"As Bangladesh charts a path towards sustainability, renewable fuel and energy emerge as transformative forces in its evolving energy paradigm. Against the backdrop of global environmental imperatives, the nation's commitment to renewable solutions heralds a promising era of clean and resilient energy sources."
As of the year 2023, the contribution of renewable energy sources to Bangladesh's overall electricity generation stands at a modest 2%. In response to the imperative of sustainable energy development, the government has outlined ambitious targets to augment the share of renewable energy in the national grid to 15% by 2030 and a more substantial 40% by the year 2041.
According to the annual report by the Hydrocarbon Unit of Bangladesh, the following details have been extracted to paint a picture of the actual Renewable Energy Scenario of Bangladesh.
Traditional Biomass Fuels: Three major types of biomass fuels are used in Bangladesh: wood fuels, agricultural residues, and animal dung. These fuels are primarily obtained from forests, rural tree resources, and agricultural and animal husbandry activities. Biomass fuels are critical in rural areas for cooking and heating, and there are around 80,000 household and village-level biogas plants across the country. IDCOL has installed approximately 50,000 domestic biogas plants, highlighting the potential for biogas technology in rural electrification and small-scale power generation.
The total estimated biomass resource available for energy in Bangladesh in 2012-2013 was 90.21 million tons, with an energy potential equivalent to 45.91 million tons of coal, or 1344.99 PJ (373.71 TWh) of electricity. This substantial energy potential underscores the importance of biomass in Bangladesh's renewable energy strategy.
Conventional Hydropower: Bangladesh's hydropower potential is concentrated mainly in the Chittagong Hill Tracts, with a total potential of 1500 MkWh/year. The Kaptai hydropower plant is the largest, with a generation capacity of 230 MW and annual electricity generation between 700 and 1000 MkWh. Additional hydropower units with a capacity of 100 MW are being considered, along with potential plants at the Sangu and Matamuhury rivers.
New Renewable Energy Resources: Many initiatives have been undertaken to promote renewable energy resources. Of them, Solar Energy holds the most prominent place. Lets dive into the details:
Solar Energy: Bangladesh's geographical location (20°34′ to 26°38′ north latitude) is favorable for solar energy, receiving 4 to 7 kWh/m²/day. Solar power is increasingly popular in rural areas for household and small business electrification. The largest solar power plant in Mymensingh, with a capacity of 73 MW, has been connected to the national grid. IDCOL and BREB have distributed approximately 60 lakhs (250 MW installed capacity) and 30 thousand Solar Home Systems (SHS) respectively. Additionally, 2,125 solar irrigation pumps have been installed, adding a capacity of 44 MW.
Biofuels: Biofuels in Bangladesh are derived from various plants like rapeseed, mustard, and corn, with Jatropha curcas and Ricinus Communis being particularly suitable. Historically used for lighting, biofuels can be blended with diesel or petrol, offering an alternative energy source for rural areas.
Wind Energy: Wind energy potential in coastal areas has been explored, with 2.9 MW currently in operation. A pilot project for a 20 MW wind farm is planned, which could lead to an additional 200 MW if successful. Technological advances and cost reductions are expected to make wind power more competitive in the future.
Tidal and Wave Energy: The tidal energy potential in regions like Cox's Bazar and the islands of Maheshkhali and Kutubdia has been identified, with an average tidal range of 4-5 meters. However, wave energy remains unexplored, despite favorable conditions in the Bay of Bengal, with wave heights up to 2.4 meters.
River Current and Waste-to-Energy: Despite having a vast network of rivers, Bangladesh has not yet harnessed river currents for energy. Similarly, waste-to-energy initiatives are in the early stages, with plans to convert Dhaka's municipal and industrial waste into electricity to mitigate environmental pollution.
As of the year 2023, the contribution of renewable energy sources to Bangladesh's overall electricity generation stands at a modest 2%. In response to the imperative of sustainable energy development, the government has outlined ambitious targets to augment the share of renewable energy in the national grid to 15% by 2030 and a more substantial 40% by the year 2041.
A pivotal aspect of advancing the renewable energy sector in Bangladesh lies in capacity building and skills development. The creation of a proficient workforce is imperative to meet the demands of a burgeoning industry. To foster the growth of renewable energy, various policies and incentives have been instituted. These include feed-in tariffs, tax breaks, and net metering schemes described below:
Bangladesh offers various tax breaks for the renewable energy sector. These include exemption from import duty and value-added tax (VAT) on equipment for renewable energy projects, Income tax exemption for renewable energy companies for a specific period, Accelerated depreciation allowances for renewable energy assets.
In Bangladesh, the Sustainable and Renewable Energy Development Authority (SREDA) offers FITs for various renewable energy sources, including solar, wind, and biomass. The current FIT rates vary depending on the technology and project size.
Net metering allows consumers who generate their own electricity from renewable sources, like rooftop solar, to sell any excess electricity back to the grid. They receive credits on their electricity bills based on the amount of electricity they feed back. Bangladesh introduced a net metering scheme in 2012, allowing consumers with rooftop solar systems up to 1 MW capacity to connect to the grid and benefit from net metering. This scheme has incentivized individuals and businesses to invest in rooftop solar installations.
To proceed towards greener energy, the whole system needs a major overhaul. But overhaul is not a cup of tea, especially for a industry that impacts the whole economy directly. Hence, a few challenges have been highlighted and discussed below:
High initial investment: Setting up large-scale renewable energy projects can still require significant upfront costs, which can be a barrier for some investors. Innovative financing mechanisms and government support are crucial to address this challenge. For example, High initial investment for rooftop solar installations in residential areas. Introduction of innovative financing schemes like microloans or pay-as-you-go models to make rooftop solar more accessible for individual households.
Grid integration: Integrating large amounts of variable renewable energy sources like solar and wind into the national grid requires upgrades and smart grid technologies to manage fluctuations and ensure grid stability. For example, Grid congestion in urban areas with increasing rooftop solar installations. Implementing smart grid technologies and incentivizing distributed generation models can help to manage peak demand and optimize grid operations.
Land availability: Finding suitable land for large-scale solar and wind farms can be challenging, especially in densely populated areas. Careful planning and community engagement are essential to address land-use concerns. For example, Balancing land use for renewable energy projects with agricultural needs. Exploration of innovative solutions like agrivoltaics, where solar panels are installed above crops, allow for simultaneous agricultural and energy production.
Storage limitations: The lack of adequate energy storage solutions for renewable energy sources like solar and wind can hinder their wider adoption. Advancements in battery storage technologies and exploring alternative storage options are crucial for overcoming this challenge
Technological advancements and economies of scale are leading to a decrease in the cost of renewable energy technologies, making them increasingly competitive with traditional fossil fuels. This trend is expected to continue, further accelerating the adoption of renewables in Bangladesh.The attainment of these goals necessitates concerted efforts through public-private partnerships and the implementation of innovative financing mechanisms, crucial elements for mobilizing investments in renewable energy projects.
The focus is not solely on one specific source but on exploring a mix of renewable energy options, including solar, wind, biomass, and potentially micro-hydropower in suitable locations. This diversification strategy helps mitigate dependence on any single source and leverages the country's diverse resource potential.
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