Solar Energy Report

1. Brief Overview of Renewable Energy in Bangladesh

Overview Renewable energy provides a significant potential source of energy with benefits of reduced negative environmental impacts, provision of electricity in remote locations(off grid locations), also the fact that only 35% of the country’s 15 million population have access to electricity, and hence reduced reliance on fossil fuels which are either imported(oil) or depleting(gas reserve). Bangladesh government has a vision to make electricity available for all by 2020. But to meet electricity 100% by 2020, Bangladesh need to increase generation every year by 1000 MW. But Government of Bangladesh do not have sufficient fund to meet this goal, so it must welcome foreign investors and donor organizations to invest in the power sector. The government has drafted a Renewable Energy Policy which is expected to be finalized very soon. However, current share of Renewable Energy Technologies (RET) in electricity production is very low. Conventional hydro produces only 4% of electricity. Solar and wind contributes less than 1% at the time. The government proposed target is to generate power utilizing new renewable technologies to share 5% of total electricity demand by 2010 and 10% by 2020. Energy experts believe solar has brighter future in Bangladesh compared to other renewable sources (please refer to the below table)

Renewable Source Advantages DisadvantagesWind power - Clean

- 724 km coast- Many small

islands

- limited only to coastal areas due to availability of steady wind

- CostSolar Power* - Plentiful

- Clean- Easy to use in

rural areas and decentralized areas

- Commercialization of solar is a distinct possibility now

- Expensive

Hydroelectric power - Clean- One existing dam

- Limited by location

- Limited by seasons

Nuclear Power - Feasible - Clean

- Disposal issues- Cost

Biomass(dung) -Feasible in rural areas, and decentralized areas

- Conservation

* Most feasible option, as per governmental research

Suitable geographic location for solar energy

Carbon Trading Opportunity

As experts pointed out during the interviews for this research, that there is immense potential for the use of solar PV technology in Bangladesh. Photovoltaic is a proven viable option in remote areas. Also the fact that solar irradiation in different regions of Bangladesh is sufficient for cost effective application of solar photovoltaic electrification. Geographically, Bangladesh is situated in an ideal location for solar energy utilization. Average solar radiation varies between 4 to 6.5kWh each day. At a minimum, Bangladesh receives about 4.5kw-hr/m2 per day while the global rate varies between 3.8 to 6.4kw-hr/m2 per day. Maximum amount of radiation is available in the month of March – April and in December – January. According to scientific studies, the yearly direct solar energy available in the whole of the country is estimated to be 25,610 million tons of coal equivalent. Therefore, experts believe that solar photovoltaic applications can be implemented on a large scale in Bangladesh.

Solar power utilization is being accepted gradually, but its slow progress is due to high initial cost, low daily operation time, and lower output levels. Bangladesh is ideally located for trapping solar energy effectively. The period of February to June provides excellent sun coverage over Bangladesh, followed by reasonably good sunshine during September and October. The winter months of November to January and the peak monsoon months of July and August are less reliable for sunlight. But in spite of having a long rainy season, the overall solar energy resource in Bangladesh is a very promising one throughout the year.

Bangladesh is continuing its efforts for harnessing its solar power for reaching electricity in remote rural areas, where supply of traditional electricity will not be possible in foreseeable future. The people in these areas will need electricity for household use as well as for running hospitals, vaccine refrigeration, telecommunication, cyclone shelter and navigational lighting system.

Although there are good prospects for solar PV system in Bangladesh, potential commercial market development has rather been limited. The government (funded by the international donors), private sectors and NGOs are taking increasing initiatives towards development of solar energy utilization in the public sector as well as off-grid locations.

Experts believe that Bangladesh can benefit from carbon trading by engaging in renewable energy projects which will qualify for carbon credits under the clean development mechanism (CDM) – an arrangement under the Kyoto protocol encouraging industrial countries to invest carbon cutting initiatives in developing countries. Although a low carbon emitting country, Bangladesh has yet to tap into the global carbon credit market across various sectors.

2. Electricity Generation Situation & the Development Plan

Bangladesh’s Power situation

Bangladesh is an energy starved country with per capita energy consumption is only 136kwh which is one of the lowest in the world. Only 35% of the people have access to grid electricity, most of them living in the urban areas.

