Bringing Green Energy, Health, Income and Green Jobs to Rural Bangladesh

Dipal C. BaruaManaging Director

dipal@grameen.comMarch 2009

GRAMEEN SHAKTI

Renewable Energy to Empower Rural People

Grameen Shakti was established as a not-for-profit company in 1996

Our mission is to empower the rural people with access to Green Energy and Income.

Mr. Dipal C. Barua, Founding Managing Director, was awarded the first ever Zayed Future Energy Prize

A Journey Towards a Green Energy Revolution

Renewable Energy to Fuel Bangladesh’s Sustainable Development

• 60% of the people in Bangladesh have no access to grid electricity and rely on kerosene for lighting

• 97% of the population are dependent on biomass for cooking

• It compounds environmental degradation, poverty, and inequality

• Bangladesh needs to climb the energy ladder to develop economically and socially without damaging the environment

Women and children : the main victims of energy poverty

A Vision for 2015

75 million people of Bangladesh(50% of the population)

will benefit from access to modern, clean, and affordable energy

A Vision for 2015

• 7.5 million Solar Home Systems

• 2 million Biogas Plants

• 20 million Improved Cooking Stoves

• 100,000 Green Jobs especially for young women

A Successful Service Provider of Sustainable Clean Energy Solutions

Grameen Shakti is very successful inproviding sustainable clean energysolutions to rural people in Bangladesh.

• Installed more than 220,000 SHS• Constructed more than 7,000 Biogas

Plants• Produced more than 35,000 Improved

Cooking Stoves• Created more than 20,000 Green Jobs

and trained 1,500 rural women as Renewable Energy Technicians and Entrepreneurs

BANGLADESH

Total Offices 700Branch Offices 559Regional Offices 87Divisional Offices 11GTC 43Districts Covered 64Upazilas Covered 455Villages Covered 40,000Islands Covered 16Social Engineers 5,000

Vast Rural Network of Trained

Social Engineers

Grameen Shakti Solar PV Technology Program

Potential:• 85 million (80% of rural population) have

no access to grid electricity

Target:• 1 million SHS will be installed by 2010

Achievement:• More than 220,000 systems• 700 field offices with 5,000 trained social

engineers to manage installation and maintenance locally

• 43 GTC to assemble accessories locally

SHS Installation Growth (cumulative)

228 598 1838 3583 6753 11413 1921333004

51638

79629

127968

203855

upto97 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

CAGR since 2002: 60%Installed Power Capacity: 11MWEnergy Generation: 44MWh / day

The Art of Serving the Rural People • Innovative financing making SHS cost-

effective to alternative energy sources• Free maintenance during repayment period

and low-cost warranty afterwards• Community based social engineers and

entrepreneurs who understand rural people • Mobilizing local social forces to create

awareness • Social commitment by creating jobs for local

youth especially women • Motivational programs such as scholarship

programs for school children of Solar System Owners

• Consumer friendly practices such as buy-back systems, and removal of dead batteries

Illuminating Lives SHS provide access to green electricity

• Enhancing children’s education, providing access to valuable information, powering health centres and schools

• 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

Solar Home Systems in Schools

“The customers love coming to my shop, now that I have bright light . “They can see what they are buying and what I have in stock. And they can watch television and use mobile phones. My sales have gone up by at least Tk 300 a day.”

Illuminating Ventures

Biogas: Converting Waste into Gas, Electricity and Organic Fertilizer

Grameen Shakti Biogas Program Potential:• At least 4 million biogas plants can be constructed • Rising cost of fuel and chemical fertiliser• Linking technology with livestock and

agricultural businesses

Target:• 90,000 plants by 2010

Achievement:• More than 7,000 biogas plants of which 300 are large size• 1,000 local masons trained and 1,000 demonstration plots to popularize

organic fertilizer

Grameen Shakti Biogas Program

• Instead of direct subsidies, effective financing is provided to make plants affordable

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

• For at least two years free monthly after-sales services are guaranteed and provided by local masons

• Users of biogas plants are trained on proper operation and maintenance

• By linking biogas plants to direct income generation and entrepreneurial opportunities local stake-hold is created

The First Market Based Model in Bangladesh

Creating a Healthier and Greener Bangladesh

Biogas Plants provide access to moderncooking fuel, green electricity and

• Improve health and sanitation conditions

• Protect women and children from indoor air pollution and related diseases

• Contribute to the expansion of agriculture and livestock business for increased food security

• Encourage the creation of micro-enterprises that can sell access electricity, gas and organic fertilizer

• Reduce deforestation and carbon emissions

Biogas Programs can be Successful Without Dependence on Direct Subsidies

Income is higher than installments for domestic biogas plants : Fuel saved around Tk 200 per month, additional income from selling biogas to at least one house, and slurry use is around Tk. 300 per month.

