In Bangladesh, per capita annual fuel consumption
is only 16.67 liter of oil equivalent, which
is one of the lowest in the world. Since 85%
of the population lives in the villages and
in order to meet this increasing demand for
development of agriculture and industry, it
is necessary to utilize all the available alternative
resources. Grameen Shakti (GS), one of the family
members of Grameen companies, was established
in 1996 as a renewable energy company with the
aim to serve the difficult-to-access rural areas
with Solar, Wind and Bio-gas based electricity.
The grid power was not available to these areas.
GS has by now made significant progress in this
field and has promoted 21,100 Solar Home System
with 1.1 MWp capacities and has distributed
to the household of different areas of Bangladesh
through it’s 92 unit offices till February
2004. Board of directors of GS and its top management
has lot of experience in micro-credit financing
and most of them are founder member of Grameen
Bank. Therefore, their experience in micro-credit
has contributed in proper designing of the program.
In addition, vast network of Grameen Bank is
supporting GS to expand it’s program very
quickly. GB borrower can avail the loan from
GB for the down payment of the system (SHS)
and this is an additional opportunity for the
poor to afford the solar home system. Another
Grameen Bank project called Polli Phone (Village
pay phone), which has a great potential in income
generation activity by the poor women. At present
many areas covered by Grameen Phone signal does
not have access to grid power and Grameen Shakti’s
SHS is working as an alternative source of power
for charging the mobile phone. Approximately
50,000 Polli Phone is operated by Grameen Bank
women borrower. The Polli phone is playing a
major role in village economics.
GS goal has always been to provide customers
with the best and most complete solutions for
their particular business and personal needs.
GS is continuing to grow and evolve with the
mission to serve the rural population.
| 2.
GRAMEEN SHAKTI (GS) SERVICES |
Energy is the most important input for industrial
development. The use of fossil fuel such as
oil and gas for energy needs has an associated
cost due to the environmental pollution and
human health hazards. If the pollution and health
hazard costs are taken into account in the energy
pricing, then the cost of fossil fuels would
be much higher than the cost of nonconventional
sources of energy such as PV, and wind. GS designs
and delivers the technology solutions that drive
the business value, creates social value and
improve the quality of life of the people. GS
is one of the few companies in Bangladesh to
successfully marry the technologies of renewable
energy, computing and communication. GS delivers
the following services and products:
| ·
Renewable energy including |
(i)
solar home system (SHS),
(ii) bio gas, and
(iii) wind turbine |
| ·
Resource development including |
(i)
adaptive research for renewable energy,
(ii) training for the internal
human resource, and
(iii) training program for user
and local community to develop the awareness
and technology dissemination |
| ·
Information and communication technology
including |
(i)
IT education, and
(ii) Village Internet |
GS provides complete and end-to-end services
to the rural population. Grameen Shakti is conducting
research to utilize wind energy in the coastal
areas of Bangladesh. It has installed 4 hybrid
power stations (combination of wind turbine
and diesel generator) in four cyclone shelters
of Grameen Bank. Power generated from the wind
turbines is connected to four cyclone shelters.
Three of which are Grameen Bank and one exclusively
used as cyclone shelter. Appliances used with
these systems include light, fan, television,
and water pump. phase of the program will allow
Grameen Shakti to gather financial and technological
information for possible future expansion in
the other places
| 3.
SUCCESS STORIES AND LESSON LEARNED |
As mentioned earlier, the GS has installed 21,100
Solar Home Systems till February 2004 with an
installation capacity of 1.1 MWp. Its Current
promotional rate is over 850 SHS per month which
will be 1000 within couple of months. For this
purpose, Shakti has already opened 92 unit offices
and has planned to open 20 more branches in
rural Bangladesh. This network allows GS to
quickly disseminate and commercialize any improvement
in the technology. Since the systems are expensive
for the rural people, GS has introduced a soft
financing scheme for the customer. GS has linked
this technology to the income generating activities
as well. Grameen Shakti encourages customers
to apply PV systems for productive use. Some
examples of application of PV system for income
generation include (i) charging
village pay phone, (ii) lighting
rice/saw mill, (iii) lighting
tailoring shop/grocery shop, (iv)
poultry farm, (v) lighting
restaurants, (vi) bazaar, (vii)
micro-utility (selling power to neighboring
shop), and (viii) radio/TV
repairing shop.
