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1 FEASIBILITY STUDY ON RENEWABLE ENERGY SUPPLY IN THE SOUTHWESTERN REGION OF BANGLADESH

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FEASIBILITY STUDY ON RENEWABLE ENERGY SUPPLYIN THE SOUTHWESTERN REGION OF BANGLADESH

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CONTENTS1.Introduction 4

1.1 Background of the research - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 41.2 Objective and scope - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 41.3 Methodology & sampling - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 61.4 Road map of the report - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7

2. Energy and sustainable development nexus in social and economic context 8

3. Status of power in selected geographyw 113.1 The Budhata Union - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -113.2 Surkhali Union - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -12

4. Socio-economic challenges 134.1 Household level - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -134.2 Enterprise level - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 16

5. Socio-economic impact of electricity 185.1 Impact on income - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -185.2 Impact on expenditure - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -205.3 Impact on savings- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -205.4 Impact on credit - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -215.5 Impact on investment - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -22

Business level - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -22Industry level - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -23

5.6 Impact on irrigation and water management - - - - - - - - - - - - - - - - - - -235.7 Impact on education and children’s heath - - - - - - - - - - - - - - - - - - - - -235.8 Impact on health - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -265.9 Impact on gender dimensions - - - - - - - - - - - - - - - - - - - - - - - - - - - -26

6. An Overview of Power Sector 306.1 Institutional framework for rural electricity - - - - - - - - - - - - - - - - - - - -306.2 Capacity and consumption - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -316.2 Challenges and strategies - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -336.3 Current renewable energy strategies - - - - - - - - - - - - - - - - - - - - - - - -34

7. Issues for the solar grid system in selected geography 35���������� ������������������������������ - - - - - - - - - - - - - - - - - - -357.2 Willingness to pay for the energy - - - - - - - - - - - - - - - - - - - - - - - - - -357.3 Solar Energy Resource Assessment - - - - - - - - - - - - - - - - - - - - - - - -35

8. Conclusion 36References 38Annex 1: Categorization of Solar Grid 39Annex 2: Solar Based Mini Grids in Bangladesh 39Annex 3: Advantages and disadvantages of different mini-grid business models 40Annex 4: Government institutions 41Annex 5: Activities of International Development Agencies regarding renewable energy in Bangladesh 42

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BBS Bangladesh Bureau of Statistics

BPDB Bangladesh Power Development Board.

DESA Dhaka Electric supply Authority.

DESCO Dhaka Electric supply Company.

FGD Focus Group Discussion.

HIES Household Income and Expenditure Survey

IDCOL Infrastructure Development Company Limited

kWh Kilowatt Hour.

LED Light Emitting Diode

MDGs Millennium Development Goals

MPEMR Ministry of Power Energy and Mineral Resources.

MIS Management Information System.

MWH Megawatt Hour.

NRECA National Rural Electric Co-operative Association.

NTPC National Thermal Power Corporation Lim ited (India)

PBS Palli Bidyut Samity.

PV Photovoltaic.

PGCB Power Grid Company of Bangladesh.

PPA Power Purchase Agreement.

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RPCL Rural Power Company Limited.

SEDA Sustainable Energy Development Agency

SI Small Industries.

SHS Solar Home System.

USAID United States Agency for International Development.

WMA Water Management Association

WMG Water Management Group

ACRONYMS

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1. Introduction

1.1 Background of the researchIn Bangladesh, about 38% of the population in the coastal regions lives below the poverty line. They face high vulnerabilities in terms of insecurity of food, income, water and health. There are ample opportunities to harness the resources of the coastal areas that, if successfully achieved, can raise the population from poverty, create a sustainable environment and provide security and quality of life to present and future generations The objective of Blue Gold is to reduce poverty of the people in the coastal ������ � � �������� �������� � ��� ������ ��������� ����livestock and increasing incomes by improved processing and marketing of agricultural products including value chain development.

�� ��� ���������� � ������ ��� ����������� ��������quality of life at household level and stimulates economy at a broader level. Some recent evidence suggests that electricity may increase female labor supply (Dinkelman, 2011; Grogan and Sadanand, 2012 in Torero, 2014) or improvements in educational outcomes, consumption and income. Electricity can impact income or expenditure, resources to invest in new tools and complementary inputs, knowledge on how to operate these technologies, and demand for the goods and services produced with this new method (Torero, 2014)

In view of this aforesaid vision, Blue Gold Program is interested to understand how access to renewable energy can contribute towards the goals of the Blue Gold program. This means not only improving livelihoods by providing access to sustainable energy, but how renewable energy can contribute to water management, income generation, ��������� �������� ������� ������� ���� ��� ��������improvement in the lives of the community and its people.

Grey Shack, a communications and consultancy company which provides support to development organizations, multi-nationals, large corporations, SMEs, NGOs, institutions and individuals has been commissioned to conduct the assessment in sleeted geography and this ���������������������������!����������� ��

1.2 Objective and scopeThe general objective of the study is to provide a comprehensive picture of the program intervention area with regards to the scope of utilization of renewable energy to enhance the lives of the individuals and the community as well as the sustainability impact on economic activities over the course of the program lifespan and beyond. Here, renewable energy refers to the power generated through solar energy which can be stored and can be shared with the community through a mini grid system.

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management, private sector investment and the overall improvement in the lives of the community in the Blue Gold Program area.

�� Provide information on the current initiatives of the government and/or other organizations and donors to provide access to renewable energy in the target area.

�� Provide an overview on the infrastructural needs and estimated cost for setting up a sustainable, renewable energy system for the Blue Gold Program area.

�� Identify external interest to invest in a possible consortium for setting up a renewable energy solution for the Blue Gold Program area

The Blue Gold Program covers a gross area of 160,000 ha in 12 polders1 in the Districts of Satkhira, Khulna and Patuakhali. Among the Blue Gold intervention area, Fingri and Budhata Union of polders Polder 2 under Sathakhira district and Surkhali Union of polder 31(part) under Khulna district was covered in the study. Surkhali union has 30 villages and the polder 31(part) contains only 14 villages. Thus the villages inside the polder were considered for the study.

1Polder is an area of low land that has been reclaimed from sea and river and it is protected by dikes

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The study employed verity of methods to identify the scope of renewable power supply in the selected area. The overall methodology of the study can be divided into three stapes. First step involves gathering of secondary data. Possible source of information may be divided in to three broad heading; Government sources, private sources and NGO/DP sources. To have in-depth information of the local level, the secondary data has been supplemented by the primary data. Therefore, in second step, survey was conducted in the project area, which includes In-depth Interview (IDI), Key Informant Interview (KII) and Focus Group Discussions (FGDs). The third step of the methodology involved discussion with strategic stakeholders to share ��������!�������� ����������� �������������������������and way forward in implementation.

The survey administered detailed questionnaires for household, commercial and industrial units with and without electricity. Household questionnaires included information on household consumption, income, energy use pattern and appliances. The survey covered electricity use, grid connection and quality of service use of solar home systems and also women’s empowerment and

general health condition. There were also qualitative questions on problem faced by individual household without electricity and their potential use of electricity. Questions in commercial enterprises and industry survey involved the nature of the businesses including their operation, cost and revenue, and consumption of various types of energy including electricity. Also qualitative questions on problem faced without electricity and the ��������� �$����!��� �����!������� ����

A total of 720 household and commercial enterprises were ����� ����*��������������������!�� ��'+��������$����those with and without electricity. 84% sample was household and 33% respondent was female. Total 4 FGDs has been conducted (2 in each area) to go into depth and detail on questions of energy supply, usage, expenditures among the respondents and challenges and opportunities for water management, income generation, business �������� ������� ������� ���� ��� �������� �����������in perspective of reliable energy supply. Moreover, for irrigation information like usage patterns, cost of operation and energy consumption were collected though KII and FGD.

