EnergywithReliability: SolarEnergyinUganda

ENES472FinalProject December.16.2011 SubmittedTo:Dr.KristenKalebo GroupMembers:SeunAdekoya,Kyle Bradshaw,JesseCummings,Spencer Hacker,andMeronTesfaye

Energy with Reliability: Solar Energy in Uganda

Figure Courtesy to WorldAtlas.com

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Energy with Reliability: Solar Energy in Uganda

INTRODUCTION Power SolutionsTM is an up and coming, power distribution company based in New York, United States of America. Our company specializes in solar energy driven power-generating products. Power SolutionsTM was first established in 1996 with a mission to tackle the high and always increasing demand of power in New York. We observed New York suffered from high electric bills and was generating its power from environmentally unsustainable sources of energy. Therefore, we set out to provide an alternative means of energy to provide a sustainable and cheap source of energy (Pay back period on solar panels is small). After running 15 years strong and supplying alternative energy to parts of New York, New Jersey and Boston, an analogous need in Uganda caught our attention. This combined with our 25-year goal of achieving international expansion; we geared up to the continent of Africa to solve issues of unstable power supply in Uganda. NEED IDENTIFIED Uganda has been suffering with unreliable power supply for quiet some time now. Just this past month Uganda experienced 24-hour power outages that stopped thousands of middle class citizens from going to work
[1]

. The series of power outages lasted almost two months,

crippling small and large businesses all over Uganda and in turn, leaving workers unpaid. A sheet metal fabricator from Kampala, Asaf Kulumbano, described the situation best when, in exasperation, he complained that I have not worked and I don't have any money in my pocket. I am hungry and I am not taking anything to my family today. It makes me mad," Solutions
TM [1]

. Power

wishes to provide solar panels that will supply Ugandan people with reliable and

alternative source of energy. PRODUCT DESCRIPTION

Our full solar panel system is comprised of Photovoltaic Cells (PV Cells), a charge

controller, a collection of deep-cycle batteries, and a DC to AC inverter. All components are readily available from a multitude of manufacturers. The purpose and technical details of each component and will be described in the following paragraphs [2].
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Energy with Reliability: Solar Energy in Uganda

a. Types of Solar Cells: The solar cells being used will be Monocrystalline Silicon type of panel. These panels are regarded very efficient and expensive. However, they are suitable to provide for a large population in a very limited amount of urban area like Kampala, the capital city of Uganda. Monocrystalline panels are also guaranteed to last at least 20 years. This eliminates concern of reduced performance due to panel degradation less efficient Polycrystalline Silicon type of solar panels are also available
[3] [3]

.For

areas where space and reliability is not much of a concern, less expensive and slightly . Power generated from these panels can be supplied in two forms: direct current (DC) or an alternating current (AC). The AC is more expensive because it includes micro inverters on the backsides of the panels. However, it has an advantage of eliminating the need for a larger inverter for the entire system therefore reducing total cost per panel. It also prevents malfunctioning of one panel from hampering the performance of the rest of the system, as each panel is completely independent from the others. The panels provided by Power SolutionsTM are designed without micro inverters making them less costly compared to other solar panels. b. Charge Controller: A charge controller is a standard component of any system involving batteries. Its function is extremely simple; it sends current to the batteries when they are not fully charged and cuts the batteries off when they are fully charged. It is necessary because overcharging batteries can severely decrease the performance of the batteries and even cause catastrophic failure, such as acid leaks, fires, and sometimes explosions. It is an inexpensive piece of equipment that prevents overcharging of batteries and increases lifetime [4]. c. Deep-Cycle Batteries: Two main types of batteries are used in solar power systems: leadacid and nickel-cadmium batteries. In addition, these batteries must be deep cycle batteries. The difference between a deep cycle battery and a starting battery (car battery), for instance, is that they are designed to discharge current over a much longer period of time, and to be discharged to as low as 20% capacity without ruining the battery. These batteries typically have a total lifetime of 4-20 years depending on the model purchased
[4]

. Power SolutionsTM will be providing onsite maintenance of batteries for all customers,

free of charge up to 12years.