Another important feature of the rural market is that only 20% of the rural people have electricity. In the absence of grid electricity, most rural people depend on kerosene lamps for light.

Vision 2020 - Development Plan upto 2020

Items Year

2003 2007 2012 2020Installed Capacity, MW 4,710 6,716 9,810 17,500Peak Demand, MW 3,622 5,368 7,887 14,600Net Generation, Mkwh 18,458 28,651 39,157 79,250No. of customers, million 7.1 9.0 12.5 24.30Per Capita Generation kwh

144 190 260 470

Access to electricity 32% 47% 65% 100%Investment requirement ($in billion)

3.60(2004 - 07)

4.50(2008 - 12)

7.00(2013 – 20)

The above table suggests Bangladesh government’s ambitious plan related to power generation, with ever depleting gas and not yet realized planned coal extraction for power generation, the importance of solar energy in the total energy mix cannot be over emphasized.

Commercialization of Solar Energy in Bangladesh

The Government will make installations of solar panels mandatory

Although the renewable energy including solar energy systems is yet to assume commercial dimensions but experts believe that commercialization of solar PV technology is a distinct possibility now. Some niche opportunities already exists in the telecom sector, where mobile phone companies are seeking hybrid (power generator and solar panel) solutions for network stations situated all over Bangladesh. Companies like Rahim Afrooz, a commercial organization active in the solar energy sub-sector, have provided one such hybrid solution to Grameen Phone (the largest mobile phone service provider in Bangladesh) recently. To Grameen Phone, solar energy brings a no. of benefits:

o Green energy which supports CSR(corporate social responsibility) concept

o CDM : emission reduction carbon credits o Potential cost savings over the period of the life of the product

Encouraged by its success after implanting one hybrid power system, Grameen Phone is now actively considering installation of similar systems in other stations country-wide which would cost approx. BDT 150 crore. Similar opportunities exists in the telecom sector with other mobile phone operators, such as Banglalink, AKtel, City Cell, Warid telecom etc.

Experts believe, other industrial organizations (both local and foreign) may pursue similar strategies in future. The General Manager of Rahim Afrooz commented that “ our company being the largest battery, inverter circuits manufacturer and CFL (energy saving lamps) supplier in the country, we are in an ideal position to play an important role in the commercialization of solar PV technology in corporate Bangladesh”. Rahim Afrooz has set standards for charge controllers, inverter circuits and lamps and develop local production of all components other the solar module. Elaborating on the variety of target customers, the General Manager of Rahim Afrooz commented that “our experience ranges from Solar Home Systems (SHS), vaccination refrigeration, water pumping, drip irrigation, telecom back up system”.

Perhaps the most encouraging news was that the Bangladesh government have decided in principle to bring changes in the existing building code making installations of solar panels on top of high rise buildings mandatory/compulsory to reduce dependency on conventional power sources. Bangladesh’s Power Ministry has been working on the recommendations to make necessary changes in the building code to make the installation of solar panels mandatory. The Ministry believes that change in the building code and adoption of renewable energy policy will help expansion of solar and other renewable energy projects all over the country.

The Power Secretary commented that his ministry has already asked the Power Cell, to formulate a guideline and incorporate the issue of mandatory use of solar panels in high rise buildings instead of normal glass sheets. The Power secretary al so commented that “initially, the installation cost might be higher, but in the long run it will benefit the building owners as they will not have to pay any bill for consumption of renewable energy”

Solar Power in Bangladesh

Bangladesh’s advantage & Opportunity in solar energy

Opportunity of Solar PV manufacturing/assembling in Bangladesh

Of all the renewable technologies (except for hydro) Bangladesh has made the greatest progress in solar energy. In 2007-08, about 80% of power generation from renewable sources was from solar energy. From currently installed capacity, more than 8MW electricity can be generated every year.

Solar energy generation in Bangladesh is achieved by the use of PVs, mostly in the form of small home systems (SHSs). These SHSs are installed in rural areas of Bangladesh, which so not have access to conventional grid connected electricity.