1.3 Methodology & sampling

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This paper is organized as follows. Section 2, discuss the overall impact of electricity in socio-economic development context and linking it with the contemporarily development challenges. Section 3, provides some basic information on energy use patterns in selected rural areas. "����� :� ����� �����!�� ������ ��� ����� � ���� �����about the socio-economic challenges evolves due lack of access to electricity. The impact of having electricity has �����������������"�����<�� ����=��!����������������long-term exposure to electricity.

>���������$���������������������������!����������!�����in Section 6. This section examines the institutional ����������� ���� ����� ��� ��� ������ ����������� ������(REB) in providing electricity to rural customers. It also discusses the some key issues of power generation and distribution. Moreover it explores the contemporary policies and implementations related to renewable energy. "��������?����������������������������������?��!�the strategy in the selective area regarding the renewable energy. Finally, the last section provides conclusion of the paper.

1.4 Road map of the report

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Electricity access has substantial influence over attaining the MDGs. The MDGs include the reduction of poverty, hunger, disease, illiteracy, environmental degradation, and gender inequity. These goals may not be met unless there is rapid ���!���������?�����!���������������������������! ��������������������*����������$��������=�!�����$����Z[\��and energy especially electricity

2. Energy and sustainable development nexus in social and economic context `

Electricity not only creates a condition for economic growth, but it is essential for basic human needs and economic activities. Access to electricity can improve socio-economic conditions through its influence on key components of poverty; namely health, education, income and environment (Barakat et al, 2009). Lack of access to energy and more precisely, electricity is one of the major impediments to economic development. Empirical studies have found that a strong correlation exists between rural poverty and access to electricity because electricity is a pre-requisite for productive activities (Chaurey et al 2004 in Bose et al 2013). In addition to improving productivity � � !����!� ����� �� ����� ������� ������ ��� ����������access to an electrical grid and better electricity services could also lead to household time savings and allow them to work more hours and also increasing their access to markets (Barron and Torero, 2014).

������ ����������� ���!����� ����� �� ��� ������ ��improve living conditions and promote development. Here ��� �!���� �� ���������� ��������� ���������� ����!��which electricity access improves welfare. Access to the electricity has a causal effect in household behavior. Households use electric lights and acquire televisions, radios and mobile phones. It decreases indoor pollution and increases household’s access to information. These changes in turn will influence the number of hours of labor, health outcomes, education that increase productivity. Decreases in health expenditures and coping cost (such as kerosene expenses, battery charging expenses), will promote income and consumption growth.

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MDGs Steps Toward Goal Electricity Contributes by

1. Cutting Extreme poverty and Hunger

�� Reduce by half the proportion of people living on less than $ 1 a day

�� Reduce by half the proportion of people who suffer from hunger

�� Reducing share of household income spent on cooking, lighting , and space heating

�� Reducing post-harvest losses through better preservation

�� Enabling irrigation to increase food production and access to nutrition.

�� Enabling enterprise development, utilizing locally available resources, and creating jobs.

�� Generating light to permit income generation beyond daylight.

�� Powering machinery to increase productivity.

2. Universal Primary Education

�� Ensure that all boys and girls complete a full course of primary schooling

�� Providing light for reading or studying beyond daylight.

�� Creating a more child-friendly environment (access to clean water, sanitation, lighting, and space heating/cooling), which can improve attendance in school and reduce drop-out rates.

�� Providing lighting in schools, this can help retain teachers.

�� Enabling access to media and communications that increase educational opportunities.

�� Reducing space heating/cooling costs and thus school fees.

3. Gender Equality and Women’s Empowerment

�� Eliminate gender disparity in primary and secondary education preferably by 2005, and at all levels by 2015

�� Freeing women’s time from survival activities, allowing opportunities for income generation.

�� Reducing exposure to indoor air pollution and improving health.

�� Lighting streets to improve women’s safety.

�� Providing lighting for home study and the possibility of holding evening classes.

4,5,6. Health �� Reduce by two-thirds the mortality rate among children ���������

�� Reduce by three-quarters the maternal mortality ratio

�� Halt and begin to reverse the spread of HIV/ADS

�� Halt and begin to reverse the incidence of malaria and other major diseases

�� Providing access to better medical facilities for maternal care.

�� Allowing for medicine refrigeration, equipment sterilization, and safe disposal by incineration,

�� Facilitating development, manufacture, and distribution of drugs

�� Providing access to health education media.

�� Reducing exposure to indoor air pollution and improving health.

�� Enabling access to the latest medicines/expertise through renewable energy based telemedicine systems.

7. Environmental Sustainability

�� Integrate the principles of sustainable development into country policies and programs; reverse loss of environmental resources

�� Boosting agricultural productivity, increasing quality instead of quantity of cultivated land.

�� Reducing deforestation for traditional fuels, reducing erosion ����������������

�� Reducing greenhouse gas emissions.

"����'�*��� ����� ���������� ���������! � ����[���������'�*���J�������������������$����� ����! � ���Z����!� ���Millennium Development Goals. Paper prepared for the REN21 Network by The Worldwatch Institute

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������� ����?����^">�[����������� ���!�����!��������������������������������!����������!�������_���=����al, 2002) states

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�� 78.2% household has extended working hours.

�� 62.0 % household has an increase in household income

�� 81% household has reported an increase in reading habits

�� 93.7% household has reported an increase in children’s study time.

�� 92.0% household has reported an increase in amusement as well as standard of living.

�� 94.7% household has reported an improvement in security.

�� }:|�$���������������������������������������*~���������������������=��$���!��

�� �{����|�$������������������������������������������������!�������!�_�����������$��!����������

�� *����������������������������������������������!�������������� �:}�!�����_:��|����������������������������������������������������������=���������! �_=����������������$���}Y�������_X�}|�������

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3. Status of power in selected geography

The Budhata Union is part of polder 2 and under the Sathkhira Palli Bidyut Samity (PBS). Some portion of the ^����� ��� ��������� ����� ��� ���� �Y��� _J[�� ����������Afterwards the union is covered by PBS services. Since commence of the PBS, the growth in connectivity in this area was stuck up still 2013. But the situation changes in recent times, as the national electricity situation has improved. In last two years they have proceeds 3915 new connection2 and the total count progressed from 1203 to 5154. Current consumption of the area is 3,51,683 kWh/month. According to the plan, in next two years, PBS will provide 2500 new connections.

�� ��� ����������� ��� ��� ����� ��� ��� ��������� �����!���(covered under the PBS) a substantial number of household remains outside the grid connection. For example, in Shethpur village there are 710 household. Only 50% of the households have been covered by grid connection. Moreover, 11 out of 24 villages of the union are out of PBS coverage. As estimated, about 3000 households (46% of the population) yet to be connected to the PBS grid. On the other hand, out of 5 major market places, 4 already have the connection and only 1 under the process of getting it. ��� ��������� ���=���� {Y|� ������ ���� ��������� ��� ����electricity. Due to the hassle of getting own connection, 50% of the business has taken connections from the

neighboring shop / business. Sathkhira PBS denies the issue of load shedding or frequent power cuts but the �����������������������������������!��������������!�in winter is 2 hours pre day and in summer it is 7 hours per day. The occurrence of load shedding is less in the area that is nearby major markets and industries (e.g. ice factory).

