New Project Plan

8/2/2019 New Project Plan

http://slidepdf.com/reader/full/new-project-plan 1/18

1.0 Introduction

1.1 Origin of the Report

This project plan on “ Solar-powered Water Pumping Project in Rural Bangladesh”

was prepared as a requirement for the course Project Management (MGT 410),

instructed by our course instructor Mr. Abu Md. Abdullah, Faculty of Business

Administration, Eastern University.

1.2 Objective of the Report

The main objective of the report was to come up with a project proposal that wouldhave social and economic values in Bangladesh, and then come up with a project

plan to implement it.

1.3 Scope of the Report

There are vast amount of information available on solar energy implementation, for

our purposes we have mainly concentrated on solar energy implementation in the

Indian subcontinent.

1.4 Methodology of the Report

For the purpose of this report secondary data collection method was used. The

secondary data were mainly collected from various online sources.

1.5 Limitations of the Report

Due to constraints of time and availability of relevant data we could not provide a

much more in-depth analysis regarding the solar energy market of Bangladesh.

1



2.0 Alo

2.1 Industry overview

There is a looming energy crisis world-wide. It arises not only from shrinking

reserves of fossil fuels and the public concern on the continued use of fossil fuel for

energy generation, but also from ageing nuclear power plants (in the developed

countries) which are going to cease operation in a relatively near future. There is a

global realization that fossil fuel usage must be reduced drastically in order to arrest

green house gas (mainly CO 2) emission to the atmosphere, which causes global

warming. In fact, this aspect of global warming, rather than the imminent shortage

of fossil fuel, that is propelling all industrialized countries into taking urgent actions

now. Commercial nuclear power all over the world is undergoing an unprecedented

revival. But some countries, such as Germany, Italy and few others, are reluctant to

jump into the nuclear bandwagon and, instead, concentrating on research and

development of alternative sources of clean energy, particularly the solar energy.

Out of these alternative sources, solar power seems very promising. The following

diagram, Figure 1 , shows the world wide growth of solar photovoltaic power from

year 2000 to 2008. But even this fantastic growth is dwarfed by the phenomenal

growth that is anticipated from year 2009 to 2020, which is shown in Figure 2 .

2





supply to the fertilizer factories is going to affect the agricultural output. With load

shedding across the country, industrial sector is adversely affected, with the

consequence of reduced volume of industrial output and diminished export

earnings.

There are only 125,000 irrigation pumps for 22 million acres of cultivable land in

Bangladesh. Most of these are diesel driven, because only 30% of villages could

potentially be connected to electricity from the national grid. Electrification of the

remaining villages, by grid extension, may have a substantial short-term impact on

the economy, since electrically operated irrigation pumps are cheaper and service a

higher irrigated area per hour than diesel pumps. However, 85% of national

electricity generation is sourced from natural gas, with 46% already used directly inagricultural production. Natural gas reserves may be exhausted by 2015 if the

current trend of consumption is continued, and National Energy Policy predicts the

country would need to import fuel to meet a deficit of 6.75 % in electricity

generation by 2,000 and 47% by 2020. Currently, Bangladesh imports about 2

million tons of crude oil and petroleum products every year, which accounts for 9%

of the total import costs and requires 15% of the total export earnings.34

2.2 Company Overview:

Alo limited is a private limited business and will be formed within the next three

months. It will be located in rural Mymensingh and will serve the people of the

region with solar energy for irrigation pumps and lighting. It is coming in the

country for the first time to meet the problems of the people regarding electricity

and load shedding.

In the bigger picture, the possible benefits will include reliving some of the pressure

off the national power grid so that it can concentrate in providing power to urban

consumers. The use of electric pumps can improve productivity in agriculture and

provide cleaner water for the public water supply. Further future possible benefits

can include household lighting, the ability to refrigerate food and medicine, and

4



food processing. Access to electricity also can make grain milling and agricultural

processing less expensive and more convenient. The presence of electricity in a

village also can result in better lighting for schools, health clinics and public streets.

