Rural Communities Powered by Renewable Energy Solutions

Intervention

Social or environmental challenge

Bangladesh's strategy IEPMP focuses on introducing large power plants, connecting cities to a powergrid. Most of these plants are fossilfuel based. Through this strategy, the focus is on connecting urban areas to the powergrid, overlooking rural areas and communities. Large coal fire power plants have created negative social impacts for communities in the vicinity of the projects (loss of land, forced displacement, destruction of property, loss of livelihoods) and the environment (pollution of air, soil and water, loss of biodiversity). Prime Minister Sheikh Hasina announced Bangladesh's commitment for 40% renewable energy by 2041. Extra efforts are therefore needed. The communities themselves do not have the financial means to set up their own initiatives to connect to the power grid. The Rural Renewable project solves this market failure by connecting the communities to renewable and clean energy and by assisting them in maintenance and livelihoods trainings and developing a sustainable businessmodel.

Description of the intervention

ActionAid leads in demonstrating the synergies between access to energy, economic opportunities, gender equality and climate change, serving as a blueprint for others. This project, "Rural Renewable", proposes to develop a new concept by exploring, together with SFNL the feasibility of an impact bond, funding mini off-grid/hybrid-grid solar based renewable energy systems in poor, rural communities in Bangladesh to enhance sustainable livelihoods and facilitate a just, green energy transition.
Electrification is a key step to enhance the standards of living in the global South. It can enhance basic needs, like access to water and education, and bring benefits to a wide range of local enterprises. Electric lighting increases safety and gives people the opportunity to use the dark hours for studies and recreation. In the global South, lack of access to energy is especially an obstacle to women's and girls' well-being and economic opportunities. Women and girls in rural areas spend a large part of their day collecting fuelwood, which translates not only into continuing poverty and inequality, but also into lost opportunities for education and paid labour.
While at the national level, an average 47% of Bangladeshi homes have access to electricity, this is only 15% in rural areas.

Last data update

Data for this pipeline project was last updated in March 2024