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Welcome to Grameen Shakti’s Presentation

Partnership experiences fromGrameen Shakti

M Shahidul Islam*

Prepared for Regional Training Workshop on Widening Access to Energy Services through Pro-

Poor Public-Private Partnerships

25 to 27 September 2013, UNCC, Bangkok, Thailand

*Consultant, Grameen Shakti

Bangladesh is an Energy Starved Country

Only 53% of the area is connected to the national power-grid 85 % of this power is generated from

natural gas - supply expected to be insufficient by 2016

Electricity production is only about 272 kWh per capita

Thus, 75 million people have no access to the national power grid

Most people (70 %) live in rural areas

Majority of rural people depend on inefficient, primitive sources of energy such as kerosene for lighting

53%

47%

Energy Scenario

Development Requires Energy. Renewable Energy can be a cost-effective and pollution-free option suitable for stimulating

development

On-gridOff-grid

About 90% households use biomass for cooking. The rest 10% use natural gas, LPG and biogas

Almost all households use traditional cook stoves which are highlyinefficient and only 5-15% of the heat produced is used

In view of above vulnerable situations Bangladesh needs to adopt renewable energy technologies to protect its environment from further degradation, pollution and man-made and natural disasters

Journey Towards Green Energy Revolution

Grameen Shakti (GS) wasestablished in 1996 by Prof.Muhammad Yunus, Founder ofGrameen Bank

Our Mission is to empower therural people with access toGreen Energy and IncomeOpportunities

GS now operates all overBangladesh with about 1,513field offices and about 12,051staff

We foresee a future where allrural households of Bangladeshwill have access to environmentfriendly energy at an affordablecost

BANGLADESHActivities Area of Grameen Shakti

Covers all over Bangladesh

Grameen Shakti Update(31 August, 2013)

No. of SHSs 1,229,061

No. of Biogas plants 26,298

No. of ICS 7,02,072

GTC 46

No of Branch Offices 1,286

Regional Offices 166

Divisional Offices 16

Total Offices1514

Installed power capacity 61.00 MWDaily power generation capacity 260.00 MWh

Total Beneficiaries < 9.0 million

Total Employees 12,051

Grameen Shakti: One of the largest rural based Renewable Energy Companies in the world

Grameen Shakti is very successful in providing sustainable clean energy solutions to rural people in Bangladesh

Installed more than 1,229,061 SHS

Constructed more than 26,298

Biogas Plants

Produced and installed more than 7,02,072 Improved Cooking Stoves

Created more than 100,000 Green Jobs and trained 5,000 rural women as Renewable Energy Technicians and Entrepreneurs

Solar Home System Program

A Young Woman Technician Installing a Solar Home System

Illuminating Lives

SHS provide access to green electricity

Providing better opportunities for developing local entrepreneurship, income generating activities, and employment in rural areas

Replacing kerosene and reducing fire hazards, indoor pollution and associated health risks

Reducing carbon emissions

Financial Models

OptionDown payment

InstallmentsService Charge

(Flat rate)

Option-1 15% 36 months 8%

Option-2 25% 24 months 6%

Option-3 100% cash payment with 4% discount

SSHS Min 15% 24- 36 months 5%

People can own a SHS at the same cost of kerosene

Installation of SHS (Cum) 22

8

598

1838

3583

6753

1141

3

1921

3

3300

4

5164

6

7963

7

1279

76

2038

63

3175

99 5182

18

7556

72

1020

014

1229

061

96-9

7

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Up

to A

ug

'13

Grameen Technology Centers Creating Green Jobs For Women

• Over 5000 women trained in sustainable energy technologies

• Some trainees set up their own energy businesses

• 46 GTC now set up to carry out training & manufacturing in rural areas to strengthen GS services

• Training beyond Solar PVMrs. Ambia, a technician working at

her home

Grameen Technology CentersCreating Green Jobs for Women

Innovative use of micro-credit

Coupled with :

