Consultation on Low Carbon Options for South Asian Countries and Sectors

M Shahidul Islam*

August 26-27, 2014 Hotel Soaltee Plaza, Kathmandu, Nepal

*Senior Consultant, Grameen Shakti & Former DG, BARI

Journey Towards Green Energy Revolution Grameen Shakti (GS) was established in 1996 by Professor Yunus, Founder of Grameen BankIts Mission is to empower the rural people with access to Green Energy and Income OpportunitiesGS now operates all over Bangladesh with about 1553 field offices and about 12,842 staffWe foresee a future where all rural households of Bangladesh will have access to environment friendly energy at an affordable cost

ChallengesBangladesh is an energy starved country

40%

60%

Energy Scenario

Non Electrified Area Electrified Area

Development Needs Energy

Only 60% of the 160 million people are connected to the grid

Only 27% of the rural people have electricity

Most rural people depend on kerosene lamps for light

About 90% of the rural people cook with biomass

This causes economic, health and environmental problems

Renewable Energy to Fuel Bangladesh’s Sustainable Development

Women and children : the main victims of energy poverty

Grameen Shakti is one of the largest rural based Renewable Energy Companies in the world

Grameen Shakti is very successful inproviding sustainable clean energysolutions to rural people in Bangladesh.

• Installed more than 1,458,275 SHS• Constructed more than 29,150 Biogas

Plants• Produced more than 8,38,451 Improved

Cooking Stoves• Created more than 50,000 Green Jobs

and trained 40,411 rural women as Renewable Energy Technicians and Entrepreneurs

BANGLADESHActivities Area of Grameen Shakti

GRAMEEN SHAKTI UPDATE Total Office 1553 Branch Office 1268 Regional Office 165 Divisional Office 16 Technology Center 38 Total number of beneficiaries

>16.28 m

Total staff 12,842 Total SHS installed 1,458,275 Total ICS installed 838,451 Total Biogas installed

29,150

Total electricity generation/day

58.33 mwh

Covers all over Bangladesh

Illuminating Lives

SHS provide access to green electricity

• Providing better opportunities for developing local entrepreneurship, income generating activities, and employment in rural areas

• Replacing kerosene and reducing fire hazards, indoor pollution and associated health risks

• Reducing carbon emissions

Grameen Technology CentersCreating Green Jobs for Women

Solar Home Systems in Schools

Innovative use of micro-credit Coupled with :• Focus on income generation • Local Technology Transfer• Community participation & awareness development • Dedicated and Committed Staff• Engineers are trained as Social

Engineers with high commitment & posted to remote areas.

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

Successful Market-Based Approach for Bringing Renewable Energy to the Rural Population

GS Achieved this by Blending Technology with Social and Market Forces

Solar PV ProgramNew Era of Renewable energy technologies

Bangladesh has plenty of sunshine; a huge potential for Solar Energy.

Rural electrification with Solar PV system is becoming very popular

This technology is suitable for remote inaccessible areas-where there is no access of conventional electricity.

GS provides financial model for SHS ownership

Solar Installation in a rural house

Financial Mechanism

Option Down payment

Installments Service Charge(Flat rate)

Option-1 15% 12/24/36 months 12%

Option-2 25% 24 months *No Service Charge*

Option-3 100% cash payment with 6% discount

*Religious places

The Clients have been rewarded with an umbrella and become proud owners of a system by paying back all their installments

Installation of SHS (Cum) 96

-97

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Upt

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pril'

14

228

598

1838

3583

6753

1141

3

1921

3

3300

4

5164

6

7963

7

1279

76

2038

63

3175

99 5182

18 7556

72

1020

014 13

1247

8

1392

762

Vision 2020 SHS Program

Upto 2011

2012 2013 2014 2015 2016 2017 2018 2019 2020

811

1519

24

28

33

38

44

50

Number of SHS Installation (Cum) in Lacs

Rural House Under Solar Light in the Hilly Area

Bandarban Region, Kanapara (Dark) Village

Developing a Better Future Generation

School children can study better under solar light. A scholarship program has also been commenced by GS

Bringing Affordable Quality After Sales Service to the doorstepsGS creates a market by providing services close to the customers

• Training of local technicians & entrepreneurs

• Local production of accessories through entrepreneurs

• Free repair & maintenance during repayment period.