REEIN (Renewable Energy & Environmental Information Network) Bangladesh reported that as of May 18, 2008, 198,842 SHSs have been installed in the country. A number of non government organizations (financed by IDCOL) are selling the solar PVs, performing installations and providing all sorts of after sales services.

Bangladesh is located at a very suitable geographic location to generate a huge amount of power. The solar and wind energy resources assessment project (SWERA) states that “the total yearly amount of solar radiation available in Bangladesh is 10,000times the current electricity generation. Such estimates leads to the conclusion that even if the country uses 1/1000 of the entire surface of the country (at minimum 10% level of efficiency) it can generate the same amount of electricity as produced by all conventional sources. The World Bank estimates that there are about 4.8 million people in off-grid locations who have the need for SHS. However, only about 5% of the off-grid household demand has been fulfilled or met at present. The government of Bangladesh has planned to increase the number of SHSs to one million, but such an increase will only serve a small share of untapped market. Therefore, huge market expansion possibility exists in terms of installing SHSs. Another potential direction of SHS expansion could be the installation of these systems in urban areas as a back up during power outages.

Stand alone solar PV systems are larger than the SHS, already installed in off-grid locations in Bangladesh. For example, hospitals, handloom units, rural markets and commercial centers have been identified by SWERA-Bangladesh project to be very suitable targets for solar PV systems. There are 1383 hospitals, and about 212,481 handloom units. A world bank report also suggested that “there are nearly 10,000 rural markets and commercial centers in the country which are excellent markets for centralized solar photovoltaic plats.

The demand of solar modules is escalating in Bangladesh. To tap the growing demand for green energy at home and abroad, couples of the local company already setup solar panel assembling plants in Bangladesh. Industry insider said, locally manufactured panels would be cost effective and spur expansion of the sector.

In our latest investigation found, three local company set up assembling plant in Bangladesh and active with their solar panels. Additionally these companies providing related other products which has good marketability in local market such as solar power plant, solar commercial system, solar industrial system, solar irrigation water

pump, solar telecom system solar powered water pump, demand market has are stest And if Bangladesh has to fulfill the target of installing 1million SHSs, the country would require huge number of modules. To this end, establishing a solar module manufacturing/assembling facility (taking advantage of cheap labor) not only can serve the local market but also can create opportunity to export to subsidized and developed world markets.

IDCOL & the success of Solar Home Systems in Rural Areas

IDCOL Program’s Major Participating Organizations & their role

IDCOL grants and financial terms

System. Solar telecom system for BTS tower, solar water heater, solar home appliances with the help of their foreign partner. This is noteworthy, beside SHSs rest of other products is being imported as CKD form.

and most of the that Although there has been attempts made by government and non-government organizations and development partners over the last three decades but the real success of solar home system was realized through the introduction of IDCOL in 1998. Infrastructure Development Company Limited (IDCOL) is the only local public-private financial institution and the largest financial institution working for the promotion of renewable energy in Bangladesh. It is funded by multilateral agencies i.e., World Bank, Kfw, GTZ, SNV, ADB and others. It works to provide soft loans, grant and technical support for the promotion of solar home systems across Bangladesh.

IDCOL works closely with NGOs/MFIs (micro credit financing institutes) and private businesses to implement it’s solar program in Bangladesh. The main role of the partner organizations is to select project areas, potential customers, extend loans, install the systems, and provide maintenance support. Except for providing grants and loans, the IDCOL also sets technical specification for solar home systems, provides training and monitors the performance of partner organizations (POs).

o IDCOL – provides grants, refinance and technical assistance to POso Participating Organizations (POs) – implement the project through installation

and maintenanceo Local and foreign suppliers of SHS componentso Technical Standard Committee (TSC) – sets the technical specifications for

solar home systems

As per agreement with World Bank, IDCOL’s initial installation target of solar home systems was 50,000units by the end of June 2008. It was decided to implement the solar home systems through the partnership with 15 partner NGOs who have the micro credit experience. This was seen as important because the target population do not have access to the grid, they have limited purchasing power, and role of micro credit becomes important. These NGOs have the experience of extending micro credit to the target group and have field offices spread all over Bangladesh. Field office is responsible for installation and maintenance of system as well as collection of payments from customers in installments.

