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Mohammad AlauddinJoint SecretaryPower Division
Ministry of Power, Energy & Mineral ResourcesGovernment of the People’s Republic of Bangladesh
03 August 2015
Workshop on financing for RE in SIDsSharing Bangladesh Experience
Outline of Presentation
Bangladesh : An Overview
Renewable Energy
Bangladesh’s Success Story: IDCOL’s Solar Home System[SHS]
Total Area: 147,570 km²
Population :157 Million
GDP/Capita: US$ 1314 (FY 2014-15 )
GDP Growth Rate 6.12
Installed Generation Capacity: 11265 MW
Per Capita Electricity Generation: 371kWh
Access to Electricity : 74% [10% RE ]
Source : Finance Division, Ministry of Finance & Power Division
Bangladesh: Country Profile
c
6,765W
18,838MW
33,708MW
2011
Gas67%
Oil 27%
Coal 3%
Generation Capacity 7169 MW
2021
Gas51%
Generation Capacity 24000 MW
Coal 22%
Others 16%
Oil 11%
2030
Generation Capacity38,700 MW
Coal50%
Nuclear 10.34 %
Others 17%
“Others” including
Renewable Energy , Regional
power and oil
Gas/LNG23%
Demand & Generation Capacity Forecast
Source : Power System Master Plan [PSMP] 2010
Demand MW
Renewable Energy: Achievement
Category Achievement
Solar Home System(SHS) 150 MW
Solar PV Applications (Office Buildings & Commercial Buildings)
04 MW
Solar PV System for new connections 11 MW
Solar Irrigation 01 MW
Wind 1.9 MW
Biomass & biogas based electricity 07 MW
Hydro 230MW
Total 405 MW
Source : Power Division
Renewable Energy Policy of Bangladesh 2008
Challenges
• High initial capital costs & lengthy rate of return
• Lack of standards & quality control for RE equipment
• Lack of information about RE resources & RETs
• The high upfront cost at the end user level for renewable
energy is a major barrier.
• Lack of expertise & services in system design, installation,
O & M of RETs & limited capacity for project development
Bangladesh’s Success Story: IDCOL’s SHS Program
Program Target : 6 million SHS by 2018
Program Achievement : 3.64 million SHS by April 2015
Power Generation : 142 MW
Fossil Fuel Saving : 200,000 ton/year
Job Creation : 70,000 people
IDCOL Investment : About USD 600 million
Source: Infrastructure Development Company Limited
Program Structure
Supply Equipment
Pay for Equipment
Seeks grant & loan
Provide grant & loan
IDCOL
Technical Standards Committee
SuppliersSeeks approval
Provides approval
Household
Sells SHS & provide service
Pay down-payment & installment
Operations Committee
NGO/POPO Selection Committee
Select POs
Applies
Dev. Partner
Grant & soft term
credit
Fund Flow & Role of Partners
Multilateral Agencies
• Provides grant and soft loans
• Provides technical assistance needed
GoB IDCOL
• Provides grants to reduce SHS cost and for capacity building
• Provides soft loans
• Provides training, promo support
• Monitors implementation
PO
• Identify potential customers
• Installs SHS
• Extends micro-credit
• Provides after sales services
Household
Debt ServiceDebt ServiceDebt ServiceDebt Service
• Provides
grant and
soft loan to
IDCOL
• Provides
policy
support
• Maintain
system
• Repay loan
in monthly
installments
Mode of Financing: An Example
9/16/2015
(a) Market Price of 20 Wp SHS (USD 170 /SHS) BDT 13,600
(b) Buy-down Grant (Grant A) (USD 20/SHS) BDT 1600
(c) System Price for Household [(a)-(b)][USD150] BDT 12,000
(d) Down Payment from Household to PO [15% of (c)][USD 22.5] BDT 1,800
(e) Loan Payable from Household to PO [(c)-(d)][127.50] BDT 10,200
Loan Tenor 3 years
Interest Rate 12-16% p.a.
Monthly Installment Amount [USD 4.375] BDT 350
(f) IDCOL Refinance [80% of (e)] [USD 102] BDT 8,160
Loan Tenor 5~7 years
Interest Rate 6~9% p.a.
SL# Type of Project Capacity (MW)
1. Solar Irrigation 150
2. Solar Minigrid 25
3. Solar Park 135
4. Solar Roof-top Residential & Commercial Building
10
20Industrial Building
Total 340
September 16, 2015
500 MW Solar Program
SL# Type of Project Capacity (MW)
1. Rural Health Centers 50
2. Remote Educational Centers 40
3. Union e-Centers 7
4. Religious Establishments 12
5. Remote Railway Stations 10
6. Government & Semi-government Offices
41
Total 160
September 16, 2015
500 MW Solar Program
