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Dipal Chandra Barua, Bright Green Energy Foundation

Access to Clean Energy – Bangladesh perspective

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Dipal Chandra Barua, Bright Green Energy Foundation

  1. 1. Access to Clean Energy – Bangladesh Perspective World Access to Modern Energy (WAME) Workshop on Social Impact Finance for Access to Energy Dipal C. Barua First Zayed Future Energy Prize Winner President, South Asia Network for Clean Energy (StANCE) Ambassador, Zayed Future Energy Prize, Abu Dhabi Founder & Chairman, Bright Green Energy Foundation (BGEF) President, Bangladesh Solar & Renewable Energy Association (BSREA) Advisor, Private Sector Advisory Group (PSAG), Green Climate Fund Ambassador, Global 100% RE IPCC: Lead Author (AR 5, Chapter 16) Councilor, World Future Council (WFC), Hamburg, Germany Milan, Italy 21 September 2015
  2. 2. World Access to Modern Energy present Scenario Over 1.2 billion people are not connected to any kind of electricity source. Over 2.7 billion people depend on traditional fossil fuels. Only South Asia has over 450 (India itself has around 400 Million) million energy starved people.
  3. 3. Renewable Energy Solutions in Bangladesh Widely used Renewable Energy: Hydro Wind Solar Biomass Area of Work : Installation of Solar Home Systems (SHS) Replacing traditional diesel run irrigation pumps by Solar Irrigation pump (SIP) Installation of biogas plants Installation of Improved cook stoves (ICS)
  4. 4. History of Solar Home System in Bangladesh In 1996, I have successfully started expanding the renewable energy technology in rural Bangladesh as the Founding Managing Director of Grameen Shakti. First I realized that, if the cost of solar home system (SHS) can be made affordable to the rural people and brought near the price of Kerosene, only then the benefit of SHS will be possible to take to the off-grid rural people of Bangladesh. 1. A monthly installment-based payment method which reduced the cost of a solar home system close to the equivalent of monthly kerosene costs. 2. A strong effective after sales, repair and maintenance network, involving local technicians and especially women technicians / entrepreneurs who repair and assemble solar accessories in their communities. 3. It was shown that Solar PV technology can be successfully implemented on a mass scale to provide rural people with environment friendly energy, Clean lights, more income with extended working hours and hazard free healthy living. Continues
  5. 5. I have successfully demonstrated that renewable energy is a viable option for the rural people and the myth that this energy technology is too expensive and high-tech for the rural people has been broken. The challenges we initially faced were huge but, I derived and implemented effective integrated market-based strategy that considers the following : Costs should be within reach of the rural people. If the costs are perceived too high and the technology is not cost-effective compared to traditional energy alternatives, the rural people will not be interested. Efficient and effective after-sales service should be available so that clients are assured of prompt responses to their problems. Quality needs to be ensured to earn the good will and trust of the rural people. The technologies should be linked to income generation local market forces should be deployed through capacity through capacity development and local stake hold. Continued
  6. 6. Integrated Sustainable entrepreneur based business model to bring clean and affordable energy, income, health, and economic development to rural Bangladesh In response to the special needs of the rural people, I developed a sustainable integrated model that facilitates income generation instead of reliance on subsidies, creates local community support and capacity development allowing the people to solve their own problems instead of creating dependence on others. This is a model which brings technology to the people by coupling innovative financing with technology transfer through effective community involvement. The key elements of the integrated sustainable entrepreneur based business model are: • Providing no direct subsidies but innovative financing schemes based on installments that make the technology affordable and cost effective compared to traditional energy alternatives and it creates ownership. • Creating awareness for renewable energy technologies through motivational programs and social activities that involve the community. Continues
  7. 7. • Gaining the trust and confidence of the rural people by focusing on consumer needs and providing high quality services including consumer friendly product design, installation, training, of clients on proper use of technology, free monthly after sales support, and strict quality control. Our consumer friendly approach also includes a buyback system allowing customers to return solar home systems at depreciated prices if there area is connected to the grid. • Linking the technology to income generating activities and creating opportunities for entrepreneur development. I encourage micro-utility initiatives allowing the technology owner to generate an additional incomes, and encourage community based manufacturing by purchasing and assembling accessories locally. • Focusing on women as the main actors and entrepreneurs of change and set up Green technology centers (GTC) and trained & empowered rural women who are working independently as renewable energy technicians and entrepreneurs. Continued Showing Dr. Sultan, CEO, MASDAR the use of Solar energy in a rural home