• Focus on income generation

• Local Technology Transfer

• Community participation & awareness development

• Dedicated and Committed Staff

• Engineers are trained as Social Engineers with high commitment & posted to remote areas

• Flexible Management

• A Listening Culture

• Strong Internal Audit System

Successful Market-Based Approach for Bringing Renewable Energy to the Rural Population

GS Achieved this by Blending Technology with Social and Market Forces

Solar Powered Irrigation Pump

Grameen ShaktiTelecommunication

New Initiatives

• Compared to diesel, solar electricity offers a sustainable, cost-effective and environment-friendly electricity supply for Bangladesh’s growing telecommunication industry.

• Grameen Shakti has installed 6.5 KW solar plants for 4 BTS of Grameen Phone

• Following success with Grameen Phone, Grameen Shakti has received more offers from other mobile phone companies to install solar panel for BTS

Scope for International Cooperation Pilot testing & adaptive research for “2nd generation” solar

pv in Bangladesh

International cooperation and research could be developedon low cost solar pv module

Piloting of mini solar grid entrepreneur programs with thefinancial assistance from international donors

Adaptation of GS model in other countries

Technology Transfer & Training

Development & Research on other renewable energytechnologies

Biogas Program

Why should we use Biogas Technology?

Using biogas technology, both gas and fertilizer can be produced from organic wastes

The process of biogas production is anaerobic, so all pathogens in the waste die

It traps methane, which is 28 times harmful than carbon dioxide

Biogas is clean and efficient fuel for cooking, lighting, water heating and cooling applications

During burning of methane no unpleasant odour is observed

Biogas technology is therefore called 3 in 1

Livestock owners can get rid of the waste and produce clean gasfor cooking comfortably with no need for biomass fuels

Can supply gas to neighbors for additional income

Produce organic fertilizer

Generate electricity

Burden of women is reduced and their heath protected

Over 4 million BIOGAS PLANTS can be constructed : Gas, Light , Electricity & Organic Fertilizers

Grameen Shakti’s Biogas Program

Flexible loans

On the spot trouble shooting

Adaptive research

Mason & User training

Sustainable waste management & cooking gas production

A program designed to respond to client needs :

Biogas Plant Construction (Cum)

30 4832073

4621

9226

14906

2094224206

2629820

05

2006

2007

2008

2009

2010

2011

2012

Up

to A

ug

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Market based business model

Effective financing to make biogas technology affordable

Technical and financial packages are tailored to the client’s needs

Two years free after-sales services are guaranteed

Users are trained on proper operation and maintenance

Increases income to the stakeholder & creates entrepreneurships

Effective financing to make biogas technology affordable

Technical and financial packages are tailored to the client’s needs

Two years free after-sales services are guaranteed

Users are trained on proper operation and maintenance

Increases income to the stakeholder & creates entrepreneurships

Use of biogas

Power Generation Using Biogas

Power generation using biogas was unknown in Bangladesh

In 2006 one 2KW generator was run by one AbdurRazzaque of Maona with the technical and financial support from Grameen Shakti

Subsequently, one 15KW generator was set in Savar and two 10KW generator was set in Valuka to run with biogas in 2007

At present there are about 200 biogas based generators in the country of size 1KW to 1MW

Grameen Shakti alone has about 100 biogas based generators

BIOGAS FOR POWER GENERATION

Grameen Shakti has successfully introduced fiberglass biodigester in

Bangladesh from China

Following successful participation in the International Biogas Training Program held at the Yunnan Normal University in 2009 and

visit of on-going Fibreglass biodigester program in rural China by Grameen Shakti(GS) Officials, GS decided to introduce Fibreglass biodigester technology in Bangladesh

As a pilot project Grameen Shakti imported 10 fibreglass digesters and installed them in different customers’ households

Fiberglass biodigester – a pilot project of Grameen shakti

It is light & portable

Easy to install

Less hydraulic retention time

Less construction fault

Solid waste creating hazard

Escape of methane

Biogas from Organic Kitchen Wastes: Jahangirnagar University, Bangladesh

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Biogas from Organic Kitchen Waste: A New Initiative

