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Bangladesh has become the first country to get funds from the United Nations for its fast growing solar home systems, which are not only lighting up houses in off-grid villages but also showing the world the way to a low-carbon future.The United Nations Framework Convention on Climate Change (UNFCCC) issued 395,286 carbon credits worth €3.56 million to two Bangladeshi organisations — Infrastructure Development Company Ltd (IDCOL) and Grameen Shakti — last week.
“Yes, we are getting the fund under the Clean Development Mechanism (CDM) for our solar home system programme,” Nazmul Haque, director (investment) and head of advisory of the IDCOL, told The Daily Star yesterday.
The UNFCCC has issued 212,482 carbon credits to the IDCOL and 182,804 credits to Grameen Shakti.
The IDCOL is a state-owned development financial institution dedicated to promoting and financing infrastructure and renewable energy projects in the country, while Grameen Shakti, set up by Nobel Laureate Prof Muhammad Yunus, aims to take clean solar power systems and communication technology to villages.
Dr Shahidul Islam, who worked at Grameen Shakti from 2005 to January this year, said Bangladesh got the fund as the first country in the world for its stellar success in installing solar home systems. Some other countries such as Senegal and India are in line to get the fund.
Though Bangladesh is one of the lowest emitters of carbon globally, it has set an example by embracing the clean energy generated from small solar home systems.
Supported by the Global Environment Facility and the World Bank, the programme started in 2003 with a target of financing 50,000 systems by 2008.
The target was achieved in August 2005, almost three years ahead of schedule.
The IDCOL then revised up its target to install 2.5 million systems by 2014 and succeeded in achieving it. It has already installed four million systems across the country, covering 10 percent of the total population.
Bangladesh has one of the fastest growing solar home system projects in the world, with rural households using renewable energy for lighting, running fans and TVs and charging mobile phones.
Apart from the World Bank, Asian Development Bank, German development bank KfW, German technical cooperation agency GTZ, Islamic Development Bank and Netherlands Development Organisation SNV supported the IDCOL-led efforts.
Solar home systems are helping Bangladesh cut carbon emissions by reducing use of kerosene in rural areas.
Citing a research by the IDCOL, Nazmul said a family needs eight litres of kerosene a month for lighting up a house in a rural area.
“As we have already installed four million solar home systems, this programme is saving around 32 million litres of kerosene every month,” he said.
The IDCOL programme saves 2.7 lakh tonnes of kerosene annually, cutting about 4.88 lakh tonnes of carbon emission in the process every year.
In 2007, the IDCOL signed an agreement with the World Bank on the global lender’s purchase of carbon credits from the company. Its programme was registered under the UNFCCC in 2012.
As per the agreement, the WB would buy each certified emission reduction unit for €9, said Nazmul.
The CDM, a mechanism under the Kyoto Protocol, allows companies in industrialised countries to buy carbon credits from developing nations to comply with the requirements for reducing emissions.
The installation of solar home systems has made a difference in the lives of many in rural areas of the country.
Abul Hossain, a farmer in Jhinagati village of Barguna, used to buy around seven litres of kerosene every month to light three kerosene lamps in his house, as there is no electricity in his village.
But it changed after he got installed a solar panel on the roof of his house.
Like many of his neighbours, Abul now lights up his house with solar energy.
Momena Begum, a solar home system user at Musapur village on Sandwiep island, said she had been using solar energy for the last one year.
“We do not have electricity here. We are happy that we have got the opportunity to use this solar home system,” she said.
Talking to The Daily Star, Nurjahan Begum, managing director of Grameen Shakti, said life span of a solar home system is about 25 years, and a household usually pays off the total cost of the system within 3 years of its installation.
Grameen Shakti has installed over 1.6 million solar home systems. Besides, 47 other organisations are installing more than 65,000 such systems a month.
In 2008, the government formulated a policy to promote renewable energy sources, especially solar power.
It now generates 2.5 percent of the country’s electricity production from renewable sources, and has a target of increasing it to 5 percent by this year and 10 percent by 2020.