Rechargeable lights (67%) and kerosene lamp (20%) are the main source of light during power cuts. Among ��� ���������� ������� :Y|� ���� ����������� $��� ��� J�"�connection mainly due to frequent power cuts.

���������������������������������}�=��������������about BDT 343 per month on electricity. At the same time a business unit use 66 kWh and spend BDT 570 per month for electricity.

Use of kerosene lamp (kupi) and lantern (hurricane) is ����������������������������������������������!��each household use 3.5 liters of kerosene and spends about BDT 280 per month for the same purpose. At the same time 51.7% household have Solar Home system (SHS). About half (51%) of the solar systems have capacity ��� +Y� $�� ���� ����$� ���� ����� ������� �������� ��!���!�requirements. .

2Usually it takes few months to a year to get the actual electricity from the time of approval of the connection

3.1 The Budhata Union

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Surkhali union of polder 31 part is under the Khulna PBS. 15 villages and 3 market places of the union is inside the polder. Of them 4 villages and 2 markets have grid connec-tion. The grid connected villages and markets are mainly on the northern part of the polder. The southern part of the polder is entirely out of grid connection. This part consists about 66% of the total household. At present PBS has 519 clients and planned to include 350 in next two years. Cur-rent consumption in the area is 29,372 kWh/ month. It is assumed that the actual electricity users may go up more than the enlisted PBS clients. Some of the households in the border of the polder have got connection from village outside the polder. Besides, in this area sharing of connec-tion among several household is common. Ratio of own connection (PBS connection) and shared connection (con-�������=��������������!���������}':���>��������������level the, rate of sharing a connection goes little high.

In Surkhali, rate of load shedding is relatively less than that of Budhata. On average, there are 1.3 hours and 4 hours of daily load shedding respectively in winter and summer.Kerosene lamp (57%) and rechargeable lights (23%) are the main source of light during power cuts. Among the house-������������X<|����������������$������J�"���������due to the frequent power cuts.��������!������������������������������������:}�=���and spends about BDT 284 per month on electricity. At the same time a business unit use 57.4 kWh and spend BDT 457 per month for the same. ��������������������������������������������X��������of kerosene and spend about BDT 218 per month for light-ing. At the same time 55.6% household have Solar Home System (SHS). Over half (57%) of the solar systems have ���� ����:Y�$����������$�������������������������lighting requirements

3.2 Surkhali Union

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4. Socio-economic challenges

4.1 Household level

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About 48 % respondents believe that their children’s education is affected due to lack of grid connection. In summer the average temperature rises to 34o c which not only causes enormous sufferings but also generates some skin diseases. Some respondents believe electric fan could provide some relief. Therefore, 38% respondent said, they would not suffer or become sick if there is electricity connection.

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+<|� ����������� ����� ��� �� ����� ��� ���� ������ � �lighting night and to get security of the household and neighboring area affected due to lack of electricity. The ����������������!������ ����� ������������ ������ ���������� ��� ���������� "���� ����������� ���� ���������farming, like poultry or dairy farm (exotic variety) needs some apparatuses (e.g. water pump, fan, light etc) to ensure optimum production. Per unit cost of the alternative power to run the apparatuses is relatively much higher than that

of the electricity. People interested to make investment in such sectors (e.g. farming) are much concerned about the ��������!������������! ����������������������������new venture or expand the current one. 17% respondents said that they incurred loss in business and 14% said that they could not make new investment due to lack of electricity. Besides the economic aspects, some �������������������������������_<|�������������������deprived in all aspects (economically, socially etc).

Halima Kahntun(32), housewife of Lombadanga Village has a small dairy farm at her house. She mainly rears cross breed and improved variety cow. Beginning of this year, she bought an exotic calf at BDT 31000 for rearing. Each day she had spent about 100 taka for its food and medicine. After six month of rearing, in this summer the cow suddenly died due to heat stroke. She believes that if she used a fan in the farm, the cow might not have died. Market price of such cow in now -a-day is BDT 70,000 to 80,000.

Shohidul Gazi (37) is a Sweet maker and businessman in Surkahli Bazar. Generally he processes 10 liter of milk to produce yogurt and sweets. Not all of the sweets are ���������������� ����������������������������������������� ��� ��� ����� �����������!��� "������� ����� ��#���$"�����������!���$���"�$%�����������������preserved upto 15 days. If there is electricity connection in his shop, he would have bought a �"�$%�������&��������$�� ����$�$� � ���������� � ������ ��� ��� ��� '*� $������������+����������������� ������������������������������,��$����$�!�������������$/�������$� ��"�������8������ �$����$� ����9��$��������#:'��;;������$���� ����$�$� � ���������� $�� ���9�� ������ %�� ��� ��� #:'�500/per day.

Halima Kahntun’s exotic cow

Shohidul Gazi’s sweets shop

1

2

Case

Case

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… Can’t do any other work at day time… can’t work for long period at night. If I got electricity connection, I’ll run a shop in house in day time and work for longer period at night.

-Fulmoti Rani Das (32,) Craftsman (Kutisilpi), Lombadanga. Budhata

Cannot take any new initiative… cannot go outside home after dark…

- Susma Sarkar (30) Housewife, Bhogobotipur, Surkhali

We don’t have light (electric bulb) in house. My son goes to other people’s house to study. If there is electricity, he could study at home… he could study more

-Kobita Das (40) Housewife, Lombadanga. Budhata

"�����!����������������������at night is common incident … $�������������������������transitions. Due to electricity problem, there is no Bank in the area.

-Asgar (38), Fish cultivator & Businessman, Roypur. Surkhali

Nonigopal Mollik is a village doctor and eminent farmer of Ghoriyal village. He likes to rearexotic cow and poultry in his household. But this farming needs some electric apparatus to be installed for optimum output. For this purpose, he had built a cow-shade but could not start the farm. Moreover, last year he had tried to run a poultry farm but made loss about BDT 20,000. He has 0.5 acre of pond area and 3.3 acre of cultivable land. He ��������������������������� ��������������������fuel cost of irrigation is very high. Besides, he cannot preserve some life-saving drugs in his dispensary due to lack of a refrigerator. He is eagerly waiting for getting the electricity connection to start the farming and invest more in medicine store

Nonigopal Mollik’s farming and business 3Case

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4.2 Enterprise level

At the enterprise level, 70% non-������������������������������have realized that they are not getting the business up to their potential level due to higher operating cost and less business transaction. In case of non-availability of electricity, the operating cost of business shoots higher for alternative energy (see table 2 as example). It is found that 42% shops and business do not have the proper lighting. Of the respondents, 38% claims to be victim of theft.

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Table 2: Comparison of two milk chilling factories

With electricity access No electricity access

Start of business 2012 2011

Capacity (liter) 2400 2000

Daily production (liter) 760 550

Monthly cost (BDT)

energy 13,500 26,000

maintenance 500 4000

Average chilling cost / liter 0.62 1.81

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Damage of products due to heat is common in some busi-ness like grocery, restaurant medicine store etc. They could not store or preserve some essential products in refrigerator due to lack of electricity. It is causing higher operating cost and also hampering heath of the people.

16% business owners said that they could not use neces-sary apparatus due to unavailability of electricity. Among the respondents 11% faces problem to work in day time due to heat. Due to light, 2 % faces problem to work in night. Due to unavailability of electricity, 7% said that they could not expand the business.

17

Due to lack of proper lighting we are in (business) loss... Some-times customers steal valuable cosmetics from the store

-Rubel (30) Proprietor, Cos-metic store, Surkhali Bazar.

