EGG-Energy

Approximately 1.6 billion people, or one quarter of the global population, do not have access to electricity. Over 80% of these people live in rural areas of the developing world. In Sub Saharan Africa, only 8% of the rural population has access to electricity. EGG-energy has a unique strategy of supplying portable rechargeable batteries that its customers can use to power their homes.
Customers sign up for EGG-energy’s services on a subscription basis and exchange depleted batteries for new ones, at any time, by paying a small swapping fee.

Headquarters Location: Dar es Salaam, Tanzania

Annual Sales (2010): $102,247 (includes extraordinary revenue such as one-time grant income)

Number of Employees: 15

Website: www.egg-energy.com

Year Featured Product Introduced: 2009

Units Sold in 2009 and 2010: 50 in 2009 and 300 in 2010

Average Retail price per unit: $33 per year subscription and $0.40 per swap, totaling approximately $65 per year for the service.

The following founders are still involved with the company, with Jamie Yang full time in Tanzania leading EGG-energy’s growth and expansion:
Jamie Yang, CEO. Jamie developed the battery swapping service business idea.
Also, Jukka Valimaki, CFO; Blandine Antoine, director of strategy; Rhonda Jordan, director of human resources; Alla Jezmir, director of capital raising and corporate development.

Country where product is manufactured: China

Third party that verified environmental claims: ENEA Consulting (http://www.enea-consulting.com/en) has developed a methodology for measuring environmental performance.

Overall Environmental Benefits as Told by EGG-Energy: Once a battery has reached the end of its lifecycle, we take it out of circulation and recycle it in bulk. Since we own the battery stock, and can use our network to keep transportation costs down, we can ensure our batteries are recycled.

EGG-energy uses high efficiency lights (4W LED) and high-quality wiring in our installations.

Platform for Renewables: EGG-energy builds a storage and distribution platform for renewable, intermittent energy production. In Tanzania and sub-Saharan Africa, wind and solar electricity generation faces a non-existent electricity grid, high-cost storage solutions, and the same last-mile distribution problem as the current system. EGG-energy’s operations will fill this distribution gap, allowing it to move into other parts of the energy value chain in the near future.

EGG-energy displaces kerosene and reduces greenhouse emissions. By 2015, EGG-energy aspires to achieve the following environmental returns:

  • 9.9 million liters of kerosene displaced
  • 22,200 tons of avoided CO2 emissions
  • Enabling a platform for renewable electricity generation

Methodology for calculating Liters of kerosene burnt: We compare the lifecycle emissions associated with one month of kerosene use for lighting with one month of EGG-energy service use (which provides, in addition to lighting, radio and cell-phone charging services).
Approximately 2.5 kilograms of CO2 are emitted per liter of kerosene burnt and our target customers use four liters of kerosene per month for lighting,. To this, we add emissions associated to shipping oil to Tanzania, as well as distributing it in the villages that we target. This yields an estimate of 11 kg of CO2 emitted per month of kerosene use. Similarly, accounting for CO2 emitted by consuming electricity taken from the Tanzanian electricity mix, by shipping the batteries used by EGG-energy, and by our distribution activities in Tanzania, we find that using EGG-energy services for one month emits 2 kg of CO2. This gives us a conservative estimate of 9 kg of CO2 saved monthly per household that switches to EGG-energy for their lighting needs. Compared to the current baseline, we expect to have avoided 22,200 tons of CO2 by the end of 2015, assuming a customer base of 117,000 subscriptions to our service.

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