Symposium on Small PV Applications

Status of SHS Dissemination

in Bangladesh

Experience with Physical, Financing and Technology

Shahriar Ahmed ChowdhuryDirector, Centre for Energy Research

Assistant Professor, Department of EEEUnited International UniversityE-mail: shahriar@eee.uiu.ac.bd

Monday; 6th of June, 2011

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

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

Bangladesh : Primary Energy Mix (in %)

Gas, 45.97

Biomass

34.58

Petroleum

18.33

Coal, 0.75

Hydro, 0.34

Source: Statistical Year book of Bangladesh 2009

Power (Installed capacity 5823 MW )

Source: Annual Report of BPDB 2009-2010

230 (4%)

2638 (45%)

1466 (25%)

1263 (22%)

226 (4%)

Plant Type

Hydro

Steam Turbine

Gas Turbine

Combined Cycle

Diesel

4822 (83%)

335 (6%)

186 (3%)

230 (4%) 250 (4%)

Fuel Type

Gas

Furnace oil

Diesel

Hydro

Coal

Generation (Total 27,470 GWh)

Source: Annual Report of BPDB 2009-2010

Public sector generation: 58%, Private (IPP) generation: 42%

Cost of bulk Supply (BDT): 2.68 Average bulk tariff (BDT): 2.37

728.56 (3%)

24316 (89%)

876.51 (3%)

517.36 (2%)

728.56 (3%)

Hydro

Gas

Furnace oil

Diesel

Coal

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

Cumulative installed SHS

0

100

200

300

400

500

600

700

800

19

97

19

98

19

99

20

00

20

01

20

02

20

03

2004

20

05

20

06

20

07

20

08

2009

20

10

SH

S (

00

0s

)

Year (-)

Start of RERED Project

Monthly average, 2009: 14,000 Jan, 2011 : 36,443 Monthly Average, 2010: 27,000 Feb, 2011 : 32,312Monthly Average, 2011 (Till May): 42,517 Mar, 2011 : 38,507

April, 2011 : 42,559Total Installation (Till May, 2011): 977,109 [51.8 MWP] May, 2011 : 62,763

Installed SHS by Panel size

0

50

100

150

200

250

300

In

sta

lled

SH

S (

00

0s)

Panel Size (Wp)

10 20 21 30 40 45 50 55 60 65 75 80 85 120 130

Market trends (SHS by Wp)

0

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008 2009 2010

In

sta

lled

SH

S (

00

0s)

Year (-)

20 Wp40 Wp50 Wp65 Wp75 Wp85 Wp

Functional Structure of the Project

SEEK APPROVAL

PROVIDES APPROVAL

DONORS

REIMBURSE CREDIT

IDCOL

TSC

PO/NGO

OPERATIONS COMMITTEE

PO SELECTION COMMITTEE

SUPPLIERS

CONSUMERS

APPLIES

SELECT

SEEK GRANT AND LOAN

PROVIDE GRANT AND LOAD

PAY FOR EQUIPMENT

SUPPLY EQUIPMENT

GRANT AND SOFT TERM CREDIT

SELLS SHS AND PROVIDE SERVICE

SUPPLY EQUIPMENT

Testing Authority

APPLIES for compliance

Provides certificates

PO wise installation (%)

GS

61.32%

RSF

13.91%

BRAC

7.50%

SRIZONY

3.82%

Others

13.45%

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

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

Audits

IDCOL appoints independent organizations to conduct two types of audit:

(i) Financial auditThe objective of the financial audit is to ensure that thehouseholds’ down payments are accounted for properlyand POs are utilizing the grants and refinancing for theirintended purposes only.

(ii) Technical auditThe technical audit is conducted to ensure that only TSCapproved equipment with their committed quality areused under the program. Representatives of the PO andsuppliers accompany the technical audit team.

Trainings

PO personnelTo build awareness and capacity building among the staff of the POs’ and the consumers. Topics: SHS configuration, positioning of SHS, installationprocedure and guidelines with measurements, maintenanceand troubleshooting of SHS and batteries, guidelines formonitoring and inspection of SHS, marketdevelopment, micro-credit methods for marketing.Cost: 80% of the total expense is sponsored by IDCOL and the rest is shared by the POs.

