Access to Energy for the Base of the - Ashoka
Access to Energy for the Base of the - Ashoka
Access to Energy for the Base of the - Ashoka
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Grameen Shakti has already built up 41 Grameen Technology<br />
Centers <strong>for</strong> distributed assembling and servicing <strong>of</strong> SHS.<br />
Currently <strong>the</strong>y are training local technicians who can take on<br />
future servicing and installation <strong>of</strong> SHS at <strong>the</strong> village level<br />
� Financials:<br />
Project ability <strong>to</strong> solve <strong>the</strong> problem<br />
� Problem and magnitude:<br />
� 40% <strong>of</strong> <strong>the</strong> population <strong>of</strong> 155 million (July 2008 est.)<br />
in Bangladesh does not have access <strong>to</strong> power grid<br />
� 45% <strong>of</strong> <strong>the</strong> population lives below poverty line<br />
(2004 est.)<br />
� Ability <strong>to</strong> target <strong>the</strong> poorest:<br />
� SHS independent systems reach BOP 2000<br />
� BOP500 cus<strong>to</strong>mers addressed through Micro Utility<br />
systems where SMEs and poorer households<br />
share a system. It has 10k such installations.<br />
� BOP500 cus<strong>to</strong>mers reached through improved<br />
cooks<strong>to</strong>ves<br />
� Needs addressed: lighting, cooking, entertainment,<br />
communication and income generation (working at<br />
night)<br />
� Sustainability: The SHS system is well designed with<br />
a 5 year guarantee on battery and a 20 year guarantee<br />
on panel<br />
Project economic viability Project scalability<br />
� Sustainable after receiving subsidies <strong>for</strong> SHS<br />
installation<br />
� 4-5% gross margin on SHS<br />
� €34 is received as subsidy from IDCOL <strong>for</strong> every<br />
installation <strong>of</strong> SHS on and above 20W capacity<br />
� Ability <strong>to</strong> attract funding:<br />
� IDCOL is <strong>the</strong> key financing organization<br />
� It provides loans at an interest rate <strong>of</strong> 6% and<br />
small grants<br />
� The loan amount is about 80% <strong>of</strong> <strong>the</strong> sales value<br />
<strong>of</strong> SHS<br />
� Currently TK200 crore ($29.41m) loan outstanding<br />
with IDCOL<br />
� IDCOL also provides small grant funds from time<br />
<strong>to</strong> time<br />
� Growth targets:<br />
�� By 2012<br />
� Total SHS: 1m<br />
� Biogas Plant construction: 500k<br />
� Improved Cook S<strong>to</strong>ves: 10m<br />
� Market environment:<br />
�� Minimum threat <strong>of</strong> grid expansion in <strong>the</strong> next<br />
5 years<br />
� Power in grids in rural areas is erratic<br />
� Competi<strong>to</strong>rs are entering in this space but<br />
Grameen Shakti has already build its presence<br />
and reputation<br />
� Replicability:<br />
�� Grameen Shakti is already present in all <strong>the</strong><br />
districts (64) <strong>of</strong> Bangladesh<br />
★★✩<br />
★★✩ ★★✩<br />
Sources: Hystra analysis, UNC Kenan-Flager Business School, WBSCD, Field visit and management interviews<br />
� Aggressively acquire cus<strong>to</strong>mers leveraging <strong>the</strong>ir<br />
existing infrastructure<br />
� Promoting Grameen Technology Centers <strong>for</strong> a<br />
distributed model <strong>of</strong> assembling components and<br />
servicing<br />
� Growth in Bangladesh has been fuelled by <strong>the</strong><br />
existence <strong>of</strong> Grameen Bank<br />
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