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Rural Electrification and Renewable Energy Development (REREDP)

Table of contents

Overview

The Rural Electrification and Renewable Energy Development Project (REREDP) is a project managed by IDCOL, funded by the World Bank and GEF, and is aimed to provide 50,000 Solar Home Systems (SHS) to rural areas by the end of 2007. However, due to the

IDCOL manages the program participants and suppliers with subsidies and concessional loans to purchase photo-voltaic systems in bulk, and the partners can then provide credit to rural households to purchase the systems.

Payment

The main supplier for the project is Rahimafrooz Renewable Energy Ltd, which supplies most of the photo-voltaic equipments to the partners working in the project. IDCOL then subsidizes the purchase of the systems for around Tk 7,150 (68€) per system, but this has been gradually reduced to Tk 3,640 over the years.

This subsidy enables the partners to offer credit to rural families, so they can buy a system for about Tk 24,000 (around half their annual income), and in installments of around Tk 400 to 800 (4€ to 8€) per month spread over two to three years.

Benefits

SHS is replacing kerosene lamps as a source of light and thus avoiding the fire-risk, health hazard and pollution from the said lamps. Rahimafrooz estimates that by using SHS, an average household that consumes 10 liters of kerosene a month would be able to save the production of 300kg CO2 per year.

The price of owning an SHS is also paid back by the savings on kerosene purchase of around Tk 400 to Tk 500 per month for 10-14 liters, which is in fact around the same amount they pay on the SHS installations. The fact that they don't need to purchase kerosene also frees them from their dependency on oil prices, which could increase more once the government reduces the subsidy on kerosene.

SHS is also being used to power small-scale businesses such as poultry and handicrafts. Businesses can open for longer, new business opportunities open up as solar technicians, electrical repairers or running community TV stations.

The repairers working on solar system components are former street children who has received basic training in electronics from a UNICEF program. Rahimafrooz gives an estimation of 700 engineers are needed to maintain solar photo-voltaic systems. Other opportunities arise in the manufacturing of other components in the SHS.

source:
http://www.ashdenawards.org/winners/rahimafrooz(external link)
http://www.ashdenawards.org/files/reports/Rahimafrooz%202006%20Technical%20report.pdf(external link)
http://web.worldbank.org/external/projects/main?Projectid=P071794&theSitePK=40941&pagePK=64283627&menuPK=228424&piPK=73230(external link)