Promoting access to energy without endangering the climate today’s major challenge.

1. Access
to energy
BipBop Programme

2. Contents
Access to energy
Message from Jean-Pascal Tricoire ........................................................................ 3
The issues at stake ................................................................................................... 4-7
The requirements .................................................................................................... 8-9
The players ............................................................................................................ 10-11
Schneider Electric’s commitment ................................................................. 12-19
Schneider Electric | Special Feature: Sustainable Development | N°1 - May 2008 | Access to energy
May 2010 | Access to energy

3. Message from Jean-Pascal Tricoire
Promoting access to energy for all,
without endangering the climate – this is
today’s major challenge.
We are at a turning point in the history special responsibility in this regard. It is our
of our planet. Today, both public and private ambition to become an actor in a virtuous
energy is at the very heart of Sustainable circle that links business, innovation and
Development issues. 1.6 billion people responsibility. The emerging countries are
throughout the world do not have access our markets of tomorrow. Today, imagining an
to energy and legitimately aspire to having offer suited to people at “the base of the
the same equipment and services as the pyramid*”, means contributing to their
inhabitants of developed areas. Energy is development and preparing our common
everywhere, in transport, services, industry, future at the same time. As far as innovation
education, health and housing. It irrigates is concerned, it is now more essential
our mature societies. Therefore, access than ever that we succeed in inventing new
for all to this resource remains one of the technologies and new services adapted
essential keys to sustainable economic to different realities, capable of reconciling
development that is wellbalanced performance and environmental respect.
between mature and emerging countries. Lastly, the responsibility dimension of our
But increasing the world’s consumption of action goes back a very long way. With the Jean-Pascal
energy means endangering another collective Schneider Electric Foundation, we have Tricoire
resource: the climate. How can we face up been involved for many years in educational Chairman of the
to this paradox? How can we produce activities and integration of young people Management Board
better, improve our energy efficiency and throughout the world. and CEO
promote access to energy for all? This special feature aims to go even further
This is the major challenge facing us today. and introduce you to all the issues
Schneider Electric’s different professions, related to energy access, and the
its world-wide set-up and the exceptional sustainable solutions we are deploying
cultural diversity of its teams endow it with a to face up to them.
* The expression “base of the pyramid” is often used these days to refer to people with the lowest income on a global scale
in a given country.
2-3

4. Access to energy,
a challenge for our
global village
Schneider Electric | May 2010 | Access to energy

5. The issues at stake
Access to energy is already an issue for countries
in the Southern hemisphere. It is also a real collective challenge
closely related to the question of pollution and global warming.
Today, almost a quarter of the world’s projects have enabled new generators
population does not have access to operating on palm oil to be introduced into
electricity, despite all the progress made in rural communities. But requirements are still
certain regions. Certain countries, which have considerable, especially in sub-Saharan
a high proportion of “poor”, such as China, Africa and Southern Asia. Furthermore,
are capable of supplying the majority of their these requirements are evolving. Today,
population with electricity. Others have 4 out of 5 persons without access to
successfully launched rural electrification electricity live in a rural area, but tomorrow
programmes, such as Bangladesh where the question will also arise in urban areas.
some seventy electrification cooperatives During the next thirty years the major part
have been created over the last twenty years of the world’s demographic growth will take
and which now supply electricity to 40 million place in large urban agglomeration in
people, or Brazil, where new innovative developing countries.
Due simply to their size and their increasing importance in world energy
markets, China and India are transforming the world’s energy system. Rapid
economic growth will undoubtedly continue to sustain the demand for energy in
these two countries and really contribute to improving the quality of life of over
2 billion people. This is a legitimate aspiration that the rest of the world must
integrate and support.
Nobuo Tanaka, IEA executive director
>60%
This represents the increase in the
>47%
This is the amount of CO2 emissions that
demand for electricity in developing can be attributed to developing countries
countries by 2030. by 2030.
Source : IAE 2007. Source : IAE 2007.
4-5

