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Xenergeia Sabir M Sme Sdp 07 June2010 Final

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Keynote speech by Dr. Sabir Majumder at the International SME Seminar organized by Ministry of Industries, Government of Bangladesh and UNIDO in Dhaka on June 7, 2010.

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Xenergeia Sabir M Sme Sdp 07 June2010 Final

  1. 1. Xenergeia : an energy company that cares! Green Technology in SME Sector for Sustainable Industrial Development of Bangladesh Sabir Majumder, Ph.D. Cofounder and CEO, Xenergeia Inc., USA Sabir-m@xenergeia.com +1 (510) 676-0659 Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  2. 2. Topics of Interest • Problem statement • Realities in Bangladesh • Why Small Medium Enterprise (SME)? • What green technologies can offer? • What is Xenergeia doing? • Solar PV cost structure • Policy issues • Recommendations Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  3. 3. Problem Statement• Bangladesh needs constant supply of power to become an economic tiger of any form – SME being the backbone for sustainable growth Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  4. 4. Realities in Bangladesh No Energy No Growth • Power demand and generation – 6,000 MW demand • Only 43% of the population is connected to national grid – Year-to-year energy demand growth • ~10% – 4,300 MW generation • 168 kWh per capita – one of the lowest in the world • Too many power outages (~1,700 MW of load shedding) • GDP Growth – ≥6% for almost a decade – Could be ≥8% with sufficient and stable energy supply • 2% of GDP is eaten up by simply power outages which is largely from SME sectorJune 7, 2010 Ministry of Industry Seminar Source : World Bank Dhaka, Bangladesh
  5. 5. Power Shortage – Case Study Energy crisis is acute • Bangladesh exports annually US$12B ready-made garments – 15% year-to-year increase in manufacturing cost for last 2 years • Solely from power outage • Cheap labor is not enough for global competition and FDI • Energy problem seems to be more acute than any other crises of the country Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  6. 6. Why SME? • SME definitions in Bangladesh – Small Enterprises • Net value up to 1.5 crore BDT (~US$215K) • Up to 50 employees – Medium Enterprises • Net value up to 20 crore BDT (~US$2.9M) • Up to 150 employees • SME roles – Serves as the backbone of national economy • 25% of GDP Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  7. 7. Six Booster Sectors in Bangladesh Identified by SME Foundation • Light Engineering • Electrical and Electronics • Plastics • Agro Processing • Fashion Design • Leather and Leather Goods Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  8. 8. Empowering the Bottomline Short list for immediate impacts • Shopping centers • Flour and rice mills • Cold storage • Water irrigation pump • Water treatment plants • Educational institutions • Household business initiatives Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  9. 9. What Green Technologies Can Offer? • Empower SMEs – 2% instant increase in GDP • Empower off-grid population – Sky is the limit • Environmentally friendly – Healthy and educated nation • One step towards Millennium Development Goal – Poverty eradication • Become a global hub of green technology – Land of solar? Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  10. 10. What Are The Options? • Available green technologies – Solar – Wind – Ocean – Geothermal – Motion (bicycle) energy • Solar being the primary and immediate option for Bangladesh Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  11. 11. Solar Photovoltaic (PV) History • In 1953, Bell Laboratories developed the first silicon solar cell capable of generating a measurable electric current – “The beginning of a new era, leading eventually to the realization of harnessing the almost limitless energy of the sun for the uses of civilization.” • The New York Times Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  12. 12. Primary Green Option – Solar • Abundant solar radiation – Annually ≥330 days are solar proactive • Easy to use – Relatively low tech • Environmentally friendly – No carbon emission • Relatively inexpensive – BDT 16 per kWh vs. PDB cost BDT 14 per kWh • Long manufacturer warranty – 25 years • Primary energy source for off-grid population May December – Backbone for small business initiatives • Backup energy source for on-grid SMEs – Direct additional contribution of ≥2% GDP Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  13. 13. Solar PV in Bangladesh Installation Base • Current PV installation – ~15 MW in 2010 PV Demand in Bangladesh • Projected installation 200 Mega Watt /Year – Ten-fold increase in 5 150 years 100 50 • Aggressive projection 0 by a Bangladeshi 2010 2011 2012 2013 2014 publication Year – 300 MW in few years • Bangladesh Business, April 2009 Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  14. 14. What Is Xenergeia Doing? • US-based alternative energy company – Working for betterment of Bangladesh • 25MW solar PV module manufacturing plant in Bangladesh – Global investment – Proven technology – Skilled management – Social entrepreneurship – Export to global market – Carbon trading – Develop leading-edge solar technologies • Build vertical solar industry in Bangladesh – Land of solar? Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  15. 15. Crystalline-Si PV Module Manufacturing Process Flow • Sand and sun abundant in Bangladesh – Missing key components • Foreign direct investment • Technology partnershipJune 7, 2010 Ministry of Industry Seminar Source : Spire Dhaka, Bangladesh
  16. 16. Minimum Cost Effective Factory Size Solar Operations • PV module factory is the first step for building vertical solar industry – Vertical industry makes it cost effective – Thus globally competitiveJune 7, 2010 Ministry of Industry Seminar Source : Spire Dhaka, Bangladesh
  17. 17. 2009 World Market PV Technology • Crystalline silicon (x-Si) is dominating – Matured x-Si PV technology – Thin film shows instability in performanceJune 7, 2010 Ministry of Industry Seminar Source : Spire Dhaka, Bangladesh
  18. 18. Solar PV Cost Structure Module vs. electricity • PV module lowest available cost – Mono-crystalline silicon • $2.07 /Wp – Poly-crystalline silicon • $1.74 /Wp – Thin film • $1.50 /Wp • Solar firm installation cost – $4.23 /Wp (US) – $4.11 /Wp (EU) • PV electricity cost – 19.27 cents /kWh (US)June 7, 2010 Ministry of Industry Seminar Source : solarbuzz Dhaka, Bangladesh
  19. 19. Solar PV Applications • Solar power systems • Solar irrigation • Solar heating • Solar cooling • Solar street lighting • Commercial • Industrial • Household Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  20. 20. Policy Issues • Favorable – Incentives for SHS installations – Encouraging policy for domestic investment • Not So Favorable – Global image of Bangladesh – Infrastructure for a medium tech solar PV manufacturing industry Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  21. 21. Recommendations • Solar PV is primary choice of green technology for sustainable industrial development in SME sector • Solar power systems be installed for SMEs as a backup if not primary power supply • GoB and UNIDO incentivize solar installations for SMEs • Establish aggressive framework for collaborations between GoB, UNIDO, and professional solar bodies • Offer low interest loans/grants for global joint ventures • Remove VAT/tax for all solar products/components • Formalize framework for RB-NRB collaborations in solar – Xenergeia is willing to take a lead Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  22. 22. Acknowledgements Future Solar Car Afroza Khan Ministry of Industry, Government of Bangladesh Dr. Emdad Khan InternetSpeech, USA Albert Chang Xenergeia, Taiwan Dr. Dipen Bhattacharya University of California Riverside, USA Priti Chakraborty Xenergeia, Bangladesh Dr. Paul Cheng SolCatch, USA Munir Ahmad Khan Xenergeia, Bangladesh Dr. Fuad Rahman Xenergeia, USA Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh
  23. 23. Questions? Ministry of Industry SeminarJune 7, 2010 Dhaka, Bangladesh

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