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Energy with Reliability: Solar Energy in Uganda

d. AC/DC Inverter: These components are needed to convert the direct current being produced by the solar cells and the batteries to alternating current (useful form of current) to power the building. Inverters are typically guaranteed to last for about 15 years or more eliminating need to be replaced often [3]. All components of the solar panels provided by Power SolutionsTM have high ratings for their long lasting and ability to withstand degradation. Power SolutionsTM is also prepared to provide installation, maintenance and warranty services to Ugandan customers. PRODUCT APPEAL AND BENEFITS In a location such as Uganda (i.e. between 4N and 2S, 29 and 35E), a solar power system is an excellent method to provide power to homes and buildings rather than a conventional coal or gas power plant. Uganda is situated perfectly in the tropical region receiving large amount and strong rays of solar radiation making it an ideal location for solar energy cultivation
[6]

.Our solar panel systems are flexible i.e. can be installed anywhere in the

country and do not need to be part of a massive grid linking every home and building together. This will remove cause for blackouts. Solar panels provided by Power SolutionsTM will also serve a to prevent degradation of environment and beautiful natural resources of Uganda caused by burning fossil fuels and other sources of energy that release harmful emissions into the atmosphere. Power SolutionsTM aims to provide two different solar energy system services. One set of services to individual customers, property-owners, and another to the governmental and public sector clients. The systems being implemented for government buildings will be designed with large safety factors to ensure the building will never experience a blackout whereas, those offered to private clients can be sized and designed to fit that clients specific requirements and demands. This is to ensure that the system being offered to private citizens is as affordable and as reliable as possible. Power SolutionsTM understands that for small business owners and middle class workers like Mr. Kulumbano, a stable and affordable power supply is not a luxury; it is a

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Energy with Reliability: Solar Energy in Uganda

means of livelihood. It is with such reliability of service, Power SolutionsTM plans to become the trademark of dependability in all areas of Uganda. TARGET MARKET Power SolutionsTM is looking to appeal to target clientele of lower and middle economic class individuals with reduced prices by acquiring the governments help and approval. In order to assure Ugandan citizens the cost-effectiveness of our products our company will seek partnership with the Museveni administration to subsidize its solar panel products. Power SolutionsTM is currently negotiating a subsidy agreement with the Ugandan government that would cover approximately 15% of costs incurred in providing solar panel products to the public. This funding would cover installation costs in consumers homes as well as a convenient percentage of consumers monthly bills. Power SolutionsTM believes that such a subsidy would provide for the Ugandan economy boost allowing citizens to go back to work and reducing anxiety or fear of an impending 24-hour power outage.

POWER SOLUTIONSTM AND UGANDA

Being able to get a foothold of alternative energy services in an international ground is

not our sole goal in initiating connections with Uganda. Our company believes that the future should not be based on the prosperity of one country alone but the prosperity of all countries. We also recognize that traditional forms of energy are dying out and have been proven to do more harm than good. In contrast to the United States, many countries in Africa generate most of their energy from renewable sources like hydropower. This implies that their ties to petroleum or coal driven generation of energy supplies are minimal. A combination of our company mission and these facts has convinced us that investment in alternative energy in Africa is an ideal way to solve energy problems in an international level. Considering many aspects such as, geographical location, government stability, openness to, and need for western market, Power SolutionsTM found Uganda to be an investment worth the challenge.

