Renewable Energy Policies in Bangladesh

Introduction:

Global energy crisis is a matter of great concern in recent years across the world, with reduced amount of coal and natural gas that are the main sources of energy production. This energy issues make it obligatory for global policy-makers to develop effective renewable energy policies that will assist entire globe to manger the alternative energy source that will not only protect natural resources from being reduced day by day but also make the entire environment pollution-free. This essay is going to discuss the renewable energy policies in Bangladesh and how these policies help this country to maintain sustainable as well as consistent development. Different types of energy resources such as natural gas, coal, oil and hydropower are utilised as renewable energy resources in Bangladesh. Ministry of Power, Energy, and Mineral Resources of Bangladesh has released Renewable Energy Policy in 2008, with setting up of a target of meeting more than 10% of entire electricity demand in this country by 2020, by using renewable energy sources. Current report has stated that, recently, Bangladesh is unable to generate even 1% of the electricity to meet the target, that is considered by several economist as the aftermath of mismanagement of electricity distribution in Bangladesh and inability of this country to make useful implementation of Renewable energy policies into practice. In Bangladesh, renewable energy is used in different forms such as wind, biomass, solar, geo-thermal, hydro, wave and tidal.

Bangladesh at a glance

Bangladesh is also called as People’s Republic of Bangladesh. It ranks 8th in population across the world, with a population more than 162 million people. Bangladesh ranks 92nd, in terms of spanning land mass which is 147,570 sq.km. Economy of Bangladesh largely depends on agriculture which provides economic support to seasonal unemployment of society people in rural areas. Majority of the people in this country belongs to low income level and low living standard that pose adverse impact on overall economic growth and GDP of this country. For counteracting with this issue, Bangladesh government had developed economic policies in mid-twentieth century, in which government prioritised fishing, agriculture and textile as major economic sectors with showing interest in improving the overall infrastructure and economic backup in these sectors. In 21st century, rice is the main agricultural product of Bangladesh, which is exported in different developed and developing countries. In addition to this, Bangladesh is also known for its tea and jute products, which are also proved to be important source of foreign exchange (www.britannica.com,2017).

Energy Crisis in Bangladesh:

In recent years Bangladesh faces high level of energy starvation as a result of ever-increasing number of population and lack of proper energy production initiatives taken by Bangladesh government (Khan and Rasel, 2018). More than 80% people in Bangladesh still remain in villages and face high electricity crisis. It has been suggested through evidences, that natural gas use can not be proved as major helpful source of energy production as the energy produced through using this source is unable to meet huge energy demand of sheer population of Bangladesh. In most of the villages in Bangladesh, gasoline, cow dung, straws and fire wood are still used as sources of energy that are backdated and unable to produce energy in sufficient amount as well as in systematic manner. Additionally, due to burn bricks deforestation occurs at faster rate in this country that not only disturb the overall energy balance in environment but also spoil the natural resources in environment that indirectly impact on the energy production (Khan et al. 2018). In recent years, science has improved so fast that it brings about new technologies as well as innovative machineries that can use natural resources to produce high amount of energy. In most of the developed and developing counties, solar energy is utilised as one of the major sources of energy production. There are highly modern techniques as well as devices that can trap and convert solar energy into other energy sources. Unfortunately, Bangladesh is still dependent on backdate techniques and process that use the so-called traditional resources such as cow dung and fire woods to generate energy. In this context, if Bangladesh neds to meet the energy demand of its entire population, the country needs to use modern and conventional energy production methods such as using wind, tidal power and sunshine as renewable energy resources.

In this context, it needs to be stated that BPDB [Bangladesh Power Development Board] has taken an effective initiative, the Solar PV Electrification project in Chittagong Hill Track Region. The reason behind this SPV project is that, the overall maintenance and management of National Grid in this hill area is highly risky. This initiative is proved to be useful for people residing in hill areas as they can get sufficient electricity by purchasing the Solar Home Lighting System (SHLS).

Energy reserves of Bangladesh:

Solar Energy:

In modern era, solar energy is considered as one of the important and useful sources of energy such as hydraulic power, coal, wind, natural gas and petroleum (Hossain et al. 2017). One of the major advantages of using solar energy is that it is cost effective and appropriate for places in which other energy sources cannot be available and used. In addition to this, the devices as well as the techniques that are used solar energy production proves are highly cost effective that can be easily afforded by any developing ad under developed countries (Baky et al. 2017). APV project in Chittagong Hill areas is highly effective initiatives that makes it possible for all the families residing in this hill area to have electricity. Bangladesh now concentrates on solar PV implementation which with an intention to provide electricity mainly in rural and semi urban areas. On the contrary critics have stated that due to poor administration, lack of financial support from government and rising number of unemployment in the country, mass solarisation is quite difficult for Bangladesh. On the other hand, although solar energy devices are cost effective and user-friendly, while it comes to implement PV solarisation in eth entire national it needs huge investment for the country to assure proper use and maintenance entire system. The deteriorating GDP growth and sluggish economic condition in Bangladesh makes it difficult for government to implement PV solarisation in every part of this country to meet huge energy demand.

Despite many barriers to implement PV solarisation in the entire country, Bangladesh government has developed and implemented Solar photovoltaic (PV) system in most of the states with an intention to provide electricity to rural and deprived families (Khan et al. 2018). From recent reports it has been stated that now Bangladesh has a 200,000 household-level installation of 12 MW Solar PV source, that makes this country able to provide majority of the people residing in rural and semi-urban areas to get proper electricity. Rural Electrification Board (REB) and Bangladesh Power Development Board (BPDB) have also taken initiatives to introduce new technologies as well as innovative machineries and devices that will assist this country to produce high amount of energy that can meet ever-increasing energy demand of society.

