Distributed Solar for All: A Third Party Financing Model from the CODEC–UNHCR Project in Bangladesh

Abstract

Dependability of electricity continues to present challenges in remote and displacement-affected areas of Bangladesh (Cox’s Bazaar) in a humanitarian context. This paper presents a field-based model for decentralized solar energy deployment using a third-party financing mechanism, implemented in Camp 7 by Ulterior Engineering under CODEC in partnership with UNHCR. A 3.5 kW hybrid off-grid solar photovoltaic (PV) system was installed to power essential community services and operationalized within fourteen days. The pilot combined technical and institutional innovations, including a profit-sharing investment model, accelerated implementation, shared-risk contractual agreements, and realtime performance monitoring. The system architecture included Jinko 580 W modules, a 4 kW inverter, and LiFePO4battery storage at the Tulips facility, while the Sunflower facility used 250 W Fortune Solar modules. The results revealed that more than 75% of the daily consumption was covered by solar energy, largely diminishing diesel fuel consumption. Financial viability was ensured with an internal rate of return at 15%, a payback period at 5.9 years, and emissions avoidance of 77 t CO2over 20 years. The system had yielded a competitive levelized cost of energy at USD $0.034 / \mathrm{kWh}$, complementing its economic sustainability with a high IRR value of 15%. Indeed, this model sets a replicable framework for private investment in humanitarian energy access both within off-grid and resourceconstrained environments.