Context

Access to energy in Indonesia and Bangladesh

Like the whole South Asia Region, Bangladesh and Indonesia are facing major electricity provision issues. The economic growth superior to 5% causes a sharp increase in the consumption of electricity which is translated by a demand up by 10% per year. Needs of investment are huge in power plants and electricity transport facilities. The provision of big cities is getting the more and the more critical while power cut are frequent. Moreover, 70% of the whole population in Bangladesh, 40 % in Indonesia, does not have access at all to electricity especially the rural area.

Energy and Development

Electricity is crucial for economic growth. Currently, most of rural population relies on expensive batteries, kerosene and candles for their basic energy needs. Apart from everyday use such as lighting and watching television, studies have also shown that there is a direct correlation between productive use of electricity and increase in household’s income. Children learn better and are healthier when their village and households have access to electricity. Electricity opens as well new micro business opportunities.

Rural electrification

Currently, the grid suffers from lack of extensive transmission network and the limited generating capacity so that rural electrification is not the priority for National Providers such as PLN in Indonesia and PDB in Bangladesh. More over, the particular geography of the two countries, the high number of islands makes difficult to justify the cost of distribution networks prior to usual rural customer electric needs and incomes.

In those conditions, implementing Off-Grid solutions supplying green electricity in all reliability, without requiring complex maintenance, on a moderate price is a solution for providing the benefits of electrification to rural populations.

First option is isolated grid system combining solar, wind, biomass and micro-hydro power system. Those require special maintenances and an accurate organization to manage power plants, electric network and customer bills collection.

Second option dedicated for disbursed consumers are Solar Home System (SHS). SHS can offer basic electricity services of lighting and operation of small appliance as TV, radios and fans. SHS shall be owned by the household through microcredit options.