Lighting Asia: Solar Off-Grid Lighting

120 Pages·2012·3.73 MB·English

Market analysis of :
india, Bangladesh, nepal, pakistan, 1
indonesia, CaMBodia, and philippines
l gni t h g i a:ais s ral o og-ff di r l gni t h g i
Market analysis of:
india, Bangladesh, nepal, pakistan,
indonesia, CaMBodia and philippines
With support provided by:
This publication was written for the International Finance Corporation (IFC) by Intellecap (Intellectual Capital Advisory Services Private Limited).
It was made possible through support provided by the United States Department of State (under the terms of Award S-LMAQM-11-GR1011)
and the Government of Italy. The opinions expressed herein are those of the author(s) and do not necessarily refect the views of the United States
Department of State and of the Government of Italy.
Cover page photographs:
Children with a solar light, Cambodia (M Young)
Tailor with a solar light, India (A Jacobson)
Market analysis of :
india, Bangladesh, nepal, pakistan, 3
indonesia, CaMBodia, and philippines
fe b r u a r y 2 0 1 2
W i t h n e a r l y 8 0 0 m i l l i o n p e o p l e l i v i n g i n as i a w i t h i n t e r m i t t e n t o r n o a c c e s s t o
t h e e l e c t r i c a l g r i d , t h e s e p e o p l e e x p e r i e n c e g r e a t e r h e a l t h r i s k s d u e t o u n c l e a n
l i g h t i n g a l t e r n a t i v e s a n d f e w e r i n c o m e - g e n e r a t i n g o p p o r t u n i t i e s . th e r e i s a n
u r g e n t n e e d t o p r o v i d e c l e a n , s u s t a i n a b l e a n d a f f o r d a b l e l i g h t i n g s o l u t i o n s t o
r e d u c e s u c h r i s k s a n d a s i g n i f i c a n t o p p o r t u n i t y f o r b u s i n e s s t o p r o v i d e s u c h
s o l u t i o n s .
th i s ‘ifC li g h t i n g as i a so l a r of f gr i d li g h t i n g re p o r t ’ p r o v i d e s a v a l u a b l e
i n s i g h t i n t o t h e s e c t o r p o t e n t i a l , r e g u l a t o r y a n d b u s i n e s s e n v i r o n m e n t a c r o s s
s e v e n m a j o r as i a n o f f - g r i d l i g h t i n g m a r k e t s .
it e x p l a i n s c r i t i c a l s u c c e s s f a c t o r s f o r t h e as i a n o f f - g r i d l i g h t i n g s e c t o r w i t h
d e t a i l s o f b u s i n e s s m o d e l s , p r i c e p o i n t s a n d m a r k e t s c o p i n g i n f o r m a t i o n . i t
p r e s e n t s a v a l u a b l e r e s o u r c e t o a c t i v e p l a y e r s , m a r k e t p r a c t i t i o n e r s a n d i n v e s t o r s
w i t h a v e s t e d i n t e r e s t i n t h i s p a r t i c u l a r m a r k e t . si n c e a c c e s s t o q u a l i t y l i g h t i n g
h a s a s i g n i f i c a n t p o s i t i v e i m p a c t o n p r o d u c t i v i,t y e d u c a t i o n a n d q u a l i t y o f l i f e ,
t h i s r e p o r t w i l l a s s i s t i n d e v e l o p i n g t h e n e c e s s a r y a c t i v i t i e s t o a d d r e s s t h e s e
c h a l l e n g e s .
