The Micro-Power-Plant Business Case

In most cases, productivity is increased by leveraging human effort with clever machines. Such machines require electricity in order to function and add to the population’s output. The first step is local power. This is the most cost-effective local power strategy possible today in local villages. It does not require long, and costly fuel supply delivery chains, for the required roads and railroads simply do not exist. Fully distributed and autonomous power generation platforms that can be operated and maintained by local ‘franchisees’ will form the first practical village power infrastructure.

A “Far Remote micro-power-plant” [“FR-mpp”] is installed at each of 40 residential sites. It will support the regular charging of up to 25 smartphones, five computers as well as support the WiFi access point 24 x 7 operation. This solar-powered FR-mpp must also be able to charge a number of torches and lanterns. Each access point manager will also be a franchisee for the FR-mpp platform. As 40 access points are projected for a 1,000 population village, 40 FR-mpps will also be required. These FR-mpps will be used to charge 100 Watt hour power packs that can be sent around to charge smartphones, lanterns, and flashlights in the surround neighborhood of the franchisees. Electricity will be sold to the end user for $0.30 per 100 watt hours. A Remote micro-power-plant (“R-mpp”) will be installed at residential sites in higher density sections of the village (5 are projected). Each R-mpp will support the regular charging of up to 50 smart phones, ten computers, as well as two WiFi access points’ 24 x 7 operations. This platform must also be able to charge torches and lanterns.A large solar-powered with vertical wind axis turbine backup micro power plant will support the network operations center, the VSAT transmission facility and the school with its computer rooms.

In order for people without money to pay for the power they use, the MPP Company will be responsible for monetizing barter in the village. Each ‘money crop’ [See maize, grass-sugar, cobbler, seamstress, micro-mill business cases herein] will be ‘harvested’ and taken to market by the MPP Co. that will be responsible for selling this crop & bringing the proceeds back to the farmers & producers of goods who will distribute that which has been allocated as exchange for goods & services in the village.

The startup costs of a 1000 person village MPP Co. will be $312,631. We expect that 75% of these funds will be financed through the Universal Access Service Fund the Host Country has expressed structured and funded for this purpose. The smartphones will be initially rewarded to students in the school for courses completed successfully and later distributed to all inhabitants as they learn how to use them and decide to use them. Computers will be purchased to enable farmers and artisans to manage their newly productive businesses, and torches and lanterns will proliferate to provide after dark recreation, mobility and productivity opportunities for the population.

Electricity will be sold at $0.30 for 100 watt hours. Since each power pack will have 100-watt hours’ charging capacity, it is the logical pricing basis for power.

Gross annual turnover for the village MPP Co. in year two will amount to $298,426, and is projected to reach $309,434 at the end of year 5. The villager franchisees’ annual share of this revenue will reach $74,606 in year two, and $77,358 in year five. The GDV will have reached an annual revenue participation of $223,819 and $232,075 annually by the end of year five. This gives the Power Company an ample recoupment stream to cover its startup loan of $312,631 and its annual operating costs of $52,333, along with a reasonable return. The MPP Co. will ultimately become an independent power distributor participating in an expanded rural grid, with more permanent much lower cost power generating molten salt reactors as the permanent source for low-cost reliable electricity.

 

 

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