  8. 8. Solar Home System was introduced in Bangladesh back in 1996 Solar Home System (SHS) was introduced in rural Bangladesh back in 1996 by overcoming the followings: 1. Created awareness about the use of Solar Energy and saving kerosene among the rural people of Bangladesh. 2. Made the SHS affordable at the price of Kerosene through a innovative financial model. 3. Created rural base Green Technology Center (GTC) to take the after sales service at client’s door step. 4. A new renewable energy sector was developed and thousands of employment opportunity was created. Solar Home System
  9. 9. Innovative Financial Model To promote renewable energy in rural areas on a commercial basis it was important to develop a successful financial mechanism. An innovative financing model has made it easier for its customers to afford the RE technology at the cost of kerosene. 50% 50% 6 down payment to install the system and remaining in monthly installments. 25% 75% down payment to install the system and remaining in monthly installments.24 15% 85% down payment to install the system and remaining in monthly installments.12/24/36 At the Beginning After few years of Experience Present Situation
  10. 10. Organized Financial Support In 2004, after 8 years from the introduction of SHS, looking into the initial success of Solar Home System in Bangladesh international donor agencies such as World Bank, KFW, US Aid, GIZ, ADB, IDB, DFID, UK Aid and JICA involved themselves to finance the SHS program. The finance was received were channeled through IDCOL out to the organization involved in the Solar Home System Program. IDCOL played a important role in the rapid expansion of renewable energy especially Solar Energy in rural Bangladesh through it’s partner organization. At present there are 62 partner organizations of IDCOL who are participating in IDCOL’s SHS program. As of August 2015, over 4 million SHS were successfully installed at the rate of 50,000 systems per month if off-grid Bangladesh.
  11. 11. Challenges faced for Expansion at early Stage • Lack of access to sufficient and sustainable supplies of energy • Lack of infrastructure • Limited or no Access to finance • Lack of skilled Manpower • Lack of proper financial model design to make SHS affordable • Lack of Awareness about the clean and environment friendly energy sources which will eventually protect the climate for further damage. • Lack of National energy policy • Lack of private public partnership in energy sector
  12. 12. Factors of Rapid Expansion Installment Based customer friendly payment method. Provide high quality services to earn trust and acceptance from the rural customers. A vast network of dedicated, committed and efficient social engineers. Profound understanding of the market. Adaptive research to effectively respond to customer needs. Constant monitoring and evaluation. Providing high quality products. Reliable after-sales maintenance and support. Minimizing operating costs.
  13. 13. Installing 7.5 million Solar Home Systems (SHS) in rural areas of Bangladesh by the year 2020. Solar Home System : Until August 2015: Over 4 million Solar Home System (SHS) has been Installed in rural Off-Grid Areas of Bangladesh. 1. It’s the fastest expansion of solar energy anywhere in the world. 2. More than 50,000 SHS’s are being installed in off-grid areas of Bangladesh every month with almost 20 million rural beneficiary. 3. Rural businesses are booming with the support from Solar energy. 4. Supporting National Grid Power generation capacity. 5. Job opportunity created for both men & women. Solar Home System (SHS) & Women Involvement
  14. 14. With Solar Power Rural People Can use Children can Study better by Solar Light Can use mobile phone charger Watching solar powered TV
  15. 15. • Bio Gas Plant: Reduce dependency on natural gas. Provide clean and pollution free cooking process. Ensure hygienic cooking facility for women. Time Sever. Much more affordable cooking material then traditional materials. Decrease health hazards. Produce slurry for organic fertilizer. • Improved Cook Stove (ICS): a) Utilization of unlimited energy resources. b) Protect environment from hazardous fume produced from traditional cook stove. c) Improved Cook stove saves up-to 50-60% cooking fuel and cooking time. To Protect Environment and to reduce Air Pollution
  16. 16. Renewable Energy Technologies can give unlimited energy without damaging the environment Improve Cook StoveBio Gas Plant
  17. 17. • Mini Grid: Provides electricity facility to isolated areas such as remote Islands. Minimize fossil fuel generation. Grid quality electricity access to remote households. Encourage commercial activities in the rural livelihood. • Roof Top Solar Solution: Reduce regular electricity load from grid electricity. Cost effective. Energy generated from the roof top system can be tied up with grid electricity. Roof Top Solar System
  18. 18. Solar Irrigation Pump (SIP) Reallocating Grid electricity through converting irrigation pumps to Solar Energy in Bangladesh. 36% of GDP and 64% of employment comes from agriculture. Cultivation fields are irrigated by over 1.6 Million diesel run pumps. 1 million tons of diesel worth $900 million. Solar irrigation Pumps (SIP) can save up to USD 100 million of subsidy in diesel fuel only. With solar irrigation pump (SIP), the cost of crop production has reduced by almost half. More than 200 pumps installed benefiting more than 2,000 farmers, with a target of 2500 additional pumps within next few years.
