Bangladesh became first country to receive funds from UN for Solar Home Systems

UN Framework Convention for Climate Change (UNFCCC) issued 3.56 million US Dollar Carbon Credit to Bangladesh for its fast growing solar home systems. With this Bangladesh became the first country to receive funds from UN for solar home systems.

• Solar home systems helps Bangladesh to cut carbon emissions by reducing use of kerosene in rural areas.
• Bangladesh is one of the lowest emitters of carbon globally, it has set an example by embracing the clean energy generated from small solar home systems.
• Other countries such as Senegal and India are in line to get the fund.
• Two Bangladeshi organizations named Infrastructure Development Company Ltd (IDCOL) and Grameen Shakti will be receiving the funds.
• IDCOL receives 212482 carbon credits and Grameen Shakti receives 182804 credits from UNFCCC.
• IDCOL is a state-owned development financial institution dedicated to promoting and financing infrastructure and renewable energy projects in the country.
• Grameen Shakti, set up by Nobel Laureate Prof Muhammad Yunus, aims to take clean solar power systems and communication technology to villages.
• IDCOL launched the program Solar Home Systems of Bangladesh in 2003 with the support of the Global Environment Facility and the World Bank. The programme was started with a target of financing 50000 systems by 2008.
• The IDCOL then revised up its target to install 2.5 million systems by 2014 and succeeded in achieving it.
• In 2007, the IDCOL signed an agreement with the World Bank on the global lender’s purchase of carbon credits from the company. Its programme was registered under the UNFCCC in 2012.
• Grameen Shakti is a non-profit village renewable energy scheme, linked to the micro credit lender Grameen Bank, pioneering solar systems for homes in Bangladesh.
• About 70% of the population in Bangladesh does not have access to electricity. Grameen Shakti operates a small loans scheme that enables poor households to buy a solar system. They cost about $135, but villagers usually pay in installments.
• Grameen Shakti has installed over 1.6 million solar home systems. Besides, 47 other organisations are installing more than 65000 such systems a month.
• Grameen Shakti won the $1.5 million Zayed Future Energy Prize from Abu Dhabi.