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Energy with Reliability: Solar Energy in Uganda

Uganda: A Short Profile History: The Republic of Uganda was originally formed under British colonial rule in 1894. It gained its independence in 1962. Uganda comprises of many different ingenious tribal groups that were combined into one state by the British colonial rule. There are tribal subcultures in the north, central and southeastern portions of Uganda rising from the original five Bantu kingdoms that remain from pre-colonization to the current state of the nation. These groups still pride themselves on maintaining cultural distinctions from the rest of the nation. Government has been polarized due to these tribal divisions with the Baganda tribe being given increased political power as well as increased land ownership establishing a stranglehold on the nation before its initial Commonwealth status in 1962. Government: This disparity can be further seen in the governmental systems created after 1962. The initial government of that time included one northerner and two tribal heads in the posts of prime minister, president, and vice-president. With the succession of dictatorships that followed, regional ethnics issues still were present most notably with Idi Amin changing the official language from English to Swahili, which is primarily spoken in the north where Amin was from. Further factionalism can be found in the current government of Yoweri Museveni who hails from the western portions of the country and is receiving political pressure from the Buganda in the central portions of the nation [10]. Economy: The economic climate of the nation has been primarily agricultural in nature since the 1970s. Cattle grazing lands for farming are still considered some of the most valuable property in the nation while rights to fish in Lake Victoria are nearly as sought after. Recently, oil has been discovered in Lake Albert and recent trade law changes have given hope to the creation of new manufacturing and textile jobs in the nation [10]. Ethnicity: The ethnic make-up of the nation leads to regionalism dividing the nation between the tribal groups and ethnics ties that make up the entire nation. The primary groups that make up the nation include the Bantu, the Central Sudanic in the northwest, Nilotic people that comprise of the majority of the northern regions and the Kuliak that occupy portions of the eastern border with Kenya. The Bantu can be further broken down into the six primary tribes that exist of which the Baganda has the largest percentage of population. However, at the current

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Energy with Reliability: Solar Energy in Uganda

demographic status the Baganda only comprise of about 5 million of Ugandas total population of 31 million [11]. Language: These ethnic differences are mostly influenced in how languages are represented in the country. The general primary language is English although it has been bastardized to include slang and has differences with Standard English. The second official language is Swahili while numerous other secondary languages are spoken with the primary regions for this secondary languages being determined by ethnic regions. Swahili is not widely used in the Bantu areas of the nation in the south and southwest that prefer to use their own secondary languages to Swahili. The Baganda use Luganda primarily around the capital city of Kampala and the surrounding areas while smaller linguistic groups use Lusoga and Runyankore instead. Swahili is used in the armed forces as well historical because the military draws mostly from the northern portions of the nation where Swahili usage is more prevalent. Religion and Faith: Religious views are consistent across almost all demographic groups when the British colonized the area religious missionaries were not far behind. The majority of the population was converted into Christianity, to be more specific Catholicism or the Anglican Church. The exact percentages vary from source to source but percentages as high as 84% have been reported [11]. Ugandans are very devout about their faith and take comfort in their churches as one of fundamental institutions of the nation. The church and state work closely together on national issues, the most prevalent example of this is the nationwide campaigns against AIDS starting in the late 90s. Social Status and Relationships: The ways in which social connections are created is a large part of what the countrys people are. In general, Ugandan society is male dominated with the sons receiving the land of the father after death. The maintenance of bloodlines is of major concern when marrying often it is required to marry someone that shares the blood of one of your grandparents. There are large family networks within the rural portions of Uganda where it is not uncommon to have grandchildren stay at their grandparents for extended period separate from their families
[8]

. Elders are respected and this concept carries over to hierarchy of the

society where superiors are given differential treatment. Business Engagements and Relationships: When engaging new individuals in order to create business relationships it is important to realize that personal space in Uganda is very
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Energy with Reliability: Solar Energy in Uganda