Larger plant owners can sell electricity or gas to at least 10 more households to earn around Tk. 3900 per month. Increased income by Tk. 7000 per month through reduced fertilizer cost and increased vegetable production.

Tea stall owners, food shops etc are renting biogas from larger plants thus reducing their energy cost and increasing their business.

Grameen Shakti Organic Fertilizer

Program

• A high quality by-product from the biogas plants

• Grameen Shakti is licensed to market “Grameen Shakti Organic Fertilizer” as a cost-effective and environment – friendly supplement to chemical fertilizer

• Grameen Shakti provides technical assistance to entrepreneurs that promote and distribute “Grameen Shakti Organic Fertilizer”

Benefits

• Application of chemical fertilizer can be reduced by 30 – 40%

• Soil fertility and crop productivity will be improved

• Biogas plant owners can earn an additional income of at least Tk 1,400 per month

d

Potential:• 85 million people use biomass for cooking• Demand is increasing rapidly: 171% growth over the past

6 months

Target:• 550,000 stoves by 2010

Achievement:• 35, 000 ICS constructed• More than 35 manufacturing units set-up

through seed-capital• More than 1,000 technicians and entrepreneurs trained

Grameen Shakti Improved Cooking Stove Program

One, two and three mouthed stoves were designed for household, commercial, institutional applicationsLocally available, inexpensive material is used for constructionWith seed-capital from Grameen Shakti, community based manufacturing units are set-up to supply grates and chimneys Technicians and entrepreneurs from rural areas are trained to commercialize ICS and provide efficient after-sales serviceICSs are linked to income generating activities: 50% less fuel consumption and time saving through efficient cooking

A Sustainable Integrated Entrepreneur Based Business Model

ICS are very popular amongsthouseholds, businesses andinstitutions

Smoke-free, clean and healthy cooking environment Time and cost-effective cooking resulting in economic savings Short payback period More clients attracted because of smoke free environment Creates jobs for local youth

A Growing Market for Improved Cooking Stoves

• 43 GTCs already set up all overBangladesh to support GrameenShakti’s services

• GTCs assemble and repair solar accessories, promote, install

• and maintain SHS and ICS

• GTCs train rural women to become RET technicians and entrepreneurs (so far 1,500 women have been trained)

• Target: more than 100 GTCs by 2011

Grameen Technology CentersCreating Green Jobs for Women

Mobilizing Social Forces

More than 10,500 school children from rural areas have learned about Renewable Energy Technologies

More than 52,000 rural women have learned to take care of the systems installed in their homes

Creating 100 thousand Green Jobs by 2015

A Young Woman Technician Installing a Solar Home System

Grameen ShaktiTree Plantation Program

Program

• Promotion of tree plantation among the rural people

• Two approaches:

a) Seedlings are sold directly to clients

b) Trees are planted on clients land on profit-cost sharing basis

• More than 10,000 herbal, fruit, forest, Jatropha trees have been planted

Benefits

• Improve forestation in Bangladesh which is currently at only 17% of the country’s total land area

• Protection against soil erosion, floods and landslides

• Can lessen the impact of cyclones

• Reduces carbon dioxide

Grameen ShaktiTelecommunication

New Initiative

• Grameen Shakti participates in a demonstration project with Grameen Phone to install 6.5 kWp solar plants for 3 BTS

• Potentially, Grameen Shakti plans to be a provider of solar plants to Bangladesh’s 22,000 base telecom stations

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

A New Paradigm Was Needed to Reach the Rural People

High–upfront costs

No consumer credit for renewable energy technology

Knowledge and awareness gap: Need to gain the confidence of the rural people

Very little idea about rural market or rural financing

Lack of efficient trained human resources at the rural level to install and maintain technology

Innovative financing to make technology cost-effective to traditional energy alternatives and create ownership:Soft loans are offered but no grants or subsidies.

A vast rural network of trained social engineers:Engineers are recruited and trained locally to create rapport with community and to listen, understand the needs of the clients.

In-house R&D specialist and consultants:To adapt technology to local requirements.

Key to Sustainability: Grameen Shakti’s Integrated Entrepreneur

Based Business Model

Development of local technicians and entrepreneurs at the grass-roots level:To create local stake-hold for promoting, installing and providing efficient after-sales service of the technologies.

