The Solar-E-Cycle is a new transportation device from renewable solar energy and low cost Asian manufacturing to provide competitive low cost accessible transportation to fast growing populations in Africa and a source of electricity to off-grid rural populations.
70 million families. Rural off-grid populations in Africa lack integrated infrastructure services including access to electricity, pub
lic transportation services, emergency health services, potable water distribution, student transport, public lighting, cellular coverage, internet connections. Lack of power infrastructure in off-grid communities hinders the economic development of families, communities and small businesses in rural areas. Despite major efforts in off-grid power investments, on current trends, however, the number of “energy poor” people will barely budge, and 16% of the world's population will still have no electricity by 2030, according to the International Energy Agency. International donors, national and local governments are not able to provide infrastructure to populations in off-grid areas and private financing has barely reached the energy poor. Energy-poor also lack mechanical means of transportation that could help alleviate daily challenges to their development and ways to finance it. Even buying a bicycle is near impossible and involves years of savings. Direct beneficiaries of our product are the families, communities and businesses leasing the Solar-E-Cycle. Our objective is to roll-out some 13,000 vehicles/infrastructure platforms within 10 years. This solar light electric vehicle takes advantage of upward trends in performance of solar and electric vehicle technology, downward trends in costs and increased global concern with both global warming and economic disparities, especially on the African continent where most of the world’s population growth will occur during the next century (3.7bn). Several prototypes are operational. The product has a proven daily range of at least 50km using only the sunlight falling on the vehicle. It can comfortably carry 3 people and baggage for a total of 300kg. The product is also a power generator on wheels with 3000Wh of daily generation and storage capacity. The product performance, safety and location is continuously monitored using advanced GPS/GSM technology for power management and vehicle tracking. Three market segments are targeted. Personal transportation needs of individuals, enterprises and communities through a monthly lease equivalent to $1 a day, the ecotourism sector through daily rental via tourism operators and direct sales. The company is organized with the corporate entity in Morocco responsible for design, testing, logistics, coordination with regional and local partners, PR, legal and regulatory activities, testing, training and overall business management supervision. Local partners will be established nationally in each African country to plan, implement and supervise project sites. Our first project will be launched in Kenya this year. Project Management Units (PIU) are established locally through an initial 100-vehicle project site on a 2000km2 zone launched with a single 40 ft container shipment of components, assembled on site. The PIU manages the commercial and administrative aspects, training and maintenance. This highly scalable business will ramp up to 45 countries over a 10 year period to reach 200 project sites established within 10 years. The business requires $8m investment over the first 5 years while EBIDTA will total $2m. Grant financing is expected to come from international donors for job creation and economic development creating asset value for the company through a policy of private ownership and management of a public asset. The 10 year target forcast is $90m investment in 67,000 Solar-E-Cycles. Partners in the venture include representatives of Academia and Business in Morocco especially organizations involved in renewable energy and in transportation and automotive testing, safety, manufacturing, on-board systems and automotive assembly line training. The management team is headed up by a senior international development expert supported by staff from international donor institutions. We are in the initial development phase and are conducting our first trial projects, business start-up, business model development, partnership development and fundraising activities. Our business development strategy relies on incremental implementation with local partners, of small projects financed through a variety of donors until we reach breakeven. Then large donors take us to sustainability and private funding after 5 years. At the same time, commercial/ industrial activities are conducted to generate cash flow to sustain our larger operations and profits used for social deployment. To date we have secured funding to implement with OFGEN in Kenya a 50-vehicle project (EEP hybrid financing) where we are refining the design, and conducting small-scale trial to assess usage and expected outcomes. We are currently negotiating with public agencies in Morocco for another 10-vehicle project to further test the innovation in partnership with members of our joint venture with Moroccan academic and industrial partners. We are also currently looking to deploy the vehicle in the tourism sector in Morocco and Kenya to allow the creation of local jobs, augment our visibility and stabilize our activities. These business activities are the basis for further development whereby we will seek funding for projects in Kenya, Morocco or other countries. Each project implemented with local partners will consist in the deployment of 50 to 100 vehicles per project. The 50-100 vehicle projects are sustainable and allow control over implementation and provide learning feedback loops. To change the life of as many people possible so as to attract grant donor funds and meet continental target deployment objectives, every project site will need to double its market penetration and develop another project site in each future years of operation either in the same region, country or in a neighboring country resulting in a doubling of project sites on an annual basis and multiplication of vehicles deployed. This rhythm also allows for transfer of knowledge and cross training among teams and adequate support. Once we are solid, the rate of project site development will become exponential, affecting more and more people every year. Without capital-intensive manufacturing - components are off-the-shelf - ramp-up risk is minimal. Our hub and spoke expansion model will also benefit directly such beneficiaries as individuals and small business and their communities participating in the supply chain including the local chassis manufacturers, assembly, logistic.