Surkhali

People become sick and the medicines run to waste due to heat. If there is electricity, med-icines could be stored in fridge (refrigerator)

-Rokibul Hassan (32), Village Doctor, Surkhali Bazar

I can’t run the TV for longer time in the store… customer’s like to watch TV... I could have earned more if there was electricity

-Arab Ali Shek (33) proprietor Teal stole. Surkhali Bazar

18

Mr Akimuddin has a saw-mill in Paithali Bazer. As there is no electricity connection in the area, he has to run the mill with generator. Each month he has to spend about BDT 15000 for the fuel of the generator. Wood sawing costs ��� ���� ����� ����� �[*� :�}���� ��������� ��� �� � ���������saw-mill of the nearby area, the wood sawing costs only BDT 1.6/cft. He could have saved about BDT 10000 each month if he could run the mill with electricity. Besides, the operating cost, the wastages is high in his mill due to lack of proper lighting at night.

Mr. Khadem Ali of Padmabewla village has a Layer farm with 40 chickens near his house. Each month he could earn about BDT 2000 from this farm. He has bought a 10 watt Solar Home System (SHS) by spending BDT 3000 for the farm. The SHS can run a 5 watt bulb for 10 hours. But it does not produce enough lighting for the farm. Besides he can’t run fan with the SHS. But light and fan is essential for the optimum production. Due to lack of proper light and ventilation, chickens don’t eat properly and become sick frequently. He has a plan to increase the size of the farm with all the necessary equipments (light and fan) when there will be grid connection

Akimuddin’s Saw-mill

�������>������� ������

4

5

Case

Case

5. Socio-economic impact of electricity

Electricity is a vital infrastructure which facilitates a broader range of economic activities at the same time it works as catalyst for social change. At the household level electricity is crucial to ensure better standard of living. A recent study (Boas et al 2013) in the similar geographic context has detected that ���� �� ��� ������������ ����� ��� ���������� ���!��� ��� �������������������������!��������������������������������of business, women empowerment, quality of life, and human development. A base line study (Barkat et al, 2009) has found that additional ���� �������� �� ������ �� ���� ��������� ��� ���������household members to explore new range of activities as well as to extend time for the old ones. The study also found that increased time allocation for activities like income generating activities and access to information has improved gender status

5.1 Impact on income *������������������ ��� ������� ����������� �������� ��� ��������!�� ����� � ������ ��� ��������� ���������� ��� ���{|���!����������������������������������������J������ �� ���� ����� ������ ��� ��� ��������� ������ ����� ����:|� ��!���� ���� ��� ��� ������������� ������������ *��� ���������������������$������������������������������ ����household average income increases.

19

*������+'�>����!����������������� Type Area Household Average

monthly income Per capita annual income

Grid Polder 31 8798.38 26397.70Polder 2 11561.40 33145.46Overall 10144.47 29655.24

Non grid Polder 31 9071.56 26525.87Polder 2 9047.50 25387.88Overall 9059.56 25959.24

"����'�@���������������XY�<�

��������� ��� ��� � ���������� ����� ��������� ����������� ����� ���������� � ����� ������ ����!�� �!�������� �����������������������������������������������������������������������������������������:<�<|�����<��{|���!������������������� ����������������������������������������������������������������������������������������$��comparatively higher (70%) remittance of earnings.

"����'�@���������������XY�<

20

5.2 Impact on expenditure

��� �����!��� ��������� ������������ �?-penditure is 10.2% more than that of ������������� ������������ ���� �����-�������������������������������������������������������� �����_�[*�+��:+'��[*�3,748) but in terms of share of total family �?���������� ������������� �����������spend 10% more on food items. In terms of share of family expenditure, non-elec-�����������������������<|�����X|������on education and health respectively. But in terms of average expenditure, electri-���� ����������� ������ <|� ���� �|� �����on education and health respectively than �������������������������������

"����'�@���������������XY�<5.3 Impact on savings

The influence of electricity on household savings is evident from the higher average propensity to savings in the elec-���������������������������� ������������������ ���!���������J�����?���� ����������!�������!�������������!��������������������������������

Table 4: Average household savings

Type Area Household have monthly savings (%)

Average monthly savings (Taka)

Grid household polder 31 75 747

polder 2 60 1642

Overall 68 1138

Non Grid household polder 31 30 1526

polder 2 60 1098

Overall 65 1327

"����'�@���������������XY�<

21

"����'�@���������������XY�<�

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5.4 Impact on credit

The average amount of credit ��� ��� ��������� ����������� ���BDT15,034 and average credit ��� ������������� �����������is 10,091. As the income found �� ��� ��!���� ��� ��� ���������households, they have relatively high credit worthiness. They tends to take credit more from the institutional lenders. 95% credit ��� ���� �=��� � � ��� ���������households is from bank and NGOs. Average size of the credit taken from institutional sources � � ��� ��������� ������������is much higher than the non-����������������������

5.5 Impact on investment

Each area has its own potential investment portfolio based on its access to grid connection. Electricity can boost up economic activities and so thus the investment. The investment will be at three levels; household, business and industry (SI). Household level: Poultry and livestock have a major role in rural household income. Generally, even landless and small farm holdings own poultry and goat. Therefore, 22% households in Budhata and 17% household in Surkhali want to start poultry farm (on average 100 chickens) depending on the access of electricity. In the same way, 19% households in Budhata and 10% household in Surkhali want to start dairy farm (initially 2-4 exotic variety cows). Besides, 18% households in Budhata and 19 % household in Surkhali want to buy electric water pumps to provide water ������� ��������������� �����������������������Z����������|���������������������������+�|��������������"��=�����like to engage in some income generating activities at night with access of electricity. Business level:�*�������������������������������������������!�����������������������������=����������������As the milk and poultry market develops, at local level, backward and forward business linkage will be developed. But due to lack of electricity many business opportunities cannot be taken by local entrepreneurs. Besides, high cost of fuel / alternative energy of several farm and non-farm activities are arresting boost of economic growth. It is found that 10% households in Budhata and 13 % respondents in Surkhali interested to start new business. In The same way, 10% households in Budhata and 8 % household in Surkhali like to expand farm and non-farm activities.

"����'�@���������������XY�<�

Almost every house of this village has cow. Current production of milk in this village is about 150 liter /day. If there is electricity, getting 500 liter/day from the village will be a matter of time …

-Abu Sayed(40) Farmer, Lombadanga, Budhata

22

23

Industry level: in Budhata, several industries have been set up in the portion where the electricity is available. But considering the communication and transportation factors, there is opportunity of setting up few automated ���� ������� ����� ����� ���� ��$������� ��� ��� �������������portions (especially in Paikhali ), within very short period ����������!����� ��� ���!������ ��� ������=������������=��grows in the area a milk chilling factory and an ice factory may be set up.

Surkhali union is only 27 kilometer from the Khulna and have both road and waterway communications to the city. These two factors have given the area a unique opportunity to attract promising industrial investors. At his moment development of large industry nearby Khulna city has two major challenges; scarcity of land and government permission. Therefore potential investors are looking for a suitable place nearby Khulna. Already few investors have visited probable locations in this union. Besides the outside investors, local entrepreneurs also like to invest in industries. But due to non-availability of the electricity nobody has started visible activity. The industries that might have been be established with the access of electricity in the area are automated rice mills, ice factory, tiles factory, bakery and a foam factory.

