The country's summers are getting warmer and more unbearable each year. During the scorching heat, electricity demand increases significantly and we burn more fossil fuel. What are the green power initiatives of Bangladesh and how does the future look like as planned?
17800 MW
Highest estimated electricity demand in this summer, of which 40% is roughly 7120 MW.
1302.98 MW
Installed green energy generation capacity
Around 6 times lower generation capacity
Current deficit to be fulfilled by 2041 considering the target
However, in it’s pursuit the country is planning projects including biomass power plants in Chittagong, Mymensingh, Brahmanbaria, and Rangpur, a 60MW wind power project in Cox’s Bazar by US-DK Green Energy (BD) Ltd, and solar park projects such as the 32 MW Sunamganj solar park. Bangladesh has a target of generating 40% of its electricity from renewable sources by 2041, as per the Mujib Climate Prosperity Plan (MCPP).
Renewable Energy Share
Unit: MW | Source: SREDA
No Data Found
Bangladesh’s Power Division, Renewable Energy Wing and Bangladesh Power Development Board are expediting the land, technical, financial and commercial evaluation of 12GW+ utility-scale project proposals from local and foreign project developers, where the country has approved 1.5GW solar projects last year along. This is supposed to play a significant role in meeting the summer peak power demand of the country in coming years and reducing dependency on Coal, Gas, HFO, HSD base power plants for longer hours. On the other hand, it is crucial that project sponsors/investors of these Utility Scale Renewable Energy projects uphold their commitment and efforts toward successful project implementation in accordance with the Power Purchase Agreement (PPA) and Implementation Agreement (IA).
10% of demand to be fulfilled by these
Within 2025
12,047 MW
Total estimated generation capacity
The Power Division is intensifying the execution of 125 green energy initiatives in an effort to satisfy 10 percent of the nation’s electricity demands with renewable sources by 2025. According to Power Division officials, the generation capacity of these projects will be 12,047 megawatts, which is 70% of the nation’s summertime consumption and more than the current winter demand. 20 percent of the generated electricity will be stored in seven solar power facilities for use during evening peak hours.
44.34% / 2020.30 MW
Of total solar power generation capacity is accounted for by Chittagong Hill Tracts
18% / 611.3 MW
Of total solar power generation capacity is accounted for by Rangpur
13% / 551.7 MW
Of total solar power generation capacity is accounted for by Mymensingh
There are 51 ongoing renewable energy projects and 74 in the planning stages. Approximately 90 percent of the plants will be solar-powered, with the remainder being wind and waste-to-energy facilities. The Chittagong Hill Tracts Zone, which receives ample sunlight, emerges as the unequivocal solar power leader in Bangladesh, accounting for an impressive 44.34% of the nation’s overall solar project capacity (2020.30MW) being developed. Solar adoption is also progressing substantially in other regions. 18% of the total solar energy generation capacity (611.3MW) will be generated by facilities in Rangpur, with Mymensingh following suit with 13% or 551.7MW of solar power generation.
With the majority of its renewable energy capacity coming from solar power, Bangladesh has planned and is in various stages of development initiatives to generate an additional 4,115MW. However, disparity in tariff rates between public and private sectors; specifically, private enterprises impose a $0.13/KWh tariff on power purchases. Public initiatives, on the other hand, charge the least amount of tariff ($0.10/KWh).
Green Power Projects in Bangladesh
US$ 116.51 M
Investment
US$ 00.12 per kWh
BPDB to buy solar power from the project
Upgrade from 60MW to 120MW
Requested by the project
The 60MW wind power project in Cox’s Bazar, US-DK Green Energy (BD) Ltd. is situated in Khurushkul, Cox’s Bazar district, Bangladesh. Boasting a capacity of 60MW, it is the inaugural and most expensive onshore wind power project in the country. Implementing the initiative is US-DK Green Energy (BD) Limited, a joint venture between a Chinese and an American company. The initiative has received an approximate investment of $116.51 million (BDT 9 billion).
In total, 22 wind turbines, each possessing a capacity of 3MW, will be installed as part of this endeavor. The 110-meter-tall turbines have been produced by Envision Energy Ltd. of China. As a safeguard, two additional turbines will be installed. Decades have passed since the installation of ten of the twenty-two turbines. A Power Purchase Agreement (PPA) has been executed between the state-owned Bangladesh Power Development Board (BPDB) and the wind power facility for the purpose of procuring electricity. During the 18-year term of the PPA, the BPDB purchases electricity for one kilowatt-hour at a rate of twelve cents per unit.
Commencement of commercial operations for the project is planned for June 2023. Test operations have already synchronized the initiative with the national grid. The project has presented a formal request to the government for an additional 20 turbines in order to increase its capacity from 60MW to 120MW. Further endeavors are underway to establish additional wind power projects in various regions of Bangladesh with the aim of augmenting the renewable energy capacity of the country.
