Grameen Shakti

PAVING THE WAY FOR A GREEN SUSTAINABLE FUTURE Growing Rural Economy through Solar Power
6th Asia Clean Energy Forum, June 21-24, 2011, Manila, Philippines

Md. Fazley Rabbi

Senior Manager

Grameen Shakti g_shakti@grameen.com, g_shakti@grameen.net

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Bangladesh, an energy deficit country

96 million people out of 160 million are forced to depend on kerosene and biomass for lighting and cooking Per capita electricity generation is only about 165kWh Energy shortage and unstable supply impose a high cost on the economy Limited reserve of natural gas is also a big challenge for energy security Import of fossil fuel puts huge pressure on our economy Environmental degradation and energy scarcity push rural people into poverty Renewable energy programs can adequately address the above challenges

Electricity Scenario

Grameen Shakti ( a not for profit company) has been evolved as a social business to offering various RETs with innovative financing model, since 1996

Major Programs:
1. 2. Rural electrification through Solar Home System ( largest in the country) Biogas plant and Organic Fertilizer

3.
4.

Improved Cooking Stove (energy efficient stove)

Grameen Technology Center (GTC) for training to the women technician and assembling of SHS components

Solar Home System

Cooking with biogas

Improved Cooking Stove Woman Technician at work

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A Four Step Organizational setup covers the whole country

GRAMEEN SHAKTI UPDATE (MAY 2011)
Branch Office Regional Office Divisional Office Grameen Technology Center Total Office Total Staff Total SHS installation Installed Power generation Capacity Daily power generation capacity Monthly installation rate of SHS Total biogas plant construction Total Improved Cooking Stoves installation 1083 146 14 46 1289 10,500 6,36322 31.50MW 132MW-hr 24,000 18,046 3,04414

BANGLADESH
Activities Area of Grameen Shakti

Marketing & Scale Up : Diverse of Growth

A. Intervention:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
1. 2. 3. 4.

Innovative use of micro-credit Affordable price with quality products Demonstration & awareness development After sales and post warranty service Monthly visit to customers Training of users and local women/men technicians Customized products - reaching the low income people with small SHS Emphasis on income generation Countrywide network Locally assemble of SHS appliances by GTC helps reducing cost Reaching around 50,000 new customers every month
Increased price of kerosene makes solar more affordable Low reliability of grid electricity supply Uncertainty of grid expansion Smooth Financial support
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B. Key Justifications:

Customer Friendly Innovative Financial Packages

(micro-credit based monthly installments)

Option 1 Option 2 Option 3 Option 4 Option 5

35% down payment and rest of the 65% payable in 12 monthly installments with a flat rate service charge of 5% 25% down payment and rest of the 75% payable in 24 monthly installments with a flat rate service charge of 6% 15% down payment and rest of the 85% payable in 36 monthly installments with a flat rate service charge of 8% 100% cash payment and with 4% discount on the package price 10% down payment for micro utility system of 20,40 and 50 Wp and rest of the 90% payable in 36 monthly installments with a flat rate service charge of 5% 25% down payment and rest of the 75% payable in 12 monthly installments without any service charge ( only for mosque, temple, pagoda and church) 6

Option 6

Key Impacts & Benefits

By the installed SHS
1. 2.

Rural people can take part in home based cottage industries after dusk Extended business hour and increased income for small business owner

3.
4. 5. 6. 7. 8. 9.

Creates green jobs and green businesses in the rural areas

Small business owner can rent lights to others share a SHS through micro-utility model Enables people to use mobile phone and mobile communication helps business to grow People can watch television for entertainment and creates access to information Saves fossil fuel - 68.72 million liters of kerosene per year Saves foreign currency saving, 49 million USD/year Reduces 0.15 million tons of CO2 emission
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GS STRONG ORGANIZATION IS POISED FOR RAPID EXPANSION - A FEW KEY CHALLENGES ARE TO BE ADDRESSED
Strength:
1. 2. GS has a strong network throughout Bangladesh GS in-house production of key components reduce costs and ensure smooth supply to the door step of clients (GTC) Efficient maintenance and after-sales service Strong monitoring and audit

Challenges:
1. 2. 3. 4. 5. 6. Drop out of field staff Dependence on import oriented solar panel and other materials Lack of training opportunities on RET and lack of trained man power Reaching the BOP with affordable price Increased price of battery Need for rapid recruitment reduces quality of recruits

3. 4.

Future Plan of GS Reach 2.5 million new SHS clients by 2015 Translating current success with SHS to ICS and biogas Find low cost panels, LED lamps and other accessories Create one hundred thousand green jobs

Opportunity:
GS can meet more needs of clients especially poor with new products (solar lantern, Low cost LED lamps with a 3-year warranty for battery) GS can expand other RET supports with the same infrastructure GS can create more green jobs by providing training to the poor women technician, who can play a vital role as the agent of social and economical change

Threats: 1. GS is reliant on one main source of funds. If IDCOL ends or scales back, would have difficulty continuing to expansion Natural Disaster

2.

Seeing Is Believing