5.6 Impact on irrigation and water management

Electricity has substantial impact on agricultural cost and �������� ��[����!���������������� ��� ����������!�-ography, it was found that in Robi season (mid-October to mid-March) per-hector fuel (diesel) cost of irrigation in ���� ���������������[*�X:X�������������������� ����for the same irrigation is about BDT 765. The fuel cost is not the only factor that affecting the farmers. The main-tenance cost of the diesel pumps is comparatively high-er than the electric pumps. In each cultivation season the farmers have to spend BDT 500-1000 for maintenances of the machine. Generally, in each season farmers make agreement with the local mechanic for the maintenances in barter of 0.2 to 0.28 Tonne paddy. The high cost of cul-tivation has prevented small and marginal farmers to cul-tivate in dry season.

Besides the high cost of irrigation, water logging is the chief hindrance of cultivation in some areas in both polders. On a rough estimation, only in Kundariya beel (Budhata union), 240 hector lands have the water logging problem. Here farmers can produce rice once in a year. But before the water logging problem they use to produce rice twice a year in same piece of land. As estimated annual production loss of paddy due to the water logging is 0.4 Tonne/ hectors.

To resolve water logging problem, in 2010-11 an experi-ment of draining out water from the Boalmari beel using the electric pumps was done in Fingri union (polder 2). By using the pumps about 3000 hector of cultivable land was reclaimed from the beel. The project was initiated by local benevolent personals in anticipation of getting the neces-sary fund from Government or donor. After two consec-utive years of operation, the project was stopped due to lack of funding. Therefore, this experience could be used for resolved the water logging problems in other beels in the region.

5.7 Impact on education and children’s heath

The quality of education can be measured in terms of household expenditure on education and time spent for study by students at night. Study on the selected geogra-�� ���������������!�������������?����������������������������������<|����������������������������������-�������>���������������������������������������������� �������������������������������������������Z������ ���������������������������������� ��������night by using the solar or kerosene lamp. But it does not provide enough illumination. Thus, head ace and eye burn-��!������������ ������������������������������������������������������X|����������������������������������do not have any problems. *����������!�����������������������������������-����������������������� '��������������������������!�study at night.

24

87

2623

13 117

@�!������'�J�����������������!����� �����!��������!���houseolds (in%)

���������illumination

Head ace Eye burning Bad smell No problemUsed to

25

Our school is one of the best schools in the area… we have to teach computer subject … as we don’t have electricity in the school; we don’t have any computer from the govt. The teacher brings his personal laptop to show in the class but it is not possible to let students using it. It is just like showing them sweets in showcase!

-Suvas Datta, Assistant Head Teacher, Kunduriya PN High school

11 105 3 6

82

@�!�����X'�J������������� ��������������!����� �����!�����!���houseolds (in%)

���������illumination

Head ace Eye burning Bad smell No problemUsed to

26

@������������ �������!������������!����������������������������������������������������������������!�����!����diseases associated with Kerosene3 and water4

Kerosene has being used to light in all kind of household ��� ������ ������� ��� <<|� ��� ��� ������������� �����������kerosene is the main source of illumination and 40 % of ��� ��������� ���������� ����� �� �����!� ����� �������!������������� ���������� ������� ���� ��������� �����_�������� $��� ����� ����� �������� �� X�<� ���� JZ2.5), carbon monoxide (CO), nitric oxides (NO2), and sulfur dioxide (SO2). Kerosene burning devices can impair lung function and increase cancer risks as well as incidence of infectious illness and asthma. There is extensive evidence

that indoor air pollution is strongly linked to human health, especially among children (Barron and Torero, 2014).

������������������������������������������������������$���������������������������������������������awareness of crucial public health issues; use of hygienic latrines, use of hand washing materials etc. TV plays a major role in enhancing knowledge on health issues (Barakat et al 2002)

5.9 Impact on gender dimensions

������������������������������������������������towards gender equality and women’s socio-economic status. Electricity has left a profound impact on women’s mobility, participation in income generating activities, decision making, freedom in using income and savings, better utilization of credit etc. (Barkat et al 2002). Among several dimensions of gender disparity, three aspects has been compared in the study; women’s participation in family’s economic decision making, freedom of movement and right to choose/ vote

�� $��� ������ ��� ��� ��������� ����� ���������� �������exercise of autocratic decision-making in family’s economic matters is little less than that of the non-��������� ������ Z�������� ��� ��������� ������������� ����of consensus decision making is 39% higher than that of �������������������������

"����'�@���������������XY�<�

3Asthma, Tuberculosis, Eye disease, Acute Respiratory Infections

4Skin disease, Diarrhea

5.8 Impact on household health

27

"����'�@���������������XY�<

"����'�@���������������XY�<�

In case of going outside village or places like market or relatives house, women’s self decision making is almost similar in both types of ���������������������������������������:�<|������$�������=�������from their husband, father or respective male member of the family but the decision is made by her-self. At the same time male imposed decision ������������������������������������

28

"����'�@���������������XY�<

�������������������������������������������������������������������������������������������������������������������� �����������capacity to choose the candidate of their own.

29

"������������������������������!����$�������������by the Bangladesh Power Development Board (BPDB) and was mainly limited to urban centers and at best to their �������������*���������#���������������?����!���������� �in rural areas was taken in 1975 under a scheme called �*���� ����������� J��!�������� *��� ���!���� ���=���beyond grid connectivity to rural areas and considered establishing an institutional structure which would develop ��� �������� �������� �������� ���� ������ ���� �����������!�������������������������������������������������#��������!�������������������������������_��������national agency, was established on 29 October, 1977 and started functioning on 1 January, 1978 under the ministry of power (Khandker 2009). To achieve the objectives of the ��������������������!������� ��� ������������� �������the Board established Palli Bidyut Samities (PBS) [Rural Electric Societies] based on the model of Rural Electric Co-operatives in USA. A PBS, owns, operates and manages

a rural distribution system within its area of jurisdiction is an autonomous organization registered with REB. The member consumers participate in policy making of PBS through elected representative to the PBS governing body known as Board of Directors. REB’s role is to provide PBS with assistance in initial organizational activities, training, operational and management activities, procurement of funds, and providing liaison between PBS and the bulk power suppliers like PDB and other concerned Government and Non-Government agencies.

As on April, 2015 a total of 72 PBSs are working in some 52,714 villages in 61 districts and serving more than 11.3 million rural customers all over Bangladesh. The REB con-��������������� ������������������ �����������!���-cant numbers of industrial and commercial customers including irrigation pumps. REB plans to cover 75,000 vil-lages of Bangladesh by the year 2020 (REB 2015)

6. An Overview of Power Sector

6.1 Institutional framework for rural electricity

5Asccording to 1991 census, total number of villages in Bangladesh is 86,038. The 11,038 villages those are not included in REB’s plan as they are included in BPDB, DESCO & DPDC or Chittagong Hill Tract Districts]

30

31

"�����'��J[��XY�<

6.2 Capacity and consumption

�����������������������!��������������$����!����������������������������$������� ����������$� ���������XY�Y�to 2014 the annual growth rate of installed power capacity was 16% per year. Comparing to the previous period of 1999- 2009, the growth rate was less than 5%. At June 2015 the electricity production capacity was 11,534 MW6 with highest production up to 8,177 MW (13 August, 2015).

���'��*���������������������������!������������������ ����'�_������!�������J�$���[����������������_�J[����$�������������!��������� �to generate electricity from the conventional sources (like indigenous gas, hydro, diesel, furnace oil) and through Independent Power Producers _X�������������������������_�����!�������!������� �����!��������J�$��������� �

Transmission of electricity from different power plants are done by BPDB and it’s subsidiary company Power Grid Company of Bangladesh (PGCB). Distribution of electricity to the consumer end is performed by - BPDB, Dhaka Electric Supply Company Ltd. (DESCO) Dhaka Power Distribution Company Limited (DPDC), West Zone Power Distribution Company Ltd (WZPDCL) and REB. (For details please look at Annex 4)

6Without captive and SHS

32

As if June 2015, about 17.5 Million electricity users covers the 74 % population of the country (BPDB 2015). In 2010, BBS’s Household Income and Expenditure Survey (HIES), found that there is a gap in between rural and urban level household’s access to electricity. 90% of the urban households had electricity access whereas; only 42% households had access in rural areas. BPDBs current electricity sells also mirroring that the rural and urban gap. REB, which has mandate to serve electricity to 70% of the population, is consuming only 42% of electricity.