limited. Although indirect eye contact is preferred and it can sometimes be seen as a form of aggression [9]. Physical contact is allowed between males, but heterosexual greetings usually stop at handshakes. Formal dress is required for all business functions and all indications point to an Arab style of conversation, where getting to know the individual is more important than accomplishing the deal as soon as possible. The perspective of time in Uganda varies from the American idea of punctuality; the more senior individual is the only one allowed to be late in a business situation. Ugandan Culture and Power SolutionsTM : Culture-Product Appeal As a business looking to gain a firm foothold in Uganda and become recognized and respected across the country, our company understands that there is need to find areas of Uganda that power service being offered will appeal to. This will not only help us market our products but will also help us identify ways to the entrance of the power supply systems already established. Time Orientation: One of the most important things to consider is how to make the people of Uganda care enough about solar power to purchase it and implement it. There is much evidence that solar power is a fantastic idea to implement in Uganda, but convincing the people that is a very complex task. A very important cultural aspect to examine is whether the citizens of Uganda are past, present, or future oriented in terms of how they view their world and live their lives. The older citizens of Uganda are very past-oriented, but at the same time are receptive to new, foreign ideas. This puts Power Solutions in an advantageous position by allowing our sales teams to stress the importance to the national image of Uganda solar power has. The majority of the Ugandan citizens, however, is under fifteen years old, and has less of a fixation on the past and instead has a greater focus on the present. This also creates a good position for Power Solutions to be in by stressing how solar power can give individuals access to a stable source of power quickly, without having to wait for much infrastructure to be put into place [12]. Societal Concerns and Values: In Uganda there is also a strong emphasis on the importance of family and obligations to that family and friends as well. Power Solutions solar power service can appeal to these particularistic aspects of Ugandan culture by how much it can improve the lives of families by giving them a reliable source of electric power. Many people are
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Energy with Reliability: Solar Energy in Uganda

not able to work and thus cannot properly support families due to the unreliability and unavailability of electricity in widespread areas across the nation. If the Ugandan economy is to advance and if conditions for the working class are to improve, access to electricity is definite need [12]. With the flexibility of pricing and system configurations and by respecting cultural values and systems already established in Uganda, Power SolutionsTM plans to win the trust of the people of Uganda and become a well-respected presence in Uganda. Power SolutionsTM does not seek to dominate the country but rather work to remove power supply unreliability in Uganda. We plan to do this by respecting Uganda, its people and government and slowly establishing our name through the country. Our plan and marketing strategies on how to do that are discussed below. MARKETING STRATEGIES Our main concerns regarding marketing are establishing a good marketing media and gaining the trust of the local people. Ugandans have a largely communal society and close family ties. Further, due to its history of invasion and occupation, the country behaves very tentatively towards outside groups. They do not altogether reject suggestions from people from our area of the world, but they are slow to accept change. They put emphasis on tradition, cultural and religious, and typically allow a fair deal of time to become acclimated to the idea of a change before making any drastic decisions. Power SolutionsTM has therefore decided to focus on few outlets of Ugandan media and on illustrating the value of our product through demonstration. We plan to establish a strong reputation by collaborating with local government and religious leaders to garner sufficient trust and respect in the community.

Marketing Media Based on our research, we have determined the best medium for our advertising would be radio and television. There is only a 67% literacy rate amongst adults in Uganda, and this figure is even lower in the lower and middle-class citizens
[7]

. Therefore, methods such as the Internet

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Energy with Reliability: Solar Energy in Uganda

and print media would have a poor chance of reaching customers. We also discovered that 1 in every 8 people, or, as of 2002, 50% of families in Uganda, own a radio [7]. This would mean that if we advertised via radio, we would have a possible consumer base containing half of the country. Televisions although considerably more expensive to be found in every home, people often socialize in common places like cafeterias and watch television programs. Televisions are also a great way for visual demonstrations of our products. A combination of these two outlets will allow our company to reach wider audiences. Building Trust In gaining trust of our future customers, Power SolutionsTM will be focusing on performing a few key large projects to gain publicity. These projects will provide specific buildings with full infrastructure built around our solar products. The first building we would like to take on is a political office or a government run museum in the area. This would provide us visibility, while gaining Power SolutonsTM favor with the government. We will also be able to demonstrate the benefits of our products; making it easier to convince the government to provide the subsidies, we are requesting. Since there are 35% of people below the poverty line in our area, it is going to be critical that we are able to get individuals and families that aid to be able to afford the initial cost of our product
[7]