• Once a month visit

• Post warranty : annual maintenance agreement at low cost Woman Technician

working at her home

Grameen Technology Centers Creating Green Jobs For Women

• Over 3000 women trained in sustainable energy technologies

• Some trainees set up their own energy businesses

• 38 GTC now set up to carry

out training & manufacturing in rural areas to strengthen GS services

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

home

Grameen Technology Centers

More than 300000 users have gained knowledge of RET and learned to take care of their systems

Solar Powered Irrigation Pump

Solar System Installed by Grameen Shakti in Distinct Council Complex, Chittagong

Solar System Installed by Grameen Shakti in District Council Complex, Narsingdi

Grameen ShaktiTelecommunication

New Initiative

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

• Grameen Shakti has installed 6.5 KW solar plants for 4 BTS of Grameen Phone

• Following success with Grameen Phone, Grameen Shakti has received more offers from other mobile phone companies to install solar panel for BTS

Grameen Phone BTS Tower Constructed by GS

Solar powered Refrigerators in Remote areas

30 Solar Powered refrigerators have been installed in Vet Clinics in remote areas and islands

These refrigerators are helping to store vital medicine for livestock vaccinations

Scope for International Cooperation Pilot testing & adaptive research for “2nd generation” solar

pv in Bangladesh

International cooperation and research could be developed on low cost solar pv module

Piloting of mini solar grid entrepreneur programs with the financial assistance from international donors

Adaptation of GS model in other countries

Technology Transfer & Training

Development & Research on other renewable energy technologies

Grameen Shakti’s Biogas Program

– Flexible loans

– On the spot trouble shooting

– Adaptive research

– Mason & User training

Sustainable waste management & cooking gas production

A program designed to respond to client needs :

Livestock owners can get rid of the waste and produce clean gas for cooking comfortably with no need for biomass fuels

Can supply gas to neighbors for additional income Produce organic fertilizer Generate electricity Burden of women is reduced and their heath protected

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

Constructed more than 29,150 biogas plants, around 300 large sized biogas plants

Promoted Organic Fertilizer business and linkage between Poultry/Livestock, Agriculture & biogas technology

Initially a pilot project in 2005, GS Biogas has quickly become a popular program

Slurry Processing at a biogas plant

Grameen Shakti has successfully introduced fiber glass bio-digester in Bangladesh

DEMONSTRATION PLOTS

GS is promoting the use of organic fertilizers among farmers.

d

2000 ICS technicians and entrepreneurs have been created

63 manufacturing units set up for smooth supply of grates, chimneys etc.

Households and businesses save 50% on fuel costs

Women can cook in smoke free kitchens

IMPROVED COOKING STOVES Cost-effective technology facilitating a

pollution-free and healthy rural environment

37

38

39

40

42

43

Concrete Improved Cooking Stove (ICS)

A Technician making an ICS with mud

Production Centre of ICS Made of Concrete at Kalihati, Tangail

Improved Cooking Stoves (Cum.)20

06

2007

2008

2009

2010

2011

2012

2013

Upt

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pri..

.

410 4998 16402 45967

193120

423725

595516

750836801608

U.S Ambassador Dan Mozena watchingCooking at one household at Singair, Manikgonj

The Challenges Ahead Financial and legal framework needs upgrading

Attracting investment of financial institutions

Higher prices of Solar PV system ( Price of Battery

& other accessories are increasing)

Increasing power efficiency of Solar PV system & decreasing production cost of PV including accessories

Creation of new & skilled manpower

Creating Green Entrepreneurship Opportunities

Improvement of back up service

Benefits from carbon emission reduction

Activities(Till 30

April 2014)

Yearly Fuel/Biomass consumption

Ton/Liter Per unit

Yearly total Fuel/Biomassconsumption

Ton/Liter

Total savings of money (BDT)

Emission Reduction

per unit (tCO2/Year)

Total CERs (tCO2/Year)

Installed Solar Home

System (1,392,762)

108 L 150.42 M L 11281.50 M(USD 147 M) 0.232 323120.78

Biogas Plants

(28,518)1.80 T 51332.40 T 513.32 M

(USD 6.67 M) 2.08 59317.44

Improved Cooking

Stove (801,608)*

0.90 T 721447.20 T 7214.47 M(USD 93.69 M) 1.04 4,09,743.00

TOTAL 19009.29 M 792181.22

* Improved Cooking Stoves save 50% of firewood

National and International Achievements

1. International Microfinance Awards 2008 from PlaNet Finance (Paris) 2009

2. Ashden Outstanding Achievement Award (UK) 20083. National Environment Award (Bangladesh)

20084. Energy Globe Award (Brussels) 20085. Right Livelihood Award (Sweden) 20076. Tech Museum Award (USA)

20077. European Solar Prize (Germany) to

20068. Ashden Award (UK) 2006

9. IDCOL Award (for scaling up SHS ) 200510. Solar Prize ( for outstanding performance)

200411. USAID Best Theme Award

200312. European Solar Prize (Germany) 200313. Energy Globe Award (Austria) 2002

Grameen ShaktiINFORSE activities in Bangladesh

Grameen Shakti (GS) (INFORSE National Focal Points-NFP for Bangladesh) has carried out national level activities in Bangladesh in the INFORSE part of the project "Concerning the SOUTHERN VOICES CAPACITY BUILDING PROGRAMME– Strengthening Climate Policy Networks in the South" (in the following called as "Southern Voices-Ph-II")

Arranging two successive consultation meetings with stakeholders 

The first consultation meeting was held on May 14, 2014 at Conference Room of Grameen Shakti Head Office in Dhaka Bangladesh.