Source BBS 2010

Source: BPDB2015

33

6.2 Challenges and strategies

In 2010 the Government adopted the 20-year master plan for power generation named Power System Master Plan (PSMP 2010). Considering the 7 % GDP growth rate, PSMP 2010 has estimated that the peak demand to be about 10,283 MW in 2015, 18,838 MW in 2021 and 33,708 MW in 2030. To meet the existing and emerging demand, Govern-ment provides incentives to the privet sector investment and import. Consequently, the share of private power sup-ply in terms of installed capacity increased from 26% in 2008 to 42% in 2013. This has also led to an increase in the marginal cost of electricity.

The power sector is heavily reliant on gas. In 2009, some 83% of power-installed capacity was gas-based; some 5% was coal based; 4% was hydro-based; and the remaining 8% was fuel oil based. But the natural gas supply is in-creasingly getting constrained relative to demand. Most recent data suggests that the current reserve will likely be depleted in less than 10 years (Alam 2015).

"�����'�>����XY�<�

Considering these aspects, government has planned to set ���$����!���������������$������� �����+XY�Z�������in Khulna and in Chittagong. The Khulna plant will be set up in joint venture with BPDB of Bangladesh and NTPC of India. Coal will be the dominating fuel in the future gener-ation. By 2030, at least 50% electricity will be produced by

coal. Besides, Government has also sets targets for devel-oping renewable energy resources to meet the anticipated demand. According to Renewable Energy Policy 2008, re-newable energy resources will meet 5% of the total power demand by 2015 and 10% by 2020.

34

�*�����:'�J��������J�$���\��������'�J����� �@����"������� �XY+Y

Sl. No. Description Capacity (MW) Probable Location (S)

1 Domestic Coal 11,250 North West Region at Mine Mouth

2 Imported Coal 8,400 Chittagong and Khulna

3 Domestic Gas/LNG 8,850 Near Load Centers

4 Nuclear 4,000 Ruppur

5 Regional Grid 3,500 Bahrampur- Bheramara, Agartola-Comilla, Silchar-Fenchuganj, Purnia-Bogra, Myanmar-Chttagong

6 Others (Oil, Hydro and Renewable)

2,700 Near Load Centers

Total 38,700

"�����'��^"�>���������!�������!���������J�$���"������������������������������������������������ �>���>������ Secretary Power Division for United States Energy Association on July 2011

6.3 Current renewable energy strategies

"������� ����� ��������� ����� ����� �?������ � � ���government to Renewable Energy project developers and investors. Dedicated funding support has also been �?������ ����!�� !��������� �������� ���������� ��=��Bangladesh Bank and IDCOL7 as well as through private commercial banks (Alam 2015).

Till 2014, 3.3 million solar home system, 230 solar irrigation pumps (69 in operation), a 100 kW solar mini-grid project and 30 biomass based power plants (average 200 kW) $����������� � �[����_>������������XY�:���>���� �����that, PDB and REB have their own solar based electricity and irrigation system projects. Moreover, in line with the Renewable Energy Policy 2008, Government has planned to develop at least 500 MW power from renewable energy by 2015.

Out of 500 MW, 340 MW is commercial solar projects which include solar irrigation (150MW), solar mini-grid (25MW), solar park (135MW) solar rooftop (30MW) and other 160MW is for the social sector solar power projects. As an institutional framework Government establish Sustainable Energy Development Agency (SEDA) in 2012 for coordination and assisting government in taking care of all activities such as development, implementation and promotional related matter of renewable energy technology

7������������ ����������� �������� �������� �� ����� ��� �� ���� ����� �������� ����������� ������ ��� ���� !���"� ��!�!��� �������!��!�����������!�!����������������!��������������!�#�����������������������������������!�����$�������%��!������"

35

�*�����<'�J��#��$������������������<YY�Z��!�������������

Type of project Capacity MW

Commercial Solar Power project

Solar irrigation 150

Solar mini grid 25

Solar park 135

Solar rooftop 30

Total 340

Social Sector Solar Power Project 160

Total (MW) 500

"����'�J�$���[���������Z�J�Z��XY�+

SEDA has made a road map on generating 3103.8 MW from renewable sources in between 2015 to 2021. Out of this target 1675.8 MW will be solar based and particularly 44.25 MW would be Solar Mini/micro/nano-grid.

In Bangladesh, the concept of solar grid is relatively new. *��� ���� ������ ������ �����!���� _������������� � ������ $���installed in 2010 with the capacity of 100 kWh in Sand-

wip Island. Total cost of the project was BDT 56.78 crore. 50% of the cost was subsidized by IDCOL’s grant (Khan and Huque 2014). At present 4 solar mini-grid projects has been completed and 6 others are under construction. Out of these 10 mini-grids, 4 are in Chittagong division, 2 in Rajshahi and 1 each in Dhaka, Barishal Sylhet and Rang-pur division. There is no solar grid in Khulna division (see annex 2).

���������� ������������������������������

In both areas, substantial number of the household is outside the reach of grid electricity. Average demand for ��� ������ � ��� ������������� ����������� ��� ���������to be 45.4 kWh and 65.4 kWh per month respectively in wither and summer time in Surkhali. In Budhata, electricity ����������������������������������������:}�X�=�������65.4 kWh per month respectively in winter and summer. Therefore based on the household number of non-��������������!�������� ������� �����������"��=���������in Budhhata are respectively 6125.8 kWh and 6579.2 kWh in summer time.

7.2 Willingness to pay for the energy

In Surkhali 96% and in Budhata 91% respondents are ready to pay for the connection. On average, willingness to pay for the connection is BDT 3854 and BDT 3086 respectively in Surkhali and Budhata. At the same time respondents are ready to pay BDT 474 and BDT 468 as monthly bill respectively in Surkhali and Budhata.

7.3 Solar Energy Resource Assessment

According to the Renewable Energy Research Centre (RERC) of Dhaka University, the daily average Global Horizontal Insolation (GHI) of Bangladesh varies from 3.16 (kWh/m2) to 5.46 (kWh/m2). According to Bangladesh Meteorological Department, the mean annual estimated GHI values over Khulna and Satkhira region is 4.39 (kWh/m2/day)

7. Issues for the solar grid system in selected geography

36

*������ ��������������������������������������������!�demand for electricity to enhance the lives and livelihood of the individuals and the communities, as well as facilitating social change. Most respondents are willing to pay within their capability. High-income households are willing to pay more. It is evident that the expenditure on energy increases with the income level.

On the supply side, according to the government plan, REB aims to cover all villages in its jurisdiction by 2020. At the local level, Sathkhira PBS plans to provide 2500 new connection in the Budhata in next two years. The new connections should cover about 83%of households ����������������������!����>���������������������J�"�has planned to provide 350 new connections in Surkhali which should cover about 12% of the households in non-��������� �����!���� *����� �?������� ������ ���� ���#�� ��additional electricity supply capacity of the Government.

