Solar Energy Initiatives of IDCOL

S. M. Formanul Islam Deputy Chief Executive Officer

Infrastructure Development Company Limited (IDCOL)

Session 2: Public sector led mini-grid programs and policies Sharing Business Models and Scaling up Mini-grids in Asia and Pacific

February 6-7,2013 Kathmandu, Nepal

An Overview of IDCOL
A Government-owned non-bank financial institution, established in 1997; Largest local financier in private sector infrastructure and renewable energy financing; Operates independent of Governments budgetary support; Funded by the Government and multiple development partners i.e. the World Bank, ADB, KfW, GIZ, IDB, SNV, GPOBA etc. Managed by a Board of Directors representing the Public and Private sectors equally.

IDCOL Renewable Energy Programs/Projects

Programs:
IDCOL Solar Home System Program IDCOL Biogas Program

Other Renewable Energy Projects:

Solar Mini-grid Solar Irrigation Pump Solar powered Telecom Base Transceiver Station (BTS) Biogas based Power Plant Biomass (rice husk) based Power Plant

Improved Cook-stoves project (recently undertaken)

IDCOL SHS Program at a Glance

The Program started as a key component of the Rural Electrification

and Renewable Energy Development Project of The World Bank

The initial target of installing 50,000 SHSs was achieved through 15

Partner Organizations in August 2005

3 years ahead of deadline and US$ 2 million below the estimated cost At present, 30 POs are installing SHSs

Subsequently , GIZ, KfW, ADB , IDB, and others extended support IDCOL has revised its target to 4 million SHS by 2015

It is one of the fastest growing renewable energy programs in the world.

Achievements
Status:
1.9 million Solar Home Systems installed up to January 2013 (equivalent to 95 MW) Monthly installation is 60,000 systems

Beneficiaries:
9.5 million, 5.5% of the population

Savings:
110,000 tons of kerosene worth USD 90 million per year

Job creation:
30,000 direct and 40,000 indirect

780,000

800,000

720,000
624,168 468,978

Installation of SHS

700,000 600,000 500,000

325,067 220,000

400,000 300,000
200,000 100,000 11,697 20,635 27,579 37,151 69,562 169,916 103,301 421,946

Actual Installation

Projected Installation

IDCOL Biogas Program at a Glance

With support from SNV and KfW, IDCOL undertook biogas program in

2006 The objective is to develop and disseminate domestic biogas plants in rural areas in Bangladesh 38 NGOs/MFIs/private firms (PO) are working under the program. IDCOL provides grant & refinancing facility and technical assistance to its partner organizations A total of 100,000 biogas plants will be financed by 2016 Up to January 2013, about 26,000 biogas plants have been constructed.

 Mini Grid Project at a Glance Project Structure

Solar Mini Grid Project

Financing Structure Appliances used by the Beneficiaries Daily Load Pattern Electricity Generation Process

Mini Grid Project at a Glance

Project Company Location Land Area Project Capacity Project Cost Effective Tariff Rate

EPC Contractor
O & M Contractor Equipment Manufacturers

: PUROBI Green Energy Limited (PGEL) : Sandwip, Chittagong : 8,700 sq. ft. : 100 kW (40 kW back-up diesel generator) : USD 721,000 : USC 38.163 per kwh : Asantys Systems, Germany : Prokousoli Sangshad Limited (PSL)
: Kyocera, Japan

PV Module

Battery
Inverter Communication Web Box

: Hoppecke, Germany
: SMA Technology AG, Germany : SMA Technology AG, Germany

Project Structure

IDCOL
Debt Service Loan & Grant Provide turnkey solution

O&M Contractor

Payment

Provide O&M solution

Project Company (PGEL)

Provides grid connection

Payment

EPC Contractor

Tariffs

Supply equipments

Payment

Beneficiaries

Equipment Manufacturers

Financing Structure
Amount (in million USD) Debt Grant Equity 0.216 0.361 0.144 0.721 Percentage 30% 50% 20%