  19. 19. Modern Solar Technology for Urban Solution Each Urban Building can becomes a Power House. Powering Mobile Telecommunications Base stations : 10,000 base stations can be powered by Solar (No Diesel). Small Solar Solutions in urban areas: Solar power street lights and bill boards . It support rural communication system by provide lighting at the night time and give extended business hour for the rural people. Small solar lanterns for Rickshaws, small shops, and slum areas. Solar Energy Systems are being installed in Urban areas of Bangladesh. Government of Bangladesh Renewable energy Policy has set a minimum energy of 3% should be produced from Solar Power in order to get the Grid Power Connection.
  20. 20. Social & Environmental Impact in Bangladesh Environment : Replacing kerosene : 500 kg/ year CO2 replaced per 50W system , reducing fire hazards, in-door air pollution and improving health Women: Reduced household burden for women , Energy access and consequent access to technologies can free up women’s time, improve the productivity of their work and allow them to engage in income-generating activities. Communication: Access to TV, mobile phones and internet Education: Many rural schools installing solar power, Solar powered computers Healthcare Facilities : Solar lights, Solar powered refrigerators in Clinics. Disaster management: During cyclone Sidr in 2007, PV was a lifeline. The only homes with light were those with PV. Zayed Future Energy scholarship winner
  21. 21. Training Facilities for both Staff & Customers Staff (ToT) training are held regularly for the staff. • Proper installation of SHS as per technical standard • After sales service to ensure quality of the installed components and maximum use. • Collection efficiency • Teach accounting skill for proper book keeping • Conduct training every month at the branch level Customer training: • Basic Maintenance of the installed system • Proper use of the system and to reduce misuse and over load • To give idea about the longevity of the SHS system Customer Training
  22. 22. Train rural women to assemble and service accessories for renewable energy technology. Create employment opportunity for rural women. Trained women employees are able to maintain the after sales service & collect installment form the customers. Train women by Green Technology Center (GTC)
  23. 23. Trained Women Technician
  24. 24. My Vision: Bangladesh One of the First Solar Nations in the world and to create 1,00,000 Green Job in Renewable energy Sector by year 2020 Installing 7.5 million Solar Home Systems (SHS) in rural areas of Bangladesh. Expanding to urban areas to transform every building into power-house and feed the access to national grid. Replacing electric / diesel irrigation pumps with solar powered pumps. Powering education, health, information technology and telecommunication in rural areas. Going for low cost solar solutions such as street lighting, billboards, solar lanterns, solar charging station etc. Coping with natural disasters such as through solar water desalination for drinking purpose, emergency lighting, signaling, water purification etc. Creating 100,000 Green Jobs, especially for women by year 2020. Grid connected Solar Energy
  25. 25. First-Ever Zayed Future Energy Prize HHSheikhMohammedbinZayed,CrownPrinceofAbuDhabiandDeputy SupremeCommanderoftheUAEArmedForces,presentsthefirstZayedFuture EnergyPrizetoDipalChandraBarua,inhonourofinnovationandcommitmentin alternativeenergy,attheAbuDhabiNationalExhibitionCentre,January19,2009.
  26. 26. Thank you for your Kind Attention

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