Asma Huque, Managing Director, Prokaushali Sangsad Ltd. As part of the series of regional engagements in South Asia, Smart Villages is organising a workshop on off-grid rural energy provision in Bangladesh. The country has the fastest growing programme in the world with an estimated 70,000 solar home systems (SHS) installed per day. More than 3 million SHS have been installed in off-grid rural areas in the country bringing electricity to an estimated 13 million people. The aim of the workshop is to gain insights from the experience of a wide variety of stakeholders in Bangladesh who are involved in rural off-grid energy provision in the country. This workshop will offer a number of potential lessons to other countries within the region. The workshop provides an opportunity to gain a deeper understanding of the opportunities presented by expansion of solar home systems (SHS) and mini-grids to off-grid rural communities and the challenges faced in this expansion. During this workshop we will also investigate the potential impact of energy access on rural livelihoods in the country. The workshop is being jointly organised by Smart Villages and Practical Action.

1. 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 Huque
Managing Director
Prokaushali Sangsad Ltd.
psldhaka2@gmail.com

2. 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

3. Geographical Location
Remote Island of Sandwip, Chittagong

4. Brief description of the Project
100 kW Solar Mini Grid in Sandwip
Project Area : 0.6 Acre
Project Cost : BDT 56.780 Million
Financed By :
IDCOL Loan 30%
KfW- Grant 50%
Sponsors’ Equity 20%
Length of Distribution Line : 4 kilometers
Technical Assistance : Prokaushali Sangsad Limited (PSL)
Dhaka, Bangladesh, www.psldhaka.net
Technology Supplier : Asantys Systems (Germany),
Installed by: : Energy Systems (Bangladesh),

5. System Design for 100 kW Solar Mini Grid

6. Grid Tie Inverters and batteries

7. Project Site at Sandwip in March,2010

8. Transportation of Hardware

10. 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. Bill
Tk./month
Large Consumer 11 (4%) 205 7,008
Medium Consumer 41 (14.70%) 59 2,102
Small Consumer 226 (81.3%) 12.23 531
0
50
100
150
200
250
300
Oct,10
Jan,11
April,11
July,11
Oct,11
Jan,12
April,12
July'12
Oct,12
Jan,13
Apr'13
July'13
Oct'13
Jan'14
Apr'14
July'14
Oct.'14
Jan.'15
Total nos. of connection up to Feb.’15
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Energy Consumption (kWh) up to Feb.’ 15

11. Daily Load Profile
0
5
10
15
20
25
30
35
40
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
load
Actual profile on a sunny summer day
Actual profile on a sunny winter day
Monthly Production: 12110.64 kWh
Monthly Power (max.): 90.29 kW
Monthly CO2 Reduction: 8477.45 kg

12. Solar mini-grids in Bangladesh –
Opportunities & Challenges

13. Advantages of solar mini-grids for
the locality
Suitable for off-grid and remote areas
Can 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

14. computer training center
A restaurant in the marketClothing and gifts store
Photocopy center

15. Opportunity for the local investor
Technology is proven and available, can be
installed in a short time
Low operational and maintenance cost
Less dependence on fuel price fluctuation
(depending on solar percent)
Revenue collection using prepaid meters
can ensure timely cost recovery

16. Present level of technology
Grid quality electricity at remote off-grid locations
State-of the Art technology using international
standards
Modular systems: possibility of expansion with
increased demand
Storage is possible for cloudy days and night time
load
Trouble free service is possible in the hands of
capable service providers

17. Financing Opportunities
Government’s program executed by IDCOL has
dedicated funds and set procedure for mini-grid
project development
Affordable 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 government
Easier quality control by concerned monitors
because of standard procedures

18. Some pictures of connected consumers
Crockeries and plastic wares
Lotto new showroom
Sandwip Central Clinic

19. Challenges
Remoteness and low ability to pay for service
The remote location of sites : matching load,
ability to pay, and project viability is difficult
Low income of households, have to combine
with other higher users for profitability
feasible for areas with concentrated load
distribution, e.g. markets or densely distributed
rural homes

20. Operational Challenges
Continuous support is required for smooth
running of plant
Lack of technical and administrative human
resource available in rural areas
Consumer education required for optimum use
Demand Side Management is required for long
term reliable operation

21. Financial Challenges
Site selection difficult due to risk of arrival of
grid within short time of project installation
High startup cost- Solar is still an expensive
technology
Requires low cost funding with long tenure,
in contrast with commercial banks
High operating cost in bad weather (Gen. set
operation)

22. 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

23. 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

24. Thank you