Total
Interest rate Loan tenor Grace period (principal) Repayment frequency

100%

: 6% : 10 years : 2 years : Semi-annually

Appliances used by the Beneficiaries

Small Shops
Basic
CFL Lamp Ceiling Fan Black & White TV Refrigerator

Health Centers
Basic
CFL Lamp Ceiling Fan

Schools
Basic
CFL Lamp Ceiling Fan

Equipments
Computer Scanner Laser Printer Color Printer Laminating Machine Soldering Iron

Equipments
X-Ray Machine ECG Machine

Equipments
Computer Printer

Daily Load Pattern

45 40 35 30 25 kwh 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Time of the Day

Mini-grid Projects in Pipeline of IDCOL

200 KWp AC Solar Mini-grid at Kurigram, Bangladesh

200 KWp AC Solar Mini-grid at Narshingdi, Bangladesh

100 KWp AC Solar Mini-grid at Kutubdia, Bangladesh 100 kWp AC Solar Mini-grid at Kutubdia, Bangladesh

100 kWp AC Solar Mini-grid at Sandwip, Bangladesh

134 kWp AC Solar Mini-grid at Rajsahi, Bangladesh 48 kWp AC Solar Mini-grid at Tangail, Bangladesh.

Major Challenges of Mini-grid projects

Higher upfront cost

Higher tariff
Requires long term investment Risk of grid expansion

Inadequate demand
Limited availability May not be feasible without some captive/certain consumption

Solar Irrigation Project at a Glance

Project Company

: Network for Universal Services and Rural Advancement (NUSRA)

Services
Location Cultivated Crops Solar PV Capacity Water Pump Capacity Total Pump Head Major Equipments

: Irrigation facility for paddy and vegetable cultivation

(119.55 bigha) : Dhamrai, Savar : Paddy & Vegetables : 8.4 kWp : 384,000 litres/day : 17.34 meter : Submersible solar water pump and solar PV modules

Equipment Manufacturer : LORENTZ, Germany

Project Cost
Tariff

: USD 43,750
: USD 15~USD 37.5 per bigha per season

USD 1 per hour

Financing Structure
Amount (in million USD) Debt Grant Equity 13,125 17,500 13,125 43,750 Percentage 30% 40% 30%

Total
Interest rate Loan tenor Grace period (principal) Repayment frequency

100%

: 6% : 8 years : 1 year : Semi-annually

Solar powered Telecom BTS Project at a Glance

Project

: Solar powered solution at 6 telecom sites of Orascom & & 10 sites of Grameenphone

Project Company
Location Project Capacity Project Cost Effective Tariff Rate

: Rahimafrooz Renewable Energy Limited (RREL)

: 16 separate locations at Chittagong and Barisal : 4.32 kWp per tower (10.4 kW back-up diesel generator) : USD 31,250 per BTS : USC 78.75~97 per kwh
: Suntech, China : Rahimafrooz Accumulators Ltd. : Outback Power Systems , USA : Crathos Generators and Power Systems, Germany : Outback Power Systems , USA

Equipment Manufacturers

PV Module Battery Charge Controller Generator Rectifier

Financing Structure
Amount (in USD) Debt Equity Total 18,750 12,500 31,250 Percentage 60% 40% 100%

Interest rate Loan tenor Grace period (principal) Repayment frequency

: 10% : 7 years : 6 years : Quarterly

Investment Projections in RE Sector

Installing 4 million solar home systems by 2015; Installation of 100,000 biogas plants by 2016;

Implementing 50 mini-grid projects and 1500 solar irrigation

pumps by 2016; Installation of 30 biomass and 45 bio-electricity plants by 2016; Financing 1 million Improved Cook-stoves by 2016

Investing BDT 4,000 million in the auto brick manufacturing plants by 2014.

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Government initiatives for RE

Remote Area Power Supply Systems Guidelines were adopted in 2007; Sustainable and Renewable Energy Development Authority (SREDA) Act,

2012 has been enacted

Rules under SREDA is being prepared with support from ADB; The Rules will provide for licensing of suitable areas for mini-grid projects through Public-Private Partnerships.

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IDCOL SHS program

11.2 kW solar irrigation pump

100-kW solar mini-grid project

IDCOL Biogas program

Solar powered solution for telecom tower

Biomass gasification based power plant 29