Feasibility Study on Renewable Energy Supply in the Southwestern Region of Bangladesh Wasif Gaws Creative Director Grey Shack Limited
Grey Shack, a communications and consultancy company which provides support to development organizations, multi-nationals, large corporations, SMEs, NGOs, institutions and individuals in all aspects of Communication Solutions, ICT Solutions and Strategic Business Consultancy. We provide special assistance in social awareness raising, behavior change communication, advocacy campaign, information education and communication, visibility and branding. By creating an end to end communication strategy and carefully planned implementation, Grey Shack helps to empower all its stakeholders understand the project goals and to contribute actively to the decision-making processes of development as a whole.
Introduction The objective of the study is to »» Identify the opportunities and challenges »» Provide information on the current initiatives to provide access to Renewable Energy (RE) in the target area »» Provide an overview on the infrastructural needs and estimated cost for (RE) system »» Identify external interest to invest in a possible consortium Here, renewable energy refers to the power generated through solar energy which can be stored and can be shared with the community through a mini grid system Fingri and Budhata Union of Polder 2 under Sathakhira district and Surkhali Union of Polder 31(part) under Khulna district was covered in the study
The sample is split roughly 1:3 between those with and without electricity.
84% of the sample were households
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A total of 720 household and commercial enterprises were surveyed. 33% of the respondents were female. 3
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A total 4 FGDs were conducted (2 in each area)
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Sathkhira / Polder 2 Budhata Union • 13 villagers and 4 market places have the grid connection • In the markets, 90% shops and business use electricity. • But 50% of the grid connections are from the neighboring shop / business. • Currently PBS has 5154 users and the consumption is 3,51,683 kWh/month • Household uses about 76 kWh and spends about BDT 343 per month • Load shedding: 2 hrs/ day & 7 hrs/ day respectively in winter and summer • 11 villages or 46% of the population is out of Grid connection • Household uses 3.5 liters of kerosene and spends about BDT 280 per month • 51.7% of households have a Solar Home system (SHS) • Most of the shops and business use SHS
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Wasif Gaws Creative Director Grey Shack Limited Grey Shack, a communications and consultancy company which provides support to development organizations, multi-nationals, large corporations, SMEs, NGOs, institutions and individuals in all aspects of Communication Solutions, ICT Solutions and Strategic Business Consultancy. We provide special assistance in social awareness raising, behavior change communication, advocacy campaign, information education and communication, visibility and branding. By creating an end to end communication strategy and carefully planned implementation, Grey Shack helps to empower all its stakeholders understand the project goals and to contribute actively to the decision-making processes of development as a whole.
Khulna / Polder 31 (part) Surkhali union •
15 villages and 3 market places of the union are inside the polder
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4 villages and 2 markets have grid connections
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Currently PBS has 519 users and the consumption is 29,372KWh/month
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Electrified household uses about 46 kWh and spends about BDT 284 per
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Load shedding: 1.3 hrs/day and 4 hrs/ day respectively in winter and summer
The southern part of the polder is entirely without grid connection. This part contains about 66% of the households
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Households use 2.7 liter of kerosene and spend about BDT 218 per month
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55.6% of households have a Solar Home System (SHS).
Socio-economic challenges of non grid connected areas
Household level
48%
Enterprise level
70%
Financial loss
42%
Illumination
35%
Safety and security
38% 38%
Safety Sa Saf fet ety y and security
17%
Business / farming
17%
Storage / preservation
14%
Exploring new opportunities
16%
Use of equipments
Children’s education is
38% Wasif Gaws Creative Director Grey Shack Limited
Grey Shack, a communications and consultancy company which provides support to development organizations, multi-nationals, large corporations, SMEs, NGOs, institutions and individuals in all aspects of Communication Solutions, ICT Solutions and Strategic Business Consultancy. We provide special assistance in social awareness raising, behavior change communication, advocacy campaign, information education and communication, visibility and branding. By creating an end to end communication strategy and carefully planned implementation, Grey Shack helps to empower all its stakeholders understand the project goals and to contribute actively to the decision-making processes of development as a whole.
Comparison of two milk chilling factories Start of business Capacity (liter) Daily production (liter) Monthly cost energy (BDT) maintenance Average chilling cost / liter
With electricity access
No electricity access
2012 2400 760 13,500 500 0.62
2011 2000 550 26,000 4000 1.81
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Socio-economic challenges of non grid connected areas We don’t have light (electric bulb) in house. My son goes to other people’s house to study. If there is electricity, he could study at home… he could study more -Kobita Das (40) Housewife, Lombadanga. Budhata
Stealing of fish from the farms at night is common incident … we face problem in financial transitions. Due to electricity problem, there is no Bank in the area. -Asgar (38), Fish cultivator & Businessman, Roypur. Surkhali
People become sick and the medicines run to waste due to heat. If there is electricity, medicines could be stored in fridge (refrigerator) - Rokibul Hassan (32), Village Doctor, Surkhali Bazar Due to lack of proper lighting we are in (business) loss... Sometimes customers steal valuable cosmetics from the store -Rubel (30) Proprietor, Cosmetic store, Surkhali Bazar. Surkhali I can’t run the TV for longer time in the store… customer’s like to watch TV... I could have earned more if there was electricity - Arab Ali Shek (33) proprietor Teal stole. Surkhali Bazar
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Socio-economic impact of electricity Impact on income •
Electrified household has 11.9% higher income than non-electrified households
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Electrified house hold has 14% higher per capita income than non-electrified households
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Socio-economic impact of electricity Impact on credit Average size of the loan according to source Non Grid household
Grid household
89000
39500 20351
28350
NGO
41143
36389 20000
Bank
Friends / relative
24286 10000 Money lender
10167 Others
10091
15034
Grand Average
Wasif Gaws Creative Director Grey Shack Limited Grey Shack, a communications and consultancy company which provides support to development organizations, multi-nationals, large corporations, SMEs, NGOs, institutions and individuals in all aspects of Communication Solutions, ICT Solutions and Strategic Business Consultancy. We provide special assistance in social awareness raising, behavior change communication, advocacy campaign, information education and communication, visibility and branding. By creating an end to end communication strategy and carefully planned implementation, Grey Shack helps to empower all its stakeholders understand the project goals and to contribute actively to the decision-making processes of development as a whole.
