By Karl Kolmsee "Business models for off-grid energy remain one of the most fascinating–and challenging–topics, particularly for entrepreneurs working in the developing world. In this webinar, we will hear from several entrepreneurs who each have a unique approach to building a business while also making a social impact in India, East and West Africa, and South America. From energising clinics and schools to providing last mile micro-finance to creating hydro power and irrigation in remote communities, each speaker will tell a compelling story about their company’s business model. What has worked? And what hasn’t? Our webinar series is a little different: each expert will speak for less than 10 minutes and will focus on their on-the-ground experience using photos to tell their story."

1. Energy entrepreneurs:
Business models for off-
grid energy & social
impact

2. Smart Hydro Power GmbH
2
Smart Hydro Power designs,
builds and commercializes
kinetic hydropower plants from
1 kW to 100 kW and packages
systems for rural electrification
Shareholder:
- Kolmsee family 36%
- eCapital (VC fund) 35%
- KfW (German development
bank) 12%
- HTGF (private/public) 12%
- Private investors 5%

3. • Smart Hydro Power (SHP) is techno-
logy provider for off-grid electrification
• SHP is active in Eastern Africa, India
and Latin America with first projects
installed
• SHP has two unique proprietary
products which help bringing down the
cost and making projects more reliable
– Smart Hydro-Kinetic river turbine
– Smart Energy Management
Systems
• SHP provides technology enabling
business models
Introducing SMART Hydro Power
3

4. Utility Scale Off-Grid Distribution System
4
• Distribution System single phase or
three phase
• Hybrid serving PV, wind and hydro
power – battery and diesel interface
• Grid functionality (UPS enabler)
• Load management to control
separate circuits (independent
steering, prioritize and limit loads,
meter loads with different tariffs)
– Load shedding
– Load adding
– Load shaping
• Remote monitoring – remote
controlling (GPS interface)
ON and
OFF grid

5. Generation Costs for typical Village
• 40 households with approx. 250
W demand each (40 kWh por día)
• Productive use in daytime with
kiosk or similar low capacity
device
• Night demand with water
treatment system

6. Available Resources Sun and Water
ValoresmediosdecaudaldelríoAtrato
1.2 –
1.6
m/s
3 – 5 kW / m2

7. LCOE even at low velocities 0.34 U$ / kWh

8. Replacing Diesel and Kerosene
Light and Water only
•Flat fee
•No meters necessary only circuit
breakers
•Approx. 7 to 15 U$ spending for 20
to 25 kWh per month and household
(0.50 U$ / kWh)
•Two phases of system development
− Limited acceptance to charge for additional energy (people pay for
satellite TV but not for the additional electricity needed)
− If excess electricity is sold electricity usage reflect the ability to
pay and hence the social status

9. All other business models require
metering and differentiated tariffs
• Individual meters and a pre-paid
tariff permit utility scale systems
• Meters allow different tariff
structures (per kWh, per kW, per
hours, flat for selected hours)
• Meters help stabilizing grid as
“cheating” (re-wiring) becomes
technically more difficult and easy
to detect
• “Digitalization” allows data analysis
for forecasting (extrapolating
demand, demand-supply match,
plan diesel supply or even adapt
tariff structure to adapt demand)

10. Community House introduces payable
services and generates revenues
• Possible services offered:
– Ice machine
– Refrigerator
– Potable water
– Internet / TV
– Re-chargeable batteries (instead of
micro-grid)
• Larger single demand but
competitive pricing required
• Strong social impact on
community development (less
individual development)

11. • Individual entrepreneurs or
subsidies of larger corporates build
operative centers (cacao dryers,
mills, ice production for fishermen,
Internet coverage) in rural areas
• Excess electricity is sold to
neighboring households
• “Traditional development model”
taken to most remote areas with
impact on individualization and
differentiation of societies
• Possible co-operative approach
with different impact on community
life but all open questions regarding
co-operative governance
Individual Entrepreneurs as Nucleus of
Electrification

12. 12
More straightforward: Replacing diesel in
Agricultural Market
• Connecting kinetic turbine directly with pump or mill via frequency
inverter running device according to water velocity
• 1 kW hydro-kinetic pumps 36m3 / hour 10 m height
• Replacing diesel motors at 30% of the cost:
Kinetic Pump: 5 € / 1.000 m3 water
Diesel Pump: 18 € / 1.000 m3 water

13. 13
Lessons Learnt
• Indigenous and community models
are difficult to implement
• Single main points of demand
facilitate technical installation while
strong project owners facilitates
economic success
• Technology has to support business
model (metering, tariffing, stability /
priorities)

14. Instalación Marisol – Perú 2014

15. Instalación Marisol – Perú 2014

16. www.smart-hydro.de