Farzana Rahman, Unit Head (Investment), Renewable Energy Md. Mahfuzur Rahman, Assistant Manager, Renewable Energy 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. Village level energy access in Bangladesh
Farzana Rahman, Unit Head (Investment), Renewable Energy
Md. Mahfuzur Rahman, Assistant Manager, Renewable Energy
26 August 2015
Solar Home System and Solar Mini-grid

2. IDCOL At a Glance
 A Government-owned financial institution dedicated to promote
private sector financing in infrastructure and renewable energy sector.
 Funded by the government and development partners i.e. the World
Bank, ADB, IDB, KfW, GIZ, GEF, GPOBA, USAID, DFID, JICA, SNV.
 Products and Services :
 Local and foreign currency financing
 Arrangement of debt and equity
 Concessionary credit, grant
 Other implementation support for RE projects/programs
 Capacity building on project finance, financial modeling and RE

3. Snapshot of RE Activities
Project/Program Target Achievement
SHS Program 6 ml by 2017 3.74 ml
Domestic Biogas
Program
100,000 by
2018
39,000
Solar Irrigation 1,550 by 2018 161
Solar Mini-grid 50 by 2017 7
Solar Telecom BTSs
As per
demand
138
Biogas based Power
Project
130 by 2017 9
Improved Cook stove 1 ml by 2018 90,000

4. IDCOL Solar
Home System
Program
 The program at a glance
 Installation status
 Program structure
 Committees & their responsibilities
 System samples
 Financing structure
 Quality control mechanisms
 Challenges & mitigations

5. What is a Solar Home System (SHS)?
Capacity Appliances Operation
20Wp
3 W LED Lamp: 2
Mobile Charger: 1
4-5 hours
50Wp
3 W LED Lamp: 5
LED Colour TV: 1
Mobile Charger: 1
4-5 hours
85Wp
3 W LED Lamp: 7
LED Colour TV: 1
Mobile Charger: 1
12 W DC Table Fan: 1
4-5 hours
• Lead Acid Battery
• DC-DC Converter to run color
television, fan, refrigerator etc.

6. IDCOL SHS Program – at a Glance
Program Target : 6 million SHSs by 2018
Program Achievement : 3.74 million SHSs by July 2015
Number of Beneficiaries : 17 million people
Installed Capacity : About 145 MWp
Fossil Fuel Saving : 221,000 ton/year
Job Creation : 75,000 people
IDCOL Investment : About USD 600 million

7. SHS Installation
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
11,69720,635 27,579 37,151
69,562
103,301
169,916
325,067
468,978
643,810
853,026
724,615
600,000 600,000
660,000
684,663
InstallationofSHS
Actual Installation Projected Installation

8. Program Structure
Supply
Equipment
Pay for
Equipment
Seeks grant & loan
Provide grant & loan
IDCOL
Technical
Standards
Committee
Suppliers
Seeks approval
Provides approval
Household
Sells SHS &
provide
service
Pay down-
payment &
installment
Operations
Committee
Seek operation related
solutions
Provides Solutions
NGO/POPO Selection
Committee Select POs
Applies
Donors
Grant &
soft term
credit

9. System Samples
Capacity Total Load Operating Hour Cost (in USD)
20Wp
Lamp: 2 (5W each)
Mobile Charger: 1
4-5 hours 170
50Wp
Lamp: 4 (7W each)
Black & White TV: 1
Mobile Charger: 1
4-5 hours 400
85Wp
Lamp: 9 (7W each)
Black & White TV: 1
Mobile Charger: 1
4-5 hours 600

10. Financing Structure of a 20 Wp SHS

11. Refinancing Support
 IDCOL envisions to commercialize the SHS market in the country.
 Earlier IDCOL provided 80% of loan amount as refinancing support.
 In 2012 IDCOL reduced the refinancing amount to 70%.
 Terms and conditions of refinancing facility is as follows:
Total Refinance Amount
(BDT)
Interest Rate Loan Tenor
(including Grace)
Grace
Period
Up to 25 crore 6% p.a. Up to 7 years 1 year
From 25 crore to 50 crore 7% p.a. Up to 6 years 1 year
From 50 crore to 100 crore 8% p.a. Up to 6 years 1 year
More than 100 crore 9% p.a. Up to 5 years 0.5 year

12. Grant Support
 IDCOL provides two types of grants:
 Capital Buy-down Grant (Grant A) : Reduces system price
 Institutional Development Grant (Grant B): Facilitates capacity development of Pos
 With an objective of phased reduction of grants, IDCOL provided USD
90 per SHS at the beginning of the SHS program.
 At present, the grant amount has been reduced to USD 25 per SHS

13. Quality Control Mechanisms
Follows up on lodged
complains
Lodges complain
Takes remedial measure

14. Challenges & Mitigations

15. Solar Mini-grid

16. Preferably isolated off-grid areas
Concentration of customers
Willingness and capability to pay
Feedback from Power Division/REB/BPDB regarding
possibility of grid expansion
Site Selection Criteria