Biogas Plant in Jahangirnagar University

Bagging of Bioslurry Organic Fertilizer

A byproduct from biogas plant

Cost-effective and environment friendly, supplementing chemical fertilizer

Improves soil fertility & crop productivity

Use of Bioslurry Organic Fertilizer for Organic Farming

Lack of policy for dissemination

High installation cost of plant

Proper application of standardized technology

Lack of funds

High water level during monsoon

Lack of trained manpower

Lack of after sales services

Challenges Identified for biogas program

Improved Cooking Stoves Program

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Traditional stoves produce poisonous fumes which causeindoor air pollution and are responsible for respiratorydiseases especially of women and children

According to one estimate, as many as 50,000 people dieannually due to indoor air pollution

The total biomass use may be estimated as 50 million tons andthe amount is increasing day by day

As a result, deforestation process is going on in the countryand thus many forest lands are turning into barren or pooragricultural lands

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The major objectives of an Improved Cooking Stove (ICS) over atraditional one are:

Higher Efficiency, lower heat loss

50% fuel saving (saving time and money for users as well asreducing pressure on forest resources)

Reduced indoor air pollution and reducing health hazardssuch as respiratory problems

Comfortable to use and safe

Objectives of Improved Cooking Stove (ICS)

Traditional Stoves

ICS Made of Concrete

ICS consists of 5 parts:

Cap

Chimney

Chimney holder

Grate

Structure

Production of concrete ICS

Curing of ICS structure and chimney holder

To promote ICS, Grameen Shakti has established 195 specialized branches and 96 production centers across the country

About 1500 field staff are working at the branches and production centers

Other general branches installing SHS and biogas are alsohelping scale-up of ICS

Every month, all the production centers are manufacturing about 16000-17000 ICS units

About 14000- 15000 ICSs are being installed every month

Promotion of ICS

Cooking with ICS

Concrete stove(CS) was first manufactured in April 2010

GS has established 96 production centers so far

Concrete stove:Has a longer life spanIs more visually appealingIs easier and quicker to install

U.S Ambassador Dan Mozena watchingcooking at one household at Manikgonj, Bangladesh

PARTS OF LARGE SCALE ICS MADE OF CONCRETE

ICS for large scale cooking

LARGE SCALE ICS IN OPERATION

Improved Cooking Stoves (Cum.)

410 4998 1640245967

193120

423725

595516

702072

2006 2007 2008 2009 2010 2011 2012 UptoAug'13

Barriers/Constraints For Dissemination of ICS

Lack of policy and leadership

Lack of public awareness regarding benefits of ICS

Lack of funds/investment

Lack of modern R&D laboratory

Lack of standardization and testing institute

Limited technology in the country

Lack of skilled manpower

Lack of monitoring & limited after sales service

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Metallic Improved Cooking Stoves

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Impact of GS activities in Reduction of Carbon Emission (31 August ,2013)

Activities

(Installed/ Constructed)

Yearly Fuel/Biomass consumption

Ton/Liter

Per unit

Yearly

Total Fuel/Biomass

consumption Ton/Liter

Total savings of

money

( in million US$)

Emission

Reduction

per unit

(tCO2/Yr.)

Total CERs

(tCO2/Yr.)

Solar Home System

(1,229,061)

108 liters132.73 million

liters127.63 0.232 285142.15

Biogas Plants

(26,298)1.8 tons

0.47 million tons

60.26 2.08 54699.84

Improved Cooking

Stove (7,02,072)

0.9 ton0.63 million

tons81.01 1.04 7,30,155

Total 63.26 352074.00

* Improved cooking stove saves 50% fire wood

A Vision for 2020 75 million people of Bangladesh

(45% of the population)

will benefit from

access to modern,

clean, and

affordable

energy

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Thanks for Your Kind Attention