At present, the country’s installed power generation capacity is 10,341 megawatt with an average actual peak generation of 7,500MW.
Still, around 40 percent of the population does not have access to electricity, and most of them use kerosene lamps.
Courtesy of The Daily Star
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]]>Prof Muhammad Yunus and his Grameen Shakti team were showered with praises from people of all strata for installing more than one million solar home systems across the country.
Economists, academics, development partners and diplomats also urged the Nobel laureate to move on to greater heights by lighting up the rural Bangladesh and transforming lives.
The acclaim came at an event, which was organised to celebrate the milestone set by Grameen Shakti.
Speaking at the programme at Radisson Hotel in Dhaka, Ellen Goldstein, country director of the World Bank, said this is an impressive achievement.
“When the programme was initiated, the target was only 500,000 solar home systems in five years. Now the partners are installing 60,000 systems per month.”
“This is an astonishing achievement and sounds something in the science fiction. This is a perfect example of a well-structured public-private partnership under a well-managed financing system.”
She said the World Bank spent $400 million globally to promote renewable energy in the first phase of the plan, and plans to spend another $150 million alone this year in the second phase.
The WB will support Bangladesh to move to a higher level like mini-grid and solar irrigation, Goldstein said.
The solar home systems are 100 percent Bangladeshi and operated by the local people, she said.
“These have created opportunity for the rural population to buy electricity at affordable prices. The system has transformational effect on the lives of the children.”
Hossain Zillur Rahman, a former caretaker government adviser, saluted Prof Yunus and his team for taking solar electricity to millions of people living in rural areas, instead of a few rich.
Ainun Nishat, vice chancellor of BRAC University, said the future would be in renewable energy and solar energy is coming in a big way.
“At the international level, it is said that ‘Think globally, Act locally’. We are proud that Grameen Shakti has acted locally to take lights to people,” he said.
The solar panels have empowered people, he said. “Now young girls and boys in the villages have access to information.”
Rezwan Khan, vice chancellor of United International University in Bangladesh, said time has come to go beyond solar home system to solar irrigation and other areas.
Mahmud Malik, chief executive officer of Infrastructure Development Company Ltd (IDCOL), thanked the development partners and the government for helping the country achieve its solar home system target before the deadline.
Dr Yunus, chairman of Grameen Shakti, said when the target was set five years ago, it seemed an impossible task.
“Finally, we have made it.”
He reminded the audience of the very tough beginning of the project: “We began 16 years back when panel price was high and kerosene price was low,” he said.
He congratulated the officials and employees of Grameen Shakti for achieving the milestone. “It was not an easy task for them. They faced harassment, as many had thought the employees might have tried to impose something.”
“They have created trust about Grameen Shakti,” said Yunus, the founder of Nobel winning Grameen Bank.
Yunus also said, although Grameen Shakti has set a target to reach the two-million milestone within next three years, the officials and employees will be able to do so before the deadline.
Grameen Shakti is the largest single off-grid system in the world delivering solar home systems to rural people in Bangladesh since 1996.
About 50 percent population do not have access to grid electricity in Bangladesh.
The company accounts for more than 70 percent of the total solar home systems in the country.
Abser Kamal, acting managing director of Grameen Shakti, said about half of the population of the country come under darkness after sunset. They use kerosene to light their houses, which is neither healthy nor environment-friendly.
Anyone can buy a solar home system by paying a monthly amount in three years. It costs the same like one kerosene lamp for the same period.
Grameen Shakti is providing microcredits to help people buy solar home systems with a three-year monthly payment system.
“The costing is the same as a family spends on kerosene,” Kamal said.
The company is directly or indirectly helping eight million people in Bangladesh to light their homes and business units using solar power.
Grameen Shakti was established by Dr Yunus to promote renewable energy technologies to the rural people to protect environment and improve living standards simultaneously.
The initiative has already won a number of prestigious awards both at home and abroad.
As of 2012, the company has also installed 595,516 improved cooking stoves and 24,206 biogas plants.