Bangladesh has made a great progress regarding electricity generation capacity. Generation is heavily dependent on the available natural gas supply but, due to a shortage of gas, about 10% of power generation is idle. In consequence, the country faces a peak load shortage of 30% of total demand (Kabir and Uddin 2015). To ensure energy security and to eliminate dependency on gas, the Government ���� ��������� ����$����� ����! � ��� �� �������� ������ ���electricity, especially in off-grid areas. The Government has set a target for generating 10 % of total power by 2020 using renewable energy resources. The government is helping renewable energy project-developers and investors $�������������������������� �������������

Of the renewable-energy resources available in Bangladesh, solar energy has highest potential. According to the map of global horizontal insolation (GHI), monthly average solar global radiation in Bangladesh is around 4.25 kWh/m2/day. This indicates that the country has huge scope to exploit solar energy due to its favorable geographical position.

Over half of the households of the selected off-grid villages are using the Solar Home Systems (SHS). SHS has provided reliable power (typically less than 40W) for minimal lighting and operating low-powered equipment such as small electric fans. However, these SHS’s cannot meet the households’ living and livelihood demand for electricity to provide adequate lighting, power for a TV, or even a refrigerator in due course. A solar-based grid could ���������������������� � ����������������� ���=��power level.

A grid system has advantages over standalone systems (SHS, solar lanterns etc.). It has flexibility regarding load capacity, type of load (AC/DC) and phase required (single or three-phase). It can provide parallel support for business, irrigation, other local industries, as well as households.

8. Conclusion

37

Growth in all these sectors enhances the local economy, facilitating further services and connections, and stable electricity revenues.

Renewable energy appears costly by comparison with conventional energy. In Bangladesh, the cost per unit of electricity generated by different solar hybrid (PV-Wind-Diesel, PV-Wind) systems varies from BDT 16.8/ kWh to BDT 19.8/kWh (Bhuiyan et al 2011). The higher cost of renewable-energy may not be affordable for all rural users unless subsidies are available or lower-cost systems are developed.

Bangladesh already has some experience with solar based �����!���� ���#���� @��� ��� ���� ������������ �����!����project,50% of the cost of the project was subsidized by an IDCOL grant. IDCOL is largely involved with renewable ����! ������������������������������!���������������������!����������<Y������������!�������#���� �XY����Initially the World Bank and GEF supported the program by ��������!���������!�����!������������"��������� �����German Development Cooperation (KfW), German Technical Cooperation (GIZ), Asian Development Bank (ADB), Islamic Development Bank (IDB), Japan International Cooperation Agency (JICA), USAID, DFID, GPOBA (managed by the World Bank) have extended their support. In both Unions, the respective PBSs are positive about expanding coverage. To do so, the only source of electricity available at present is from the national grid but government initiatives for increasing generation capacity are being held up(e.g. delay in developing a floating LNG terminal). At the same time, the Government is promoting electricity generation through renewable technology, especially in the remote off-grid areas. Considering all these circumstances, there are strong arguments in both areas to meet the demand for electrical power as well to facilitate economic growth through the construction of solar-grids.

The Blue Gold Program may consider conducting a mini-!������������#��������� �������������������\������� ��the catchment area of solar grid is 1 -2 square kilometers but for a pilot project it could be smaller. The program intervention areas inside the polders are quite large, so, it will be necessary to narrow down to an area having the �������� ���� ��?����� ������� $���� ������� �� ����� ���for a complete village and its surrounds. There are several business models available (for details look at Annex 3). The Program could follow the community model and encourage relevant WMAs / WMGs to form a consortium and manage the venture. The Program could provide the capital and technical support.

38

References

>��������@�����*������>��XYY��������"�� '�>�������������"�����J~����������[����������������!�������������������������������� �[����������+�_XYY��'��{+��Y+

Bhuiyan, A. M. W, Kazi S I, Haque M. M, Md. Rashid R. M, Rahman M. 2011. Community-Based Convenient Hybrid Z����\���'��������������J������������>��� �����������!�����������������������������������������Z���!���������Technology, Vol. 2, No. 5

Dr. Alam. G. M. K., 2015. Strategy for Infrastructure Sector. Background Paper for the Seventh Five Year Plan by Policy Research Institute of Bangladesh

>���������J��������������*�����������*������! �������^�������������������������"��������������������>�����������J����_�"�>J������!�����������$���������! ������

������������ @� ���� Z��� � ��� >������ ����! � ���� [���������'� *��� J������� ����� ��� ����$����� ����! � ��� Z����!� ���Millennium Development Goals. Paper prepared for the REN21 Network by The Worldwatch Institute

Barkat, A., M. Rahman, A. Osman, A. Poddar, S. Khan, S. Zaman, S. Halim G. Mahiyuddin, M. Badiuzzaman, M. Majid. XYY{��"��������������������"�� ������������������������[����������J��#��_��[J�������������������������Electric Cooperative Association (NRECA) International, Dhaka

Barkat, A., M. Rahman, S. Zaman, A. Podder, S. Halim, N. Ratna, M. Majid, A. Maksud, A. Karim, and S. Islam. 2002. �����������"��������������������"�� ������������������������J��!����������!������������������������Rural Electric Cooperative Association (NRECA) International, Dhaka

�������� Z� ���� *������� Z� �XY�:�� ���������� ����������'� "���� *���� ������ $��� ���!� *���� ������������ �������Department of Agricultural and Resource Economics, University of California, Berkeley.

Bose T. K., M. Reaz U. and Monda A. 2013. Impacts of Electricity Access to Rural SMEs.International Journal of Managing Value and Supply Chains (IJMVSC) (2013) Vol.4, No. 4.

����������Z���������^������Z�����XY�<�J��������������$���������! ���������>�����������!������'�J��� �>��� ������������������������������"�������������������������_��'����Y<���+

���������������>��������XY�:��*������������������!�����������������!�����������������X:�������XY�<��������'�����!�������!����������������������������!�����������������!��������

IDCOL Annual report 2014

����������������$���������! �>!�� �_����>���XY�<������\��������$���������! �" ����'�"��������Z�������!����Issues. Working paper

Nasrin, A. 2013. Energy Need Assessment and Preferential Choice Survey of Rural People in Bangladesh. Master of Science Thesis. KTH School of Industrial Engineering and Management Energy Technology. Division of Energy and Climate Studies (ECS)

*�������Z��XY�:���*�����������������������������������!��������� ��@��$�����

J�����������������������������������>@[�J��J>�����^[�'�����! �����[���������

J�$���[���������Z����� ����J�$�������! �����Z�����������������XY�+��<YY�Z��"�����J��!���'���������������J������Renewable Energy in Bangladesh.

