Status of Solar Home System in Bangladesh www.devi-renewable.com

1. Symposium on Small PV Applications
Status of SHS Dissemination
in Bangladesh
Experience with Physical, Financing and Technology
Shahriar Ahmed Chowdhury
Director, Centre for Energy Research
Assistant Professor, Department of EEE
United International University
E-mail: shahriar@eee.uiu.ac.bd
Monday; 6th of June, 2011

2. Highlights
 Energy Scenario of Bangladesh
 Progress of SHS project
 Functional structure of SHS Project
 Financial system of the program
 Technical status and maintenance
requirements of the SHS

3. Bangladesh
Area: 144,000 km2
Population: 158 M
Population density: 1097/km2
Location: 20o33’ – 26o38’ (N)
88o02’ – 92o41’
Neighbors: India, Myanmar and
Bay of Bengal
Per Capita Income: 450 US$
Per capita electricity consumption:
236 kWh
(6th in South Asia, above Nepal )
Electricity access: 49%
Average GH Irradiation: 4.7 kWh/M2
Source: BPDB Annual Report 2009- 2010

4. Bangladesh : Primary Energy Mix (in %)
Hydro, 0.34
Coal, 0.75 Gas, 45.97
Petroleum
18.33
Biomass
34.58
Source: Statistical Year book of Bangladesh 2009

5. Power (Installed capacity 5823 MW )
226 (4%) 230 (4%) 230 (4%) 250 (4%)
186 (3%)
1263 (22%) 335 (6%)
Gas
Hydro Furnace oil
Steam Turbine Diesel
2638 (45%) Gas Turbine Hydro
1466 (25%) Combined Cycle
4822 (83%) Coal
Diesel
Plant Type Fuel Type
Source: Annual Report of BPDB 2009-2010

6. Generation (Total 27,470 GWh)
Hydro
24316 (89%) Gas
Furnace oil
728.56 (3%) Diesel
728.56 (3%) Coal
517.36 (2%)
876.51 (3%)
Public sector generation: 58%, Private (IPP) generation: 42%
Cost of bulk Supply (BDT): 2.68 Average bulk tariff (BDT): 2.37
Source: Annual Report of BPDB 2009-2010

7. PV Electrification Program of Bangladesh
 SHS Rural Electrification starts in organized way
(RERED Project) in the year 2003 with the support
from IDA and GEF
 Initial Installation of the project target was 50,000
within 5 and half year in off grid areas of Bangladesh
 Initial target achieved 3 years ahead of completion
date and US$ 2M below the estimated cost
 Following the success IDA, GTZ, KfW, ADB and IDB
have extended support
 A revised target is set to 1 M SHS by 2012
 Starting with 5 POs, IDCOL now have 30 POs

8. Cumulative installed SHS
800
700
600
SHS (000s)
500
400
Start of
300
RERED Project
200
100
0
2004
2009
1997
1998
1999
2000
2001
2002
2003
2005
2006
2007
2008
2010
Year (-)
Monthly average, 2009: 14,000 Jan, 2011 : 36,443
Monthly Average, 2010: 27,000 Feb, 2011 : 32,312
Monthly Average, 2011 (Till May): 42,517 Mar, 2011 : 38,507
April, 2011 : 42,559
Total Installation (Till May, 2011): 977,109 [51.8 MWP] May, 2011 : 62,763

9. Installed SHS by Panel size
300
250
Installed SHS (000s)
200
150
100
50
0
10 20 21 30 40 45 50 55 60 65 75 80 85 120 130
Panel Size (Wp)

10. Market trends (SHS by Wp)
300
250
Installed SHS (000s)
200
20 Wp
150 40 Wp
50 Wp
65 Wp
100 75 Wp
85 Wp
50
0
2003 2004 2005 2006 2007 2008 2009 2010
Year (-)

11. Functional Structure of the Project
APPLIES for
compliance SEEK APPROVAL
Testing SUPPLIERS TSC
Authority Provides PROVIDES
certificates APPROVAL
PAY FOR SUPPLY
EQUIPMENT EQUIPMENT
SEEK GRANT AND
PO SELECTION APPLIES
LOAN
COMMITTEE SELECT
PO/NGO IDCOL
PROVIDE GRANT
AND LOAD
GRANT AND REIMBURSE
SOFT TERM CREDIT CREDIT
SELLS SHS AND SUPPLY
PROVIDE SERVICE EQUIPMENT
OPERATIONS
COMMITTEE CONSUMERS DONORS

