Rationale for choosing the story:

With the ever increasing world population, energy demand is likely to increase even faster. However, opinions diverge as to whether the electricity demand will continue to be served predominantly by non renewable sources of energy like coal and natural gas or there will be a shift to renewable sources like solar and other alternative forms. About 20 years ago, greater availability relative to usage rate was considered as energy sustainability. But, today with increasing concerns about global warming and ethically important issues, other aspects are also very important. These include environmental effects, efficient utilization of wastes, safety and costs. y y y y The present story has an unbiased focus on practical applications to improve the energy profile and sustainability of various regions in India. The model is not completely developed and can be scaled up or can be applied to other organizations as well The story also caters very well to the Triple bottom line People, Planet and Profit Scope to improve upon innovation and other sustainable solutions

Main Story
At the end of 2004, BP started looking at the bottom of the pyramid those who are economically undeserved and use regressive energy. This gave a business opportunity for BP, partnership with SSP who became one of the largest distribution channels for clean burning stove and even invested in some manufacturing. After three and a half years in India, more than 2,00,000 households have brought Oorja stove, which is a good sign of sustainability. Of this, over 20% comes for the NGO channel set up by SSP. The partnership has definitely added value to BP.

About the NGO: Swayam Shikshan Prayog (SSP)

SSP began as an informal network for the economic empowerment of rural poor women in 1990. After India s 1993 earthquake, SSP worked in over 1,000 villages in rural Maharashtra to lead disaster recovery efforts. Fifteen years later, SSP partnered with BP Energy to create a business partnership that is built on SSP and the networks that emerged from the disaster work. Today the NGO partners with over 60,000 women in self-help groups or networks. SSP s primary goal is to build the social and economic competencies of women at the grassroots level, by creating networks that enable communities to move from the margin to the mainstream of development.

About the Partnership between BP and SSP (NGO): An Innovation brought about by the partnership
Since 2007, the SSP BP partnership has catered to the clean energy needs of 58,000 customers and families by creating a for-profit entity. Prior to the launch of the business, the NGO identified the villages, the

women, and the groups that would be involved. At the center of the business model are the women s networks, which act as a business platform. The network appoints women as village level entrepreneurs (VLEs) or Jyotis, a symbol of energy. Jyotis are responsible for the home delivery of cooking stoves and pellets or bio fuels. They are the first users of the stoves. They demonstrate the value of using clean fuels and vow to convert their neighbors and help to create smoke free villages for the future. Linking to customers through the Jyoti network allows corporations and NGOs to understand rural households and their needs, and to facilitate sustainable solutions. The engagement between BP and SSP with grassroots women s groups in the partnership created a multidimensional business model that followed the growing theme of people, planet and profit. Women are daily life experts on practical issues such as food systems, fuel, water facilities, and waste recycling. The co-creation process builds upon their insights to test and innovate new products, reduce costs and empower women to play new roles in the operation and management of business.

Social Development Gains from Corporate Partnership

BP and SSP partnership has created a social market from their member networks that responds to new products and deals with market relationships in a way that is a win-win for commercial entities and communities. The real challenge here is sustaining the outcomes of the partnership. On a daily basis, the business model must deliver social value and business offers to the consumers. People must see and feel such values, because otherwise we will lose their trust, the relationship will go bad, and everything could go wrong very quickly. NGOs bring in credible long-term relationships that are truly helpful in starting businesses in remote markets

Future Challenges: Scaling up

The biggest challenge is how to go forward from 2,00,000 households to more than 10,00,000 households, because this is a high-volume business with low margins. Scaling up is a challenge, but the process can be replicated because in almost every Indian village, women are organized in self-help groups. The core idea of the model is that It is the market and not mere charity that leads to sustainability

Scaling up the Business Model 3 pronged strategy

Business development

Product portfolio expansion

BP Solar  BP Solar can build relationships with different NGO s to bring LED and solar based lighting for domestic use through a sustainable model  The product should be easy to use, economically viable and help in saving carbon credits

Geographic Expansion

 Set up a 3-5 year fund with $ 50-100 mn with the help of investment firms  Target Market potential: - Identify the needs of the consumers and estimate the size of the market - Try to bring about disruptive innovation to bridge the gaps  R&D requirement & other costs: - Estimate the costs and scientific capabilities to provide technologically superior and innovative solutions to meet the demand  Affordability: - Find alternative methods to help finance the products - Make a detailed carbon financing plan in co-operation with carbon credit financing agencies  Distribution: - Achieve scale by networks and partnerships with microfinance organizations and self help groups and other co-operatives

Phase 1: Domestic Expansion

 BP can partner with various NGOs across different states in India to replicate the above model.  Initial areas of expansion could be states like : Andhra Pradesh, Madhya Pradesh, Tamil Nadu, north western regions punjab, chandigarh etc.

Phase 2: International Expansion

Expand the model to regions in Africa and other developing nations.  Work in partnerships with leaders in different sectors, govt., to create impact on people 

Tie up with organizations like the UN, UNESCO, World Bank, Bill & Melinda Gates Foundation and other institutional donors to achieve multi lateral sales. Try to diversify risks by partnering with other large corporations to deliver sustainable energy solutions to the people. Make differentiated products, designs, pricing and distribution strategies to expand footprint to the urban poor and the middle class