforcing corporate relationship with stakeholders • Developing ties with relevant manufacturers • Sourcing of capital investment for expansion (grants, angel investments, single digit debt financing) • Introduction of Community Shared Ownership (CSO) model • Extension of mini-grid power delivery to rural SMEs • Implementation of Expansion Phase I (16 New sites).

Thank you!!! Please do not hesitate to contact us for further inquiries and/or requests. info@gve-group. com www. gve-group. com Twitter: @Green. Village. Ele 16