Solar mini-grids in Bangladesh – Opportunities & Challenges
Experience from 100 kW Solar Mini-grid in Sandwip
Presented at the Stakeholder Consultation on Decentralized Energy Options for Off-grid areas in Bangladesh
26 August 2015
Smart Villages Initiative and Practical Action Bangladesh
Asma HuqueManaging Director
Prokaushali Sangsad [email protected]
Objectives of the Sandwip project
Increasing access to electricity for commercial and productive use in an off-grid area
Demonstration of use of Solar energy for grid quality electricity
Geographical LocationRemote Island of Sandwip, Chittagong
Brief description of the Project
100 kW Solar Mini Grid in Sandwip
Project Area : 0.6 AcreProject Cost : BDT 56.780 Million Financed By : IDCOL Loan 30%KfW- Grant 50%Sponsors’ Equity 20%Length of Distribution Line : 4 kilometersTechnical Assistance : Prokaushali Sangsad Limited (PSL)
Dhaka, Bangladesh, www.psldhaka.netTechnology Supplier : Asantys Systems (Germany), Installed by: : Energy Systems (Bangladesh),
System Design for 100 kW Solar Mini Grid
Grid Tie Inverters and batteries
Project Site at Sandwip in March,2010
Transportation of Hardware
Consumer Type Nos.
Commercial Shops 198
Financial institutions/ Bank/ Govt. office 15
School 2
Mosques 5
Hospital/Pathological Lab 8
Households 50
TOTAL 278
No. of connections as of Feb.- 2015: Energy consumption categories
Type of consumer Nos.Avg.
consumption (kwh)/month
Avg. BillTk./month
Large Consumer 11 (4%) 205 7,008Medium Consumer 41 (14.70%) 59 2,102
Small Consumer 226 (81.3%) 12.23 531
0
50
100
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300Total nos. of connection up to Feb.’15
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000Energy Consumption (kWh) up to Feb.’ 15
Daily Load Profile
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5
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45
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Time of the Day
kW lo
adActual profile on a sunny summer day
Actual profile on a sunny winter day
Monthly Production: 12110.64 kWhMonthly Power (max.): 90.29 kWMonthly CO2 Reduction: 8477.45 kg
Solar mini-grids in Bangladesh – Opportunities & Challenges
Advantages of solar mini-grids for the locality
Suitable for off-grid and remote areasCan be used for lighting and productive use
Increased access to better education and healthcare facilities
Environmental friendly, reduced level of fossil fuel induced pollution and noise pollution
High positive spillover effects on the local economy
computer training center
A restaurant in the marketClothing and gifts store
Photocopy center
Opportunity for the local investor
Technology is proven and available, can be installed in a short timeLow operational and maintenance cost
Less dependence on fuel price fluctuation (depending on solar percent)Revenue collection using prepaid meters can ensure timely cost recovery
Present level of technology
Grid quality electricity at remote off-grid locationsState-of the Art technology using international standardsModular systems: possibility of expansion with increased demand
Storage is possible for cloudy days and night time loadTrouble free service is possible in the hands of capable service providers
Financing OpportunitiesGovernment’s program executed by IDCOL has dedicated funds and set procedure for mini-grid project developmentAffordable for local investors. At the moment 20% owner’s equity, 30% soft loan, and 50% grant is available from IDCOL.Low capital expenditure compared to grid extension for the governmentEasier quality control by concerned monitors because of standard procedures
Some pictures of connected consumers
Crockeries and plastic wares
Lotto new showroom
Sandwip Central Clinic
Challenges
Remoteness and low ability to pay for service
The remote location of sites : matching load, ability to pay, and project viability is difficultLow income of households, have to combine with other higher users for profitabilityfeasible for areas with concentrated load distribution, e.g. markets or densely distributed rural homes
Operational Challenges
Continuous support is required for smooth running of plantLack of technical and administrative human resource available in rural areasConsumer education required for optimum useDemand Side Management is required for long term reliable operation
Financial ChallengesSite selection difficult due to risk of arrival of grid within short time of project installationHigh startup cost- Solar is still an expensive technologyRequires low cost funding with long tenure, in contrast with commercial banksHigh operating cost in bad weather (Gen. set operation)
Finance• Low or no interest loans• Incentives for supplying electricity• Total Tax/VAT exemption
Legal• Preferential area for operation• Clear policy regarding status of operators
Policy issues for scaling up
Technical Assistance
• Adequate training opportunities for private sector• Government support for incubating technology• Dedicated Technical entity for coordinating
technology transfer
Govt. support•Supportive environment for growth, not that of competitor
Thank you