The IDCOL solar program was so successful that the initial target of 50,000 units was achieved in September 2005, 3 years before the schedule. About 190,000SHSs have been installed under IDCOL solar program up to March 2008.

IDCOL provides $50/SHS as grant for each system, which was $90/SHS at the initial stage of the project. Grants are gradually reduced with the number of systems sold, i.e., systems installed earlier received higher amount of grants then systems installed

later. IDCOL provides loans at 6% interest with 2 years grace period and 10 years repayment period.

Components of Solar Home System

Local Production

Installation of SHS under IDCOL Solar Energy Program

Major NGO’s & their target

A solar home system includes the following: o Photovoltaic moduleo Batteryo Charge Controllero Inverter o CFL lamps, solar LED lanterno Cables & Switches

Except for the solar PV module, other components are produced locally. Rahim afrooz, a renowned local battery supplier and exporter, has doubled its capacity to meet the demand of the IDCOL solar project. It has been reported that Grameen Shakti, the largest NGO working in the solar sector, holding more than 65% share in SHS system installation in Bangladesh, have signed a joint venture agreement with a German company to assemble Solar PV panels locally.

Year Annual Installation Growth Rate2003 17,000 -2004 20,000 17.64%2005 25,000 25%2006 36,000 44%2007 70,000 94%2008 85,000 21.4%

2009(projected) 115,000 35.3%Source: IDCOL

Grameen Shakti : the company has installed approx. 130,000 SHSs in rural Bangladesh. The company’s solar photovoltaic (PV) program is internationally renowned. Grameen Shakti is one of the fastest growing rural based renewable energy companies in the world. The company has a plan to install 1 million SHSs by 2015.

BRAC Foundation: BRAC is arguably the largest NGO in the world and their renewable energy organization “BRAC Foundation” have installed around 40,000 SHS units. They have a plan to install more 50,000 units of SHS by 2011.

Rural Services Foundation (RSF): RSF is the third largest participating organization in IDCOL solar program. They have a plan to install 30,000 units of SHS by 2011.

There are 12 other NGOs involved in the IDCOL solar program as participating organizations and their targets vis-a-vis performances are strictly monitored by IDCOL. It is due mainly to participating organizations performance, that IDCOL was able to secure funding from other donor organizations. IDCOL officials commented that the current level of funding would help install .5 million of SHSs in the off-grid locations country-wide.

Installation of SHS by organization

Other Solar Programs in Bangladesh

An Example of public sector procurement

Renewable Energy & Environmental Information Network (REEIN) reported that as of May 18, 2008, 198,842 no of SHSs have been installed. The following chart shows the number of SHSs installed by non-government organizations under IDCOL solar program:

Source: Renewable Energy Info Network (REEIN)

Besides SHS, there is another market for solar panels which lies with the public /government sector, funded by the donor agencies. The below is a typical example of a project.

Sustainable Rural Energy (SRE) Project: The project was undertaken by the Local Government Engineering Department (LGED) with the support from the UNDP. The objective of the project was the “demonstration of renewable energy technologies, capacity building for technology transfer and wide dissemination of those technologies in the off-grid areas. By September 2007, LGED procured the following PV systems under the project loan, financed by UNDP.

More specifically, Under the project, LGED procured solar PV modules of following capacities:

o 225Wp PV solar lighting system at Sherpur areao 10kw pilot wind solar hybrid power generation units at the St, Martin islandso 2.6KWp SHS in 35 houses in Thakurgaon district and 1.7KWp SHS to a

cluster of villages in Sherpur areao 5 KWp centralized A/C solar power unit for 72 families in Cox’s Bazar 1.8KWp

centralized solar power supply unit for 50 shop keepers at Gangutia to extend their evening time business hours

o 1.5KWp solar powered rural health clinic in Khulnao 6 KWp solar PV pumping project at Rajshahi division

Suggestions for Korean companies to be competitive in government procurement

Demand of Solar PV Modules in Bangladesh

Countrywise Import Statististics

Government organizations such as LGED, and to a lesser extent REB(Rural Electrification Board) and BPDB (Bangladesh Power Development Board) procure solar PV modules time to time by inviting international tenders. Korean companies may take part in such opportunities to supply solar PV modules in collaboration with their local representatives/agents. Role of local agent cannot be overemphasized, as advance information on these tenders is important in order to be competitive in the tender bid and also because government tender projects involve huge paper work from the suppliers/participants. A good agent can provide advanced tender information due to his connection with the government and can work out a strategy with the Korean supplier to win the tender.