�����=��� "�� ��� ������� [�� @�� ���� �������� >�� "�� XYY{�� � �������� ������ ��� ������ ����������'� >� ����� "�� � �����Bangladesh. The World Bank, Development Research Group. Policy Research Working Paper 4859

Unnayan Shamannay and Development Design Consultants Ltd. 1996. .A Socioeconomic Impact Evaluation of The �����������������J��!����������!��������@�����������������>��"��������>��������������[��=������!������

39

>���?��'����!������������"�����\�����

Size (KW) Capability Complexity

Stand-alone systems 0-0.1

Pico-gird 0-1 �� Single controller

Nano-gird 0-5 �� Single voltage�� Single price�� Controllers negotiate with other

across gateways to buy or sell power

��Both grid-tied and remote systems

��Preference for DC systems�� Typically serving single build-

ing or single load �� Single administrator

Micro-grid 5-100 ��Manage local energy supply and demand

��Provide variety of voltages ��Provide variety of quality and

reliability options��Optimize multiple-output ener-

gy systems

�� Incorporate generation �� Varying pricing possible

Mini-grid 0-100000 �� Local generation satisfying�� Transmission limited to 11 kv

�� Interconnected customers

"����'�*�������������������$���������! �>!�� �_����>���

>���?�X'�"�����������Z����\�����������!������

Project Name Administrative Division

Project Status Installed Capacity

(MW)

141 KWP Shouro Bangla Ltd Mini grid Dhaka Complete 0.141

100 KWP GHEL Solar Mini Grid project Chittagong Complete 0.100

141 KWP Hydron Bangladesh pvt. Ltd. Solar Mini Grid Rajshahi Complete 0.141

100 KWP PGEP solar mini grid project Chittagong Complete 0.100

Solar Mini Grid Power Plant Chittagong Under Construction 0.500

Solar Mini Grid Power Plant Chittagong Under Construction 0.500

Renewable Energy Based Power Generation Pilot Project in Remote Haor Area

Sylhet Under Construction 0.650

177 KWP Solar Electro Bangladesh Ltd Solar Mini Grid Barisal Under Construction 0.177

158.3 KWP GRAM erAlo Ltd. Solar mini grid Rangpur Under Construction 0.158

148.5 KWP AVA Development Society Solar Mini Grid Rajshahi Under Construction 0.149

"����'�J�������������"��J����������J�������!�����������! �"����[����������J��#��_Y��}�XY�<�

40

>���?�+'��>�����!����������������!��������������������!��������������������

Model Advantages Disadvantages

Community �� Increase ownership which improves maintenance

�� ����������������������������������utilities

�� Communities may lack technical and busi-ness skills (e.g. design and installation; tariff setting), leading to higher costs to bring these in

�� Governance of systems needs to be well managed

Private �� \������������ �� May have capacity to offer better oper-

ation and management services�� May be better able to navigate political

interference

�� ��=������������������������������������ ����������������������!���?���������

companies, so often schemes are run by smaller companies with less capacity

Utility �� Responsibility lies with an experienced organization

�� Often good links to policy so have bet-ter access to legal systems

�� Their scale means that they may have better access to spare parts and main-tenance

�� Liberalization means that they are market driven, so may not priorities decentralized systems in rural areas

�� ���������������������=����� Often driven by political agendas

Hybrid �� Combine the advantages of the models above, such as the technical expertise ��������� �����������������?����������the private sector

�� Differences in the management systems of each entity can increase transaction costs

"�����'�*�����������������������\~�J�������������J��� ��������"��������XY���

41

�� Bangladesh Ministry of Power, Energy and Mineral Resources (MPEMR) is in charge of ����������������������$���������������������=��������*���J�$���[�����������������������for the Country Action Plan for Clean Cook stoves (CAP).

�� ���!������� ����! � ��!����� � ����������� _�����'� ����� ���� ������ � ����� ��������protection, approval of tariffs and pricing, issuance of generation and distribution licenses, and promotion of competition.

�� J�$�������'����������ZJ�Z����$����������������J�$�������������������$���������������

�� �����������������������_����'������������������������������������$����������������cooperatives (PBSs). It performs supervisory and regulatory duties to ensure that technical standards are met and performance is monitored.

�� "������������������$���������! �[����������>!�� �_"��[>�'�"��[>�$����������������point for sustainable energy development and promotion, ‘sustainable energy’ comprising ����$���������! ���������! ������� �� _*���� ��������� ����������������� �����������steps have been taken in this regard by the Government, with SED support).

�� ���!�������J�$���[����������������_�J[��'��J[�������������������� ��$����!���������and some urban distributors; it acts as a single buyer, purchasing from public and private generators and selling to distributors.

�� J�$���\���������� �������!�������_J\���'�J\��������$���� ��$������������� ��������J[���operates the national transmission grid, schedules grid operations and wheels energy to distributors.

�� *���[��=��J�$���[���������������� �����_[J[���'�[J[�����������������! �����������commercial operations in Dhaka and adjoining areas, except for Mirpur and Gulshan.

�� [��=�� ������ � "���� � ������ � ���� _[�"���'� [�"��� ���������� ����! � ���� ������commercial operations in the Mirpur and Gulshan jurisdictions of the Dhaka metropolitan area.

�� ���� ����� J�$��� [���������� ������ � _��J[��'� *��� ��J[�� ��� ������������ ���� ��!������distribution in Khulna.

"����'�*���������������������������! ������XY�<

Annex 4: Government institutions

42

�� >�����[�������������=�_>[��'�*���>[����������#�����������=�������������!�������������as the chief negotiator with the Government of Bangladesh. All international donor activities in the energy sector are coordinated by the Local Consultative Group led by ADB. It is providing funds �� ��� ���!������� ������ ����������� ���� ����$����� ����! � [���������� ����[� ���!����implemented by IDCOL.

�� *������������=�_���'�*�����������������!������������\���������������!�����������������the electricity generation, transmission and distribution capacity. The WB initiated the SHS RERED program. It recently announced that it will scale up its support for the solar home system (SHS) program by adding US$78.4 million in IDA credits to the RERED II. This funding shall help install an additional 480,000 solar home systems in areas without grid access to electricity. ���XY�<�������������=���!������ �<���������!�����!�������$������!���������������������������������! � ���� ��!���������������� ����!����������������� _��>�������������������������������������������������������!�����*������!�����������������������������XX<�YYY������������ � ����� ���� X�<YY� �����!���� ���������� ��� ��������� ���������� ��� ��������$���������!����� ��}�}YY� ��������$�������������������$��������������=��!���������� ���������{��<Y�households through biogas plants. IDCOL will implement the program in partnership with micro-���������������������!�������������!������������������������������

�� �����������������������������>!�� �_���>�'����>����������!����!�������������!������������electricity. Currently, JICA is also providing funds to REREDP program.

�� \�����������������@���� �_\�@�'�\�@������������������[J������������ ���!�����!�������������������=�����#�������������������! ������� �����������������=�=�����

�� "�~'� "�~� ��� ����� ��� ��� ����� ��� ���!��� ������! � ������������� ���� ��� ���$��!� ������� ���improved cook stoves.

�� ^�����J��������������J���� ���������_^JJ��'�̂ �����̂ �[J���������̂ JJ���������������!�$���SED in the cook stove sector and is also open for cooperation in biogas plants in urban settings.

�� ^�"��>!�� �����������������[����������_^">�[�'�̂ ">�[������������������!������������������program of Bangladesh for the last 35 years. Currently, USAID has approved a 50 million USD ���!���� ���� ����! �� +<� �������� ���� ��������� ���� ����! � ������ � ��������� ���� �<� �������� ����improved cook stoves.

�� J������>���� _J>�'�J>� ������� ������ ��� ���������������� ����������� ����������� ��������urban areas. As part of their efforts to provide energy access to the poor, they are interested to cooperate with SED in the promotion of improved cook stove as well as related monitoring and evaluation activities.

�� "$������������������[����������>!�� �_"�[>�'�"�[>�����������!������������������=������activities in Bangladesh. It is not yet decided wheter this will happen in cooperation with GIZ.

�� ^��[������������������������[����������_[@�[�'�[@�[������������������������������������������������������#����*�� ������������������!�����������"�"�""�"��J��J~����$������������������=���������������>������ �$����������������������������������������� ����!���� �are working on the topic of reallocation of subsidies for energy services and fuels.

�� ������������¡���������������_����'����������������������������������������������$�������������!���������� ���������������������!����������������������������"�"�����""�"��������������under IDCOL. Further cooperation can be envisaged also for Pico PV.

"����'�*���������������������������! ������XY�<

Annex 5: Activities of International Development Agencies regarding renewable energy in Bangladesh