6. Energy, the key to development
Since the Rio de Janeiro summit, access to to development. For example, a community’s
energy has been considered as an essential or a region’s simple ability to pump water
element for mankind’s sustainable by means of electric pumps gives access to
development. It is a fact that providing drinking water, improves crop yields and
modern energy services (heat for cooking, increases food supplies. Women and girls
refrigeration, lighting, etc.) not only enables can devote the time they used to spend
people’s quality of life to be improved, going to and from the well to learning
but it also destroys the circle of poverty by a professional activity. In other words,
improving the efficiency of health and favouring more equitable access to energy
educational services, by developing mobility means taking an extra step towards
and by promoting the development of local attaining the Millennium Development Goals
crafts, industry and urban services. Access defined by the United Nations’ General
to these services, no matter how modest it Assembly in 2000 for solving problems
may be, has positive direct and indirect of extreme poverty.
consequences, which contribute significantly
Developing countries should not be condemned by the weight of
tradition or their poverty to repeat the same errors as their predecessors,
especially when other solutions are available. We cannot refuse them the right
to become industrialised and, in fact, they will need to practically double
their production of electricity in the coming years if they want to progress and
attain Millennium Development Goals.
Kofi Annan, at the 14th session
of the UNO Sustainable Development Commission in 2006
Schneider Electric | May 2010 | Access to energy Development | N°1 - May 2008 | Access to energy
Special Feature: Sustainable

7. The issues at stake
The base of the pyramid, a growth reservoir
The base of the pyramid represents the 4 billion people on our planet who live on less than
2 dollars a day. In his book “The Fortune at the base of the pyramid: Eradicating poverty through
profit”, C.K. Prahalad, a university professor and influential international consultant, proposes
that this population is not considered as a burden but as an immense potential reservoir of
consumers and entrepreneurs. And to meet the requirements of this target,
he suggests t hat major companies should work hand-in-hand with Non-Governmental
Organisations and local government authorities.
Rapidly increasing requirements
The other major issue for the coming years is energy in order to reduce CO2 emissions and
that of the sudden increase in requirements. to preserve the planet from the disastrous
According to a scenario drawn up by consequences of global warming.
the International Energy Agency (IEA) in the Therefore, a new balance must be found
report it published in early November 2007 between goals that are often contradictory:
(World Energy Outlook 2007), developing human development, economic growth and
countries with the fastest economic and environmental respect. Without any doubt,
demographic growth should account for this will involve a profound and “virtuous”
74% of the increase in the world’s primary modification of the living pattern of the people
energy consumption, 45% of which will be who inhabit the Northern hemisphere and
attributable to China and India. As a result, a search for alternative energy production
the IEA is urging all countries to undergo solutions in the Southern countries.
a transition, whose goal is to “decarbonise”
6-7

8. Today, 1.6 billion persons throughout the world,
or 300 million families, do not have access to electricity.
World map with captions showing the regions where requirements
are greatest.
Source : International Energy Agency, 2006.
2002 2030
Africa
Less than 10% of the population living
in West Africa has access to electricity.
In rural and peri-urban areas, electricity
connection rates rarely exceed 5%
compared with 35% in North Africa and
45% in Eastern Asia.
> In sub-Saharan Africa, 526 million
people do not have access to electricity.
Schneider Electric | Special Feature: Sustainable Development | N°1 - May 2008 | Access to energy
May 2010 | Access to energy

9. The requirements
Asia
Primary energy requirements in Asia should increase by
8% to 10% over the first 30 years of the 21st century. In 2004,
the continent already represented 62% of the world’s growth
in energy consumption (source: Enerdata).
> Almost 900 million people still do not have access to
electricity, particularly in South-East Asia.
>$15
This the average monthly energy budget for the poorest families,
which represent 30% of their overall income.
8-9

10. The players
In every area of the world, there are programmes,
non-governmental organisations and private companies
endeavouring to promote access to energy.
Non-governmental Organisations
A certain number of NGOs are working, more Since 1992, together with UN experts and local
or less exclusively, on questions related to partners, it has completed five projects and
energy. Electriciens Sans Frontières was is at present developing several programmes
created in 1986 by employees in the Design on renewable energy in the poorest areas in
and Research Department of EDF (Electricité the world. Another example: the Habitat for
de France). Today, this NGO has federated Humanity NGO, which works on housing
a dozen regional associations with over for the most poverty-stricken, is integrating
800 voluntary workers, mostly from EDF. notions of energy efficiency in its programmes
Over 20 years, more than a million people and is developing solutions based on
have benefitted from the association’s actions. renewable energy in certain countries,
The E8 was created just after the Rio summit such as Armenia, where it has equipped
in 1992. This NGO has united 9 of the largest homes belonging to poor families with solar
electricity concerns in the G8 countries. water heaters.
Schneider Electric | May 2010 | Access to energy Development | N°1 - May 2008 | Access to energy
Special Feature: Sustainable

