Village level energy access in Bangladesh

Farzana Rahman, Unit Head (Investment), Renewable Energy

Md. Mahfuzur Rahman, Assistant Manager, Renewable Energy

26 August 2015

Solar Home System and Solar Mini-grid

IDCOL At a Glance

A Government-owned financial institution dedicated to promote private sector financing in infrastructure and renewable energy sector.

Funded by the government and development partners i.e. the World Bank, ADB, IDB, KfW, GIZ, GEF, GPOBA, USAID, DFID, JICA, SNV.

Products and Services : Local and foreign currency financing Arrangement of debt and equity

Concessionary credit, grant Other implementation support for RE projects/programs

Capacity building on project finance, financial modeling and RE

Snapshot of RE Activities

Project/Program Target Achievement

SHS Program 6 ml by 2017 3.74 ml

Domestic Biogas Program

100,000 by 2018 39,000

Solar Irrigation 1,550 by 2018 161

Solar Mini-grid 50 by 2017 7Solar Telecom BTSs

As per demand 138

Biogas based Power Project 130 by 2017 9

Improved Cook stove

1 ml by 2018 90,000

IDCOL Solar Home System Program

The program at a glance Installation status Program structure Committees & their responsibilities System samples Financing structure Quality control mechanisms Challenges & mitigations

What is a Solar Home System (SHS)?

Capacity Appliances Operation

20Wp 3 W LED Lamp: 2Mobile Charger: 1 4-5 hours

50Wp3 W LED Lamp: 5LED Colour TV: 1Mobile Charger: 1

4-5 hours

85Wp

3 W LED Lamp: 7LED Colour TV: 1Mobile Charger: 1

12 W DC Table Fan: 1

4-5 hours

• Lead Acid Battery• DC-DC Converter to run

color television, fan, refrigerator etc.

IDCOL SHS Program – at a Glance

Program Target : 6 million SHSs by 2018Program Achievement : 3.74 million SHSs by July 2015Number of Beneficiaries : 17 million people Installed Capacity : About 145 MWpFossil Fuel Saving : 221,000 ton/year Job Creation : 75,000 people IDCOL Investment : About USD 600 million

SHS Installation

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

11,697 20,635 27,579 37,151 69,562 103,301

169,916

325,067

468,978

643,810

853,026

724,615

600,000 600,000 660,000 684,663

Inst

alla

tion

of S

HS

Actual Installation Projected Installation

Program Structure

Supply Equipment

Pay for Equipment

Seeks grant & loan

Provide grant & loanIDCO

L

Technical Standards Committe

e

Suppliers Seeks approval

Provides approval

Household

Sells SHS & provide

service

Pay down-payment & installment

Operations

Committee

Seek operation

related solutio

ns

Provides S

olutions

NGO/POPO Selection

Committee Select POs

Applies

Donors

Grant & soft term

credit

System Samples

Capacity Total Load Operating Hour

Cost (in USD)

20Wp Lamp: 2 (5W each)Mobile Charger: 1 4-5 hours 170

50WpLamp: 4 (7W each)Black & White TV:

1Mobile Charger: 1

4-5 hours 400

85Wp

Lamp: 9 (7W each)Black & White TV:

1Mobile Charger: 1

4-5 hours 600

Financing Structure of a 20 Wp SHS

Refinancing Support

IDCOL envisions to commercialize the SHS market in the country.

Earlier IDCOL provided 80% of loan amount as refinancing support.

In 2012 IDCOL reduced the refinancing amount to 70%.

Terms and conditions of refinancing facility is as follows:Total Refinance Amount (BDT)

Interest Rate Loan Tenor (including

Grace)Grace Period

Up to 25 crore 6% p.a. Up to 7 years 1 yearFrom 25 crore to 50 crore 7% p.a. Up to 6 years 1 yearFrom 50 crore to 100 crore

8% p.a. Up to 6 years 1 year

More than 100 crore 9% p.a. Up to 5 years 0.5 year

Grant Support

IDCOL provides two types of grants: Capital Buy-down Grant (Grant A) : Reduces system price Institutional Development Grant (Grant B): Facilitates capacity development

of Pos

With an objective of phased reduction of grants, IDCOL provided USD 90 per SHS at the beginning of the SHS program.

