Solar energy
Solar Home System: IDCOL partners seek govt intervention in loan write-off issue
Five largest partner organisations (POs) of state-owned IDCOL, who played a vital role in expanding the solar home system (SHS), are now seeking the government’s intervention to resolve the loan write-off issue.
Otherwise, they say, they will be deprived of the benefit and face huge losses.
Official sources said IDCOL recently forwarded a proposal to the Bangladesh Bank seeking a write-off approval of Tk 306.41 crore default loans for its 39 POs. Its 44 POs have about Tk 1,400 crore in default loans.
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They said these loans, provided by IDCOL, became default because of the government’s fast grid power expansion programme.
“Grid electricity expanded to the off-grid areas that discouraged SHS consumers to pay back the loans they received from POs. Such unpaid loans finally made the POs defaulters in paying back the IDCOL,” said a top official of a firm involved in the renewable energy programme.
IDCOL had distributed the loan after receiving funds from different donor agencies, including the World Bank.
Read Govt rooftops can generate 2,000 MW of solar power, say experts
According to World Bank’s latest data, an estimated $1,094.93 million was invested in the HSH project to provide electricity to about 20 million people — which means about $266 per household.
Of the investment, 63 percent came from the World Bank, 14 percent from the Asian Development Bank and 12 percent from the Japan International Cooperation Agency.
The entire fund was distributed by IDCOL as a soft loan which resulted in saving Bangladesh $1,852 million while providing clean energy since 2003, says a recent World Bank survey.
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It said the project helped households gain $745 million, partner organisations $310 million and the IDCOL $379 million while the government's net benefit was $474 million, said the donor agency.
Solar industry insiders said the SHS programme was launched by IDCOL in 2003. In the last 18 years, over 5.5 million solar home systems were installed.
They said that there was a tripartite partnership to the financial model under which IDCOL provided about 70 percent of the total cost of installing the SHS as soft loans to the POs, while the remaining 30 percent was invested by the POs and the customers themselves.
Read Green energy's share of power generation lagging far behind conventional sources
Bangladesh’s SHS provides clean energy for 20 million people
World Bank on Thursday launched a book, titled: "Living in the Light- The Bangladesh Solar Home System Story", a document of how off-grid solar electrification was mainstreamed to a large segment of the population living in rural areas.
Starting in 2003 as a 50,000 household pilot, the program at its peak, provided electricity to approximately 16 percent of the rural population.
Addressing virtually the book launching ceremony as the chief guest, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that the government is committed to driving up renewable energy and has a host of incentives such as tax breaks on offer to drive net-metered solar rooftop installation.
He said the solar home systems (SHS) program has been critically important in achieving the ‘electricity for all’ vision.
Also read: Green energy in Bangladesh: Govt moves to save solar mini-grids
He noted that 99.8 percent areas of the country now has access to electricity and country will be electrified within the ‘Mujib-year’.
According to World Bank, Bangladesh has now the largest off-grid solar power program in the world, which offers experiences and lessons for other countries for expanding access to clean and affordable electricity.
By harnessing solar power, the program enabled 20 million Bangladeshis to access electricity, it said.
“Bangladesh is known for its innovative development approaches. In remote and hard to reach areas, the government successfully introduced affordable off-grid renewable energy solutions through a public-private partnership. Clean electricity meant better health and living conditions for families and more study time for children,” said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan.
“Our partnership with the government for this program spans nearly two decades, and now our support has expanded to include other renewable energy options."
Successive financing through the Rural Electrification and Renewable Energy Development (RERED) Project, the World Bank supported the Infrastructure Development Company Ltd (IDCOL) to implement the program.
Also read: Nasrul urges RMG owners: Go solar for low cost, tax break
IDCOL combined its expertise in infrastructure financing with Bangladesh’s pioneering work in micro-financing and private sector solar electrification initiatives to build a scalable off-grid electrification business model.
Between 2003 to 2018, the project reduced greenhouse gas (GHG) emissions by approximately 9.6 million tonnes of CO2 equivalent. The program helped reduce indoor air pollution by avoiding the consumption of 4.4 billion liters of kerosene, said the leading donor agency.
“The RERED I and II projects promoted a sustainable market-driven approach where clean energy solutions were provided by local entrepreneurs with financing from IDCOL. 58 non-government organizations supplied and installed the solar home systems made affordable with micro-loans,” said Amit Jain, Senior Energy Specialist, World Bank and a co-author of the report.
