nazmul haque - solar energy program in bangladesh

7/31/2019 Nazmul Haque - Solar Energy Program in Bangladesh

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Rural Electricity : Barriers to and Incentives for Promoting RenewablesIsolated Systems: Solar Energy Program in Bangladesh

Nazmul HaqueDirector & Head of Investment

Infrastructure Development Company Limited (IDCOL)

3rd Annual AsiaPacific Dialogue onClean Energy, Governance, Policy, Law and Regulation

June 4~5, 2012


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IDCOL SolarHome System

Program

IDCOL is a state-owned financial institution

dedicated to promote private sector financing in

infrastructure and renewable energy sector.

IDCOL Solar Home System (SHS) Program:

Program at a glance

Program Structure Fund Flow and Role of Partners

System Design and Up gradation

Financing Structure

Quality Control Mechanisms

Challenges & Mitigations Prerequisites to Develop Similar Program


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IDCOL SHS Program at a Glance

Program Target : 2.5 million SHS by 2014 Program Achievement : 1.4 million as of Apr 2012

Number of beneficiaries : 7 million

Electricity generation : 70 MW

Fossil Fuel saving : About 140,000 ton/year

Job creation : 70,000


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Program Structure

SupplyEquipment

Pay forEquipment

Seeks grant & loan

Provide grant & loan

IDCOL

TechnicalStandardsCommittee

SuppliersSeeks approval

Provides approval

Household

Sells SHS &

provideservice

Pay down-

payment &installment

OperationsCommittee

NGO/POPO SelectionCommittee

Select POs

Applies

Donors

Grant &

soft termcredit


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Fund Flow and Role of Partners

Donor

Providesgrant and

soft loans

Providestechnicalassistanceneeded

GoB IDCOL

Provides grants toreduce SHS costand for capacitybuilding

Provides soft loans

Provides training,promo support

Monitorsimplementation

PO

Identifypotential

customers

Installs SHS

Extendsmicro-credit

Provides aftersales services

Household

Debt ServiceDebt ServiceDebt ServiceDebt Service

Provides

grant and

soft loan to

IDCOL

Provides

policy

support

Maintain

system

Repay loan

in monthly

installments


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System Design and Up gradation

Capacity Appliances Operating Hour

20WpLamp: 2

Mobile Charger: 1 4-5 hours

50WpLamp: 4

B & W TV: 1Mobile Charger: 1 4-5 hours

85WpLamp: 9

B & W TV: 1Mobile Charger: 1 4-5 hours

Technology Up gradation

CFL Bulb LED Light Gel Battery DC-DC Converter to run color

television, fan, refrigerator etc.


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Financing Structure

(a) Market Price of 50 Wp SHS USD 400

(b) Buy-down Grant (Grant A) USD 25

(c) System Price for Household [(b)-(a)] USD 375

(d) Down Payment from Household to PO [15% of (c)] USD 56

(e) Loan Payable from Household to PO [(c)-(d)] USD 319

Loan Tenor 3 years

Interest Rate 12% p.a.

Monthly Installment Amount USD 8.5(f) IDCOL Refinance [80% of (e)] USD 255

(g) PO Contribution [20% of (e)] USD 64


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Quality Control Mechanisms

Technical inspection by technical inspectors

Verification of collection efficiency by collection efficiency inspectors

Random re-inspection by IDCOL officials

Independent technical and financial audit

SHSInspection

Training for trainers PO Staff Training Supplier consultation Customer Training

TrainingPrograms

IDCOLCall

Centre

IDCOL

POHousehold

Informs POLodges complain

Takes remedial measure


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Prerequisites to Develop Similar Programs

Root level access of private sector agencies i.e. MFI, NGOs

Micro-credit outreach experience of the private sector agencies

Adequate financial support from the donor agencies

Availability of concessionary credit facility to the executing agencies

An agency to monitor quality of products and services Development of local support industry

Active support from the government


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Thank You

Q & A

Infrastructure Development Company Limited (IDCOL)UTC Building (16th Floor), 8 Panthapath, Dhaka 1215

Phone: +880-2-9102171~8Fax: +880-2-8116663

E-mail: [email protected]

nazmul haque - solar energy program in bangladesh

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