In essence, the 60MW wind power project in Cox’s Bazar signifies a momentous achievement in the advancement of renewable energy in Bangladesh, demonstrating the nation’s dedication to carbon footprint reduction and energy portfolio diversification.
Even though it has to be noted that biomass is currently not Bangladesh’s major renewable energy source and it is not supposed to be in the future. But even minimal contribution of biomass in the renewable energy mix can increase technological ability for the future.
Chittagong Biomass Plant : 16 MW
Rangpur Biomass Plant : 16 MW
Mymensingh Biomass Plant : 16 MW
Brahmanbaria Biomass Plant : 16 MW
Sirajganj Biomass Plant : 5 MW
With the aim of augmenting the renewable energy capacity of the nation, MA Green Energy Ltd. is constructing a 5 MW biomass power facility in the Pabna Sadar upazila. Presently underway, the biomass power plant construction project is designed to contribute to Bangladesh’s renewable energy objectives.
The biomass power facilities in Chittagong, Mymensingh, Brahmanbaria, and Rangpur are presently in the “process” phase of development. These endeavors are currently underway and encompass a quartet of power facilities with a combined output capacity of 64 MW. Each power plant is supposed to generate 16 MW of energy.
Solar energy having the major share of Bangladesh’s total renewable energy production, the country has opened up opportunity for the private sector to produce solar power as independent power producers. However, these producers need to receive government clearance that the government will purchase power from them at an agreed upon rate and that has reduced uncertainty for the producers, as well as cost for the government. However, producing solar energy is still more costly. But with the option to store solar energy, production cost will decrease according to experts.
Status of Solar Parks
Source: SREDA
No Data Found
According to the Sustainable and Renewable Energy Development Authority (SREDA), a total of 67 of solar parks have submitted proposal for approval – some of these are under planning phase, some of these have been rejected, where some have gradually started producing. According to a study by Change Initiative has revealed that the private sector has taken over 59% of the renewable energy project pipeline.
Generation Capacity of Solar Parks According to Phase
Unit: MWp | Source: SREDA
No Data Found
Other than these, the government is processing the proposals of 3 more solar parks – a 100 MW power plant at Banshkhali in Chattogram, 300 MW at Islampur in Jamalpur and 100 MW at Sadar upazila in Rajbari.
Advantages of Green Power Projects
Job Creation
The renewable energy industry in Bangladesh possesses substantial employment generation prospects, encompassing both the establishment and functioning of environmentally sustainable power projects. A study conducted by the International Renewable Energy Agency (IRENA) estimates that by 2030, the implementation of renewable energy initiatives in Bangladesh could create as many as 55,000 full-time equivalent employment. The employment opportunities would encompass a wide range of responsibilities along the value chain of renewable energy, such as production, installation, operation, and upkeep. Particularly in rural regions, the expansion of the green energy industry can generate employment opportunities and assist in addressing the nation’s unemployment issues.
Less Greenhouse Gas, Less Heat
The adoption of renewable energy sources as opposed to fossil fuel-based power generation has the potential to substantially mitigate greenhouse gas emissions within the power sector of Bangladesh. Increasing the proportion of renewable energy in the power matrix could potentially reduce greenhouse gas emissions from the power generation sector by 20% by 2030, according to estimates. Again,the decrease in emissions has the potential to support Bangladesh’s endeavors to alleviate the consequences of climate change and fulfill its global obligations regarding the reduction of emissions. Furthermore, mitigating greenhouse gas emissions may yield favorable repercussions for the environment and public health.
Enhancement of Public Health
The transition from fossil fuels to renewable energy sources has the potential to result in enhanced air quality and decreased exposure to air pollution, both of which pose substantial risks to public health in Bangladesh. Research suggests that the adoption of renewable energy alternatives in Bangladesh could potentially avert the occurrence of air pollution-related diseases, thereby safeguarding upward of 27,000 lives. Enhanced public health results may contribute to a healthier workforce, decreased healthcare expenditures, and increased productivity, thereby bolstering the nation’s economic health as a whole.
Cost Savings
The long-term implementation of a renewable energy balance that is higher in proportion to the power requirements of Bangladesh could yield substantial cost savings. By 2030, the implementation of renewable energy initiatives is anticipated to yield cumulative cost savings for the nation exceeding $5 billion (420 billion BDT). The aforementioned financial benefits can be obtained by decreasing fuel imports, operating and maintenance expenses, and the cost of renewable energy technologies. The reinvestment of the cost savings into alternative development priorities would serve to augment the economic advantages for Bangladesh.
Foreign Investment Attraction
The expanding renewable energy industry in Bangladesh possesses the capacity to entice private foreign investment, thereby facilitating the nation’s transition to sustainable energy. There is a growing investor inclination towards renewable energy initiatives in developing nations, and Bangladesh’s dedication to this sector may render it an appealing location for foreign investment. The introduction of fresh technologies, specialized knowledge, and financial resources through foreign investment has the potential to expedite the progress of the green power industry in Bangladesh. On the other hand, due to Bangladesh’s LDC graduation, many long term concessional loans are becoming inaccessible for otherwise energy investments. Therefore, green energy has become an important aspect for the future.
