By
John E Chaves
Overview
• Introduction
• Opportunities
• Projected Revenue
• Decision Makers
• Market Structures
• Commercial Model
• Consumer Model
• Comparison w/ Gas Power Generator
• Cycle and Alternatives
• Summary
Introduction
Girasol is a company that provides solar energy solutions to meet the exploding demands for electricity in Africa.
• Engineering – system design and prototype• Procurement of components• In-country sales and business development• Import components & operate assembly
plant • System installation & training of partners• Promote solutions to government and
partners
Opportunity
• Market and Sell Electrical Infrastructure to African customers hungry for power
• Sell Solar solutions in sunshine environments• Displace/Replace more expensive Gas/Diesel
generator solutions• Capture emerging growth and government funds for
building infrastructure
• Two Models
• Commercial “Government” Model
Villages, municipality and towns• Consumer Model
Product tailored for individual family dwellings
Opportunity (cont.)
Angola Population = 12.5 million – 20% w/ electricity
(target population = 10 million)
5 Year Plan – starting in 2009 Projected Revenues
Commercial Model (Villages, Municipalities) $79M <1 % of target population = 90 thousand - start in 2010
Consumer Model (GIRA-315 Kits) $223M
Mozambique Population = 16.9 million – 20% w/ electricity
(target population = 13.5 million)
5 Year Plan – starting in 2010 Projected Revenues
Commercial Model (Villages, Municipalities) $79M <1 % of target population = 90 thousand - start in 2011
Consumer Model (GIRA-315 Kits) $223M
Decision makers
Who are de decision makers in Angola?
• Commercial Model (Villages, Municipalities and Towns)• Government• Local Power Companies
• Consumer Model (GIRA-315 Kits)• Individuals are customers for their homes• Retailers will buy kits in quantities > 10• How do customers pay for the Kits?
• Cash• Bank loans
Commercial Market Structure
Villages, Municipalities and Towns
• Girasol Trainers / Installers• Installation Partners
• Power Companies
Girasol• Design• Procurement• Assembly
Component Suppliers• SunPower• Solaron• Allmetals• OnlyBatteries
Ministry of Energy and Water
Consumer Market Structure
Individual Customers
• Local Business – Distributors• Girasol Trainers / Installers• Installation Partners
Girasol• Design Kits• Procurement• Assembly
Component Suppliers•SunPower•Solaron•Allmetals•OnlyBatteries
LocalBanks
Commercial Model
Consumer Model GIRA-315 Kit
Consumer Model GIRA-315 vs. Alternative
Generator assumptions: 4 hours of operation / day; $2 / Gal of Gasoline
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
2010
2012
2014
2016
2018
GIRA-315
Gentron Pro2 1200W Generator
2010 2011 2012 2013 2014 2015 2016 2017 2018
GIRA-315 $840 $1,180 $1,520 $1,860 $2,200 $2,540 $2,880 $3,220 $3,560
Gentron Pro2 1200W Generator
$655 $1,069 $1,484 $1,899 $2,314 $2,728 $3,143 $3,558 $3,972
Commercial GIRA-50k PS vs. Diesel Generator
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
GIRA-50K PowerStation
John Deer 07236
2009 2010 2011 2012 2013 2014 2015 2016
GIRA-50K Power Station $36,747 $58,493 $80,240 $101,987 $123,734 $145,480 $167,227 $188,974
John Deer 07236 $38,460 $61,920 $85,380 $108,840 $132,300 $155,760 $179,220 $202,680
GIRA-50K PS Price per installed Watt = $6.50; Basic assumption - Backup Generator, 10 hours of daily operation, $2 /Gal
Sales Cycle• Commercial Sales Cycles
• Government (National) Infrastructure• Plans to roll out new electrical grid upgrades over
next 5 years• Decisions made typically twice/year for infrastructure
upgrades• Local Power Stations
• Upgrading/Growing power generation by 5% by quarter (average)
• Consumer’s Purchase Cycle• Immediate if cash, 30 days with bank loan• Presently purchase gas/diesel generators, fuel• Switch to solar, lower operating costs• Cross over in 6 years
Alternatives
• What are the other alternatives?
• Gas Power Generators• Kerosene• Batteries• Candles• Wood• Coal• Wind• Hydro
Summary
• Emerging markets hungry for affordable energy• Opportunity in Angola and Mozambique
• $600 million revenue over 6 years• Girasol driving to capture opportunity• Two models & various products
• Commercial – Government infrastructure• Consumer – Kit power generation for family homes
• Why Solar and Girasol will win?• Solar is affordable and perfect for sunny climates• Girasol’s products and distribution
• Designed directly to meet specific demand in these markets
• Cheaper then the alternative (gas power generator)• Good for the environment