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.

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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
sector
June 7, 2010 Ministry of Industry Seminar Source : World Bank
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

15. Crystalline-Si PV Module Manufacturing
Process Flow
• Sand and sun abundant in Bangladesh
– Missing key components
• Foreign direct investment
• Technology partnership
June 7, 2010 Ministry of Industry Seminar Source : Spire
Dhaka, Bangladesh

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 competitive
June 7, 2010 Ministry of Industry Seminar Source : Spire
Dhaka, Bangladesh

17. 2009 World Market PV Technology
• Crystalline silicon (x-Si) is dominating
– Matured x-Si PV technology
– Thin film shows instability in performance
June 7, 2010 Ministry of Industry Seminar Source : Spire
Dhaka, Bangladesh

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. Solar PV Applications
• Solar power systems
• Solar irrigation
• Solar heating
• Solar cooling
• Solar street lighting
• Commercial
• Industrial
• Household
Ministry of Industry Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

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 Seminar
June 7, 2010
Dhaka, Bangladesh

23. Questions?
Ministry of Industry Seminar
June 7, 2010
Dhaka, Bangladesh