3.1
Impact of PV on society especially on Women
Children’s education and other activities
of houses have improved due to better quality
of light. Consumers reported increase in income
by extended working hours after dusk. (Picture
1 illustrates the contribution of SHS for child
education.)
Besides, PV system has opened up new opportunities
for employment and income generation activities.
Living standard of our customers is also improving.
(Picture
2 illustrates that one mobile grocery shop keeper
is using SHS to extend his working hour after
dusk.)
In addition, women are enjoying the hazardless
and hassle free lighting system in their daily
life. Moreover, they are getting opportunities
to earn extra money by utilizing their time
after dusk by sewing or poultry farming.
Picture
3 illustrates that one woman
who is swing cloths under a bright light of
SHS and thus she is earning extra money by utilizing
her time at night while Picture 4
illustrates Village pay phone
owner she is using SHS to charge her mobile
phone and as well as her children’s education.
It
also has been observed that the solar home systems
are increasingly used in the mosque, pagoda,
Church, the health clinic, and other places
of community activities. The social awareness
among the users has increased as now they have
access to educational and entertainment programs
of TVs and radios.
3.2
Power Micro-utility to reach the poorer
There are some very poor consumers who can not
afford a complete solar home system. In order
to help such consumers, the GS has introduced
two different types of micro-utility systems
which are as follows:
Model 1:
In this model, one entrepreneur installs a solar
home system at his/her premises and shares the
load with some of his neighbors within the technical
limit of the SHS. Owner of the system pays monthly
installment to GS and he/she collects load charge
(daily or weekly) from the users according to
the load capacity they use. Generally, more
than 50% of installment comes from this power
selling mechanism. More than 100 of such systems
are working in rural market place.
Model
2: In this model, GS installs
the SHS in a market place and appoints one potential
entrepreneur to look after the system and this
entrepreneur becomes the operator of the system
and his/her prime duty is to collect the bill
from all users including his/her own (generally
the operator pay 50% less) and deposits it to
GS account. After a certain period the operator
becomes the owner of the system. GS has installed
10 numbers of SHSs under this model.
3.3
Issues behind the success Grameen Shakti realizes
that the following facts and issues are the
keys to its success:
 |
·
Appropriate designing of the program
· Commitment and dedication for the
program
· Motivational program for awareness
creation
· Community involvement and social
acceptance
· Understanding of market demand
· Innovative financing model
· Realistic targets
· Constant monitoring and evaluation
· Award for outstanding performances
· Quality product
· Reliable backup service
· Minimum overhead cost |
| 4.
GS APPROACH TO MARKET DEVELOPMENT |
In this section, the approaches and methods
adopted by the GS to promote the renewable energy
service will be addressed, following the GS
PV program present coverage.
| GS
at a glance: |
| Incorporated
|
1996 |
| Main
program |
Solar
Home System |
| Program
coverage by GS |
| Number
of district |
42
out of 64 |
| Number
of upazial |
150
upazila out of 460 |
| Number
of Villages |
2000 |
| Number
of Island |
8 |
| Total
beneficiaries |
more
than 150,000 people |
| Field
offices |
92 |
| Field
staff |
300
(mostly Electrical Engineer) |
| Total
installation |
21,100
SHS (till February 2004) |
| Installed
power capacity |
1.1
MGp |
| Current
installation rate |
Over
850 SHS/month |
| Financing
mechanism |
Four
financing methods |
The
GS to promote the renewable energy service and
expand the market for PV and other RETs has
adopted the following approaches and methods:
4.1
Market development
Competitive price with quality product: GS always
tried to keep the product within the limit of
affordable price for its clients. This has been
possible due to the locally developed accessories
of SHS of standard quality. It is because of
adaptive research, which is funded by SIDA.
