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 IDCOLA 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/ProjectsPrograms: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.
AchievementsStatus: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
720,000624,168 468,978
Installation of SHS
700,000 600,000 500,000325,067 220,000
400,000 300,000200,000 100,000 11,697 20,635 27,579 37,151
69,562 169,916 103,301 421,946
Actual Installation
Projected Installation
6
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
BatteryInverter Communication Web Box
: Hoppecke, Germany: SMA Technology AG, Germany : SMA Technology
AG, Germany
Project Structure
IDCOLDebt 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 StructureAmount (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 ShopsBasic CFL Lamp Ceiling Fan Black & White TV
Refrigerator
Health CentersBasic CFL Lamp Ceiling Fan
SchoolsBasic 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 Pattern45 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 IDCOL200 KWp AC Solar
Mini-grid at Kurigram, Bangladesh
200 KWp AC Solar Mini-grid at Narshingdi, Bangladesh100 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, Bangladesh134 kWp AC
Solar Mini-grid at Rajsahi, Bangladesh 48 kWp AC Solar Mini-grid at
Tangail, Bangladesh.
Major Challenges of Mini-grid projectsHigher upfront cost
Higher tariffRequires long term investment Risk of grid
expansion
Inadequate demandLimited 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)
ServicesLocation 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 CostTariff
: USD 43,750: USD 15~USD 37.5 per bigha per season
USD 1 per hour
Financing StructureAmount (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 StructureAmount (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 SectorInstalling 4 million solar
home systems by 2015; Installation of 100,000 biogas plants by
2016;
Implementing 50 mini-grid projects and 1500 solar
irrigationpumps 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.
20
Government initiatives for RERemote Area Power Supply Systems
Guidelines were adopted in 2007; Sustainable and Renewable Energy
Development Authority (SREDA) Act,
2012 has been enactedRules 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.
21
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