As the world grapples with the urgent need for sustainable energy solutions, Bangladesh stands as a shining example of progress in harnessing solar power by implementing Solar Home Systems (SHS). With 62% of its population lacking access to the conventional power grid, Bangladesh has boldly embarked on a transformative journey towards off-grid electrification. At the heart of this initiative lies the Infrastructure Development Company Ltd. (IDCOL), a driving force behind surpassing installation targets and mobilizing substantial funding.

The SHS Technology Revolution

The core of SHS technology comprises a solar photovoltaic (PV) panel, charge controller, battery, energy-efficient lights, and a mobile charging outlet. The PV panel converts sunlight into electricity, while the battery stores it for later use, ensuring uninterrupted access to power. Equipped with a charge controller, the system safeguards against overcharging and discharging. With capacities ranging from 20 to 120 watts peak (Wp), SHS empowers households with the ability to operate various appliances.

A Historical Perspective

Bangladesh's foray into solar energy dates back to the 1980s, propelled by the visionary efforts of academic institutions and governmental bodies. The country's strategic location, blessed with abundant solar radiation, rendered it an ideal candidate for solar energy utilization. Despite formidable challenges in the realm of grid-based electricity, SHS emerged as a scalable solution tailored for off-grid areas.

Financial Accessibility and Policy Support

IDCOL has implemented a range of ownership options for SHS, including down payments and installment plans, ensuring affordability for beneficiaries. A nominal down payment of 10% paves the way for ownership, leveraging the robust network of microfinance institutions (MFIs) for accessible credit. Bangladesh's policy framework further bolsters the SHS initiative through initiatives like the Renewable Energy Policy and the Sustainable Energy for All Initiative. The government's resolute aim to achieve universal electricity access by 2021 exemplifies its commitment to advancing both energy access and climate resilience.

Crucial Agencies and Stakeholders

The Sustainable and Renewable Energy Development Authority (SREDA) serves as the linchpin for Bangladesh's renewable energy landscape. Overseeing entities that promote and finance energy projects, SREDA fosters crucial public-private partnerships. Within the government, the Ministry of Power, Energy and Mineral Resources takes the helm in overseeing all activities related to rural and renewable energy. The Central Bank of Bangladesh, a pivotal financial intermediary, has diversified into green lending, offering concessional finance to bolster the sector.

IDCOL: Pioneering Progress

IDCOL stands as a beacon of success in Bangladesh's renewable energy journey. This government-owned, public-private partnership institution provides essential long-term financing for private infrastructure projects. Working in tandem with development partners, solar suppliers, SMEs, and participating MFIs, IDCOL's concessional financing, grant support, technical assistance, and capacity-building initiatives have been instrumental in the SHS program's success. By leveraging donor funding, IDCOL offers an array of measures, from grants and subsidies to concessional loans and technical services.

Empowering Communities

IDCOL's innovative delivery model and access to funding sources have unlocked opportunities for even the most economically challenged households. Through microcredit financing from MFIs, the upfront costs and operational expenses of SHS are alleviated, ensuring widespread accessibility. The involvement of 47 Partner Organizations (POs) nationwide, including private SMEs, MFIs, and NGOs, has further amplified the program's reach. These entities, selected for their extensive coverage and rural presence, are integral in selecting potential SHS buyers, installation, maintenance, and market development.

Quality Assurance and Affordability

IDCOL's stringent screening processes for POs, coupled with technical standards committees, guarantee the use of top-tier equipment. To maintain affordability, POs receive capital buy-down grants, which, through market competition, translate into lower prices for buyers. Microcredit facilities additionally ease the financial burden on households. This coordinated approach ensures a robust market chain, delivering quality, affordable products with local serviceability.

Impact and Growth

The SHS program's resounding success lies in its comprehensive approach, combining price support, quality assurance, installation, and after-sales service in a seamless package. Immediate improvements in livelihoods are evident, with enhanced opportunities for education, information access, and reduced household air pollution. By late 2012, 8% of off-grid rural households had adopted SHS, a figure that has continued to surge in recent years. As of 2014, Bangladesh's renewable energy capacity stands at 363.8 megawatts, a substantial step towards a sustainable energy future.

A Model for the World

Bangladesh's triumph in off-grid renewable energy, epitomized by the SHS program, serves as a global benchmark. The collaborative efforts of government, private sector, and public entities have ushered in a new era of sustainable energy. While challenges persist, the lessons learned from IDCOL's pioneering approach provide invaluable insights for future energy access endeavors worldwide. With a strong policy foundation, integrated financing models, and transparent systems, Bangladesh's journey exemplifies the transformative power of renewable energy in shaping a more sustainable future.

(The author is an electrical engineer at LS Cable & System’s Bangladesh operations. Views are personal. He can be contacted at deenamin.eee@gmail.com.)