GS is producing charge controller, ballast for
fluorescent lamp, DC-DC converter, mobile charger
etc. As such, the sales volume is increasing
so negotiation power for reducing the price
of imported solar module is also increasing.
All these factors have positive impact in reducing
the prices of SHS.
After
sales service: Generally, clients
get free support for three years from the date
of installation. GS engineer visits at least
once in a month during collection of monthly
installment and the engineer checks the system
and makes entry in the logbook of the SHS. In
case of any problem, he takes the necessary
corrective action on the spot.
Post
warranty service: GS has introduced
post warranty service for its valuable clients.
This post warranty service charge is very low
and which is about US$ 5 per annum. It ensures
that the user gets prompt response for any kind
of technical assistance and service from GS
engineer or technician. Major replacement cost
is borne by the user at a reasonable price.
Capacity building
to consumers, technicians and entrepreneurs:
GS arranges training programs for the technicians
and the consumers to disseminate the technology
and build capacity of local entrepreneurs. GS
has introduced two different types of training
programs; one aiming at the users of the PV
system and other for the development of the
local technicians or entrepreneurs. GS absorbs
few of them for its technical support and the
rest can work as free-lancers as GS certified
technicians. Even GS engages them on daily basis
whenever required.
4.2
Promotion of RETs
Demonstration:
The public gathering places like market, exhibition,
school, collage campus are used for demonstration
to convey the massage among the masses.
Seminar:
Seminars and workshop are organized to address
the policy makers.
Poster,
Billboard, leaflet, banner, brochure and video
show: Poster, leaflet and brochures
on the products and services are distributed
among the people. Billboard and video shows
increase the awareness of the rural masses.
Publicity
in mass media: Grameen Shakti
has invited the press people and explained its
products and services to them which was published
in the public interest in local and national
news papers.
Solar
Scholarship: Grameen Shakti
has introduced Solar Scholarship for its client’s
children. It reflects our social commitment
and at the same time, it works as a promotional
activity for our solar program.
Grameen Shakti believes that, with out the adaptation
of the technology at the local level and creation
of the awareness among the society, there can
not be a sustainable development. So parallel
programs were carried out to develop the technology
through adaptive research and motivational work
including distribution of poster, leaflet, banner,
brochure and training program were performed
to create the awareness among the rural masses
on the benefits of the product. This approach
ensures the participation of the local community.
Thus such programs coupled with innovative soft
financing scheme, have accelerated penetration
of the SHSs. Grameen Shakti has already achieved
an International recognition in the form of
“Energy Globe Award 2002” for it’s
outstanding performance in increasing the rural
energy access. In addition, GS has achieved
another international award “European
Solar Prize 2003” in 2003 from EUROSOLAR
in Berlin and “Best Theme Award”
from USAID.
|
|
Managing
Director of Grameen Shakti Mr. Dipal C.
Barua is receiving "European Solar
Prize 2003" from Dr. Hermann Scheer
MP and President of EUROSOLAR, in Berlin
on December 2003 |
| 5.
FINANCING MODELS OF GRAMEEN SHAKTI |
We perceive that the success behind GS promotional
work is its innovative financing scheme, which
is based on the socio-economic aspect of Bangladesh
and blending with community involvement at grass
root level. World Bank appreciated this model
and now following this model World Bank is financing
in this sector through Infrastructure Development
Company Ltd. (IDCOL). The GS financing instruments
are as follows:
Mode 1:
Customer has to pay 15% of the total price as
down payment during installation and remaining
85% of the cost is to be paid by monthly installment
within 36 months including 12% service charge.
