Success of Renewable Energy in Bangladesh

1. Success of Renewable Energyin Bangladesh Shahidul I. Khan Department of Electrical and Electronic Engineering Bangladesh University of Engineering and Technology, Dhaka-1000, Bangladesh BUET The University of West Indies, Mona campus , 30 Nov-4 Dec2009

2. Overview A small South-East Asian country situated between 20.30-26.38 north latitude and 88.04-92.44 east longitude. Only 40% of the total population in Bangladesh has access to grid electricity.** It is extremely difficult to extend high-tension transmission lines to these areas as some of the places are separated from the mainland and from each other by wide rivers, creeks and hills. Over 320,000 Solar home systems have already been installed in different locations of the country by a number of government, semi-government, autonomous bodies and also by some NGOs. The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

3. IDCOL: The Pioneer of SHS Revolution • IDCOL: Infrastructure Development Company Limited. • Established: In 1997 and licensed in 1998. • Key role: To promote renewable energy projects especially the SHSs under the Rural Electrification and Renewable Energy Development Project (REREDP). • Financed by: International Development Agency (IDA), Global Environment Facility (GEF), GTZ, KfW. • Operates through: 15 partner Organizations (PO). • Provides:Technical, logistic, promotional and training assistance to the POs. Also refinances POs, allots channel grants and plays role in institutional development of POs. The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

4. Technical Standards Committee Suppliers Provides approval Seeks approval Supplies Equipment Pays for Equipment Provides Grants A,B & Refinancing IDCOL • MFIs Seeks Grant & Refinancing Downpayment & Monthly install- ments Sells Systems & Channel Grant A Seeks Operations related solutions Provides Solution Operations Committee Household IDCOL: Working Flow Chart The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

5. Roles of the POs • Market promotion of SHS. • Installation of SHS. • Collection of initial down payment and monthly installment fees within the microcredit infrastructure. • Maintenance service of the SHS to the households. • Seeking loan refinancing and grants from IDCOL. • Training of local technicians. • Creating local entrepreneurs of Renewable energy technology. • Enhancing socio economic development with increased participation of rural women. The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

6. Some of the IDCOL Partner Organizations • GrameenShakti (GS) • Rural Services Foundation (RSF) • BRAC Foundation • Srizony Bangladesh • COAST Trust • Integrated Development Foundation • Shubashati • Mukti Cox’s Bazar • Center for Mass Education in Science. • PadakhepManabikUnnayan Kendra. The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

7. The Grameen Micro-credit Model: Leading towards sustainability • Micro-credit and its philosophy: • The brainchild of Dr. Mohammad Yunus, the 2006 Nobel peace prize winner. His belief, “Poor are bankable” • Micro-credit gives people loan without any collateral or any guarantee. • Loans are repayable in weekly installments spread over the year. • Only guarantee is the trust and good faith. • Eligibility for a subsequent loan depends upon full repayment of the first one. • The loan recovery rate is about 99 percent. The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

8. GrameenShakti (GS): Leading PO of the IDCOL SHS Program • GrameenShakti (GS) • As a member of the Grameen family and a PO of IDCOL as well (established in 1996) pioneers the SHS program in Bangladesh. • Plays the leading role in the promoting the SHS program in rural areas on commercial basis through Grameen Micro-credit scheme. • Mitigating the energy crisis of the rural population and involving them to the mainstream of socio-economic development. • GS Financial strategy BUET

9. Several SHS Packages Offered by GS

10. Role of RSF (Rural Service Foundation) • RSF is a Partner Organization (PO) of IDCOL/World Bank Solar Home System Program. It was enlisted in this program from July 20,2006. • From its commencement, RSF has already installed 27,572 SHS by March, 2009. • It is now the second largest renewable company in Bangladesh and its average sales growth is over 170 percent over last three years. The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

11. Types of Financial Modeling • Village Bank model • Credit Union(CU) • Self-Help Groups (SHGs) • Micro-finance The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

12. The Micro-Utility Model • The Micro-Utility Model • Micro-utility model reaching the poorer communities. • Solar power system provided to a shopkeeper or a client with only 10% down payment. • Owners sharing the system with other households or shops for a fee. • Owning the system completely after 42 monthly installments without any additional service charge. • Shopkeepers earning extra money lighting their own shops, providing TV access and mobile phone charging options to the customers. • 10,000 clients up till now.** ** GrameenShakti Year Book, 2009 The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

13. Social Impact • Improving the lifestyle • Powering electronic equipments like TV, radio, lamps mobile phones in the rural households. • Combining larger units to provide more facilities to the household consumers. • Access to computers • Giving rural people in the off-grid areas access to computers. The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

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19. Solar Powered Boats: Enlightenment Through The Solar • One of the unique implementations of SHS. • Developed in remote Chalanbeel, the central western region of Bangladesh. • Surrounded by water, regular flooding and boats being the only medium of transport, proper education is a dream for the children in this area. • 88 Solar powered boats built by ShidhulaiSwanirvarSangstha, established in 1998 providing access to primary education, health advice, agricultural learning, mobile phone charging etc to the rural poor throughout the region. The University of West Indies, Mona campus , 30 Nov-4 Dec2009

20. Success of Biogas The University of West Indies, Mona campus , 30 Nov-4 Dec2009

21. Improving The Role Of Women In Socio-Economic Activities • Creating social engineers • Rural women trained to serve as social engineers. • Over 1000 women learned in renewable energy technology. • Over 50,000 women taking care of their own home systems. • Polli Phone • One of the most successful examples of synergy between women and technology. • Thousands of women running own businesses using solar powered mobile phones in off-grid areas earning $40-50 per month. • Over 3,00,000 phones currently operating. The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

22. After Sales Services and Training Programs • 3 Years maintenance service for the solar PV system. • Maintenance contract with GS at an affordable cost (approximately 300 Bangladesh Taka) possible when 3 years expire. • 43 Grameen Technology Centers (GTC) training the local youths especially the women on maintenance of solar power systems at its own cost. • About 2,575 trained technicians and 97,996 trained customers keeping the SHS alive in rural Bangladesh. The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

23. Rapid Success of SHS Program: A Big Step Forward To The Road Of Sustainability • Powering the rural lives bringing a rapid change in lifestyle. • Contributing to the economic development of the individuals as well as the society as a whole. • Involving women to the channel of socio-economic development. • Bringing the light of education and healthcare to the rural mass. • Creating 20,000 green jobs by training people on solar power. • Reducing the emission of over 1,00,000 tons of CO2 per year. • Over 3,20,000 SHS operating currently out of which GS has the share of 2,30,000 (March,2009) with an installation rate of over 8000 SHS per month. The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

24. Challenges Waiting Ahead • Roadmap to 2015 • Providing about 7.5 million SHS to the 75 million people of rural Bangladesh. • Establishing about 2000 rural offices to cover the whole Bangladesh. • Training and deploying about 10,000 social engineers and technicians. • Creating about 1,00,000 Green Jobs. • International Recognition by GS • About 14 national and international awards from 2002 to 2009 including Ashden Awards in 2006 and 2008. The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET

25. Thank You Very Much For further information: http://www.energyforummasia.org/e-learning The University of West Indies, Mona campus , 30 Nov-4 Dec2009 BUET