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Bangladesh, People's Republic of: Installation of Solar Home Systems in Bangladesh (IDCOL)
(Community Development Carbon Fund)

UNFCCC Reference No.: 2765

Project Photo 1

Project Description
The objective of the proposed project is to reduce atmospheric carbon emissions by overcoming market barriers for solar energy development, including high implementation costs. The proposed project activity is a bundle of 226,700 units of solar home systems, with capacities between 30 and 120 watts, to be installed by 2015 in off-grid areas of Bangladesh. It will reduce an average of 34,854 tCO2e  per year over the first 7 years of the 21-year crediting period. The project uses photovoltaic applications to produce electricity and thus reduces greenhouse gas emissions by displacing conventionally used energy sources for electrification, such as kerosene and diesel.

Current Context
In Bangladesh, approximately 36 percent of the population has income below the poverty line and 18 percent of total household consumption is spent on fuel. The majority of the rural population does not have access to electricity, and only 32 percent of Bangladesh’s total population has access to grid electricity. Besides electricity from the grid, kerosene and diesel are the most popular options for lighting and other energy needs. Households in remote areas are using solar home systems to meet their basic electrification requirements, reducing dependence on imported fossil fuels.

Community Benefits
This project has inherent direct benefits. Grameen Shakti has developed a strategy for providing electricity to households in off-grid, remote, and rural areas through Infrastructure Development Company, Ltd. (IDCOL). A set of indicators has been developed to monitor the community benefits of the project implementation. IDCOL is channeling both grant and refinancing to renewable energy projects in rural areas under the solar energy program.  As of June 30, 2007, a total of 128,813 systems had been installed in all 64 districts of the country under this program, and more than 600,000 people in rural areas got access to electricity under the program. By 2012, this number is expected to reach 2,500,000. 



Household lighting

A total of 226,700 households will be supplied with solar energy.

Reduction of household expenditures on kerosene and consumption of diesel

Kerosene and diesel usage will be displaced with renewable sourced energy.

Employment creation at local level

The program will generate short- and long-term employment resulting from the installation and maintenance of solar home systems.

Basic infrastructure for the area

Rural businesses, enterprises, schools, health centers, mosques, and temples will be supplied with solar energy.

Access to modern technology

Use of modern technologies, such as television, computers, and radios will increase throughout the community.

Increased economic activity in rural areas/marketplaces

The availability to new electricity will increase economic activity.

Time Frame: 2008-2015

Monitoring Plan: A set of indicators were developed to monitor the community benefits of the project implementation. A monitoring plan will be implemented through monthly operations committee meetings between IDCOL and partner organizations. IDCOL will be responsible for data collection through inspection and re-inspection reports. Additional data for monitoring will be collected through the lease agreements between the participating households and partner organizations, annual reports from the partner organizations, and annual reports from IDCOL. IDCOL is responsible for verifying the delivery of the benefits through annual audits conducted by external auditors and independent surveys from donor agencies.

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