md. fazley rabbi - growing rural economy through solar power

8/6/2019 Md. Fazley Rabbi - Growing Rural Economy Through Solar Power

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Grameen Shakti

Md. Fazley RabbiSenior Manager

Grameen [email protected], [email protected]

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



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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

Bangladesh, an energy deficit country

Grameen Shakti ( a not for profit company) has been evolved as a social business tooffering various RETs with innovative financing model, since 1996



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Major Programs:1. Rural electrification through Solar Home System ( largest in the country)

2. Biogas plant and Organic Fertilizer

3. Improved Cooking Stove (energy efficient stove)

4. Grameen Technology Center (GTC) for training to the women technician

and assembling of SHS components

Solar Home System Cooking with biogas Improved Cooking Stove Woman Technician at wor



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BANGLADESH

Activities Area of Grameen Shakti

GRAMEEN SHAKTI UPDATE (MAY 2011)Branch Office 1083

Regional Office 146Divisional Office 14Grameen Technology Center 46Total Office 1289Total Staff 10,500Total SHS installation 6,36322Installed Power generation

Capacity

31.50MW

Daily power generation capacity 132MW-hr Monthly installation rate of SHS 24,000Total biogas plant construction 18,046Total Improved Cooking Stovesinstallation

3,04414

A Four Step Organizationalsetup covers the whole country



Marketing & Scale Up : Diverse of Growth A. Intervention:

1. Innovative use of micro-credit

2. Affordable price with quality products3. Demonstration & awareness development

4. After sales and post warranty service

5. Monthly visit to customers

6. Training of users and local women/men technicians

7. Customized products - reaching the low income people with small SHS

8. Emphasis on income generation

9. Countrywide network

10. Locally assemble of SHS appliances by GTC helps reducing cost

11. Reaching around 50,000 new customers every month

B. Key Justifications:1. Increased price of kerosene makes solar more affordable

2. Low reliability of grid electricity supply

3. Uncertainty of grid expansion

4. Smooth Financial support



Option 135% down payment and rest of the 65% payable in 12 monthlyinstallments with a flat rate service charge of 5%

Option 225% down payment and rest of the 75% payable in 24 monthlyinstallments with a flat rate service charge of 6%

Option 3 15% down payment and rest of the 85% payable in 36 monthlyinstallments with a flat rate service charge of 8%

Option 4 100% cash payment and with 4% discount on the package price

Option 5

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 servicecharge of 5%

Option 625% down payment and rest of the 75% payable in 12 monthlyinstallments without any service charge ( only for mosque, temple,pagoda and church)

Customer Friendly Innovative Financial Packages(micro-credit based monthly installments)



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By the installed SHS1. Rural people can take part in home based cottage industries after dusk

2. Extended business hour and increased income for small business owner

3. Creates green jobs and green businesses in the rural areas

4. Small business owner can rent lights to others share a SHS through micro-utility model

5. Enables people to use mobile phone and mobile communication helps business to grow

6. People can watch television – for entertainment and creates access to information

7. Saves fossil fuel - 68.72 million liters of kerosene per year

8. Saves foreign currency saving, 49 million USD/year

9. Reduces 0.15 million tons of CO2 emission

Key Impacts & Benefits



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GS’ STRONG ORGANIZATION IS POISED FOR RAPID EXPANSION

- A FEW KEY CHALLENGES ARE TO BE ADDRESSED

Strength:1. GS has a strong network throughout

Bangladesh

2. GS’ in-house production of key components

reduce costs and ensure smooth supply to the

door step of clients (GTC)

3. Efficient maintenance and after-sales service

4. Strong monitoring and audit

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

Future Plan of GS

•Reach 2.5 million new SHSclients 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

Challenges:

1. Drop out of field staff 2. Dependence on import oriented solar panel

and other materials

3. Lack of training opportunities on RET and

lack of trained man power

4. Reaching the BOP with affordable price

5. Increased price of battery

6. Need for rapid recruitment reduces quality of recruits

Threats:

1. GS is reliant on one main source of funds.

If IDCOL ends or scales back, would have

difficulty continuing to expansion

2. Natural Disaster



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Seeing Is Believing

md. fazley rabbi - growing rural economy through solar power

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