For ConsumerSince SHS is entirely new to the households, consumertrainings are conducted regularly to educate them. They aretrained on how to use the SHS and fix petty problems withoutwaiting for the technician.

Other supportsFollowing supports are extended to POs by IDCOL:

i) Logistic support: Each PO is given a computer for efficientdocumentation related to SHS installation. They are provided withtool boxes, motorcycle, demonstration kit, hydrometers and batterychargers for rendering better service to customers. Major share of thecosts is sponsored by IDCOL.

ii) Promotional support: distribute publicity materials to raiseawareness and popularize the use of SHS in different parts of thecountry. Posters, leaflets, T-shirts, and billboards are distributed tothe POs for wider publicity of solar energy. TV and radioadvertisement are also developed and aired.

iii) Exposure visit: To experience with the diversified uses of the PVsystems and other RETs, visits to other countries are also organizedboth for PO representatives and IDCOL staffs.

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.

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

Fund flow

As of November, 2010 the POs are enjoying an average collection efficiency (Loan repayment rate) of 97%

Grant and Loan

DonorGovernmentIDCOL

PO Customer

Grant and Loan

Debt service of loan

Grant and Loan

Debt service of loan

Grant and Loan

Debt service of loan

Debt service of Loan

Refinancing

IDA ADB IDBTenure 20 20 20Grace Period 5 8 7Interest rate 3% per annum 3-5% 3% per annumRepayment frequency Semi-annual Semi-annual Semi-annual

Donor agencies to IDCOL

IDCOL to PO

Tenure 1-5 years

Interest rate (declining balance) 12%-15% per annum

Repayment frequency Monthly

PO to Customer

Tenure 6-8 years Grace period 1-2 yearsInterest rate (declining balance) 6%-8% per annumRepayment frequency Semi-annual

Financial status

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

Till June, 2010

Financial support reduction scheme

Item

Amount of grant available per SHS

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

Price breakdown for typical SHS system

Component 20 Wp 40 Wp 50 Wp 65 Wp% of

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

1 Euro= 105 BDT

Figures is in BDT

Panel 2.38 $/Wp

Findings from the last Technical 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)

Approach of the audit

Azimuth, Tilt and shading of the installed panels)

Figures is in BDT

LVD and HVD of the installed charge controllers

Self consumption of the charge controllers

0

10

20

30

40

50

G1 . H1 . I1 . J1 . K1 . L1 .

Self

co

nsu

mp

tio

n (

mA

)

Manufacturer

Deviation of the rated capacity (batteries)

0

20

40

60

80

100

120

140

A 1 A 2 A 3 B 1 B 2 B 3 B 4 B 5 C 1 C 2 D 1 D 2 D 3

No

rmalized

rate

d C

ap

acit

y (

%)

Battery Manufacturer

Specific gravity of the charged and discharged batteries

1000

1050

1100

1150

1200

1250

1300

A 1 A 2 A 3 B 1 B 2 B 3 B 4 B 5 C 1 C 2 D 1 D 2 D 3

Sp

. G

ravit

y (

-)

Manufacturer

DischargedCharged

0

20

40

60

80

100

P 1 P 2 Q 1 Q 2 R 1 R 2 S 1 S 2 T 1 T 2

Inve

rte

r e

ffic

ien

cy (

%)

Manufacturer

at LVD at HVD

Efficiency of the lamp circuit (Inverter)

1.7

1.8

1.9

2

2.1

2.2

P 1 P 2 Q 1 Q 2 R 1 R 2 S 1 S 2 T 1 T 2

Cre

st

fac

tor

(-)

Manufacturer

at LVD at HVD

Crest factor of the lamp circuit (Inverter)

Voltage and current waveform of the inverter

Voltage waveform Current waveform

0

20

40

60

80

100

< 1 1 - 2 2 - 3 3 - 4 4 - 5 >5

acceptable [%] unacceptable [%]

Sample size: 180Age of system

Quality of switch of the installed systems (contact resistance)

0%

20%

40%

60%

80%

100%

P Q R S T U V W

POs

acceptable unacceptable

Voltage drop in the connected wire

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