Solar powered water project in Khulna

Using solar power in a remote school in Naypara Refugee Camp, by UNHCR.

3.0 Operation plan

5



The operation of the system will be automatic. When the sun is shining the solar panels

will convert the sunlight into electricity. The system wiring will carry the power

through the charge controller and to the batteries. The power controller will turn the

pump on and off. The pump will get its power from the batteries continuously

throughout the day.

A typical solar water pumping system

3.1 System Requirements:

3.1.1 Location

The most important element for choosing a site for one of these systems is

access to unobstructed sunlight. Photovoltaic panels work optimally in

direct sunlight, and are not at all shade tolerant. Any shadows cast on the

solar panels will significantly reduce their power output. For this initial

system we are also looking for a highly visible location in order to get as

much public exposure for the project as possible.

The centre will have a size of 25 m x 15 m. There will be a few rooms, one

canteen and one workshop and some free space used for multiple purposes.

6



The rooms will be used for working and training purpose. The very simple

local construction methods will be used to build the centre. Supporting with

some steel pillars in every 5 m distance within all the major boundaries to

form the lattice structure on which the photovoltaic modules will be

installed, the roof of this centre will be constructed as monopitch roof with

an inclination of 5° covered with the corrugated sheet. The construction

work of the centre and the installation of modules could be done parallel

immediate after the competition of fundament of the centre.

Location

3.1.2 Power source

Each solar cell produces about 0.5 volts in bright sunlight. Solar

cells are linked together in a series to form a module and to

7



produce the required voltage. Solar modules are linked together

in a series and in parallel to provide the power levels needed for

the required application

Solar Modules

3.1.3 Motor/pump assembly

Off–the–shelf, mass produced motors and pumps can be used for solar water

pumping. Special pumps and motor have also been developed for solar systems.

Motor/pump Assembly

3.1.4 Power controllers

There are several types of power controllers available:

8



• Impedance matching devices (such as power maximisers)

• DC to AC inverters (used with AC pumps only)

• Switches and protective controllers.

Power Controllers and Inverters

3.1.5 Water storage

Solar water pumping systems are generally not designed to operate as on–

demand pressure systems. Water is pumped during daylight hours and stored for

use as required. Solar water pumping systems are generally not designed to

operate as on–demand pressure systems. Water is pumped during daylight hours

and stored for use as required.

Water storage

3.1.6 Components

9



Photovoltaic panels (either one or two 3'x 5' +/- panels, depending on if

the system will be powering lights only or with LED displays.

Mounting structure: An aluminum ‘A’ frame with all stainless steel

hardware will be integrated into the existing bus stop structure.

Charge controller and lighting controller: This device prevents the solar

panels from overcharging the batteries. It also provides lighting control

to turn the lights on and off automatically.

Batteries: Sealed, maintenance-free batteries will be used. Depending on

the size of the system the battery bank will be located either above the

shelter in a sealed enclosure, or in the house where it would be used.

Optional battery charger. At homes that have existing utility power

available, an AC battery charging circuit can be incorporated into the

system. This can help reduce the size of the battery needed, and will also

be an additional example of how a solar power system can integrate in

homes and businesses.

4.0Financial plan

10



4.1 Capital requiredInitially to start the production the firm required 33,70,000 taka where the start up

cost is 27, 65,000 taka and operating cost is 6,05,000 taka.

4.2 Start-up costThe start up cost of the business is that needed initially to start the business. To start

the business there are some fixed asset is required. These are

Description Amount

Equipment and machinery 15, 00,000

Land and building 10, 00,000Furniture and fixtures

40000Other fixed cost

40000Working Capital

50000Computer

45000Office room decoration

20000Other costs and services

20000Factory Van

50,000

Total Fixed cost / Start up cost 27, 65,000

4.3 Operating cost

11



To operate the businesses there are some operating cost. Total operating cost for the

company is 605,000 .

