Rural emPOWERment, electricity generation by renewables and application of microfinance for sustainable development : an investigation of Grameen Shakti and Bangladesh

Abstract

"While a considerable increase in wealth can be observed in certain parts of the world, an enormous number of people are still struggling every day to survive. The provision of electricity by renewable energy (REN) to everybody could not only tackle the poverty issue and lead to economic, health and social benefits, but also would have a very positive influence on the environment and hence could guarantee a sustainable way of living. How this could be undertaken will be presented in this paper. As field of study Bangladesh, one of the most populated and poorest countries worldwide, has been chosen. Therewith the company Grameen Shakti (affiliate of the famous microfinance institution Grameen Bank) which is successfully promoting REN technologies in Bangladesh is highlighted. Information provided in this paper has been derived from subject-specific literature, internet research and from a field study trip to Bangladesh undertaken by the author in February and March 2013. The purpose of this paper is to introduce microfinance and to discuss its potential as financing option for REN. The importance of access to energy for people in developing countries and related REN technology options (also including hybrid solutions and mini-grid aspects) are presented. Therewith also the relevance of the productive use of REN is discussed. Bangladesh's energy situation as well as its REN possibilities, also by studying the technical potential of various REN technologies in a specific chapter, are reviewed. Moreover, the renowned Grameen Bank and Grameen Shakti (GS) are presented. Key success factors for sustainably promoting REN in developing countries by help of microfinance are derived and advantages of use of REN technologies are presented. According to the findings of the REN potential in Bangladesh one technology, namely rice husk gasification, which is not yet applied by GS but deemed to be viable, is reviewed from an economic point of view, which shows that under certain pre-conditions this technology can be feasibly deployed. Further, a community REN model based on microfinance, which has been created by the author of the paper as option to spur development, is introduced. Finally, the replicability of the GS experience in other countries is assessed."