Except for the solar PV module, other components are produced locally. The approximate market size for solar PV modules in Bangladesh is $ 14.8 million. Since there is no local manufacturing of solar PV modules in Bangladesh, the demand trend for solar PV panels must coincide with the year-wise import statistics, collected from Bangladesh Bank as below: HS Code :8541.40.10 (Amount in USD)

Year* Annual Import Growth Rate2005-06 3,906,4142006-07 13,825,488 2007-08 14,787,912

(Source: Bangladesh Bank)* year means a fiscal year, that starts in July and ends in June in the following year

The above suggests a phenomenal rise of import of solar panel during the period 20067-07 over the previous year. Fiscal year 2007-08 maintains a positive growth rate as well. The above figures are in line with annual installations of SHSs, currently regarded as the largest and the fastest growing market segment in the solar energy market in Bangladesh.

The following is the country-wise import statistics for the year 2007-08

(Amount in USD)Country Import AmountCanada 502,472

India 2,440,365Japan 1,208,171

Republic of Korea 54,900

Singapore 10,560,146

China 21,858

(Source: Bangladesh Bank)

4. Competitive Landscape

Market Share of Different Brands

(Source: the importers & agents)

The above chart shows that Kyocera is clearly the market leader with 75% market share. The local agent informed that although it is a Japanese brand, Kyocera is mainly imported from Singapore. The Singapore office, Kyocera Asia Pacific Pte. Ltd., receives L/Cs directly from the local buyers such as the NGOs etc. All the above brands are registered with IDCOL, the financial institution, a necessary prerequisite for doing business in IDCOL supported solar program.

In 2008, two more Chinese company have been registered with IDCOL, namely Yingli Solar and Solar land. While Kyocera is represented by Bangladesh Advanced Energy Systems, Suntech, Contennial Solar are being represented by Rahimafrooz Renewable Energy Ltd. So far, there is no Korean company registered with IDCOL, the government organization in Bangladesh.

Price (C&F) of Solar PV Panel

All the registered brands are supplying the solar PV panels at the below price range: C&F price ranges between UDS 3.20 to USD 3.60 per Wp for each solar panel. The agents informed that the price has slightly gone up due to the higher prices of silicon in the international market. However, Kyocera being a leading company in the world, is in a position to leverage from its global business (forward contract of raw materials such as silicon) and could offer a competitive price for Bangladesh market.

Kyocera is offering a product warranty period of 20 years for the solar PV modules. Currently IDCOL allows photovoltaic modules in the capacities from 16W to 220W for IDCOL solar program. For example, Kyocera has got the approval for the following ranges: 40W, 50W, 60W, 65W, 70Wm 80W, 85W, 120W, The most sellable wattage is 40W & 65W. Other capacities also have a moderate to good demand.

Approval from the Technical Committee

Required Technical Specification for PV Module

To be able to supply Korean PV modules in IDCOL solar program, the Korean supplier would have to get the product approved by the IDCOL technical committee. The committee consists of IDCOL and government officials & academicians from BUET (Bangladesh University of Engineering &Technology). Each month they hold one technical committee meeting and they consider application from a foreign supplier. It may take 1 month to 3 months to get an approval from the committee. However, local agent’s influence and proactive role is considered important in getting the approval in a quick time.