Every solar home system unit helps cut 0.232 tonnes of carbon dioxide every year.
Altogether, the solar home systems installed so far brought a CDM (clean development mechanism) benefit for Bangladesh at $2.32 million a year.
Bilkis Begum, who installed a solar home system at her home in Gazipur with the help of Grameen Shakti, described how the life of her family members has changed.
“My sons are now able to study at night. I also prepare products from bamboo and canes at night with five women from the area.”
“They earn Tk 2,500 a month and I earn Tk 3,500 a month from the work,” she said, adding that it cost Tk 600 a month to buy kerosene earlier.
Dr Kamal Hossain, an eminent jurist, Rehman Sobhan, a renowned economist, Wahiduddin Mahmud and AB Mirza Azizul Islam, both former caretaker government advisers, and Salehuddin Ahmed, a former governor of the central bank, were also present.
-With The Daily Star input
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]]>The assurance came from the top executives of the multilateral lending agency at its 3-day Asia Solar Energy Forum’s Conference in Bangkok that ended on June 1. A delegation led by prime minister’s energy adviser Tawfiq-e-Elahi Chowdhury attended the conference.
‘Responding to our call, the ADB has in principal agreed to provide the financial support to a 500MW- capacity solar energy project. Now, other things will be worked out to implement the proposed project and the amount of fund will be determined on that basis,’ Tapos Kumar Roy, additional secretary of the power division, who attended the conference told the news agency.
The ADB arranged the conference as part of its policy to promote renewable energy, particularly the solar-based power system in the Asian countries. The lending agency has planned to introduce 3,000 MW solar-based power system in the region by 2013.
Delegations from most of the Asian countries including India, Pakistan, Nepal, Bhutan, China and the Maldives participated in the conference.
Bangladesh delegation included power secretary Abul Kalam Azad, additional secretary Tapos Kumar Roy, IDCOL chief executive office Islam Sharif and Rahimafrooz Renewable’s managing director Munawar Moin.
Officials attended the conference said Bangladesh proposed a plan for introducing 500MW solar panel-based system that includes solar irrigation pump; solar roof top in urban areas; and mini grids solar plants in rural area.
The plan needs about $3 billion investment of which it proposed for 60 per cent capital fund, 20 per cent long term soft loan and 20 per cent investment by the government and by private sector.
The plan also includes social impact project where solar power will be delivered to rural health centres; schools and other important institutions.
Officials claimed the 500MW solar power would ease the load on the grid, save over $100 million dollar worth of fuel subsidies and also generate carbon credits in excess of $100 million.
Bangladesh highlighted its success of 950,000 plus installations supported by the government and also financed by IDCOL under its Solar Home system along with NGO and private sector participation.
The SHS programme is considered the largest in the world. Bangladesh team proposed the possible replication of the SHS success to global rural demand of 40 million homes.
ADB vice-president Xiaoyu Zhao and senior members expressed their satisfaction with the proposed plan and assured all-out support to work with Bangladesh.
They emphasised for a move involving other development partners and private sector players to realize the 500MW solar project in Bangladesh.
The officials and private sector participants have assessed that 500MW plan would lead to solar commercialization by 2015 and grid parity solar electricity generation by 2020 in line with global solar industry goal.
According to official sources, 9 ministries who would implement the plan in coordination with the Power Division include the ministries of Railway, LGED, housing and public works, health and family planning, religious affairs, education, industries and agriculture.
Among the ministries, power ministry would set up solar panels of 100MW in different areas while the Railway Division will set up 50MW solar panels at railway stations.
The LGED will install solar panels totalling 70MW in cities, housing and public works ministry 100MW at public buildings, health ministry 50MW while religious affairs ministry 10MW solar panels at different mosques and religious institutions.
The education ministry will set up 40MW solar system at different educational institutions like schools and colleges, the industries ministry will install 20MW solar system at different state-owned mills and factories.
The agriculture ministry will set up solar-based irrigation pumps of total 80MW at different places.
Courtesy of UNB/New Age
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