“The SHS Program demonstrated that millions of dollars mobilized at the international level can flow efficiently to the remotest corners of the country to offer loans in amounts as low as one hundred dollars, which enables a rural household to purchase a solar home system.”
Also read: Experts for re-fixing solar power generation target to 30,000 MW by 2041
Building on the success of the program, the World Bank extended support to scale up other clean renewable energy options including solar irrigation, solar mini-grids, roof-top solar, and solar farms. The World Bank financing in two consecutive RERED projects stands at $726 million.
The book analyzes the SHS Program’s organizational effectiveness, how partners were mobilized, how quality was enforced, how risks were mitigated, and how financial resources were raised and deployed as Bangladesh scaled up renewable energy use. It shares experiences and lessons that would be useful for other countries as they scale up solar off-grid electrification programs.
Sreda, BGMEA sign deal for rooftop solar power promotion in RMG sector
Sustainable and Renewable Energy Development Authority (Sreda) and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Thursday signed a Memorandum of Understating (MOU) under which the state-owned agency will help garment industries to install rooftop solar power in order to transform them into green industries.
Welcoming the agreement between the two private and public bodies, Prime Minister’s Energy Advisor Dr Tawfiq-e-Elahi Chowdhury said the initiative will create some foots and grounds for promotion of renewable energy in the garment sector.
Read: Rooftop solar power: ‘Net metering can ensure cheaper electricity for garment factories’
“This will open up the door for others to follow”, he told the agreement signing function joining it virtually.
Sreda secretary Niaz Rahman and BGMEA Secretary Abdur Razzak signed the MOU on behalf of their respective sides while Sreda chairman Mohammad Alauddin and BGMEA president Rubana Huq, State Minister for Power, Energy and Mineral Resources Nasrul Hamid, Principal Secretary to the Prime Minister Dr Ahmad Kaikaus addressed the function.
As per the agreement, the Sreda and BGMEA will create coordination in raising awareness about renewable energy in the garment sector, pursue for central bank’s green funding and also investment from banking sector.
Read: Rooftop solar: Power companies instructed to float net metering promotion plan
Nasrul Hamid said the country’s industrial sector consumes nearly 48 percent of their total power generation and garment industries lead the sector by consuming 30 percent of total industrial load.
If the garment industry pursues energy efficiency, it will reduce their 17.6 percent consumption, he added.
Sreda chairman Mohammad Alauddin said there is huge scope for renewable energy promotion in garment sector.
Read Green energy's share of power generation lagging far behind conventional sources
Nasrul urges RMG owners: Go solar for low cost, tax break
State Minister for Power, Energy and Mineral Resources Nasrul Hamid has urged the country’s garment industry owners to set up rooftop solar system under net metering policy to take advantage of green energy.
“If you set up solar power plant for your own consumption using your industry rooftop, it could be a good investment which not only reduces your power bill, but also benefits you to get a credit of green industry”, he told industry owners while addressing a virtual workshop on Tuesday.
Also read: Rooftop solar: Power companies instructed to float net metering promotion plan
Sustainable and Renewable Energy Development Authority (Sreda) organized the workshop titled: “Scaling Up Net Metered Rooftop Solar on Knitwear Industry” with its chairman Mohammad Alauddin in the chair.
The workshop was also addressed by Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) vice president Mohammad Hatem, Bangladesh Energy and Power Research Council (BEPRC) chairman Zakia Sultana.
Also read: Rooftop solar power: ‘Net metering can ensure cheaper electricity for garment factories’
The government introduced net metering policy under which a consumer can sell his unconsumed or additional electricity generated from rooftop solar to the national grid.
The State Minister said that use of efficient technology and green energy will help promote sustainable growth the industry.
Also read: Green energy in Bangladesh: Govt moves to save solar mini-grids
“It will help our appeal industries compete to the global market at lower production cost”, he said.
Nasrul Hamid said the government has initiated a move to reach electricity to off-grid areas through solar home system, mini-solar power grid and submarine cables.
Also read: Govt rooftops can generate 2,000 MW of solar power, say experts
He said the government set a target to generate 10 percent of electricity from renewable energy sources.
To achieve this target, he said, the government has taken different steps including a net metering system to promote the use of rooftop solar power.
Consider downward revision of power generation plan: CPD to govt
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REB success leaves govt’s solar partners in the lurch
Dhaka, Jun 28 (UNB) – The government’s partners in the solar home system (SHS) program have been nursing deep frustrations over inaction on the part of the state-owned Infrastructure Development Company Ltd (IDCOL) to resolve their problems.
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Three more solar park projects facing the axe
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