ro d d ed d y
ex e c u t i v e di r e c t o r & ac t i n g Ch a i r m a n
4 Lighting AsiA: soLAr off-grid Lighting
t elba fo stnetnoc
CoMMon aBBreviations ���������������������������������������������������������������������������������������������������������8
CurrenCy exChange rates �����������������������������������������������������������������������������������������������������9
lighting asia �������������������������������������������������������������������������������������������������������������������������� 10
exeCutive suMMary �������������������������������������������������������������������������������������������������������������� 13
1 asia overvieW ��������������������������������������������������������������������������������������������������������������������� 20
2 india Market sCoping �������������������������������������������������������������������������������������������������������� 37
2.1 The current state of off-grid lighting ............................................................................................ 37
2.2 Overview of the solar off-grid lighting market ............................................................................ 41
2.3 Demand scenario ............................................................................................................................ 43
2.4 Supply scenario................................................................................................................................ 44
2.5 Overview of the regulatory environment ..................................................................................... 51
2.6 India conclusion ............................................................................................................................... 52
3 Bangladesh Market sCoping ������������������������������������������������������������������������������������������� 53
3.1 The current state of off-grid lighting ............................................................................................ 53
3.2 Overview of the solar off-grid lighting market ............................................................................ 54
3.3 Overview of the regulatory environment ..................................................................................... 63
3.4 Bangladesh conclusion ................................................................................................................... 64
4 nepal Market sCoping ������������������������������������������������������������������������������������������������������� 65
4.1 The current state of off-grid lighting ............................................................................................ 65
4.2 Overview of the solar off-grid lighting market ............................................................................ 67
4.3 Overview of the regulatory environment ..................................................................................... 73
4.4 Nepal conclusion ............................................................................................................................. 74
Market analysis of :
india, Bangladesh, nepal, pakistan, 5
indonesia, CaMBodia, and philippines
t elba fo stnetnoc
5 pakistan Market sCoping ������������������������������������������������������������������������������������������������� 75
5.1 The current state of off-grid lighting ............................................................................................ 75
5.2 Overview of the solar off-grid lighting market ............................................................................ 76
5.3 Overview of the regulatory environment ..................................................................................... 79
5.4 Pakistan conclusion ......................................................................................................................... 80
6 indonesia Market sCoping ����������������������������������������������������������������������������������������������� 81
6.1 The current state of off-grid lighting ............................................................................................ 81
6.2 Overview of the solar off-grid lighting market ............................................................................ 83
6.3 Overview of the regulatory environment ..................................................................................... 85
6.4 Indonesia conclusion ....................................................................................................................... 86
7 CaMBodia Market sCoping �����������������������������������������������������������������������������������������������������87
7.1 The current state of off-grid lighting ............................................................................................ 87
7.2 Overview of the solar off-grid lighting market ............................................................................ 90
7.3 Overview of the regulatory environment ..................................................................................... 97
7.4 Cambodia conclusion ...................................................................................................................... 98
8 philippines Market sCoping ����������������������������������������������������������������������������������������������������99
8.1 The current state of off-grid lighting ............................................................................................ 99
8.2 Overview of the solar off-grid lighting market ............................................................................ 99
8.3 Overview of the regulatory environment ................................................................................... 103
8.4 Philippines conclusion .................................................................................................................. 104
9 appendix ����������������������������������������������������������������������������������������������������������������������������� 105
6 Lighting AsiA: soLAr off-grid Lighting
t elba fo stnetnoc
table of figures
Figure 1.1: Access to electricity by region (2009) ................................................................................ 20
Figure 1.2: Off-grid population in regions across Asia (2009) ........................................................... 21
Figure 1.3: Population without access to electricity by country (2009) ............................................ 22
