Use independent distributed systems to deliver cost effective, tailored solutions

• Exploit changes in the cost and performance of distributed generation rather than use a “one-size fits all” mini-grid, thus avoiding the upfront capital cost associated with the grid connections.
• Install the power generation which matches the need, thus reducing waste and excess costs
• Address concern that tower operators do not want community power physically connected to their infrastructure

Deliver distinct services to meet needs of different market needs and different customers

• A-B-C-D model adopted and extended for different types of customer
• Competitively priced, highly dependable power for Anchor businesses
• A technical and economic solution to meet the needs of each B-C-D customer

Provide services on a “Pay-as-you-go” (PAYG) basis to remove key barriers to adoption

• No upfront capital investment and no or only small deposit from any customer – no need for credit nor micro-finance
• Provide complete solutions (power & equipment) to small business, creating jobs and increased local economic activity
• Africa Power owns the equipment and provides the service for a weekly or monthly fee for power and equipment usage

Share support services across customers to reduce costs and increase reliability

• Skilled installation and maintenance teams make regular site visits to support key Anchor clients
• Use same teams to support B-C-D customers at lower cost than dedicated support teams
• Work with local entrepreneurs and others already present in the community to provide other services and support (e.g., installation of low voltage systems and collection payments for individual households)

Combine commercial and grant financing

• Access both commercial finance (based on the economics of our anchor tenants) and development finance (because of the development benefits of community power)
• Reduces overall risk and cost of capital for investors, and increases their returns
• Commercial approach provides an immediate and substantial multiplier for any grant investment and ensures long-term business viability and continuing maintenance

Provide complete power solutions

• Provide both the power system and the end-use equipment/appliances to B,C & D clients to make productive use of the power.
• By specifying high quality, high-efficiency equipment, we lower the cost of the service (lower life-cycle costs)
• By matching the power to the load we achieve higher load factors reducing capital costs

Value Proposition

Each system is priced so as to provide either (A) a saving over the current cost of provision of the services Or (B) an increase in profits from a new or expanded business without Government subsidies or feed-in tariffs, etc.