. We could focus on customers in the higher economic

classes to avoid this necessity, but our ultimate goal is to improve the lives of everyone. Another simultaneous project we would like to focus on is reaching the community. This can be possible with our second potential building to supply solar energy to. Except for the governments Mbarara University of Science and Technology, most of the recent universities have a religious affiliation [7]. There is a strong influence of spirituality; social and public events often incorporate prayer, music song and dance. More importantly, religious leaders are highly revered, and when there is general disapproval of the government, religious leaders act as a powerful counter-force
[7]

. Gaining the acceptance and approval of the religious community by

powering one of their schools or places of worship would ensure that we have the support of both the political and religious powers. Since the majority of the country (84%) is Christian, we will focus on this demographic at first.

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Energy with Reliability: Solar Energy in Uganda

CONCLUSION We see a lot of potential for energy transformation in Uganda. We also see a lot of space for growth for Power SolutionsTM in Uganda. Although a new market area and a new culture are sure to be challenging, Power SolutionsTM is ready to take that step and become an agent for sustainable energy worldwide. In making that come about, Power SolutionsTM is currently in negotiations with Ugandan government for reduced prices of solar panels. Alongside negotiations, Power SolutionsTM marketing team is planning its promotion segment for radio and television programs. Our engineers are currently surveying areas for potential solar grid installation. We are also training our staff in the cultural values and norms of Uganda to build cultural competence as we transition from national to international service. Demonstrating its ability to be a force of change in Uganda, Power SolutionsTM will establish its corporate name worldwide.

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Energy with Reliability: Solar Energy in Uganda

WORK CITED 1. Biryabarema, Elias. "Uganda Power Cuts Provoke Riots, Threaten Economy| Reuters." Business & Financial News, Breaking US & International News | Reuters.com. 02 Dec. 2011. Web. 11 Dec. 2011. <http://www.reuters.com/article/2011/12/02/ugandaelectricity-idUSL5E7N14FV20111202> 2. Toothman, Jessika, and Scott Aldous. "How solar Cells Work." HowStuffWorks.com. N.p., 01 April 2000. Web. 11 Dec 2011. 3. "Solar Equipment: Inverters, Solar Panels, and Sunlight. What else do you need? " howsolarworks.1bog.org. One Block Off the Grid, 2011. Web. 11 Dec 2011. 4. "Deep Cycle Battery FAQ." windsun.com. Northern Arizona Wind & Sun, 2011. Web. 11 Dec 2011. 5. "Different Types of Solar Panels." AND "Solar Panel Efficiency and the Factors that Affect it." howsolarworks.1bog.org. One Block Off the Grid, 2011. Web. 11 Dec 2011. 6. Photovoltaic Solar Electricity Potential in the Mediterranean Basin, Africa, and Southwest Asia. 2011. Graphic. soda-is.com. Web. 11 Dec 2011. <http://www.sodais.com/img/map_af_glob_opta_150dpi.png>. 7. Otiso, Kefa M. Culture and Customs of Uganda. Westport: Greenwood, 2006. Print. 8. Susan R. Whyte and Michael A. Whyte. Children's Children: Time and Relatedness in Eastern Uganda, Africa: Journal of the International African Institute, Vol. 74, No. 1, Grandparents and Grandchildren (2004), pp. 76-94 9. "Culture Crossing-Uganda." Web. 08 Dec. 2011. <http://www.culturecrossing.net/basics_business_student.php?id=212>. 10. "A Grumpy Kingdom." Economist 26 July 2008: 57-58. Abstracts in Social Gerontology. Web. 8 Dec. 2011. 11. "Uganda." Welcome to the CIA Web Site Central Intelligence Agency. 10 Nov. 2011. Web. 8 Dec. 2011. <https://www.cia.gov/library/publications/the-world-factbook/>. 12. "Culture of Uganda." everyculture.com. N.p., 2011. Web. 15 Dec 2011. <http://www.everyculture.com/To-Z/Uganda.html

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