12. PO wise installation (%)
Others
13.45%
SRIZONY
3.82%
BRAC
7.50%
RSF
13.91% GS
61.32%

13. Partners of the Project
 Government
 Sources necessary fund for the program
 Creates incentives (waiver of duties, tax benefits etc.)
 IDCOL
 Provides grants to POs to reduce SHS cost and capacity building
 Soft loan to PO
 Technical assistance (training, logistics and promotional supports)
 Donor Agencies [WB(IDA), GEF, KfW, GIZ, ADB, IDB]
 Provides grants and soft loans through IDCOL
 Technical assistance to the program
 Partner Organization (PO)
 Select Areas and customers and install SHS
 Extend micro credit to customers
 provide after sales services
 Manufacturer / Suppliers
 Sell SHS or its components to POs
 Professionals
 Technical specification and impact assessment

14. Committees
 PO Selection Committee
 Consists of representatives from IDCOL and
relevant government ministry and organization
 Select POs to implement the program on the
basis of micro finance experience, financial and
technical strength
 Technical Standard Committee (TSC)
 Consists of experts from University, Engineering
department of government and IDCOL
 Determines technical standards, reviews product
 Credentials of dealers and approves the eligible
equipment
 Operations committee
 Consists of program in charge from all POs
and representatives from IDCOL
 Looks after the operational aspects of the program

15. Audits
IDCOL appoints independent organizations to conduct two
types of audit:
(i) Financial audit
The objective of the financial audit is to ensure that the
households’ down payments are accounted for properly
and POs are utilizing the grants and refinancing for their
intended purposes only.
(ii) Technical audit
The technical audit is conducted to ensure that only TSC
approved equipment with their committed quality are
used under the program. Representatives of the PO and
suppliers accompany the technical audit team.

16. Trainings
PO personnel
To build awareness and capacity building among the staff of
the POs’ and the consumers.
Topics: SHS configuration, positioning of SHS, installation
procedure and guidelines with measurements, maintenance
and troubleshooting of SHS and batteries, guidelines for
monitoring and inspection of SHS, market
development, micro-credit methods for marketing.
Cost: 80% of the total expense is sponsored by IDCOL and
the rest is shared by the POs.
For Consumer
Since SHS is entirely new to the households, consumer
trainings are conducted regularly to educate them. They are
trained on how to use the SHS and fix petty problems without
waiting for the technician.

17. Other supports
Following supports are extended to POs by IDCOL:
i) Logistic support: Each PO is given a computer for efficient
documentation related to SHS installation. They are provided with
tool boxes, motorcycle, demonstration kit, hydrometers and battery
chargers for rendering better service to customers. Major share of the
costs is sponsored by IDCOL.
ii) Promotional support: distribute publicity materials to raise
awareness and popularize the use of SHS in different parts of the
country. Posters, leaflets, T-shirts, and billboards are distributed to
the POs for wider publicity of solar energy. TV and radio
advertisement are also developed and aired.
iii) Exposure visit: To experience with the diversified uses of the PV
systems and other RETs, visits to other countries are also organized
both for PO representatives and IDCOL staffs.

18. Development Impacts
 Provides illumination to rural areas.
 Increases income generating activities e.g. working
hours have been increased for small businessmen,
weavers, tailors, hair dressers, and handicraft makers.
 Students are getting benefits through extended hour of
studies at night.
 The use of TV and radio has enhanced rural people’s
access to the outer world.
 Study found that many women are feeling more secured
at night after installation of SHS.

19. Job creation
Partner Organizations
POs : 30
Offices : 2426
Technical staffs : 5700
Non Technical staffs : 6000
Manufacturers & Suppliers
Battery : 13
Charge Controller /Lamp : 22
PV Panels : > 100

20. Fund flow
Grant and Loan
Grant and Loan
IDCOL Debt service of
Government Donor
Debt service of
loan
loan
Grant and Debt service
Loan of Loan
Grant and Loan
PO Customer
Debt service of
loan
As of November, 2010 the POs are enjoying an average
collection efficiency (Loan repayment rate) of 97%