The Korean company will have to apply to IDCOL (preferably through local agent/representative) in the below address:

Executive Director & CEOInfrastructure Development Company Ltd.UTC Building, 16th Floor, 8, Panthapath, Kawran Bazar, Dhaka-1215

The following are applicable standards for PV modules:

o International Electro technical Committee (IEC) 61215 certification: Crystalline silicon terrestrial PV modules design qualification and type approval

o IEC 616646: Thin film silicon terrestrial PV modules design qualification and type approval IEC 60904 -1: Photovoltaic devices part 1 measurement of PV current-voltage characteristics

o IEEE 1262: Recommended practice for qualification of photovoltaic moduleso IEEE 1262: Recommended practice for Qualification of PVo PV GAP recommended standards are preferredo The photovoltaic array will consist of one or more flat plate photovoltaic

modules. Each module should comprise of no less than 36 series –connected single or poly crystalline silicon solar cells. Flat plate thin film modules could also be used

o The photovoltaic module should have a peak power output of at least 30wpo All modules must be product tested and certifiedo Each module must be factory equipped with weather proof junction box with

terminal strip that allows safe and long lasting wiring connection to the module. Where applicable, protective diodes should be used to avoid the effect of partial shading.

o Each module must be labeled indicating manufacturer, model number, serial number, peak watt rating, voltage and current at peak power, open circuit voltage and short circuit current of each module

Market Opportunities for Korean Supplier of PV Modules

SHS Market: IDCOL estimates that only about 5% of the off-grid household demand has been fulfilled through IDCOL solar program. As the government is planning to increase the number of SHS to one million, there lies a vast opportunity for Korean supplier in this important segment of the solar market.

Urban Market: Another potential direction of SHS expansion could be the installation of those systems in urban areas as a back up during power outages.

Business Segment: Tap into business segments with larger stand alone PVs: Experts suggests that there are nearly 10,000 rural markets and commercial centres in the country which are excellent markets for centralized solar photovoltaic plants.

Private companies with conventional back up power generation system: Experts commented that most of the big users (Steel corrugation and re-rolling mill owners) own diesel and gas generators as back up, they want to switch to hybrid solutions with solar panels but fear that the initial invest would be too high. Growing awareness of carbon trade and how the system could work in their favor and corporate social responsibility as well as some sort of favorable financing arrangements could make it very good opportunity for solar energy solution providers in the future.

Real Estate Sector: There will be a viable commercial market for solar PV panels in the real estate/housing sector, if existing building code has been changed and government make it mandatory for high rise buildings to use solar panels at the roof top.

Opportunity in the telecom sector: Also there exists an opportunity in the telecom sector, specifically. Grameen Phone, the country’s number one mobile phone service company have installed 4,000 units of solar PV modules in 2007, following the success of two pilot hybrid projects installed in two of the mobile network towers. Grameen Phone is going to purchase another 12,000 units within 2008. The company has already floated a tender in this connection. They will install the solar panels as a hybrid solution to their existing power back up system for network towers. Two of the earlier pilot projects were installed by Rahimafrooz in 2006. Grameen wants to showcase this as a part of their corporate social responsibility drive. Similar opportunities exist with the other mobile phone companies i.e., Banglalink, Warid Telecom and AKTel.

Opportunity with public sector: Government organizations such as LGED, REB and BPDB procure solar panels by inviting international tenders from time to time. These projects are funded by multilateral agencies such as UNDP. However, the product specification is project specific.

Solar PV manufacturing/assembling: In view of the growing demand driven in part by the rural SHS market and future real estate market requirement, the country would require huge numbers of modules. Experts commented that establishing a solar module assembling/manufacturing facility may meet the local demand and also export to the subsidized and developed world markets.

Marketing of Korean Solar PV Panels

Import duty & Current regulations

Regulations

Distribution & Sales Channels:

The primary channel for selling Korean solar panels in Bangladesh is through a resident agent or representative (indenter or distributor). In the private sector businesses and non government organizations prefer deals with exclusive agents to solve possible future technical problems. It is also helpful for a Korean supplier to have an exclusive agent in order to monitor the progress of an approval from IDCOL and also some of the major projects both in the private and public sector. The agent can provide information on upcoming sales opportunity, and work out strategies to win tenders. In solar panel business exclusive arrangements are common where brand name is considered as important.

