Journey Towards Journey Towards Green Energy RevolutionGreen Energy Revolution

GRAMEEN SHAKTIGRAMEEN SHAKTI

Presented by: Tamim Islam, Director, Development, Grameen TrustOn behalf of:

Mr. Abser Kamal, Acting Managing Director, Grameen ShaktiEmail: g_shakti@grameen.com

Africa and the Middle East Regional Microcredit Summit, April 25, 2010, Nairobi, Kenya

Bangladesh is an Energy Starved CountryBangladesh is an Energy Starved Country

Only 40% of the 160 million are connected to the grid

Most of the rural people do not have access to electricity

Majority rural people depend on kerosene lamps for light

80% of the rural people cook with biomass

This causes economic, health, environmental problems

Energy Scenario

60%

40%

Non Electrified AreaElectrified Area

Development Needs Energy. Renewable Energy can be a source of cost effective and pollution free energy

Poor People & women are the victim of Energy shortage Bangladesh is severely affected by Energy Shortages

unstable supply of electricity & extensive load shedding impose a high cost on the economy

Total Electricity Production is about 4500MW & the real need is more than double only in the grid connected area

Most of the power plants are old and working for more than 20 years

85% of the power plants are operated by natural gas The total gas reserve is not sufficient to continue the

supply after 2016 Electricity is required for reducing poverty and uplifting life

standards

Journey Towards Green Energy RevolutionJourney Towards Green Energy Revolution Set up in 1996 by Professor

Yunus, Founder of Grameen Bank.

Our Mission is to empower the rural people with access to Green & Clean Energy and Income

Now, operating all over Bangladesh with about 850 field offices and over 5000 staff

We envisage a future where rural households of Bangladesh, would have access to environment friendly and pollution free energy at affordable cost

Reaching the Rural People The Need For Innovation

Main Hurdles were High Up-front Costs Lack of Consumer financing Very limited investments in this sector due to perceived

risks and uncertainty Knowledge and Awareness gap Lack of efficient, cost–effective after sales service Lack of policy support

Impact of GS activities in Carbon Emission Reduction

ActivitiesActivities Yearly Yearly Biomass/Fuel Biomass/Fuel

cost ( per Unite) cost ( per Unite) Ton/Liter Ton/Liter

YearlyYearly

Total Total Biomass/Fuel Biomass/Fuel cost Ton/Litercost Ton/Liter

Total savings of Total savings of money money

( in million US$)( in million US$)

Installed Solar Installed Solar Home System Home System

300,000300,000

180 liter180 liter 5,40,00,000 Liter5,40,00,000 Liter 38.538.5

Biogas Plants Biogas Plants 80008000

2.0 ton2.0 ton 16000 ton16000 ton 0.90.9

Improved Improved Cooking Stove Cooking Stove

4200042000

1.8 ton1.8 ton 75600 ton75600 ton 4.34.3

TotalTotal 43.743.7

Total Carbon Emission Reduction 232000 ton, worth to 2.32 million US$

Innovative use of micro-credit Coupled with :

• Focus on income generation • Local Technology Transfer• Community participation &

awareness development • Dedicated and Committed

Staff • Flexible Management • A Listening Culture • Strong Internal Audit System

Grameen Shakti has successfully blended Technology with Social, Market Forces to develop a Market Based Approach to reach the rural people -

Now, Grameen Shakti is one of the largest rural Now, Grameen Shakti is one of the largest rural based Renewable Energy Company in thebased Renewable Energy Company in the world world Over 3,20,000 Solar Home Over 3,20,000 Solar Home

Systems installed with 13,000 Systems installed with 13,000 plus systems installed per month plus systems installed per month

More than 3000 women More than 3000 women technicians & entrepreneurs technicians & entrepreneurs trained through GTCs trained through GTCs

Over 9500 biogas plants Over 9500 biogas plants constructed constructed

49,000 Improved Cook Stoves 49,000 Improved Cook Stoves made made

Growing organic fertilizer and Growing organic fertilizer and Tree Plantation programsTree Plantation programs

BANGLADESHActivities Area of Activities Area of Grameen ShaktiGrameen Shakti

GRAMEEN SHAKTI UPDATE Total Office 893 Branch Office 726 Regional Office 110 Divisional Office 12 Technology Center 45 District Covered 64 Upazila Covered 450 Village Covered 32,000 Island Covered 16

Covers all over

Bangladesh

Blending Market Forces with Adaptive technology

Micro-utility Model - Micro-utility Model - Sharing Sharing a Solar Home System to a Solar Home System to reduce cost and increase reduce cost and increase incomeincome