Mode 2:
Customer has to pay 25% of the total price as
down payment and remaining 75% of the cost is
to be paid by monthly installment within 24
months with 8% service charge.
Mode 3:
Customer has to pay 15% of the total price as
down payment during installation, and remaining
85% of the cost including 10% service charge
is to be paid by 36 post dated cheques.
Mode4:
Customer is given a 4% discount for cash
purchase. Managing Director of Grameen Shakti
Mr. Dipal C. Barua is receiving "European
Solar Prize 2003" from Dr. Hermann Scheer
MP and President of EUROSOLAR, in Berlin on
December 2003
| 6.
CASE STUDY OF A UNIT OFFICE |
Sandwip is an offshore island of Bangladesh
and the island is not covered by conventional
electricity. GS primary investigation assessed
that there is a good potential SHSs in this
island. Before establishing a new unit office,
GS had carried out a survey and the report indicated
that SHSs can penetrate the island. Then GS
established a unit office at Sandwip on January
2001. The following represent some basic data:
Capital investment to = Taka 40,000 (US$ 678)
setup
the new Office (US$ 1 = Tk 59)
Operating cost = Taka 22,000 (US$ 373)
Running capital = Taka 280,000 (US$ 4,746)
Break even period = 8 months
Breakeven feature = At least 9 numbers of SHS
is
to be setup
Breakeven
calculation: For a 50 W system, which is worth
Taka 21,500, if customer pays 12% service charge
for it, then the total service charge collected
would be Taka 3,443. Considering that 9 of such
system are sold by a unit office then the total
service charge generated from this unit office
will be Taka 30,897. Operating cost of that
unit office is Taka 22,000 so the rest of the
amount may be considered as management cost.
At
present, this unit office is promoting 40 SHS
per month.
| 7.
OTHER PROGRAMS AND FUTURE PLANS |
GS has installed country’s first solar
powered computer education center at Kutubdia,
an island on the Bay of Bengal and seven other
places in the remote areas of Bangladesh including
one at Maheskhali another offshore island of
Bay of Bengal. GS is the pioneer in bringing
the concept of Village Internet for rural areas
of Bangladesh. GS has installed its first Village
Internet setup at Cox’s Bazar and extended
its program in to an island Maheskhali through
radio link connectivity. Through this program,
at least ten villages have facilities of Internet
Services. At present 245 dial-up connections,
including 6 broadband have been established.
Three Village Internet centers (Cyber Center)
are being operated through this infrastructure.
GS intends to develop the infrastructure for
ICT which in turn would develop the human resource
and create lot of jobs in rural areas. Future
plans. GS has planned to install 100,000 SHS
by 2008; its current progress indicates that
this can be achieved. It is also trying to explore
other renewable resources like wind, hydro and
bio-mass. To develop the infrastructure of ICT,
GS has taken some initiatives to expand its
existing coverage area for Village Internet.
It has a plan to cover 100 villages within the
shortest possible period.
Success behind the GS model is its integrated
approach of addressing socio-economic problem
related to energy crises in rural areas. GS
has identified the barriers to social acceptance
of renewable energy technologies and has taken
the necessary steps to overcome the barriers.
Grameen Shakti’s integrated approach always
focuses on women welfare, income generation,
child education, capacity building of local
entrepreneurs and after sales service. Its innovative
financial schemes have helped the rural people
to procure the RETs systems for their livelihood
activities. Stand-alone and owner ship model
of SHSs have created more awareness for proper
care and use of the systems. Moreover, user-training
program is an added advantage for ensuring the
proper maintenance of the system. To reach the
poor, GS has taken the micro-utility concept,
which has extended the program through out the
community. GS always encourages the users to
use the systems for productive activities so
that RETs can be a source of income generation
activities. It has been observed that the SHSs
have helped in extended working hours and increased
income for the consumers. Thus, the innovative
integration of financial support with social
awareness has lead to the success of Grameen
Shakti.
