Cheap Solar Home Systems Bringing Light, New Opportunities to Millions in Rural Bangladesh

Solar home systems are bringing the benefits of electrical power to millions in rural Bangladesh, a testament to the numerous and varied benefits access to cheap, clean and renewable distributed solar PV can have in developing countries. Microfinance provider Grameen Shakti’s efforts to market and sell solar home systems (SHS) in rural areas across the country that lack grid access have proved extremely successful.

More than 500,000 SHS systems have been installed cumulatively as of year-end 2010, according to Grameen Shakti. The SHS home energy package includes one or more solar photovoltaic (PV) panels, batteries, a power regulator, and a set of compact fluorescent lamps (CFL) and LED lights.

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World Bank Bringing Solar Power to Over 1 Million Homes, Shops in Rural Bangladesh

Only around 1/3 of rural residents in Bangladesh have access to electricity. Some 16 million homes have yet to be connected to an electricity grid. That’s changing fast with help from the World Bank.

On October 4, the World Bank’s International Development Association (IDA) approved a $172 million credit facility to support installation of solar power and other renewable energy ‘mini-grid’ systems for as many as 630,000 more homes in rural Bangladesh.

The funds add to the IDA’s Rural Electrification and Renewable Energy Development Project (RERED) in Bangladesh, which aims to install solar power systems on more than 1 million rural Bangladeshi homes and businesses by 2012. This latest financing follows an additional $130 million the World Bank awarded RERED in December, 2009.

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A woman stands in the doorway of her mud house next to a solar system panel near Patulia village in the Gazipur district north of capital Dhaka in this May 5, 2007 photo.

DHAKA (Reuters) – Solar power is in place in nearly a million homes in rural Bangladesh, which is drastically short of electricity, the World Bank said on Monday.

A woman stands in the doorway of her mud house next to a solar system panel near Patulia village in the Gazipur district north of capital Dhaka in this May 5, 2007 photo.

A woman stands in the doorway of her mud house next to a solar system panel near Patulia village in the Gazipur district north of capital Dhaka in this May 5, 2007 photo.

“More than 870,000 homes and shops in remote rural areas have installed solar home systems with support from the World Bank and other development partners,” the global lender said in a statement.

The World Bank had provided additional financing of $130 million in 2009 to support the government’s efforts to reach more households in rural areas with solar home systems.

“Access to electricity has many benefits including better quality of life, more time spent by children for study, and opportunities for new village enterprises.”

Barely 45 percent of Bangladesh’s 150 million people have access to power but they still face frequent power cuts that often trigger protest.

The impoverished country faces 2,000 megawatts of electricity shortages. In addition, population growth, increased industrialization, additional connections, and rise in the use of modern, electrical appliances have boosted demand for electricity, currently growing at a rate of over 500 MW a year.

Solar home systems have proven to be a viable option to provide electricity to villages the national grid cannot reach, the World Bank said.

Bangladesh aims to meet 10 percent of its total power demand from renewable energy sources by 2020. Renewable energy contributes less than 1 percent to overall power generation.

The government, facing growing public anger over power and utility shortage, says it is exploring various means, including nuclear power generation, to overcome the problem, which is one of the key constraints to growth and is considered as a big barrier to foreign investments.

(Reporting by Ruma Paul; Editing by Anis Ahmed)

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