Polli Phone :Polli Phone : Mobile Phone Mobile Phone centers with Solar powered centers with Solar powered mobile phones mobile phones

Small Solar Home Systems :Small Solar Home Systems : Popular among low income Popular among low income household helping to replace household helping to replace kerosene and generate incomekerosene and generate income

Micro-Utility Model has become very popular in Market places

Financial Mechanism

OptionOption Down Down paymentpayment

InstallmentsInstallments Service ChargeService Charge(Flat rate)(Flat rate)

Option-1Option-1 15%15% 36 months36 months 6%6%

Option-2Option-2 25%25% 24 months24 months 4%4%

Option-3Option-3 100% cash payment with 4% discount100% cash payment with 4% discount

SSHSSSHS Min 15%Min 15% 24- 36 months24- 36 months 6%6%

People can own a SHS at the same cost of Kerosene

Yearwise Installation of SHS and Planning of 2010

Plan 2010

Grameen Shakti’s Biogas Program

A program design A program design responsive to responsive to client needs : client needs : Soft loans Soft loans

On the spot On the spot trouble shootingtrouble shooting

Adaptive researchAdaptive research

Mason & User Mason & User trainingtraining

Sustainable waste management & decentralized power system

Constructed more than 9000 biogas plants, around 300 large sized biogas plants

Promoted Organic Fertilizer business and linkage between Poultry/Live-stock, Agriculture & biogas technology

Initially started as a pilot project in 2005 GS has

Slurry Processing at a biogas plant

Gas , light & organic fertilizer for small farmers with few livestock Burden of women is reduced, their heath protected Poultry Owners can get rid of the poultry wastes, give connection to

neighbors, save firewood, get fertilizers, produce electricity Cost-effective rented gas for small businesses & households

Over 4 million BIOGAS PLANTS can be constructed : Gas, Light , Electricity & Organic Fertilizers

Year wise Biogas Plant Construction Growth and Planning of 2010

453

d

2000 ICS technicians cum entrepreneurs have been created

Nearly 45 manufacturing units set up through seed capital and technical assistance for smooth supply of grates, chimneys etc.

Households and businesses save 50% fuel cost

Women can cook in smoke free kitchens

IMPROVED COOKING STOVES Cost effective technology for pollution free healthy

Rural Environment & Green Jobs

Year wise ICS Growth and Planning of 2010

Grameen Technology Centers Creating Green Jobs For Women

• Over 3000 women trained in sustainable energy technologies

• Some trainees set up their own energy businesses

• 45 GTC now set up to carry

out training & manufacturing in rural areas to strengthen GS services

• Moving beyond Solar PV Mrs. Ambia, woman technician working at her home

Grameen ShaktiTelecommunication

New Initiative

• Grameen Shakti participates with Grameen Phone to install 6.5 KW solar plants for 4 BTS

• Grameen Shakti received more offer from other mobile phone companies to install solar panel for BTS after the successful installation of Grameen Phone BTS.

• Compared to diesel, solar electricity offers a sustainable, cost-effective and environment-friendly electricity supply for Bangladesh’s growing telecommunication industry.

The Challenges AheadThe Challenges Ahead

Financial and legal frame work needs upgrading

Lack of involvement of financial institutions

Higher price of Solar PV system ( Price of Battery & other accessories increasing)

Increasing power efficiency of Solar PV system

Creation of new & skill manpower

Road Map to 2012Solar program Set up 1000 Branch Offices in the next 2

years to install one million SHSs by 2012 Setting up 100 GTCs in the next 2 years

Biogas plants Install of 50,000 biogas plant within 2012. Scale up linkages between biogas

technology, live stock, agriculture and income generation to create a sustainable program

Improved Cooking Stoves 10 million stoves by 2015 through local

entrepreneurs

National and International AwardsReceived by Grameen Shakti

1. Energy Globe Award (Austria) 20022. European Solar Prize (Germany) 2003 3. USAID Best Theme Award

20034. Solar Prize 20045. IDCOL Award

20056. Ashden Award (UK) 20067. European Solar Prize (Germany) 20068. Tech Museum Award (USA)

20079. Right Livelihood Award (Sweden)

200710. Energy Globe Award (Brussels) 200811. National Environment Award (Bangladesh) 200812. Ashden Outstanding Achievement Award (UK)

2008

Grameen ShaktiGrameen Shakti

Thank you for your Kind Attention