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zeroPoverty Social Business for Rural Electrification
Description/achievement of initiative

zeroPoverty’s mission is to disrupt prevalent paradigms based on fossil fuel in energy procurement patterns, engender new ecosystems based on clean, sustainable modern energy sources, and create innovative energy value chains for rural off-grid communities. This is achieved by deploying zeroPoverty’s 5C-CoRE rural electrification business model. This, in turn, will stimulate collaborative action towards the wider aspirations of the SDGs.Electricity is a significant form of energy. zeroPoverty will trigger the transition from fossil fuels to renewable electricity by deploying Solar Home Systems (SHS) that have been successfully used to electrify 4 million families in Bangladesh since 1996.

Implementation methodologies

zeroPoverty’s USP derives from the 5C-CoRE social business model that it employs. The 5C-CoRE model is built around five critical components that are focused on the rural community. They ensure i) inclusion of the rural customers in its governance, ii)appropriate technology that is sustainable and scalable, iii) training and customer support, iv) planning, measurement and evaluation of social impact and v) advocacy and local anchoring of the business.zeroPoverty strives for sustainable and scalable market penetration in India (76 million un-electrified households) through strategic partnerships with NGOs, corporate CSR organisations and government agencies, who are already engaged with rural communities. It deploys energy by piggy-backing on established rural networks and existing relationships of customer intimacy and trust.Mr Dipal C. Barua, a pioneer in the sector, Founding Managing Director of Grameen Shakti in Bangladesh and winner of the 2007 Alternative Nobel Prize, has endorsed the zeroPoverty business model and serves as mentor and advisor to the social business enterprise. The Solar Home System (SHS) consists of four distinct components: i) a solar PV panel, ii) a versatile SHS controller, iii) a battery that stores the electrical energy, and iv) the application, or load, that includes 2 LED lamps and a mobile charger. Different models, varying in power range from 6 Wp to 96Wp can drive different application, including TV and fan.The technology is both modular and scalable. This allows maximization of local content, ease of installation and debugging and recycling of waste while providing didactic benefits. The rural customer also has the option to upgrade the system to cover additional needs over time.For the simplest SHS product, the daily cost to the poor is the replacement cost of kerosene and mobile charging. Payback is in 1 year.Lighting and mobile charging are the primary applications. The Solar Home System builds confidence in solar PV technology among the rural community to trigger follow-up investment in further applications that extend to education, computer literacy, public facilities and security, domestic comforts and entertainment, health, irrigation and agriculture, power for small-scale industries and livelihood generation.A rural customer can opt to start with a basic system that provides 2 lamps and a single mobile charging facility. This can be upgraded over time to cover more lamps, power a television and even a fan.

Arrangements for Capacity-Building and Technology Transfer

The five strategic components of the 5C-CoRE business model are built into the organisational structure that deploys the rural solar electrification project.The organisational structure comprises three tiers. The zeroPoverty project office in India (red) – the “India Hub”, based in Bangalore - ensures the central functions of project management, operations, customer support, planning monitoring & evaluation and finance & accounting. The project office reports to the zeroPoverty International Project Team.Several solar circles (blue) are organised under a district office. Each circle caters to 10 villages or 1000 solar clients. Hence, ten circles, for example, together cover 100 villages or 10’000 solar clients. These circle offices are embedded within partner organisations. A project contract defines the relationship, roles and responsibilities and the deliverables between the partner organisation and the zeroPoverty social business.Under each circle, there are 3 village solar entrepreneurs (green) to ensure customer interface and to deal with local operational, training, customer service and financial issues at the village level.In all, about 40 local jobs are created for every 10’000 customers served.Technology is sourced locally in India

Coordination mechanisms/governance structure

There is a project team consisting of seven members based in Switzerland. These are professionals covering the areas of general management, social business, rural development, marketing, finance, training and skill development, international cooperation, technology and policy, customer support, and logistics. This is the central coordination team for the initiative.A dedicated team is being hired in India and will be operational as of August 2016.Local implementation is in strategic partnership with an established local organisation in India. A steering committee is set-up between zeroPoverty Social Business and the local NGO, DHAN Foundation, to coordinate and manage joint operations.

Partner(s)

1) zeroPoverty Social Business, Switzerland, 2) zeroPoverty Sustainable Development Pvt Ltd, India, 3) DHAN Foundation, India, 4) Bright Green Energy Foundation, Bangladesh, 5) BOP Hub, Singapore
Progress reports
Goal 7
03/2017
Electrification of 10'000 rural homes in India
12/2017
Electrification of 50'000 rural homes in India
12/2018
Founding of a zeroPoverty hub in Africa
12/2020
Electrification of 1 million rural homes worldwide and formation of 5000 rural solar entrepreneurs
Financing (in USD)
740,000 USD
Staff / Technical expertise
Arun Amirtham, social entrepreneur with a background in international business and solar pv technology
Staff / Technical expertise
Currently in the process of hiring a full-time project manager for the operations in India
Other, please specify
zeroPoverty Solar Home System technology has been developed based on indigenous technology in India

Basic information
Time-frame: 04/2016 - 12/2020
Partners
1) zeroPoverty Social Business, Switzerland, 2) zeroPoverty Sustainable Development Pvt Ltd, India, 3) DHAN Foundation, India, 4) Bright Green Energy Foundation, Bangladesh, 5) BOP Hub, Singapore
Countries
Contact information
Arun Sam Amirtham, Executive Director, arun@zeropoverty.ch
United Nations