DEPARTMENT FOR SCIENCE, INNOVATION AND TECHNOLOGY

Bitesize Energy Portable Productive Power for Enhanced Energy Access and Productivity

Project disclaimer

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Description

Despite its potential, Malawi's Mini-grid market remains in its infancy, facing barriers to realising full impact. These include, most notably, accurately forecasting Average Revenue per User (ARPU) and Average Weekly Time of Power (AWTP) when assessing potential locations, and initial low energy demand during evening hours, increasing battery storage costs. Building upon existing hardware and software developed by CREATIVenergie during Energy Catalyst 7, our approach stimulates impactful community demand for energy by integrating portable small-scale productive applications into a rental model that incorporates pay-per-use battery swapping, simultaneously generating local data on ARPU and AWTP to support accurate load projection analysis and de-risk prospective minigrid investments. To sustain operations, we will employ a two-tier 'franchisor-franchisee' model. As franchisors, Challenges Catalyst will partner with local aspiring mini-grid developers (MGDs) to act as 'franchisees', procure hub equipment, manage branding and set quality standards. Franchisees will own and operate the pay per use battery swap and PUE model, collecting ARPU and AWTP data and acting not only as the frontline for customer interactions, but also as community advocates for present and future energy needs. Guided by Malawi's Integrated Energy Plan, we will target communities where minigrids have been identified as the preferred electrification option. As we expand, we will also target more remote off-grid communities, inclusively recruiting and training local franchisees. This project includes the following key work packages: * Hardware and software development involves updating electronics hardware design, software design, casing design, prototyping, and testing for battery rental and management. * During the demonstrator implementation phase, tasks include installation, manufacturing hardware for trials, deploying and commissioning hubs, commissioning portable productive loads, installing communication systems, conducting trials, and data collection. Ongoing operation, maintenance, and data collection are also part of this phase. * Commercial implementation involves conducting baseline community and energy needs assessments, establishing franchisee relationships with MGDs for franchised hubs, providing commercial and franchisee training, mentoring, community marketing, implementing the hub model, and monitoring and evaluating hub performance. * The project focuses on MGD and government engagement, including convening a stakeholder technical advisory board, assessing data needs, developing an MGD value proposition, and establishing a complementary go-to-market strategy. * Franchise model development activities include establishing a franchise structure and legal framework, designing the franchisor business and revenue model, codifying operations and quality systems, optimising franchisee training and support programs, developing a marketing and branding strategy. * The development of a comprehensive business and financial plan.

Objectives

Despite its potential, Malawi's Mini-grid market remains in its infancy, facing barriers to realising full impact. These include, most notably, accurately forecasting Average Revenue per User (ARPU) and Average Weekly Time of Power (AWTP) when assessing potential locations, and initial low energy demand during evening hours, increasing battery storage costs. Building upon existing hardware and software developed by CREATIVenergie during Energy Catalyst 7, our approach stimulates impactful community demand for energy by integrating portable small-scale productive applications into a rental model that incorporates pay-per-use battery swapping, simultaneously generating local data on ARPU and AWTP to support accurate load projection analysis and de-risk prospective minigrid investments. To sustain operations, we will employ a two-tier 'franchisor-franchisee' model. As franchisors, Challenges Catalyst will partner with local aspiring mini-grid developers (MGDs) to act as 'franchisees', procure hub equipment, manage branding and set quality standards. Franchisees will own and operate the pay per use battery swap and PUE model, collecting ARPU and AWTP data and acting not only as the frontline for customer interactions, but also as community advocates for present and future energy needs. Guided by Malawi's Integrated Energy Plan, we will target communities where minigrids have been identified as the preferred electrification option. As we expand, we will also target more remote off-grid communities, inclusively recruiting and training local franchisees. This project includes the following key work packages: * Hardware and software development involves updating electronics hardware design, software design, casing design, prototyping, and testing for battery rental and management. * During the demonstrator implementation phase, tasks include installation, manufacturing hardware for trials, deploying and commissioning hubs, commissioning portable productive loads, installing communication systems, conducting trials, and data collection. Ongoing operation, maintenance, and data collection are also part of this phase. * Commercial implementation involves conducting baseline community and energy needs assessments, establishing franchisee relationships with MGDs for franchised hubs, providing commercial and franchisee training, mentoring, community marketing, implementing the hub model, and monitoring and evaluating hub performance. * The project focuses on MGD and government engagement, including convening a stakeholder technical advisory board, assessing data needs, developing an MGD value proposition, and establishing a complementary go-to-market strategy. * Franchise model development activities include establishing a franchise structure and legal framework, designing the franchisor business and revenue model, codifying operations and quality systems, optimising franchisee training and support programs, developing a marketing and branding strategy. * The development of a comprehensive business and financial plan.

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Location

The country, countries or regions that benefit from this Programme.

Malawi

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