Bangladesh's renewable energy sector has experienced a notable upturn in recent years, a record 42 megawatts (MW) of new rooftop solar project capacity, including commercial and industrial installations, were added to the national grid in 2023.
Furthermore, there are currently over ten sizable grid-connected solar projects under development, totalling over 3,000 MW of capacity that are waiting for approval.
The decline in the cost of solar energy in comparison to fossil fuels is responsible for the surge in the use of renewable energy. There is now more focus on renewable energy sources due to rising fuel costs and difficulties in covering the cost of importing gas and oil.
According to a study conducted by the Centre for Policy Dialogue in Dhaka, if Bangladesh pursues an aggressive energy transition, renewable energy could add about 13,800 jobs by 2030, with the potential for over 37,000 new jobs.
In a bid to embrace sustainable energy solutions, the county is making significant strides in its renewable energy sector, as indicated by recent data and statistics from government and non-government sources, analyzed and compiled by Bangladesh Post.
Renewable Energy Capacity:
Recent reports highlight Bangladesh's burgeoning renewable energy capacity, with solar power contributing 459 MW and hydropower generating 230 MW, totalling 689 MW of renewable energy integrated into the national grid.
Growth Trend:
The trajectory of renewable energy growth is evident, with initial steps taken in 2017, marked by the inauguration of a 3 MW solar power plant. Notably, the country experienced a substantial uptick in 2023, adding 200 MW in a single year.
Government Targets:
Bangladesh has set ambitious targets for clean energy consumption, aiming to achieve a renewable energy capacity ranging between 6,000–16,000 MW by 2030. To meet global commitments, an additional 5,500 MW must be incorporated within six years.Electricity Production:
Despite strides in renewable energy, Bangladesh's current electricity production stands at 25,481 MW, primarily dominated by fossil fuels, emphasizing the need for further renewable energy integration.
Ongoing Projects:
The country is actively pursuing renewable energy projects, including the inauguration of a 200 MW solar park in Gaibandha and 1,724 MW capacity projects underway, promising a substantial boost to the renewable energy sector.
Policy Challenges:
Challenges persist, including legislative barriers, high import taxes on solar panels, confusing tariff structures, and a lack of investment roadmaps, underscoring the need for streamlined governance and policy coherence.
Resource Potential:
Bangladesh boasts significant land availability for solar energy generation, estimated at generating 2,15,011 MW, highlighting the vast potential for renewable energy expansion.
Investment Factors:
Despite the cost-efficiency of renewable energy worldwide, investors face hurdles, including tax burdens, posing challenges to sustainable investment in the sector.
Technological Developments:
Anticipated technological advancements signal a decline in renewable energy costs, with recent declines in solar tariff prices indicating a promising future for renewable energy adoption.
Shahriar Ahmed Chowdhury, director of United International University's Centre for Energy Research told Bangladesh Post that, solar power is becoming more and more affordable with tariffs on recently approved independent solar photovoltaic (PV) projects being less than 10 US cents per unit of power.
The financial benefits are clear, as evidenced by possible savings of significant annual savings for the government estimated in a recent report from the Institute for Energy Economics and Financial Analysis (IEEFA) if businesses and establishments install rooftop solar.
The surge in solar installations is being driven by new domestic and international investors joining the market, according to Chowdhury. The installation of rooftop projects is predicted to grow rapidly in the economic zones being established across the nation, while ground-mounted projects, with their higher capacity, are expected to significantly increase the share of solar in the electricity mix.
The cost of solar power generation from utility-scale projects in Bangladesh currently ranges from $97 to $135 per megawatt-hour (MWh), according to a 2023 report by BloombergNEF. This makes solar power a competitive alternative to coal- or gas-based power.
Bangladesh's commitment to renewable energy underscores its readiness to embrace a sustainable energy future, with ongoing initiatives and potential paving the way for a renewable energy renaissance in the nation.