Figure 1.4: Annual kerosene expenditure by country ........................................................................ 23
Figure 1.5: Market segmentation of the solar off-grid lighting market ........................................... 24
Figure 1.6: Market segmentation by population density .................................................................. 27
Figure 1.7: Typical prices of solar off-grid lighting products in Asia ................................................. 32
Figure 2.1: Rural-urban distribution of off-grid households in India (2008) .................................... 37
Figure 2.2: Distribution of primary sources of lighting in rural India (2004-05) .............................. 38
Figure 2.3: Primary sources of lighting in households across states (2007-08) ................................ 39
Figure 2.4: Annual expenditure on kerosene for lighting by rural and urban households ............ 40
Figure 2.5: Comparison of lifetime costs of solar off-grid lighting products
and kerosene lanterns ......................................................................................................... 41
Figure 2.6: Market potential for solar lanterns and SHS in rural India ............................................. 43
Figure 2.7: Comparison between sales of CFL and LED lanterns ....................................................... 44
Figure 2.8: Price vs. panel wattage of LED lanterns ........................................................................... 45
Figure 2.9: Mapping loan amounts against the SHS panel wattage under the JNNSM program .. 49
Figure 3.1: Rural-urban distribution of off-grid households in Bangladesh .................................... 53
Figure 3.2: Electrification rates and kerosene usage for lighting by region (2004) ........................ 54
Figure 3.3: Schematic diagram of IDCOL solar program .................................................................... 55
Figure 3.4: Cumulative number of SHS installed through the IDCOL solar program ....................... 56
Figure 3.5: Cumulative number of targeted installations of SHS until 2014 .................................... 56
Figure 3.6: Cumulative sales of different POs (2009) ......................................................................... 57
Market analysis of :
india, Bangladesh, nepal, pakistan, 7
indonesia, CaMBodia, and philippines
t elba fo stnetnoc
Figure 3.7: Mapping product features and prices of SHS ................................................................... 58
Figure 3.8: Sales mix of SHS and mapping against the consumer household income segment ..... 59
Figure 3.9: Subsidies provided and the cumulative growth of SHS installed (2010) ........................ 61
Figure 4.1: Rural-urban distribution of off-grid households in Nepal (2008) .................................. 65
Figure 4.2: Primary sources of lighting in rural households of Nepal (2005) ................................... 66
Figure 4.3: Solar Tuki ............................................................................................................................. 67
Figure 4.4: Cumulative number of SHS installed through AEPC subsidy program .......................... 67
Figure 4.5: Schematic diagram of the AEPC subsidy program ........................................................... 68
Figure 4.6: Subsidy structure of AEPC.................................................................................................. 68
Figure 4.7: Annual SHS installations through AEPC ........................................................................... 69
Figure 4.8: Mapping of product features and prices of SHS .............................................................. 70
Figure 5.1: Rural-urban distribution of off-grid households in Pakistan .......................................... 75
Figure 5.2: Monthly household kerosene consumption value across income quintiles (2004-05) . 76
Figure 5.3: Mapping of product features and prices of SHS .............................................................. 78
Figure 6.1: Rural-urban distribution of off-grid households in Indonesia ........................................ 81
Figure 6.2: Number of SHS installed trough the government tender scheme ................................. 83
Figure 7.1: Distribution of households by primary source of lighting (2007) ................................... 87
Figure 7.2: Retail price of SHS available in Cambodia ........................................................................ 91
Figure 8.1: Distribution of off-grid Households in the Philippines (2008) ........................................ 99
Figure 8.2: Retail price (non-subsidized) of SHS in the Philippines ................................................. 101
Figure 8.3: Schematic of CARD partnership with SunTransfer and Barefoot ................................. 102
Figure 9.1: Schematic diagram of JNNSM program in India ............................................................. 109
8 Lighting AsiA: soLAr off-grid Lighting
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Market analysis of :
india, Bangladesh, nepal, pakistan, 9
indonesia, CaMBodia, and philippines
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10 Lighting AsiA: soLAr off-grid Lighting
L gni t h g i Aais
Nearly 800 million people in Asia[1] live in a state of Modern off-grid lighting has emerged with the ascent
near darkness, coping with unreliable or non existent of solar energy, battery and LED technology and has
or no access to electricity on a daily basis. The effects a rapidly growing demand from those living off-grid.
on these vulnerable communities are severe. Medical This report provides an overview of the off-grid lighting
and educational opportunities and services are severely market in seven nations across southern Asia – India,
constrained, health risks are heightened by unclean Bangladesh, Nepal, Cambodia, Indonesia, Pakistan
lighting alternatives and opportunities for income- and the Philippines – and presents the opportunity
generating activities are reduced. Many people also for investors and industry players to make a real and
pay a great deal over time for paltry service offered necessary impact by serving communities without access
by most fuel based lighting. There is a great need for to reliable electricity.
clean, sustainable and affordable products to bring light
to these households.
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[1] IEA fgure for 2009 (developing Asia)