Description Amount

Raw Materials 1,00,000

Office rent 60,000

Wages and Salary 1,25,000

Marketing expenses 1,50,000

Utilities 40000

Operating inventory 50000

Other factory overheads 80000

Total Operating cost 6,05,000

4.4 Capital sourcesTo form the business financial stability is very much needed. The capital may

collect from various sources. These are –

• Bank

• Petron

• Personal savings.

4.5 Cash capital

The cash capital of the business will 65 percent of total capital that is about

21,51,500 Rest of the amount will be collect from financial institutes.

4.6 Credit capital

12



The company will manage 10 percent credit capital from raw materials suppliers.

That would be about 10000 taka.

4.7 Debit capital

The company will collect 25 percent of the total amount from the financial

institution as debt capital at the rate of 10%. The amount will be 842,500 taka.

4.8 Financial Projection

Financial projections of first one year financial projection will be as follows:

The main source of the fund will be personal investment that arises from

personal selling. About 40% of the investment will come from personal

saving. Another 30% investment will come from the bank loan. And the

30% of the fund is from the partners who will have claim only on profit.

The company thinks to raise funds from the primary market by offering

share after 2 year.

5.0Marketing plan

13



The product marketing plan involves engaging the consumer in the ongoing financial and

environmental benefits, and initial installation rebates. A value-based pricing strategy

reduces the focus on system cost by refocusing the investment on the value. The solarprogram initiatives should include the four classic elements of marketing — product, price,

place and promotion.

Marketing solar programs must also address all four primary barriers — cost, reliability,

complexity and inertia — to market growth in order to drive solar power installations. In

order for the marketing plan to succeed it must address the technology’s value proposition,

its perception of unreliability, the complexity of purchasing solar and consumer inertia.

A robust action plan will ensure consumer awareness is improved and sales are increased.

Consumer feedback will be collected to measure the effectiveness of the marketing plan,

using traditional external data collection tools.

6.0 Organizational plan

14



Once the project is completed and operations start, the managing director Masrur M. Haque

will take the helm, under whom the four other departments will work. MD Delowar

Hossain will be in control of financial issues, MD Khalid Hossain will be in charge of

accounting, Rezaur Rahman will over see operational activities and MD Shajus Uddin

Dhali will see to marketing activities.

7.0 Social & Economic Value

15



The social and economic values of using solar power are numerous; they can be

categorized into environmental, economic, social advantages.

7.1 Economic Solar Energy Advantages

• Can be permitted and installed faster than other traditional or renewable power plants.

• Has a predictable energy curve and is most efficient when utility rates are attheir highest.• Produces local, on-site energy, which reduces the need for extensive high-voltage transmission lines or a complex infrastructure.• Reliable over the long term. With no moving parts, fixed photovoltaicsystems last longer than other energy sources.• Predictable pricing that is equal to or below retail energy rates.• Solar water pumps perform at their best and provide water throughoutsummer months when demand is greatest.

7.2 Environmental Solar Energy Advantages

• Clean, quiet and visually unobtrusive in nature. Solar energy plants do nothave any polluting emissions, do not make any sound, and are not considered to

be an "eyesore."• Uses little to no water in the production of zero-emission electricity.• Can be placed in virtually every geographical region because the sun isavailable everywhere.• Offsets the need for polluting, expensive and inefficient "peaker" power

plants.

7.3 Social Solar Energy Advantages

• Creates clean, renewable energy that will sustain and support the health of future generations.

16



• Is a distributed generation ("DG") energy source that can mitigate nationalsecurity concerns about energy disruption.• Supports national energy independence because solar electricity is usedwhere it is generated.• This project is intended to provide electricity services in remote and isolated

rural areas where the cost of a grid electricity service would be prohibitively

high and could not be made available in the near future

8.0 s Conclusion

17



Implementation of this project will create tremendous enthusiasm about solar energy

technology. Replacing the diesel generator in rural areas by solar Photovoltaic will create

positive socio-economic impact and great enthusiasm among the local villagers, farmers.

This successful demonstration of solar energy technology to remote and end users level

will create good potential of expanding the project further.

18

New Project Plan

Documents