15 participants from top leading Renewable Energy Companies attended the meeting. Mr. Abser Kamal, Managing Director of Grameen Shakti chaired the meeting.

This interactive meeting had brought these organizations on table for discussion about the current renewable energy scenario in Bangladesh and probable activities to do next.

After threadbare discussion the following decision were made:

Sustainable energy and development should get priority in each organization who are working now in renewable energy technology dissemination.

Training for the staff is very essential for renewable energy sector. It is not the activities of promoting business but also very crucial for demonstration, campaign, connection to local people, climate change victim as well as young generation.

For promoting and informing about the renewable energy technology, school campaign is essential that Grameen Shakti is continuing for last several years.

As there are many organizations are working here in Bangladesh for promoting renewable energy, a comprehensive campaign program can be adopted that will be further discussed in next consultation meeting.

As Grameen Shakti is the National Focal Point in Bangladesh for INFORSE as well as largest renewable energy company in the country, they will adopt some short term, mid term and long term strategies for INFORSE activities in context to Bangladesh and in the arena of connective South Asia.

It was decided to sit together with more concrete recommendations on July 12, 2014 at Central Conference Hall at Grameen Bank Building Premise.

The final consultative cum national meeting was held on July 12, 2014 at Central Conference Hall at Grameen Bank Building Premise chaired by Mr. Abser Kamal, Managing Director, Grameen Shakti and Focal Person of INFORSE NEP for Bangladesh.

The participants number was around 50 including 38 persons from different leading energy companies who are working under Rural Electrification Program as well as Senior Officials from Grameen Shakti who are responsible for operational, capacity building as well as project implementation.

Around 4 hours long interactive meeting has focused light on several issues that has been summarized below:

Capacity building within the institution:

Most of the renewable energy organizations have large network all over Bangladesh.

Apart from these organizations, there are many NGOs who are engaged in development works.

But, the question has been raised how many of them are well trained about the climate change, global warming regarding fossil fuel usage as well as deforestation.

It is very important to develop the capacity building in each organization.

Each organization can take initiative for training their resources especially those are working with end users of renewable energy technology about climate change, global warming, and mitigation with changing behavior with renewable energy.

It is definitely essential to prepare a common (almost) training material for them.

These officials go for promotion and marketing of renewable energy technology.

Within the business strategy, the issue of environmental protection should be adopted.

Campaign program in school & local village Market for awareness building:

Most of Organization has these types of campaign programs. Grameen Shakti is pioneer in this sector.

As a National Focal Point of INFORSE, Grameen Shakti will be continuing it’s these types of activities.

Grameen Shakti will be sitting with different organizations located in different districts of Bangladesh in regular basis.

In future, they will try to develop a systematic and organized school and local market campaign along with other stakeholders.

However, fund would be required for logistic supports. Grameen Shakti will discuss about this type of activities with INFORSE and inform them about probable activities in this regard.

Arrangement of regional meeting in regular basis:

All the participants were agreed that these types of activities will be diversified among all other districts in Bangladesh.

There are many under developed, under privileged as well as deprived area available who do not get focus.

So, regional meetings in different corners of Bangladesh would be arranged in future.

Grameen Shakti, the National Focal Point of INFORSE along with other participants have suggested that these type of regular basis regional meetings can be taken place in India, Nepal, Pakistan, Sri Lanka and Maldives.

Continuation of these meetings will focus the end users‘ problem and will help in adopting new/revised strategically framework for IFORSE activities in South Asia.

Networking among different organizations It is very important to link network among different stockholders.

The participants have their own networks among themselves in context to business as well as central rural electrification program that is the largest renewable energy based national program in Bangladesh.

These participants will sit together in regular basis and review the activities of these organizations in relation to environmental and sustainable energy promotional campaign, adopting pilot project in between renewable energy dissemination (for example, solar home system, biogas program and improved cooking stove) and their positive impact on climate change and global warming issue.

Many organizations have business partners located aboard (For example, India, China, Japan and many European countries).

These organizations can also incorporate their business partners in sustainable developmental activities within the legal framework.

INFORSE Central can give more feedback in this regard.

