Presented by

Gitanjali
Mukherjee,
GRAMEEN SHAKTI: Jesse Lee
and
BRINGING BIOGAS TO RURAL BANGLADESH Melissa
Summers
ASHDEN
AWARD
VIDEO
http://www.you
tube.com/watc
h?v=1D3I7R13
1to
 INDUSTRY OVERVIEW

 Developing countries lack infrastructure to provide energy to

all their citizens
 Distributing power to rural areas is of low priority
 Most sources of energy are run on fossil fuels
 Renewable energies give developing countries an alternative
energy form
 1972 - First biogas plant in Bangladesh introduced
 Local Government Engineering Department, Bangladesh
Power Development Board, Rural Electrification Board,
Infrastructure Development Company Limited (IDCOL),
Grameen Shakti, BRAC Foundation, and Progress of German
Technical Corporation (GTZ)
 Potential stakeholders are divided into the government, civil
and private sector
 BACKGROUND INFORMATION

2.5 billion people in the rural areas in the world depend on

biomass for their cooking needs
Bangladesh only 3% of the population gets their gas
delivered home
Most of these people live in cities
Grameen has trained 50 engineers, 120 field workers and
more than 300 masons for this purpose to reach their goal
of setting up a million bio gas plants by 2015
So far they have set up 14,000 bio gas plants and are
setting up almost 4000 each month
This program is complementary to their improved cooking
stoves program
 GOALS AND OBJECTIVES

Grameen Shakti’s goal is

promoting and delivering
renewable energy
technology services to
communities in remote and
rural Bangladesh
Grameen Shakti strives to
solve the issue of
insufficient energy supply in
Bangladesh. It aims to
reduce poverty and improve
the quality of life for people
living in rural Bangladesh.
 PRODUCT INFORMATION

Grameen has two different bio

gas plants
One is the 4.8m3 and the other
one is of any size more than
4.8m3
It consists of a digester wall
and bottom, with a top dome
and outlet passage, an inlet, a
mixing device, a turret, a valve
and pipe lines. It also has a
hydraulic chamber and a slurry 1 Prepared by the PREGA National Technical Experts from
Bangladesh Centre for Advanced Studies.
pit

 http
://www.youtube.com/watch?v
=but5ntRMQQc
 BUSINESS STRATEGY

A non-profit that operates like a business

Marketing strategy involves
 Local participation and ownership of plants
 Innovative financing mechanism
 After sales maintenance services and perks
 Training and capacity building
 Focus on income generating capacity of products
 Grass roots promotion and awareness building
 MARKETS

Researches market potential and financial viability

of its products prior to opening new office
Decision to open a new unit office in is made only if:
 There is no possibility of grid coverage in the near future
 The local community has the purchasing capacity to
afford its RET products
 Total demand is high enough to ensure a sustainable unit
office
Prepares for market expansion by awareness-
building programs in rural areas
 MODEL

Grameen Shakti plays the role of a facilitator by

arranging for soft loans that allow rural consumers
to afford the initial investment in its products
Plant construction materials are sourced locally
Each plant is custom designed after one-on-one
consultation to meet the client’s needs
Customer care is central to the model:
 Owners trained in use and maintenance
 After sales warranty and maintenance
 Technicians, masonry and well as other capacity building
programs through Grameen Technology Centers
 FINANCE

Seed capital from Grameen Bank

Biogas program started with its own fund and now
receives subsidies through IDCOL
GS uses the expertise of their parent organization to
offer soft credit loans to cover 50% of the
installation cost, which is recoverable by six month
payments over 2-3 years
GS charges a 10-15% technical, generating enough
revenue to cover its costs and make some profit
which is then reinvested as revolving seed money
IDCOL SUBSIDIES
 COST STRUCTURE

Total investment cost:

from $168-$433
Since 2006, subsidies
from IDCOL are available
for up to $120 (for small
domestic plants)
Client must pay 25%
down payment and the
remaining cost
GS helps arrange for soft
loans to help the client
cover their portion
 INNOVATIVE FINANCIAL MECHANISMS

Poor families can buy cattle and a plant at the same

time and pay in cattle or compost
Large families or neighborhood clusters can invest,
benefit and pay as a group
GS provides maintenance services, a warranty with
extended care and trains owners in use and
maintenance to ensure long-life and optimal
performance of the plants
 GS also trains community members as technicians
 LEADERSHIP, MISSION
AND CULTURE
It was incorporated in 1996 as a
not for profit company

Their mission is bringing green

energy, health, income and green
jobs to rural Bangladesh

They have adopted the Grameen

Bank's micro financing model to
make the renewable energy
application more affordable

They have a staff of about 5000

people. MD Yunus is the Chairman
of the Board and Dipal Barua is the
Managing Director
 ORGANIZATIONAL STRUCTURE

 
 SOCIAL IMPACTS

Income Generation
 An average of Tk 200 was saved per household on electricity cost
 Use of bioslurry as fertilizer and fish feed reduce cost
Sanitation
 Use animal waste to produce bioslurry to prevent spread of
diseases and odor
Women Empowerment
 Women who were using the traditional biomass burning ovens
now use the smart stoves and the bio gas produced by the plants
which are less harmful for respiration
 Women get more time to work and can earn more and support
their households
 ENVIRONMENTAL IMPACTS

• Bioslurry
• Bioslurry when used properly can
reduce the application of
chemical fertilizers by 50%,
increase soil nutrient content,
increase crop productivity, and
used as fish feed.
• Climate Change
• “14,000 biogas plants could so
far save about 150,000 tons of
fuel wood and thus could save
about 5000 acres of forestland.”
M Abdul Gofran, Biogas
Consultant from Grameen Shakti
INNOVATIONS

GS bridges the gap

between rural consumers
and modern Renewable
Energy Technologies
Outreach programs
create demand and
awareness
Training programs
provide capacity building,
income generating skills
and Centers provide a
support system for
emerging entrepreneurs
 GRAMEEN FAMILY

Grameen Family of
organizations is a host of
for profit and non-profit
ventures that all address a
social need
This network provides a
system of support,
expertise, capital and
resources that can be
accessed by any within the
family, thereby ensuring
the mutual success of all
The Grameen Family
Government
 CHALLENGE FOR THE FUTURE

Cultural Challenge
 Cultural perception on night soil blocked a potential feed-in source.
 More than 50% of people considered using night soil as a feed-in
material is un-sacred
Geographical Constrain
 Bangladesh has yearly monsoon season between June and
September.
 Flooding in low land area could limit the construction of biogas
plants.
Supply Constrain
 The total population of livestock especially the number of
cattle and buffalo has showing declining trend
 If the trend continues, the potential expansion of biogas
plants will be severely limited