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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]