17. Supply
Equipment
Pay for
Equipment
Seeks grant & loan
Provide grant & loan
IDCO
L
Supplier
s
Customers
Sells
Electricity
Pays
electricity
bills
Sponsor
Donors
Grant &
soft term
credit
Repayment
Provide technical
support
Pays
consultancy
fees
Role of Partners: At a Glance
Consultant

18. Role of Sponsors and IDCOL
Responsibility of Sponsors
 Selection of areas and target customers
 Installation and operation of the mini-grid
 Supply of electricity to the customers at affordable rate
 Collection of monthly payments
IDCOL’s role
 Technical support
 Project development support
 Financial support to the sponsor
 Monitoring of performance and quality assurance

19. Project Cost Components – 100 kWp Mini-grid
Project cost
components
Amount in
USD
Percentage
Land and land development 76,923 13.70%
Solar PV 79,487 14.16%
PV installation charges 30,769 5.48%
Cable 20,513 3.65%
Battery, battery fuse and rack 144,872 25.80%
Generator 14,103 2.51%
Inverter 102,564 18.26%
Transmission and distribution
lines
69,231 12.33%
Technical assistance 12,821 2.28%
Contingency 10,256 1.83%
Total 561,538 100%

20. Financing Structure
Particulars (%)
Equity 20%
Debt 30%
Grant 50%
Total 100%
Facility
Interest
Rate
Tenor Grace Repayment
Repayment
Frequency
Security
Term
loan
6% p.a.
10
years
2
years
Annuity Quarterly
Bank guarantee/
land mortgage
 Allocation of equity, debt and grant
 Financing terms

21. Implementation Status & Target
 Projects Approved : 16 projects
 Total Capacity : 2,403 kWp (2.4 MWp)
 Number of Connections : 11,263
 Projects in Operation : 4 projects
 Projects in Pipeline : 15 projects
 Target : 50 projects (by 2017)

22. Approved Mini-grid Projects
Sl. Project Location Capacity Project Status
1 Enam Nahar, Sandwip, Chittagong 100 kWp
Under Operation
2 Kutubdia, Cox’s Bazar 100 kWp
3 Bagha, Rajshahi 141 kWp
4 Paratoli, Raipura, Narshingdi 141 kWp
5 Narayanpur, Nageshwari, Kurigram 158 kWp Under Construction
Expected COD – Sep
2015
6 Godagari, Rajshahi 149 kWp
7 Monpura, Bhola 177 kWp
8 Nooner Tek, Sonargao, Narayangonj 168 kWp
Under Construction
Expected COD – Mar
2016
9 Rupsha Char, Sadar, Sirajganj 130 kWp
10 Char Kajal, Patuakhali 100 kWp
11 Char Biswas, Patuakhali 100 kWp
12 Munmiar Char, Islampur, Jamalpur 162 kWp
13 Chilmari, Daulatpur, Kushtia 188 kWp
14
Baghutia char, Doulatpur,
Manikganj
228 kWp Approved
Expected COD – Apr
2016
15 Nijhum island, Hatiya, Noakhali 200 kWp
16
North Channel Union, Sadar,
Faridpur
162 kWp

23. Mini-grid Projects in Pipeline
Sl. Location Approx. Capacity
1 Natuar Para Char, Kazipur, Sirajgonj 200 kWp
2 Chor Sholmari, Rowmari, Kurigram 100 kWp
3 Maijchor Union, Bajitpur, Kishoregonj 100 kWp
4 Char Mantaz, Rangabali, Patuakhali 100 kWp
5 Tautia, Lohojong, Munshigonj 150 kWp
6 Char Kukrimukri, Char Fassion, Bhola 100 kWp
7 Char Jahiruddin, Tozumuddin, Bhola 100 kWp
8 Kollanpur, Aminpur, Pabna 150 kWp
9 Ghaschapru, Belkuchi, Sirajgonj 150 kWp
10 Purbo Shalipur, Chorvodrashon, Faridpur 150 kWp
11 Poschim Shalipur, Chorvodrashon, Faridpur 150 kWp
12 Kundur Par, Gaibandha Sadar, Gaibandha 150 kWp
13 Gaibandha Sadar, Gaibandha 150 kWp
14 Majher Char, Bhola Sadar, Bhola 105 kWp
15 Char Chatkimara, Bhola Sadar, Bhola 250 kWp
16 Alatoli, Chapainawabgonj Sadar 150 kWp
17 Narayanpur, Chapainawabgonj Sadar 150 kWp

24. Thank You
Q & A
Infrastructure Development Company Limited (IDCOL)
UTC Building (17th
Floor), 8 Panthapath, Dhaka 1215
Phone: +880-2-9102171~8
E-mail: mrahman@idcol.org
www.idcol.org