11. The players
International institutions Private companies
For a number of years, numerous In the context of their social responsibilities,
international programmes have been certain large companies in the energy sector
endeavouring to reduce the world’s energy also endeavour to promote access to energy
“divide”. With the support of 24 European, for people living in developing countries.
American and Asian countries, the African A member of the E8, EDF is participating in
Development Bank (ADB) works in several projects piloted by the E8 NGO
53 African countries. Notably, it has launched throughout the world. Its EDF Access
the Finesse programme (Financing Energy programme is a long term programme for
Services for Small-Scale Energy Users) creating and running local companies for
intended to promote deployment of selling energy services to rural populations in
renewable-energy-based services in Africa. developing countries, far away from power
The objective of the World Bank’s ESMAP grids. In 2003, in partnership with the WWF,
programme (Energy Sector Management ABB launched an “access to electricity in
Assistance Program), managed in Tanzania” programme, whose aim is to
partnership with the United Nations equip rural villages with installations that run
Development Programme, is to increase on biomass fuel. In India, General Electric
people’s access to modern energy sources, is deploying a rural electrification programme
especially in isolated rural areas. that incorporates a certain number of
The EUEI, the European Union Energy technologies from the GE renewable energy
Initiative for “the eradication of poverty and portfolio. This year, the American giant has
sustainable development”, was launched set up a partnership with USAID and has
in 2002 at the Earth Summit and obtained committed itself to giving support to two
a joint commitment from the member states initiatives made by the Indian government:
and the commission. Lastly, the United “Electricity for all by 2012” and “Rural
Nations Environmental Programme REED – electrification / Rural business clusters”.
Rural Energy Enterprise Development –
acts as an incubator for enterprises and as
a business angel. It supplies funds to
For more
companies in the form of a debt or shares,
www.iea.org
enhances the value of the most profitable
www.ademe.fr
projects and withdraws once the company
www.un.org/french/millenniumgoals/
has become viable. It also acts as an advisor
www.ckprahalad.com
by making qualified personnel available to
www.electriciens-sans-frontieres.org
entrepreneurs.
www.e8.org
www.habitat.org
www.afdb.org
www.esmap.org
www.areed.org
www.panda.org
10-11

12. Schneider Electric’s
commitment
The "BipBop*" programme
Business Innovation
Partner with Build adequate
B I
investment funds offers/solutions to
to create be a champion in the
companies electrical distribution
dedicated to the
electrical business BOP field fot the Base of
the Pyramid.
for the Base of the
Pyramid.
P
People
Support from Train young people from the Base of the
Pyramid in electrical skills, sponsor them.
Schneider Electric
Foundation
BOP for “Base of the pyramid“. It is the expression commonly used to name
those with the lowest income in each country.
* BipBop is the name of an internal Schneider Electric programme.
Schneider Electric | May 2010 | Access to energy

13. Schneider Electric’s commitment
For many years, Schneider Electric has been committed
to a sustainable development approach. Today, the Group is passing
a new milestone by linking business, responsibility and innovation even
more closely together.
By incorporating Sustainable Development In this approach, increasing populations’
objectives and indicators in its successive technical skills enables us to find better
company programme, Schneider Electric qualified labour, to improve servicing and
had already placed Sustainable Development maintenance and to distribute offers for
at the heart of its strategy. “But today, the base of the pyramid market more rapidly.
we are going even further”, explains Also, acquiring administration and
Gilles Vermot Desroches, Sustainable management skills enables us to minimise
Development Senior VP, Schneider Electric, financial risks, to optimise company strategy
“by treating three problems, Business, and to increase return-on-investment levels
Innovation and People at the base (which can then be reinvested elsewhere
of the pyramid, in an integrated way, in and thereby accelerate the “access to energy”
other words, by creating an offer adapted to process). Improving the quality of an offer
the requirements of populations at the base of (and its appropriateness to the demand)
the pyramid (the innovation dimension), enables us to generate the resources
by investing in innovative companies needed to finance a training programme and
(the business dimension) and by increasing to train populations on an offer that is suited
the levels of qualification to them (easy to use, to service, to exploit, etc).
of base of the pyramid populations” Lastly, investment in innovative companies
(the people dimension). stimulates the emergence of new ideas
and offers that are increasingly accessible,
Virtuous dynamics approachable, and viable for the base of
the pyramid”.
Associating these three dimensions together
means creating “virtuous dynamics”.
>Over $430 billion
Per year, this is the estimated size of the “household” energy market in the base
of pyramid consumer segment, where annual income is less than 3,000 dollars.
Source: International Finance Corporation, “The next 4 billion, market size and business strategy at the base of the pyramid”, World
Resources Institute, 2007.
12-13

