xenergeia sabir m sme sdp 07 june2010 final

June 7, 2010 Ministry of Industry SeminarDhaka, Bangladesh

Green Technology in SME Sector for Sustainable Industrial

Development of Bangladesh

Sabir Majumder, Ph.D.Cofounder and CEO, Xenergeia Inc., USA

[email protected]+1 (510) 676-0659

Xenergeia : an energy company that cares!


Topics of Interest• Problem statement• Realities in Bangladesh• Why Small Medium Enterprise (SME)?• What green technologies can offer?• What is Xenergeia doing?• Solar PV cost structure• Policy issues• Recommendations


Problem Statement

• Bangladesh needs constant supply of power to become an economic tiger of any form – SME being the backbone for

sustainable growth


Realities in Bangladesh

• Power demand and generation– 6,000 MW demand

• Only 43% of the population is connected to national grid

– Year-to-year energy demand growth• ~10%

– 4,300 MW generation• 168 kWh per capita – one of the lowest in the world• Too many power outages (~1,700 MW of load shedding)

• GDP Growth– ≥6% for almost a decade– Could be ≥8% with sufficient and stable energy supply

• 2% of GDP is eaten up by simply power outages which is largely from SME sector

Source : World Bank

No Energy No Growth


Power Shortage – Case Study

• Bangladesh exports annually US$12B ready-made garments– 15% year-to-year increase in manufacturing

cost for last 2 years• Solely from power outage

• Cheap labor is not enough for global competition and FDI

• Energy problem seems to be more acute than any other crises of the country

Energy crisis is acute


Why SME?• SME definitions in Bangladesh

– Small Enterprises• Net value up to 1.5 crore BDT (~US$215K)• Up to 50 employees

– Medium Enterprises• Net value up to 20 crore BDT (~US$2.9M)• Up to 150 employees

• SME roles– Serves as the backbone of national economy

• 25% of GDP


Six Booster Sectors in BangladeshIdentified by SME Foundation

• Light Engineering

• Electrical and Electronics

• Plastics

• Agro Processing

• Fashion Design

• Leather and Leather Goods


Empowering the BottomlineShort list for immediate impacts

• Shopping centers

• Flour and rice mills

• Cold storage

• Water irrigation pump

• Water treatment plants

• Educational institutions

• Household business initiatives


What Green Technologies Can Offer?

• Empower SMEs– 2% instant increase in GDP

• Empower off-grid population– Sky is the limit

• Environmentally friendly– Healthy and educated nation

• One step towards Millennium Development Goal– Poverty eradication

• Become a global hub of green technology– Land of solar?


What Are The Options?

• Available green technologies– Solar– Wind– Ocean– Geothermal– Motion (bicycle) energy

• Solar being the primary and immediate option for Bangladesh


Solar Photovoltaic (PV) History

• In 1953, Bell Laboratories developed the first silicon solar cell capable of generating a measurable electric current – “The beginning of a new era,

leading eventually to the realization of harnessing the almost limitless energy of the sun for the uses of civilization.”

• The New York Times


Primary Green Option – Solar• Abundant solar radiation

– Annually ≥330 days are solar proactive

• Easy to use – Relatively low tech

• Environmentally friendly– No carbon emission

• Relatively inexpensive– BDT 16 per kWh vs. PDB cost BDT 14 per kWh

• Long manufacturer warranty – 25 years

• Primary energy source for off-grid population– Backbone for small business initiatives

• Backup energy source for on-grid SMEs– Direct additional contribution of ≥2% GDP

May December


• Current PV installation– ~15 MW in 2010

• Projected installation– Ten-fold increase in 5

years

• Aggressive projection by a Bangladeshi publication– 300 MW in few years

• Bangladesh Business, April 2009

PV Demand in Bangladesh

0

50

100

150

200

2010 2011 2012 2013 2014

YearM

ega

Wat

t /Ye

ar

Solar PV in BangladeshInstallation Base


What Is Xenergeia Doing?• US-based alternative energy company

– Working for betterment of Bangladesh

• 25MW solar PV module manufacturing plant in Bangladesh – Global investment– Proven technology– Skilled management– Social entrepreneurship – Export to global market – Carbon trading– Develop leading-edge solar technologies

• Build vertical solar industry in Bangladesh– Land of solar?


Crystalline-Si PV Module ManufacturingProcess Flow

• Sand and sun abundant in Bangladesh– Missing key components

• Foreign direct investment• Technology partnership

Source : Spire


Minimum Cost Effective Factory SizeSolar Operations

• PV module factory is the first step for building vertical solar industry– Vertical industry makes it cost effective – Thus globally competitive

Source : Spire


2009 World Market PV Technology

• Crystalline silicon (x-Si) is dominating– Matured x-Si PV technology– Thin film shows instability in performance

Source : Spire


Solar PV Cost StructureModule vs. electricity

• PV module lowest available cost– Mono-crystalline silicon

• $2.07 /Wp– Poly-crystalline silicon

• $1.74 /Wp– Thin film

• $1.50 /Wp

• Solar firm installation cost– $4.23 /Wp (US)– $4.11 /Wp (EU)

• PV electricity cost– 19.27 cents /kWh (US)

Source : solarbuzz


Solar PV Applications

• Solar power systems• Solar irrigation• Solar heating• Solar cooling• Solar street lighting• Commercial• Industrial • Household


Policy Issues

• Favorable– Incentives for SHS installations

– Encouraging policy for domestic investment

• Not So Favorable– Global image of Bangladesh

– Infrastructure for a medium tech solar PV manufacturing industry


Recommendations• Solar PV is primary choice of green technology for

sustainable industrial development in SME sector• Solar power systems be installed for SMEs as a backup

if not primary power supply• GoB and UNIDO incentivize solar installations for SMEs• Establish aggressive framework for collaborations

between GoB, UNIDO, and professional solar bodies• Offer low interest loans/grants for global joint ventures• Remove VAT/tax for all solar products/components• Formalize framework for RB-NRB collaborations in solar

– Xenergeia is willing to take a lead


AcknowledgementsAfroza Khan

Ministry of Industry, Government of Bangladesh

Dr. Emdad KhanInternetSpeech, USA

Albert ChangXenergeia, Taiwan

Dr. Dipen BhattacharyaUniversity of California Riverside, USA

Priti ChakrabortyXenergeia, Bangladesh

Dr. Paul ChengSolCatch, USA

Munir Ahmad KhanXenergeia, Bangladesh

Dr. Fuad RahmanXenergeia, USA

Future Solar Car


Questions?

xenergeia sabir m sme sdp 07 june2010 final

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