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Md. Fazley Rabbi - Growing Rural Economy Through Solar Power
Md. Fazley Rabbi - Growing Rural Economy Through Solar Power
PAVING THE WAY FOR A GREEN SUSTAINABLE FUTURE Growing Rural Economy through Solar Power
6th Asia Clean Energy Forum, June 21-24, 2011, Manila, Philippines
96 million people out of 160 million are forced to depend on kerosene and biomass for lighting and cooking Per capita electricity generation is only about 165kWh Energy shortage and unstable supply impose a high cost on the economy Limited reserve of natural gas is also a big challenge for energy security Import of fossil fuel puts huge pressure on our economy Environmental degradation and energy scarcity push rural people into poverty Renewable energy programs can adequately address the above challenges
Electricity Scenario
Grameen Shakti ( a not for profit company) has been evolved as a social business to offering various RETs with innovative financing model, since 1996
Major Programs:
1. 2. Rural electrification through Solar Home System ( largest in the country) Biogas plant and Organic Fertilizer
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BANGLADESH
Activities Area of Grameen Shakti
Innovative use of micro-credit Affordable price with quality products Demonstration & awareness development After sales and post warranty service Monthly visit to customers Training of users and local women/men technicians Customized products - reaching the low income people with small SHS Emphasis on income generation Countrywide network Locally assemble of SHS appliances by GTC helps reducing cost Reaching around 50,000 new customers every month
Increased price of kerosene makes solar more affordable Low reliability of grid electricity supply Uncertainty of grid expansion Smooth Financial support
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B. Key Justifications:
35% down payment and rest of the 65% payable in 12 monthly installments with a flat rate service charge of 5% 25% down payment and rest of the 75% payable in 24 monthly installments with a flat rate service charge of 6% 15% down payment and rest of the 85% payable in 36 monthly installments with a flat rate service charge of 8% 100% cash payment and with 4% discount on the package price 10% down payment for micro utility system of 20,40 and 50 Wp and rest of the 90% payable in 36 monthly installments with a flat rate service charge of 5% 25% down payment and rest of the 75% payable in 12 monthly installments without any service charge ( only for mosque, temple, pagoda and church) 6
Option 6
Rural people can take part in home based cottage industries after dusk Extended business hour and increased income for small business owner
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GS STRONG ORGANIZATION IS POISED FOR RAPID EXPANSION - A FEW KEY CHALLENGES ARE TO BE ADDRESSED
Strength:
1. 2. GS has a strong network throughout Bangladesh GS in-house production of key components reduce costs and ensure smooth supply to the door step of clients (GTC) Efficient maintenance and after-sales service Strong monitoring and audit
Challenges:
1. 2. 3. 4. 5. 6. Drop out of field staff Dependence on import oriented solar panel and other materials Lack of training opportunities on RET and lack of trained man power Reaching the BOP with affordable price Increased price of battery Need for rapid recruitment reduces quality of recruits
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Future Plan of GS Reach 2.5 million new SHS clients by 2015 Translating current success with SHS to ICS and biogas Find low cost panels, LED lamps and other accessories Create one hundred thousand green jobs
Opportunity:
GS can meet more needs of clients especially poor with new products (solar lantern, Low cost LED lamps with a 3-year warranty for battery) GS can expand other RET supports with the same infrastructure GS can create more green jobs by providing training to the poor women technician, who can play a vital role as the agent of social and economical change
Threats: 1. GS is reliant on one main source of funds. If IDCOL ends or scales back, would have difficulty continuing to expansion Natural Disaster
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Seeing Is Believing