At present, the grant amount has been reduced to USD 25 per SHS

Quality Control Mechanisms

Follows up on lodged complains

Lodges complain

Takes remedial measure

Challenges & Mitigations

Solar Mini-grid

Preferably isolated off-grid areasConcentration of customersWillingness and capability to payFeedback from Power Division/REB/BPDB regarding possibility of grid expansion

Site Selection Criteria

Supply Equipmen

tPay for

Equipment

Seeks grant & loan

Provide grant & loan

IDCOL

Suppliers

Customers

Sells Electricit

y

Pays electricity bills

Sponsor

Donors

Grant & soft

term credit

Repayment

Provide technical support

Pays consultancy fees

Role of Partners: At a Glance

Consultant

Role of Sponsors and IDCOL

Responsibility of SponsorsSelection of areas and target customers Installation and operation of the mini-gridSupply of electricity to the customers at affordable rate

Collection of monthly payments

IDCOL’s roleTechnical supportProject development supportFinancial support to the sponsorMonitoring of performance and quality assurance

Project Cost Components – 100 kWp Mini-grid

Project cost components

Amount in USD

Percentage

Land and land development 76,923 13.70%

Solar PV 79,487 14.16%

PV installation charges 30,769 5.48%

Cable 20,513 3.65%Battery, battery fuse and

rack 144,872 25.80%

Generator 14,103 2.51%

Inverter 102,564 18.26%Transmission and distribution lines 69,231 12.33%

Technical assistance 12,821 2.28%

Contingency 10,256 1.83%

Total 561,538 100%

Financing Structure

Particulars (%)Equity 20%Debt 30%Grant 50%Total 100%

Facility

Interest Rate Tenor Grace Repaymen

tRepayment Frequency Security

Term loan 6% p.a. 10

years2

years Annuity Quarterly

Bank guarantee/

land mortgage

Allocation of equity, debt and grant

Financing terms

Implementation Status & Target

Projects Approved : 16 projects Total Capacity : 2,403 kWp (2.4 MWp) Number of Connections : 11,263

Projects in Operation : 4 projects Projects in Pipeline : 15 projects

Target : 50 projects (by 2017)

Approved Mini-grid Projects

Sl. Project Location Capacity Project Status1 Enam Nahar, Sandwip,

Chittagong 100 kWp

Under Operation2 Kutubdia, Cox’s Bazar 100 kWp3 Bagha, Rajshahi 141 kWp4 Paratoli, Raipura, Narshingdi 141 kWp

5 Narayanpur, Nageshwari, Kurigram 158 kWp Under Construction

Expected COD – Sep 20156 Godagari, Rajshahi 149 kWp

7 Monpura, Bhola 177 kWp

8 Nooner Tek, Sonargao, Narayangonj 168 kWp

Under ConstructionExpected COD – Mar

2016

9 Rupsha Char, Sadar, Sirajganj 130 kWp10 Char Kajal, Patuakhali 100 kWp11 Char Biswas, Patuakhali 100 kWp

12 Munmiar Char, Islampur, Jamalpur 162 kWp

13 Chilmari, Daulatpur, Kushtia 188 kWp

14 Baghutia char, Doulatpur, Manikganj 228 kWp Approved

Expected COD – Apr 201615 Nijhum island, Hatiya, Noakhali 200 kWp

16 North Channel Union, Sadar, Faridpur 162 kWp

Mini-grid Projects in Pipeline

Sl. Location Approx. Capacity

1 Natuar Para Char, Kazipur, Sirajgonj 200 kWp2 Chor Sholmari, Rowmari, Kurigram 100 kWp3 Maijchor Union, Bajitpur, Kishoregonj 100 kWp4 Char Mantaz, Rangabali, Patuakhali 100 kWp5 Tautia, Lohojong, Munshigonj 150 kWp6 Char Kukrimukri, Char Fassion, Bhola 100 kWp7 Char Jahiruddin, Tozumuddin, Bhola 100 kWp8 Kollanpur, Aminpur, Pabna 150 kWp9 Ghaschapru, Belkuchi, Sirajgonj 150 kWp

10 Purbo Shalipur, Chorvodrashon, Faridpur 150 kWp

11 Poschim Shalipur, Chorvodrashon, Faridpur 150 kWp

12 Kundur Par, Gaibandha Sadar, Gaibandha 150 kWp

13 Gaibandha Sadar, Gaibandha 150 kWp14 Majher Char, Bhola Sadar, Bhola 105 kWp15 Char Chatkimara, Bhola Sadar, Bhola 250 kWp16 Alatoli, Chapainawabgonj Sadar 150 kWp17 Narayanpur, Chapainawabgonj Sadar 150 kWp

Thank You

Q & A

Infrastructure Development Company Limited (IDCOL)UTC Building (17th Floor), 8 Panthapath, Dhaka 1215

Phone: +880-2-9102171~8 E-mail: mrahman@idcol.org

www.idcol.org