INFRASTRUCTURE DEVELOPMENT COMPANY LIMITED

RENEWABLE ENERGY INITIATIVES

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Nazmul Haque

Director (Investment) & Head of Advisory

IDCOL: the organisation

IDCOL is a government owned development finance institution under the Economic Relations Division ofthe Ministry of Finance of Bangladesh dedicated to promote/finance infrastructure, renewable energyand energy efficient projects in Bangladesh.

Mission

To help in ensuring the economic development of the country and to improve the standard of livingof the people through sustainable and environment friendly investments.

Vision

To catalyze and optimize private sector participation in the promotion, development and financingof infrastructure as well as renewable energy and energy efficient projects in a sustainable mannerthrough public-private-partnership initiatives.

Core Values

Global standards and competence

Social responsibility

Transparency and integrity

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Renewable Energy Initiatives

In its drive towards promoting alternative sources of energy, IDCOL finances projects and programs that

utilize various forms of renewable sources. Through startup subsidy, concessionary credit, and capacity

development support, IDCOL complements the Government’s mission of generating 10% of the country’s

total electricity from renewable sources by 2030. Our dedicated Renewable Energy office has in-depth

expertise and knowledge in various renewable energy technologies and the ability to provide potential

sponsors a seamless transaction execution experience from start to finish.

IDCOL has been implementing the following renewable energy programs/projects in Bangladesh:

Solar Home System (SHS) Program

Domestic Biogas Program

Solar Irrigation Pumps

Solar Mini-grid Project

Improved Cook Stove (ICS) Program

Biogas Based Power Plant

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Solar Home System (SHS) Program

Inception : 2003

Target : 6 Million by 2021

Support from

IDCOL

:

:

:

Grant and concessionary credit support;

Comprehensive quality control and monitoring;

Promotion, training and capacity building

support for partners;

Funding Source : The World Bank, ADB, IDB, GEF,GIZ,KFW

Achievement : 4.14 M till Dec 2016

Beneficiaries : 18.8 million people (12% of total population)

Fossil Fuel Saving : 198,720 ton/year

Job Creation : 75,000 people

IDCOL Investment : USD 700+ M

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SHS Program Structure

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SHS Program Financing Structure

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(a) Market Price of 20 Wp SHS USD 138

(b) Buy-down Grant (Grant A) USD 20

(c) System Price for Household [(b)-(a)] USD 118

(d) Down Payment from Household to PO [15% of (c)] USD17.7

(e) Loan Payable from Household to PO [(c)-(d)] USD 100.3

Loan Tenor 3 years

Interest Rate 16% p.a.

Monthly Installment Amount USD 4.4

(f) IDCOL Refinance [70%~80% of (e)] USD 70~80

Loan Tenor 5~7 years

Interest Rate 6~9% p.a.

Domestic Biogas Program

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Inception : 2006

Target : 60,000 biogas plants by 2018

Achievement : 44,000 till Dec 2016

Support from IDCOL : Subsidy of USD 173 per plant and low cost

credit support up to 85% of the plant cost

: Enlistment of quality product and supplier

: Promotion, training and capacity building

support for partners

Funding Source : KfW, SNV, IDA

No. of Beneficiaries : 200,000

Firewood Saving : 42,000 ton/year

Chemical Fertiliser Saving : 37,500 ton/year

Organic Fertilizer

Production

: 260,000 ton/year

Domestic Biogas Program Structure

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Domestic Biogas Program

Financing Structure

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Model: 2.4 cubic meter biogas plant

(a) Market Price without Grant USD 609

(b) Grant USD 173

(c) System Price for Household [(b)-(a)] USD 436

(d) Down Payment from Household to PO [15% of (c)] USD 65

(e) Loan Payable from Household to PO [(c)-(d)] USD 371

Loan Tenor 3 years

Interest Rate 16% p.a.

Monthly Installment Amount USD 13

(f) IDCOL Refinance [80% of (e)] USD 296

Loan Tenor 7 years

Interest Rate 6% p.a.

Solar Irrigation Program (SIP)

Inception : 2010

Target : 50,000 by 2025

Achievement : Financed 657 of which 690 are in operation

Support from

IDCOL

: Subsidy up to 50% of total project cost

: Soft credit up to 35% of total project cost

: Training and capacity building programs for

sponsor

Funding Source : BCCRF, KfW, GPOBA, USAID, ADB, IDA, JICA

Development

Impacts

: Lowered usage of diesel

: Reduced emission of CO2

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Solar Irrigation Program Structure

‘Fee for Service’ Model

Ownership Model

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Solar Mini-grid Program

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Inception : 2009

Target : 50 solar mini-grid by 2018

Achievement : 23 approved projects oh which 7 are in

operation

Support from

IDCOL: Subsidy up to 50% of total project cost;

: Soft credit up to 30% of total project cost;

: Feasibility, training and capacity building

support for sponsor;

Funding Source : KfW, DFID, GPOBA, USAID, ADB, IDA, JICA

Development

Impacts : Lowered usage of fossil fuel

: Reduced CO2 emission

: Saved Chemical fertilizer of 24,189 ton/year

Solar Mini-grid Program Structure

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Improved Cook Stove (ICS) Program

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Program Inception : 2013

Target : 1 Million stoves by 2018

Achievement : 797,000 ICS installed till Aug’16

Support from IDCOL : Grant amounting USD 7 per ICS

installation

: Feasibility, market promotion and

capacity building support

Funding Source : The World Bank

Development Impacts : 50% less firewood consumption

: Reduced indoor air pollution

Biogas Based Power Projects

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Inception : 2009

Target : 140 plants by 2018

Achievement : 8 in operation, 10 in pipeline

Support from IDCOL : Soft credit up to 80% of the total

project cost

: Subsidy up to 20% of total cost for

projects below 100 Kw capacity

Funding Source : KfW, GPOBA, USAID, IDA, JICA

Development Impacts : Reduced usage of fossil fuel

: Production of bio-fertilizer

Contact Details

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Infrastructure Development Company Limited

UTC Building, Level: 16

8 Panthapath, Karwanbazar

Dhaka-1215, Bangladesh

Telephone: +880-2-9102171-8

Web: www.idcol.org

Email: nhaque@idcol.org