Lessons from early pioneers in the mobile-enabled energy sector

The GSMA represents the interests of mobile operators worldwide. Spanning 219 countries, the GSMA unites nearly 800 of the world’s mobile operators, as well as more than 200 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organisations.

Mobile Enabled Community Services

Funding & Timeframe: • £4.1M in funding (including £2.4M Innovation Grant fund) from DFID’s Climate, Energy & Water Team

to be deployed in 2013-2014

The GSMA Mobile Enabled Community Services (MECS) programme leverages mobile technology & infrastructure to improve access to basic energy and water services

Programme Activities:• Knowledge Sharing and Convening • Technical Assistance • Innovation Fund • Market Building

The MECS Market Opportunity & Innovation Fund

Mobile-enabled products & services in Asia Pacific

The size of the opportunity

Energy

1.2 BillionLack Power

643 Millionhave GSM coverage South Asia

Sub Saharan Africa

Latin America & the Carribean

0 50 100 150 200 250 300 350 400

175

18

359

80

15

Millions of people

Energy Addressable Market

Accelerating the MECS ecosystem

Mobile supports energy through:

• Payments & affordability

• Remote monitoring & control

• Acting as an anchor tenant

• Improving efficiency of operations

through mobile applications

• Supporting last mile distribution

The MECS Innovation Fund

MECS Innovation Fund Objectives

• Accelerate efforts using mobile technology to enable improved or increased access to water or energy services for underserved communities

• Identify innovative business models that can support mobile innovations for energy and water services

• Generate knowledge about the application of mobile enabled services which can be shared with the development community and mobile industry

• Stimulate productive partnerships between mobile operators/tower companies and energy provides, water providers, NGOs, entrepreneurs and academics to achieve these objectives at scale

MECS Grantees

WaterEnergy

Lessons from early pioneers

Key Lessons • Mobile can help companies develop more in-depth customer insights

• PAYG has proven that customers do have willingness and ability to pay

• Service over technology: Off-grid customers require reliable service, technology will only get you so far

• Beyond lighting and phone charging: companies can help their customers climb their energy ladder

Benefits of M2M and Mobile Money integration

Customer pays M-KOPA using mobile

money

M-KOPA communicates a customer’s balance to the

solar system via M2M

The solar unit/control panel communicates

information about performance and usage

back to the M-KOPA

M-KOPA communicates the credit balance to

customers

Growing number of PAYG companies & Models

• The use of M2M is still highly debated due to costs and GSM coverage• Off-net and on-net credit transfer mechanisms are being trialled (code via keypad)• Global activity: from the Philippines through Latin America (20+ companies)• Estimate 140k PAYG home solar systems in East Africa alone

Off.Grid: Electric - Tanzania Mobisol – Tanzania & Rwanda

Leveraging presence of mobile infrastructure

Mobile infrastructure can support energy access initiatives:• Inside the fence: Leveraging existing power equipment to provide services to the community• Outside the fence: 3rd party energy service companies can use the mobile tower as an anchor

customer and provide services to the community

24/7 Power to tower

Example: OMC Power in India

Leases product to customers Home delivery

OMC Power status

Takeaways and status:• Mobile Tower Company makes them bankable• 2/3 of revenues coming from communities (3000 households in 10km radius)• Scaling to 200 plants• Invest in product innovation: Electric vehicles, village level Wi-Fi

Mary Roachmroach@gsma.com@roachmary