21. Refinancing
Donor agencies to IDCOL
IDA ADB IDB
Tenure 20 20 20
Grace Period 5 8 7
Interest rate 3% per annum 3-5% 3% per annum
Repayment frequency Semi-annual Semi-annual Semi-annual
IDCOL to PO
Tenure 6-8 years
Grace period 1-2 years
Interest rate (declining balance) 6%-8% per annum
Repayment frequency Semi-annual
PO to Customer
Tenure 1-5 years
Interest rate (declining balance) 12%-15% per annum
Repayment frequency Monthly

22. Financial status
Till June, 2010
Source Credit (Millions) Grant (Millions)
SHS Amount SHS Amount
IDA & GEF 491,000 US$ 124 75,000 US$ 7
KfW - 371,000 € 15
GTZ - 189,000 €8
ADB 128,000 US$ 33
IDB 60,000 US$ 16
GPOBA 232,600 US$ 7
Total 679,000 US$ 173 867,600 US$ 14 &
€ 23

23. Financial support reduction scheme
Amount of grant available per SHS
Item Total Buy-down grant Institutional
development grant
First 20,000 $ 90 $ 70 $ 20
Next 20,000 $ 70 $ 55 $ 15
Next 35,000 $ 50 $ 40 $ 10
Next 88,160 € 38 € 30 €8
Next 35,000 € 36 € 30 €6
Next 235,000 € 34 € 30 €4
Next 100,000 € 28 € 25 €3
Next 72,000 € 22 € 20 €2

24. Price breakdown for typical SHS system
Figures is in BDT
% of
Component 20 Wp 40 Wp 50 Wp 65 Wp
Total
Solar Panel 3330 6660 8325 10820 25  31
Battery 3850 6460 8800 10780 29  31
Charge Controller 850 850 850 850 36
Lamp Sets 1000 1700 2000 2500 7
Other Accessories 2000 3800 4800 5500 15  17
Transportation 400 500 500 700 23
Installation Cost 400 500 500 700 23
Operational Cost 1500 2000 2500 3000 9  11
Total Cost 13,330 22,470 28,275 34,850
Panel 2.38 $/Wp 1 Euro= 105 BDT

25. Findings from the last Technical Audit
Approach of the audit
I. Field observation and testing
 60 SHS visited out of 300,000
 6 out of 15 Partner Organisations visited
II. Manufacturer’s factory visit
 4 Battery Manufactures
 6 Charge Controller Manufacturers
 5 Lamp Manufacturers
III. Laboratory Testing
 SHS components (Batteries, Charge
Controllers, Lamp Circuits)

26. Azimuth, Tilt and shading of the installed panels)
Figures is in BDT

27. LVD and HVD of the installed charge controllers

28. Self consumption of the charge controllers
50
40
Self consumption (mA)
30
20
10
0
G1 . H1 . I1 . J1 . K1 . L1 .
Manufacturer

29. Deviation of the rated capacity (batteries)
140
Normalized rated Capacity (%)
120
100
80
60
40
20
0
A1 A2 A3 B1 B2 B3 B4 B5 C1 C2 D1 D2 D3
Battery Manufacturer

30. Specific gravity of the charged and
discharged batteries
Charged Discharged
1300
1250
1200
Sp. Gravity (-)
1150
1100
1050
1000
A1 A2 A3 B1 B2 B3 B4 B5 C1 C2 D1 D2 D3
Manufacturer

31. Efficiency of the lamp circuit (Inverter)
at LVD at HVD
100
Inverter efficiency (%)
80
60
40
20
0
P1 P2 Q1 Q2 R1 R2 S1 S2 T1 T2
Manufacturer

32. Crest factor of the lamp circuit (Inverter)
at LVD at HVD
2.2
2.1
Crest factor (-)
2
1.9
1.8
1.7
P1 P2 Q1 Q2 R1 R2 S1 S2 T1 T2
Manufacturer

33. Voltage and current waveform of the inverter
Voltage waveform Current waveform

34. Quality of switch of the installed systems (contact resistance)
acceptable [%] unacceptable [%]
100
80
60
40
20
0
<1 1-2 2-3 3-4 4-5 >5
Age of system
Sample size: 180

35. Voltage drop in the connected wire
acceptable unacceptable
100%
80%
60%
40%
20%
0%
P Q R S T U V W
POs

36. Recommendations after Technical Audit
 Well equipped national testing facility
 Mobile equipment testers for field testing
 A strong independent quality control
mechanism
 Upgrading the technical standards
 Standard packages for SHS
 Educating consumers in operation and
maintenance
 Proper training facilities for the field technicians
 Emphasis on Loss Reduction by use of
appropriate components