Finding the right local partner:

Korean supplier may appoint a Bangladeshi firm as an exclusive or non-exclusive agent. The local agent should be reputable, imaginative, proactive, politically astute and well connected and also technically competent. A local agent may be authorized to service the customers, to bid on government tenders, or to place orders or book indent orders for his own account. Our experience suggests that a local agent, which represent more than one foreign companies in the same sector, may not be as effective as an agent working solely on behalf of a Korean firm, which can be more aggressive in pursuing a product or product line. Close political ties with the government of the day do not automatically guarantee success, as new governments have delayed or re-tendered deals done by their predecessors.

The local agent should be given instructions to provide advance information regarding potential sales opportunities and government procurement projects, since the government tender procedures are complicated and require considerable paper work and lead time to prepare a sound, competitive bid. Local agent should be given adequate product information in order to promote the Korean product in the market.

The government of Bangladesh has recently reduced the import duty from 5% to 3% in fiscal year 2008-09. The current duty structure is as follows:

Import duty …………………3% VAT ………………….15% AIT ………………….1.5%

Government is set to adopt the country’s first renewable energy policy aiming to explore the untapped resources for meeting 5% of the total electricity demand by 2015 and 10% by 2020. Attracting private sector investment in renewable energy sector and tapping the country’s huge potentials of electricity generation from unconventional sources of energy are also objectives of the policy. The high government officials commented that entrepreneurs of the renewable energy projects will be exempted from corporate tax for a period of 15 years.

Under the current caretaker government of Bangladesh, the council of advisers are set to approve the new policy by the first week of December.

According to the new policy, the government will form an independent institution –sustainable energy development agency(SEDA) – which will be established under the companies Act 1994, as a focal point for sustainable energy development and promotion.

List of Potential Agents

Following companies were interested to represent the Korean supplier of solar PV module in Bangladesh.

1. Mr. Arif ud doulaManaging DirectorMicro Electronics Ltd. Mobile: 88-01711525749Fax: 880-2-8012266Email: [email protected]: The company is an active player in solar energy field; they also participate in government tenders. They are keen to represent Korean PV module in the solar energy sector.

2. Mr. Sohel General Manager Rahimafrooz Renewable Energy Ltd. Tel: 8832206 -8Fax: 8832209Email: Comment: a renowned company in the solar energy sector. They are representing Suntech of China and ------------ of Canada for solar photovoltaic module. The company is the largest manufacturer of battery in Bangladesh. Following the success of solar home systems in 2008 the company has doubled their production capacity of batteries. They also produce florescent lamps/luminaries/CFL lamps. They are in unique position to supply the solar home systems in a bundle/package. They are also interested to hear from the Korean suppliers of solar panels.

3. Mr. Nurul AktarDirector, Energypac Electronics Ltd.

Mobile: 01722539900 Website: www.energypac-bd.com Comment: Manufacturer of electronic lamps, reputed company in the conventional power generator business. Want to represent Korean company in the solar energy field.

List of other useful contacts

Below contacts might be considered useful, if Korean companies want to learn more updates on solar energy projects in the private and public sector in Bangladesh:

1. Hirak Al-HammadSenior Investment Officer (Technical) Infrastructure Development Company Limited (IDCOL) Tel: 880-2-9114385, 8111235Fax: 880-2-8116663Email: [email protected] Comment: useful contact to learn anything on IDCOL supported solar program

2. Mr. Aksar KamalGeneral ManagerGrameen Shakti Tel: 880-2- 9004081, 9004314Comment: Grameen Shakti is the number one player in the procurement and installation of SHSs in Bangladesh. The company has 340 unit offices covering all 64 districts in the country.

3. Mr. Tanweer HossainProject Manager

Local Government Engineering Department (LGED) Tel: 880-2-8144058, 01714130333 Email: [email protected] Comment: LGED is the government organization which implement UNDP funded solar projects. Korean company may know about potential tender opportunities with LGED from the above contact person

4. Mr. Rashed Mahmud JewelManager, MarketingBangladesh Advanced Energy Systems Tel: 880-2-8620934, 01911484310Comment: The company is the exclusive agent of Kyocera in Bangladesh. Mr. Jewel is a useful contact for information.