Off Grid Business Plan
According to World Bank sources, only about 30% of the rural households in Bangladesh have access to grid electricity. For the rest of the areas not connected to the grid, life comes to almost a standstill after sun-set. Unless there is an alternative source of energy, it would not be possible for most of the villagers having access to electricity. Even for those connected to the grid, power generation capacity constraints result in frequent power-cuts. Reliance on grid electricity alone will not allow the realization of universal access to electricity by the year 2021. Furthermore, the dispersed nature of rural settlements and the numerous rivers that crisscross the country make grid electrification in many areas difficult and expensive. In this context, off-grid electrification, based on renewable energy is a viable long-term option available for cost-effective electricity access for millions of people in remote areas. Now, many villages especially in isolated areas are starting to enjoy electricity generated by solar panels. BAES Solar Limited like other renewable energy service providers helps facilitate access to electricity. IDCOL's mission is to promote economic development in Bangladesh by encouraging private sector investment in energy and infrastructure projects. BAES though a business entity, intends to contribute towards development of Bangladesh through generation of alternative energy. BAES has worked with both public and private bodies and non-government organizations. Through FIVDB and DMSS, BAES reached out thousands of clientele groups living in the north and north-east Bangladesh and most of them are from extreme poor households. At the same time, BAES helped local government functionaries reducing their dependency on national grid. BAES has already offered diverse range of products ranging from a home-system of 30W to a plant of 10 KW. Currently, BAES has been implemented a system having capacity of generating 36KW in the premise of Chittagong Port Authority (CPA). BAES offers a wide range of products meeting the need of household to large office premises. Performance is quite comparable with international standard while system requires minimum maintenance. There are provisions of warranty for at least 5 years for the system.
a) Track record in business:
BAES Solar Limited has a successful track record in business. Major clients include, Test of relief/Kabikha, at Sylhet Division, Comilla University, Power Development Board (PDB), Power Grid Company of Bangladesh (PGCB), Titas Gas Transmission and Distribution Company Limited, Manikganj Pourashava, Chittagong Port Authority, Comilla BARD, Friends In Village Development Bangladesh (FIVDB) and Dustha Manabotar Seba Sangstha (DMSS) Khanjanpur, Joypurhat. BAES has successfully carried out renewable energy work in 4 divisions. Divisions are Dhaka, Chittagong, Rajshahi and Sylhet. In total, BAES has reached out thousands of clienteles in 10 districts.
b) Plans and track record:
In the year 201 1, BAES has established thousand Solar Home Systems (SHS). Apart from SHS, BAES installed a total solar-based system of 100 KW. Currently.
A) Identification of customer:
BAES offers diverse range of products ranging from a home-system of 30W to a plant of 10 KW. In partnership with DMSS, BAES has installed SHS in villages of Joypurhat district. Through NGOs/MFIs, BAES has reached out extreme poor households in remote villages.
B) BAES has implemented program in remote locations where there is hardly a possibility of electrification through national grid at least in the near future. It is true that Bangladesh suffers from acute shortage of power and cities are growingly depending on renewable energy to meet additional demand in peak hours. BAES in collaboration with local government institutions, has implemented a number of projects. Apart from installing street lights backed by solar system in Bianibazar Municipality, Golapgonj & Kanaighat Upazila in Sylhet. BAES has established 10KW solar-based power back-up in Manikganj Municipality. In a cluster, it has been possible to support more than 500 SHS. However, BAES offers a system maintaining standard qualities set by European Union (UN) requiring minimum maintenance.
C) BAES has experience of installing thousand SHS in a year. At the same time, BAES installed a number of solar-based off-grade systems for offices and institutions.<br>
D) BAES offers a wide range of products meeting the need of household to large office premises. Performance is quite comparable with international standard while system requires minimum maintenance. There are provisions of warranty for at least 5 years for the system.
E) Operational Procedures:
i) Marketing team is supervised by a director. The team makes plan annually and reports back to management quarterly about the progress.
ii) BAES has been maintaining clear arrangement with suppliers having a good track record. BAES has trained staff members of partners and they have expressed satisfaction regarding performance. BAES maintains a software-based accounting system. Accounts are audited annually by a qualified external auditor.