3/3/06

Entrepreneurial power

Dean Kamen’s electric generator is powered by an easily-obtained local fuel: cow dung.

Each machine continuously outputs a kilowatt of electricity. That may not sound like much, but it is enough to light 70 energy-efficient bulbs. As Kamen puts it, "If you judiciously use a kilowatt, each villager can have a nighttime."

A satellite picture of the earth at night shows swaths of darkness across Southeast Asia, the Middle East, and Africa. For the people living there, a simple light bulb would mean an extension of both their productivity and their leisure times.

The real invention here, though, may be the economic model that Kamen and Iqbal Quadir, the founder of Grameen Phone, hope to use to distribute the machines. It is fashioned after Grameen Phone's business, where village entrepreneurs (mostly women) are given micro-loans to purchase a cell phone and service. The women, in turn, charge other villagers to make calls.
"We have 200,000 rural entrepreneurs who are selling telephone services in their communities," notes Quadir. "The vision is to replicate that with electricity."

During the test in Bangladesh, Kamen's Stirling machines created three entrepreneurs in each village: one to run the machine and sell the electricity, one to collect dung from local farmers and sell it to the first entrepreneur, and a third to lease out light bulbs (and presumably, in the future, other appliances) to the villagers.

Instead of putting up a 500-megawatt power plant in a developing country, he argues, it would be much better to place 500,000 one-kilowatt power plants in villages all over the place, because then you would create 500,000 entrepreneurs.

[Village Energy]

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