Source of loan in grid Household
Source of loan in non-grid Household 3%
3% 1% 1%
6% 14%
16%
Bank 61%
F Friends/relative Money lender Mon Others
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NGO
NGO
Bank
30% 65%
F Friends/relative Money lender Mon Others
Impact on investment Household / business level
Industry level In Budhata there is an opportunity to set up a few automated rice-mills, spice-mils and saw-mills in the areas that are currently non-electrified (especially in Paikhali) In surkhali, automated rice mills, ice factories, tiles factories, bakeries and a mattress factory Impact on irrigation and water management • Cost of irrigation is much chipper in electric pups compare to diesel pumps (BDT 765: BDT 2428) •
In rice cultivation season farmers have to spend BDT 500-1000 for maintenance of the machines.
• water-logging is the chief impediment to cultivation in some areas in both polders •
estimated annual loss of paddy is at least 0.4 tonne/ hectare
• Experience of Fingri
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Impact on education and children’s heath Education expenditure in an electrified household is 5% more than that of a non-electrified household Students in electrified households study 7 minutes more per day than in non-electrified households Figure 11: Problem faced during satudy at night in nongrid houseolds (in%)
87
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23 13
Insufficient illumination
Head ace
11
Eye burning Bad smell
7
Used to
No problem
Figure 12: Problem faced by childern during satudy at night in grid houseolds (in%) 82
11
10
Insufficient illumination
Head ace
5
3
Eye burning Bad smell
6
Used to
No problem
Our school is one of the best schools in the area… we have to teach computer subject … as we don’t have electricity in the school; we don’t have any computer from the govt. The teacher brings his personal laptop to show in the class but it is not possible to let students using it. It is just like showing them sweets in showcase!
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-Suvas Datta, Assistant Head Teacher, Kunduriya PN High school
Impact on household health In 55% of the non-electrified households kerosene is the main source of illumination Kerosene-burning devices can impair lung function and increase cancer risks as well as the incidence of infectious illnesses and asthma electrified households are much better endowed than the non-electrified households in terms of awareness of crucial public health issues, e.g. use of hygienic latrines, use of hand washing materials etc
Impact on gender dimensions Electricity has had a profound impact on women’s mobility, participation in income generating activities, decision making, freedom in using income and savings, better utilization of credit etc In electrified households : • Household heads’ autocratic decision-making in a family’s economic matters is a little less than those in a non-electrified area • The consensus decision making is 39% higher than in non-electrified households • Imposing decisions by the male member on females movement are significantly less • Women’s self-decision-making on her movement is little high • Women tend to participate in elections (voting) more • They have more confidence to choose the candidate on their own
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Government strategies and challenges for electrification REB aims to cover all villages in its jurisdiction by 2020. Sathkhira PBS plans to provide 2500 new connection in the Budhata Khulan PBS has planned to provide 350 new connections in Surkhali *These extension plans are subject to additional electricity supply capacity by the Government / BREB •
PSMP 2010 has estimated that peak demand to be 10,283 MW in 2015, 18,838 MW in 2021 and 33,708 MW in 2030. •
Highest power generated at 8,177 MW (13 August, 2015)
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The power sector is heavily reliant on gas. But due to a shortage of gas, about 10% of power generation is idle.
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Long term plan
- LNG based Combined Cycle Plants - Domestic/Imported Coal Power Plant (At least 50% by 2030) - Gas/Oil based Peaking Plant - Nuclear Power Plant - Renewable Energy •
10 % of total power by 2020 using renewable energy resources.
Current initiatives for Renewable Energy Among the renewable energy resources solar energy has highest potential in Bangladesh SEDA has planed to generate 3103.8 MW from renewable sources in 2015 - 21. • 1675.8 MW will be solar based • 44.25 MW would be Solar Mini/micro/nano-grid • • •
Fiscal incentives to Renewable Energy project developers and investors. Dedicated funding support through government financial institutions like IDCOL IDCOL has a target to finance 50 solar mini-grid projects by 2017.
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At present 4 solar mini-grid projects has been completed and 6 others are under construction GREY SHACK WWW.GREYSHACK.COM WASIF GAWS GREYSHACK LIMITED BANGLADESH
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