CASE STUDY 1: Solar powered grocery shop in off-grid Singair Area of Manikganj District, Bangladesh

Have anyone ever heard that a Solar Home System may be guardian of a family?

Yes, surprise was waiting when Mr. Md. Nurul Islam was telling his story in the month of June, 2014.

Like other family in the village Nurul leads a very simple life with his family in an off grid area.

Nurul Islam lives in an off-grid village area called North Bokchar at Singair of Manikganj District, Bangladesh.

This 28 years young man has been running his grocery shop since 1998. His father was died when he was young.

Nurul keeps open the shop till 10:30 PM at night every day.

Apart from the selling of grocery items, he has also an arrangement of having tea stall facilities.

To next this grocery shop, he has started to run a poultry shed with 100-150 poultry birds.

Solar panel on roof of the shop Grameen Shakti solar charger as part of the system

Poultry shed Grocery shop

Nurul used to use kerosene fired kupi and lantern and purchase 6 litre kerosene every month for lightening his shop in the evening and at night each day.

In 2010, Nurul installed a solar system of 65 Wp for his shop by which he can run (in rotation) 5 LED lights, 1 Television with DVD player and a mobile charger.

He is owner of the system that was purchased on credit from Grameen Shakti and he paid the money in 36 monthly installments.

By this solar home system, Nurul not only gets light for his shop, he also use light in the poultry shed for security purpose.

Sale of Nurul’s grocery shop as well his tea stall increases when he starts to switch on a colored television with a DVD player where daily drama serials, Bangla and Hindi films, jokes and musical programs are displayed.

Village customers watch these programs in the shop and having tea with cookies.

This innovative idea of Nurul (keeping color Television and VCD player run by solar power) has made a clear difference with other grocery shops in the small village.

Nurul feels happiness when he observes several installed solar panels on other shops’ roof.

Nurul also installed a 20 Wp solar home system for his house in 2012 which he purchased on credit from Grameen Shakti.

With this system, Nurul can switch on 4 LED lights for all the rooms. His children can study till 10:00 PM at night and other members of the family can perform their different types of tasks smoothly under solar powered lights.

It is very interesting to hear that Nurul has purchased a three-wheeled taxi by profit he has generated from his solar lighted shop and poultry shed.

Anyone will be surprised to hear when Nurul says with a wide smile face “Grameen Shakti Solar Home System is the Guardian of my family, you believe it or not”.

CASE STUDY 2: Solar powered barber shop in off-grid village market

Mr. Jasim Uddin, a barber of 35 years old has been running the shop since 2010.

His barber shop is located at Sudkhira Bazar, Singair area of Manikganj District, Bangladesh where there is no grid electricity connection.

Mr. Jasim used to use 50-60 candles as well as 4 litre kerosene every month.

It was quite difficult for him to cutting and shaving activities during evening and night.

No doubt, the number of customers was very less after sunset.

Jasim says that situation has been switched with increased number of customers when he has installed “Grameen Shakti Solar Home System” in his shop in February 2014.

A 20 Wp Solar Home System (SHS) with 3 lights has triggered his business during evening and night.

The system price is BDT 12,900 (USD 165) that he is allowed to pay by 36 monthly installments.

He gets many customers like daily workers, laborer as well as shop keepers who are not able to come to the barber shop in day-time.

Jasim can use now couple of electrical hair-cut equipments by this solar powered system. It reduces the time too.

This solar powered barber shop has also focused “Micro Utility Model”.

The owner of the shop Mr. Jasim has rented one light to his next medicine shop.

The owner of the medicine shop Mr. Rashed pays just 150 Taka (USD 1.92)/month.

Mr. Rashed can now keep open his medicine shop till 10:00 PM at night in this off-grid small village market.

It is interesting that Barber shop owner Mr. Jasim is earning money from his own power generation system.

It is to be noted that there is still no policy of Bangladesh Government to purchase electricity from this type of small system.

About 10,000 micro-utility systems are working fine across the country installed by Grameen Shakti.

Jashim’s saloon

Pharmacy shop

Networking in regional area: Faridpur Municipality

Grameen Shakti is going to set up a large Biogas plant of 600 m3 gas and more than 2 ton composting organic fertilizers at Faridpur Municipality (About 170 Km from Dhaka City) by end of this year 2014.

That renewable power generation project (Cooking gas and organic fertilizer from city waste) is the first project here in Bangladesh.

The Grameen Shakti’s experts who are also team members of “INFORSE Bangladesh Part” had an effective networking and advocacy discussion with honorable Mayor Mr. Mahtab Uddin Mithu regarding biogas technology for converting city waste to renewable energy and better healthy environment for municipality.

This model will have the chance to be replicated across the country. This type of activities will be kept in collaboration within INFORSE arena.

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Green Bangladesh

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