Improving Energy Security
Bangladesh can enhance its energy security by diversifying its energy portfolio through the implementation of renewable power projects and decreasing its dependence on imported fossil fuels. The implementation of renewable energy generation at home can assist the nation in reducing the vulnerabilities it faces due to volatile international energy costs and interruptions in supply. Improving energy security can potentially generate favorable spillover effects on the broader economy by mitigating the susceptibility of households and industries to fluctuations in energy prices.
Facilitating Economic Expansion
The advancement of the renewable energy industry in Bangladesh has the potential to positively impact the nation’s comprehensive economic expansion and progress.Green power project investments have the potential to foster economic activity, generate employment opportunities, and bolster the expansion of interconnected sectors, including manufacturing and services. The expansion of export prospects may contribute to the economic advantages of the renewable energy industry, as Bangladesh has the potential to emerge as a center for renewable energy services and technology in the region.
It is evident that the advancement of green power initiatives in Bangladesh can yield substantial and diverse advantages for the nation’s economy. These benefits include but are not limited to the generation of employment opportunities, mitigation of emissions, enhancement of public health conditions, realization of cost savings, attraction of foreign investment, guaranteeing energy security, and overall promotion of economic expansion.
Challenges with Green Power Projects
High Land Requirement
In order to produce in excess of 12,000MW of electricity from renewable sources, an estimated 10,000 acres of land will be necessary. The government intends to execute the projects in regions adjacent to rivers, as well as on arid and desert terrain. According to government estimates, the expenditure required to generate an equivalent quantity of electricity using diesel-powered power plants is BDT 264 billion. In a similar fashion, the costs associated with gas-based power plants amount to BDT 24 billion, while those of coal-based power plants total BDT 120 billion, and those of furnace oil-based power plants amount to BDT 168 crore.
Higher Cost Incurred
The cost of solar electricity in Bangladesh is at least Tk.11 per kilowatt, which is considerably greater than in countries such as India. According to the government officials arid countries have lower land costs, which consequently leads to marginally reduced rates. Beijing’s higher tariffs in comparison to India are due to the fact that the government of India pays for the construction of transmission lines connecting power plants to the national grid. Transmission lines in our nation are constructed by the respective corporations. In many instances, it is also necessary to acquire land and build retention walls. Because of these factors, our local rates are marginally higher than those in India. Nevertheless, when transmission line expenses are disregarded, the disparity between the tariffs of India and Bangladesh becomes negligible.
Recommendations
- Approximately 10,000 acres of land will be necessary to generate more than 12,000 MW of electricity from renewable sources. In order to mitigate the adverse effects on arable land, the government intends to implement these initiatives in peripheral river regions and arid and barren terrain. Effective land identification and acquisition will be critical for the successful implementation of these expansive renewable energy initiatives.
- The price of solar electricity in Bangladesh surpasses Tk.11 per kilowatt, which is considerably higher than in nations such as India. In Bangladesh, the project corporations are responsible for the higher costs of land and transmission line construction, as opposed to the government’s coverage of these expenses in India. The overall cost of solar power in Bangladesh could potentially be mitigated by addressing these cost determinants via government subsidies, policy support, or innovative financing mechanisms.
- A number of forthcoming renewable energy initiatives in Bangladesh will incorporate battery storage systems for the purpose of storing a fraction of the electricity produced. The intermittency of wind and solar power can be mitigated through the integration of battery storage into renewable energy initiatives, which would enable the provision of electricity even during periods of low generation. Bangladesh’s renewable energy could be rendered more dependable and dispatchable through the widespread implementation of battery storage technology in additional green power initiatives.
- The government’s pledge to expedite the construction of 12 gigawatts (GW) of environmentally friendly power projects is an encouraging development. Supporting the expansion of the green power sector in Bangladesh and fostering private sector engagement can be accomplished by establishing transparent policies and incentives that promote investments in renewable energy and foster a stable regulatory environment.
- The significance of transmission line construction, a responsibility presently assumed by project companies in Bangladesh (as opposed to the Indian context, wherein the government assumes responsibility for such expenditures). Green power generation can be utilized more efficiently and effectively if the grid infrastructure is fortified and the integration of renewable energy initiatives into the national grid is enhanced.
Bangladesh can contribute to the achievement of its renewable energy objectives and the overall sustainability and security of its energy supply by enhancing the success and implementation of its green power initiatives through the attention given to these critical areas.
About the Author
A R Tahseen Jahan is the Co-Founder and Head of Policy at The Confluence. An undergrad student of Development Studies at the University of Dhaka, she worked on topics of economic development and public policy.