Blog » Energy Access OBA/RBF Scheme with Climate Benefits- Bangladesh
The objective of the Bangladesh Rural Electrification and Renewable Energy Development –Solar Home System (SHS) Project is to enhance energy access and provide affordable electricity to rural households. The original aim of the project was to support installation of 315,000 SHSs, benefiting about 1.4 million people.
OBA/ RBF features:
The project designed using OBA subsidies. It was implemented by the Infrastructure Development Company Limited ( IDCOL), a government-owned finance company in partnership with participating organizations (POs). POs offers microfinance loans to households and were responsible for installation. Following installation of the system, POs submitted a loan refinancing and grant application. With inspections and verification done by IDCOL and a third party technical audit company. IDCOL released the credit and the subsidy to the POs.
The Solar Home System (SHS) provides rural household with access to clean energy at affordable price. In addition to the energy generation from solar resources, the utilization of LED bulbs reduced the operation and maintenance (O&M) cost for lighting while cutting carbon emissions.
Project achievements and sustainability:
This LED technology, coupled with the project’s support for increased competition among POs and the decreasing market price of solar panels, resulted in the decline of unit price so that more households would afford SHS. The project reached beyond the preset target by making about half million SHS installment possible, benefiting over 2.2 million people. The impact assessment funded by GPOPBA has shown that the use of SHSs in the rural Bangladesh has had several positive outcomes including reduced levels of household air pollution, enhancement of mobility and security, particularly for women and girls with extended lighting-hours at night.