Husk Power Systems Innovation

Across the Value Chain

Channels
Supplier/Input Core Activity
s
Gas power
Power
Direct
generators
generation
distribution
from rice infrastructure
Husk
husk
University to
Smart
gasification
train
meter/theft
personnel
prevention
Char
Billing and
processing
cash
Incense sticks
collection

Customers
Simplified
pay per use
tarif

4-As

Affordabilit
y

Acceptabili
ty

Ability to pay (total income, disposable income, assets)

HPS plants may provide electricity for up to 14-16
hours each day.
HPS charges US$2.0 US$2.5 per household per
month for lighting up 2 CFLs and one mobile
charging point for 6-8 hrs in the evening
The entire distribution network is set up by HPS
and the cost is included as part of the project cost
HPS Total Landed Cost of Installation < $1,300 per
kW *
One of the worlds lowest cost providers of biomass
based renewable energy equipment
Willingness to pay (perceived price-value, fairness,
alternatives, trade-offs)
It provide the option of employment to the local
people and one-time installation, villages are
equipped with bamboos and poles for proper power
distribution
Operational cost is almost Rs 7.5/kWh, which is
although more in comparison to Diesel but less if
compared with Kerosene lamp which are the
primary target customer
HPS gives the option of prepaid use, similar to prepaid mobile phone cards

Accessibilit
y

Awareness

Recommendations
HPS can charge different price for different
consumption requirement, day usage can be
made costlier than night usage
HPS can install common charging point and
other power point in the villages, and charge as
per use
HPS can install street lights in the villages and
charge premium from the government and
transfer the benefit to rural people
HPS can setup dedicated plants in remote / rural
location to provide electricity to Government
Schools and Buildings, and
transfer the
additional benefit to service common people
Electricity cost Los Angeles is approx.
$0.211/kWh
(Source:
http://www.bls.gov/ro9/cpilosa_energy.htm) that
is 50% more than India, HPS can explore the
global opportunities in high density rural
America where it can provide its service and
transfer the additional benefit to rural India

4-As

Affordabilit
y

Acceptabili
ty

Functional acceptability(capabilities, ease of use,

quality, reliability, design, experience)
25-kW to 100-kW mini power plants serving
up to 4000 inhabitants within a radius of 1.5
kilometers
A network of decentralized power plants
using a cloud-based, real-time monitoring
system.
Electricity is distributed through micro-grids
made from bamboo or other sustainable
materials instead of concrete.
Low-cost transformers developed by the
company ensure consistent voltage flow and
theft free distribution.
Psychological acceptability (brand image, social
value, emotional value, perceived risk)
Consistent power supply at low cost on use
basis (no theft)
Eco friendly power generation methods with a
contribution to entrepreneur development
Safety from threat of fire from traditional
kerosene lamps

Accessibilit
y

Awareness

Recommendations:
Benefits of replacing kerosene
lamps- avoiding fire, saving
oil, etc can be emphasized
One plant serving thousands
needs can encourage sharing
costs at a faster rate
Pay per use basis would
motivate saving power and
maintaining budgets
Development of local
entrepreneurs would motivate
greater adoption and
appreciation

4-As

Affordabilit
y

Acceptabili
ty

Availability (supply vs. demand, in-stock,

assortment, related products & services, no
rationing)
Demand for electricity is more than supply in India. For
2010-2011,Base load requirement was 861,591 (MU)
against availability of 788,355 MU, a 8.5% deficit. During
peak loads, the demand was for 122 GW against
availability of 110 GW, a 9.8% shortfall.
Available primarily in Bihar
Produces incense sticks and generates employment

Convenience (time utility, value-added services,

easy to find within and across locations,
convenient sizes)
More useful, convenient and less polluting than kerosene
lamps
Also helps charge mobile phones
Pre-paid meters: Cheapest pre-paid meter at US$8 per
consumer. Enables electricity to be sold like mobile
phone talk-times.
One Plant runs around 400 households/shops
Bamboo poles used for providing electricity upto villages

Accessibilit
y

Awareness

Recommendations
Bigger plants can be experimented with to provide electricity
to more villages.
Should be expanded to neighboring states and have pan
India presence.
Substitutes to bamboo poles should be found as bamboos
are not available in every part of he country

4-As

Affordabilit
y

Acceptabili
ty

Promotion of the plants

is largely through :local press and
media Above the
line
Brochures etc. Below the line
Social Media
Videos on You Tube
channel of HPS
Word Of Mouth

Accessibilit
y

Awareness

Recommendations:
Two pronged approach:Personal Communication
channels
Tie up with local NGOs
Advocate Channels
Collaboration with eminent
personalities Expert channels
Non Personal Communication
channels
Yatras or Van campaigns
Street plays Folk Media
Wall Paintings Outdoor Media

Rationale for choices

Reach

Budget/Cost
(-)

Customiza
tion

Go/No Go

Print Media

Moderate

High

Low

No

Broadcast
Media

High

Very high

Low

No

Outdoor
media

Moderate

Moderate

High

Go

Video
vans/Raths

High

Moderate

Very High

Go

Folk Media

Moderate

High

Very High

Go

Haat/Melas/ Very High

Mandis

Moderate

Very High

Go

Channel
Partner
meets

Low but
generates
huge WOM

Low

Very High

Go

Key opinion
leader
meets

Low but
generates
huge WOM

Low

Very High

Go