IDCOL’s Solar Home System Programme Dr. M. Fouzul Kabir Khan Executive Director and CEO Infrastructure Development Company Limited

Why Solar Home System?  Grid electrification expensive; difficult and uneconomical in many instances  Plentiful sunshine  Limited prospects for hydro and wind energy in Bangladesh

Barriers  Lack of information  High capital cost  Limited income of potential customers  Technical standards and customer service  Lack of financing

Billboards

Posters

Leaflets

T-Shirts

Program Design  Blending of project finance and microfinance  Microfinance: no collateral; monthly installments  Project finance: legal and technical due diligence; proceeds account; debt service reserve account  Capital buydown grant  Concessionary refinancing  Independent committees

The Result

The Result (contd..)  Over 65,000 families have been brought under electrification in 39 months  Each Solar Home System (SHS) saves at least US$61.8 worth of Kerosene every year  Each SHS reduces 375 Kg CO 2 emission annually  65,000 SHSs will save Carbon emission reduction cost by nearly US$ 2.0 million over their life time  Over 5,000 direct/indirect jobs have been created in remote rural areas

Prime Minister inaugurating 50,000 th Solar Home System

IDA Support “Projects reaching their target three years early very uncommon. When the Rural Electrification and Renewable Energy Development Project was under preparation, back in 2002, the idea that 50,000 Solar Home Systems (SHS) might be installed in rural Bangladesh within a period of five years ( ) seemed highly ambitious. However, we now find ourselves proved wrong in the best possible way. This project stands as an excellent example of the transformations that can be achieved by committed people working in a good institutional environment. … The World Bank is proud of its association with such a project. As a sign of our continuing commitment and support, we have approved additional funding to IDCOL to install more SHS in rural Bangladesh.” Praful C. Patel Vice President South Asia Region The World Bank

Why Successful?  The WB, GOB, and NGOs working seamlessly  Starting from design to implementation  Non-intrusive but intensive monitoring  Installation  Technical service  Installment collection  “A little Finland”  Highly automated  Small skill based organization  Fully transparent operation

Challenges for the Future  Shortage and increase in price of solar panels  Setting up of a solar panel assembling plant  Increase in price of Lead  Depreciation of Taka  Achieving new target of 140,000 additional SHSs  Expansion to other uses such as irrigation