Local capacity development and creation of green jobs:Local entrepreneurs, especially women are offered financial and technical assistance to set-up a renewable energy technology business that strengthens Grameen Shakti’s service provision.

Key to Sustainability: Grameen Shakti’s Integrated Entrepreneur

Based Business Model

Awareness creation and education:Wide network of trained engineers to disseminate information through workshops with community leaders, door to door visits, demonstration fairs etc.

Creating Women Energy Entrepreneurs:GTCs train women to become renewable energy technicians and entrepreneurs.End-users, especially women, are trained to operate and maintain their technology properly.

Key to Sustainability: Grameen Shakti’s Integrated Entrepreneur

Based Business Model

Creating Green Energy Entrepreneurs

Linking RET with income generating activities, economic, social and health benefitsInitiatives like micro-utilities are encouraged where the benefits of RET can be shared and the power producer can have an additional income.

Strong internal audit to maintain strict quality control6 monthly detailed audits and 3 monthly surprise audits to ensure high quality of installations and maintenance.Partnering with high quality equipment manufacturers.

Key to Sustainability: Grameen Shakti’s Integrated Entrepreneur

Based Business Model

Road Map to 2015

Grameen Shakti has the capacity to rapidly scale-up the implementation of renewable energy programs in Bangladesh:

• Growing presence of currently 700 Branch, Regional, Divisional and GTC offices all over Bangladesh

• Strong network of 5,000 engineers at the field level

• Carefully designed standardized technology

• Smooth supply of cost-effective material and accessories through local manufacturing units

Challenge: Access to necessary working capital to support rapid expansion

Road Map to 2015 Reaching 75 million people

with Renewable Energy Technologies Infrastructure & Capacity Development

• 2000 rural offices to cover all Bangladesh• 10, 000 social engineers trained & deployed • 100,000 Green Jobs especially for young women• Computerized MIS, region based audit system

Solar Home Systems : 7.5 million• Create more than 100 GTCs and train 100,000 rural women as front

soldiers for scaling-up Grameen Shakti’s program

Road Map to 2015 Reaching 75 million people

with Renewable Energy Technologies Biogas Plants : 2 million • Emphasis on linking the technology with micro-enterprise, livestock,

agriculture businesses• Promotion of organic fertilizer • Emphasis on new initiatives such as portable biogas plants Improved Cooking Stoves: 20 million

• Development of around 10, 000 technicians and entrepreneurs• Setting up 400 manufacturing units

Community is the Key for the Success of Promoting Renewable Energy to the Rural People

National and International AwardsReceived by Grameen Shakti

1. Zayed Future Energy Prize 2009 (Abu Dhabi) to Dipal Chandra Barua 20092. International Microfinance Awards 2008 from PlaNet Finance (Paris) 20083. Ashden Outstanding Achievement Award (UK) 20084. National Environment Award (Bangladesh) 20085. Energy Globe Award (Brussels) 20086. Right Livelihood Award (Sweden) 20077. Tech Museum Award (USA) 20078. European Solar Prize (Germany) to Dipal Chandra Barua 20069. Ashden Award (UK) 200610. IDCOL Award (for scaling up SHS ) to Dipal Chandra Barua 200511. Solar Prize ( for outstanding performance) 200412. USAID Best Theme Award 200313. European Solar Prize (Germany) 200314. Energy Globe Award (Austria) 2002

First-Ever Zayed Future Energy PrizeHH Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme

Commander of the UAE Armed Forces, presents the first Zayed Future Energy Prize to Dipal Chandra Barua, in honour of innovation and commitment in alternative energy, at the Abu Dhabi

National Exhibition Centre, January 19, 2009.

Ashden Outstanding Achievement Award 2008Mr. Dipal Chandra Barua, Managing Director of Grameen Shakti with HRH Prince Charles,

Patron, Ashden Awards, London, United Kingdom, June 19, 2008

Ashden Outstanding Achievement Award 2008Mr. Dipal Chandra Barua Managing Director of Grameen Shakti receives “Ashden Outstanding

Achievement Award” from Nobel Laureate Ms. Wangari Maathai, London, United Kingdom, June 19, 2008

The Right Livelihood Award 2007Mr. Dipal Chandra Barua, Managing Director, Grameen Shakti receives from Mr. Jakob Von

Vexkull, Chairman, The Right Livelihood Award Foundation “The Right Livelihood Award (Alternative Nobel Prize)” for its vision and work of uplifting humanity and making life more whole,

Stockholm, Sweden, December 7, 2009

Thank You for Your Kind AttentionThank You for Your Kind Attention