14. Innovation
Low-income markets, pretty unattractive?
Taking an interest in it today means preparing for the future.
Prepayment, a solution suited electricity operator. In South Africa, the same
to the requirements of developing number of counters has been installed for
countries Eskom, a local electricity production and
distribution company.
Today, the Group’s offer in terms of access to
The low cost housing market
energy is mainly borne by Conlog, it subsidiary
set up in South Africa, a company that joined The offer developed by Schneider Electric
the Group in 2000. In many emerging in South Africa follows the same logic. Since
countries, electricity operators have difficulty 1994, with the “A home for all” government
in managing payment of their invoices. programme, 1.4 million low-cost homes have
Conlog’s prepayment solutions (installing been built, putting a roof over the heads of
counters in homes, setting up a network of some 5 million people, amongst the poorest
>1
prepayment card sales points and a in the country. Schneider Electric has set up a
management system on the energy operator’s partnership with a local company, Sonoco,
premises) provide an efficient solution to this created by the former South-African football
problem. There are numerous advantages to star, Jomo Sono, for equipping these homes
this system: the operator obtains significant whose technical characteristics are all very
million: cash flow and can save the cost of a similar. Sonoco installs kits which include
households at the traditional invoice management system. On everything required by a basic household
Base of the Pyramid the consumer side, access to energy is electricity installation; it sells prepayment
have access to simplified, without any extra cost for cards to the occupants, operates prepayment
energy thanks to subscriptions or cancelling subscriptions, and services and handles system maintenance.
Schneider Electric’s managing energy budgets becomes easier: The kits developed by Schneider Electric are
solutions at the end you only consume what you can pay for. In very easy to fit (one hour’s fitting on average),
of 2011 the Sudan, Conlog has installed a million which also provides a solution to the problem
counters of this type for the national of local installers’ technical skills.
Schneider Electric | May 2010 | Access to energy

15. Schneider Electric’s commitment
In-Diya LED-based lighting system in Half of the net profit earned from the sales of
India In-Diya in India will be put back into the
Schneider Electric India Foundation to further
the cause of BipBop.
As part of its commitment towards the BipBop
initiative, Schneider Electric unveiled its
In-Diya LEDbased lighting system in New Also in India, the Schneider Electric
Delhi in February 2010. In-Diya aims to Foundation contributed to project iLead
provide lighting to people living with no or (Institute for Livelihood, Educations, and
unreliable electricity in India. It is a specially Development). The project consists of skill
designed LED-based lighting system that can development, training, and employment for
operate on main supply and/or solar, and disadvantaged young people, as well as
provides backup ranging from 8 to 15 hours entrepreneurship training for poor youth. A
for indoor applications. The innovative offer pilot class of electricians started training in
will play a key role in providing access to 2009. The goal is to train 4000 professionals in
reliable lighting to more than 500 million rural six different locations by 2012, after which
people, thereby enabling them to take part in they will be encouraged to launch their own
the exclusive growth story in India. small business and deploy lighting solutions
in poor villages throughout the country .
In-Diya is a high-quality, affordable product
offering the following benefits:
> consumes 50% less power than an
11-watt compact fluorescent lamp (CFL)
and 90% less power than two 60-watt
incandescent lamps for the same light
output
> illuminates a 3.65m x 3.65m (12’ x 12’)
room for all normal activities and is
wall-mounted
> in its high-end version, costs less than
any CFL-based solar home lighting
system
> provides 50 000 hours of lighting
LED lamp with battery backup
The innovative offer will play a key role in providing
access to reliable lighting to more than 500 million people.
Abhimanyu Sahu, Programme Manager, BipBop India, Schneider Electric
14-15

16. Business
Schneider Electric Energy Access Fund
The establishment of the Schneider Electric Schneider Electric Energy Access fund works
Energy Access fund marked an innovative first within the company’s BipBop Programme to
for a major industrial company in the area of provide safe, green energy to disadvantaged
corporate social responsibility. Created with individuals. The structure of the fund, which is
the backing of Crédit Coopératif and PhiTrust, designed to promote responsible
the fund supports the development of development, represents anoriginal and
entrepreneurial initiatives worldwide that will innovative response to the latest French
help the poorest among us obtain access to legislation on employee savings. It is a new
energy. With an initial capitalization of ¤3 societal commitment for Schneider Electric,
million, Schneider Electric Energy Access shared with our entire corporate community.
provides financing for projects that are By supporting the development of businesses
designed to: involved in electricity and renewable
> help jobless individuals create energies, Schneider Electric Energy Access
businesses in electricity reflects our commitment to creating a
virtuous circle combining business,
> promote the development of businesses
innovation, and social responsibility.
that provide energy access in rural
orsuburban areas
> support the deployment of innovative
energy access solutions that use
renewable energies for the Base of the
Pyramid
May 2010 | Access to energy
Schneider Electric | Special Feature: Sustainable Development | N°1 - May 2008 | Access to energy

17. Schneider Electric’s commitment
People
The Schneider Electric Foundation supports projects all over the world
to promote access to energy and professional integration into electrical
trades.
In India, from
village to school
In India, Schneider
Electric is involved
in a project with
Over the past 10 years, the Schneider Electric Foundation has supported hundreds of the Kanyare Colony,
children and young people in all of the Group’s host countries. The most ambitious projects a village located
combine financial and human resources with a link to Schneider Electric’s businesses. in the province
of Kernataka.
Jobs in electricity Access to energy The project’s initial
objective is to provide
The Group has decided to focus more fully In today’s world, 1.6 billion people do not electricity to the
on jobs in electricity to give its commitment have access to electricity. The Foundation village, which is the
more meaning and make its programs wants to help shrink this gap by providing home of 150 families
more effective. Around the world, wherever access to energy—a move that will also mainly earning their
disconnected people are looking for job provide access to development and living by gathering
opportunities, the Foundation will support improved healthcare. fruit and vegetables
projects that provide training and an on-ramp and producing honey.
>10.000
to long-term employment, especially in areas The project’s second
related to electricity. phase consists of
training 20 young
people in electrical
young people at the Base of the Pyramid trades; a training
trained in the electricity professions at the programme that will
end of 2011 be extended to
a technical college
located at Misore,
the closest town.
16-17

18. The Foundation in action
Training future electricians in Brazil
In Brazil, the national industrial training
service (SENAI) is deploying an 80-hour
training programme in close cooperation with
Schneider Electric Brazil. Taught on nights and
weekends, this initiation to the basics of
residential electrical work gives low-income
youths an opportunity to learn the electrical
trade. Because the courses are offered free of
charge and outside working hours, both
attendance and the completion rate are high.
In 2009, 1200 young people participated in
the programme at 26 centres across the
country.
Hands-on experience in Nigeria
From December 3-7, 2007, students at Yaba
college of technology applied the electrical
engineering lessons given by Schneider Electric
team members in a hands-on workshop.
Participants were asked to verify and optimize
the electrical installations at Child Life Line,
a centre for the disadvantaged supported
by Schneider Electric Nigeria, its employees
and the Foundation.
Afterwards, a training session on installation
was offered that attracted nearly
400 students and 70 professors from
four Nigerian universities.
May 2010 | Access to energy
Schneider Electric | Special Feature: Sustainable Development | N°1 - May 2008 | Access to energy

19. Schneider Electric’s commitment
Around the world
> Algeria > Brazil > Costa Rica > Egypt > France
Atelier sans Sociedade Fundación Galal Fahmi Adie
frontières Benfeitora Cedes don School
Providing financial
Jaguaré Bosco
Train disadvantaged Renovating a assistance
young people Build a new Train 38 young technical school, to 50 long-term
to acquire the basic classroom, renovate disadvantaged training the teachers unemployed
knowledge another one, propose people and and developing persons to help
in electricity and on-product training their teachers in a training program them create
electronics. for the teachers a electromechanical for the pupils. their own companies
nd train 60 young engineering, in the field
disadvantaged bringing brand of electricity.
people a year new electrical
in electrical equipment.
engineering.
> Indonesia > Lebanon > Central > Russia > Turkey
2 Vocational Seeds of Hope Africa University for Cagdas Yasami
schools et The Feron Vrau Handicapped Destekleme
Partnering with the
Nurani Dunia foundation people Dernegi
European Institute
Renovate and equip for Cooperation and Giving social and Create a University Provide financial
the laboratories Development (IECD) financial support for handicapped support for
at the technical to upgrade training for the training people, with 50 young women
schools in Banda capacity at of engineers and courses, selection to enable them
Aceh. six technical schools technicians and exams and to continue their
specialized in (recruiting and delivery of a studies in electrical
electrical, training teaching Schneider Electric and electronic
electronic and staff, purchasing diploma. engineering.
electromechanical technical, scientific
studies. and classroom
equipment).
18-19

20. Butterfly - Crédits photos : Agence VU, Etienne Eymard Duvernay, Christian Rausch, Schneider Electric.
Schneider Electric SA
Sustainable Development Department
35, rue Joseph Monier
92506 Rueil-Malmaison - France
Tél : +33 (0) 1 41 29 70 00
Fax : +33 (0) 1 41 29 71 00
Schneider Electric | Special Feature: Sustainable Development | N°1 - May 2008 | Access to energy