Solar oven and Dryer:

Various models of solar devices and ovens are manufactured in Bangladesh as faster rats in terms of meeting the ever-increasing demand of electricity in this country (Khan and Rasel, 2018). Bangladesh government focuses on the fact that the overall market price of solar oven would be under the budget of lower and middle-class people so they can afford the system easily. Bangladesh government has also made contact with institute of Food Science and Technology (IFST) in terms of manufacturing cabinet dryer that assist households in the country to dry different fruits as well as vegetables.

Wind Energy:

In Bangladesh wind mills are also sources of energy production but overall usage of wind mill in this country is very low. Will mill is used in this country for driving different flowers mill in many regions (Baky et al. 2017). However, due to increasing cost of wind generator and other devices associated with this system, it is not possible for Bangladesh government to implement this process for producing mass electricity. In places such as Kutubdia, Teknaf and Anwara, the sources of energy is wind with a wind speed of 5-6m/sec.

Hydraulic power:

Hydraulic power plant is developed by building a dam on suitable place in the river. In many sites of Sangu, Kaptai and Matamuhuri of Bangladesh, hydro power plant is developed by building the dam and using the pressure of tides. One disadvantage of hydraulic power plant is its initial cost is high and the overall commissioning period is long. Despite this disadvantage, if the hydraulic plant is operated nod maintained in systematic manner it can be a great source if energy production in Bangladesh

Current Energy Status in Bangladesh

The electricity generation in Bangladesh largely relies on naturals and 80% of electricity generates from gas (Report of Ptrobangla,2012). Bangladesh has own proved reserved of the natural gas year until 201532.1 trillion cubic foot (TCF) (Scanlon et al,2017) and coal reserves 2797 MT (Million Ton) of coal which is equivalent to 37 TCF gas reserves. Bangladeshi gas field provided 2725 million cubic feet gas, 9263.7 million cubic feet condensate during the last operation on 21-22 sept. 2015 with a demand of 3800 in the fiscal year 2015-16 (Guha et al, 2015). Bangladesh power generation growth rates 15% in t fiscal year 2015. BPDB expected that the gap of power generation 1000MW recover very soon within the fiscal year 2015. Table 2 indicates the standard electricity generation in Bangladesh from assorted resource fiscal year 2015. BPDB expected that the gap of power generation 1000MW recover very soon within the fiscal year 2015 (Bangladesh Power Development Board,2010). Table 1 indicates the standard electricity generation in Bangladesh from assorted resources.

Energy Planning in Bangladesh:

In present years, Bangladesh government has divided different units of electricity sector that are associated with generation, transmission and distribution of electricity in systematic manner. Following are the department or units that are involved in generation of electricity from renewables energy sources as transmission of electricity in effective manner (lib.pmo.gov.bd, 2020).

Generation:

Bangladesh Power Development Board (BPDB)

Independent Power Producers (ipps)

Rural Electrification Board (REB)

Transmission:

Power Grid Company of Bangladesh Board

Bangladesh Power Development Board

Distribution

Bangladesh Power Development Board (BPDB)

Dhaka Electric Supply Authority (DESA)

Rural Electrification Board through different Palli Bidyut Samities (PBSS)

Dhaka Electric Supply Company Ltd (DESCO)

Renewable energy policies in Bangladesh:

Government of Bangladesh [GOB] has reformed the National Energy Policy (NEP) 1996, in terms of improving the process of electricity generation through using renewable energy sources such as natural gas, fossil fuel, biomass, solar and wind. Major objectives that are recently taken under NEP are as follows:

Systematic and useful utilisation of renewable resources in terms of generating sufficient energy to boost economic growth of the country. Through proper implementation of NEP, Bangladesh government focuses on assuring sustainable economic growth of this country will not be constrained due to the shortage of energy production.

Meet ever-increasing energy demand in different sectors and industries of Bangladesh

Systematic management and optimum development of overall indigenous renewable energy sources such as commercial fuels, fossil fuel, bias and other sources (lib.pmo.gov.bd, 2020).

Supply more energy to main industries and sectors in this country that are the earning sources of this country, such as agriculture field and textiles industry

Make sustainable operation of overall energy usage

Encourage and motivate the private and public sector organisations to participate in management and development of renewable energy sector

Ensure sustainable use of natural resources that would not make any interference with overall ecosystem of environment.

Implementation of renewable energy projects:

One window Operation:

Ministry of Power, Energy and Mineral Resources of Bangladesh has established a governmental body, Renewable Energy Development Agency (REDA), that is involved in developing and implementing innovative technologies in renewable energy sector for enhancing the overall energy production from renewable resources. Bangladesh government has included higher officials from trade, educational institutes, banks and NGOs in Board of Directors of the REDA. Objectives that ae taken under REDA are as follows:

Take effective steps in developing, reforming and removing policies in terms of improving the overall energy production through renewable energy sources.

Manage technical financial, audit, market and policy related matters to ensure sustainable development of Bangladesh through proper production and distribution of energy

Focus on systematic establishment and implementation different renewable energy projects to meet ever increasing energy demand of society

Establish renewable energy trust to fund the renewable energy sectors.

Maintain strong connection with international investors and government to grab useful financial and political support from them for assuring system energy production and sustainable development in this country( www.britannica.com,2017).

Sustainable Energy Development Agency (SEDA):

Sustainable energy development Agency (SEDA) has been established in Bangladesh under Companies Act 1994. This governmental body deals with the overall matters regarding energy production through using renewable energy resources. The representatives of SEDA focus on continuous modifications in overall energy production and transmission process, in which through using minimum natural resources sufficient energy can be generated. The objectives of SEDA are as follows:

Develop effective sustainable energy projects including appropriate action plans and strategies that will assist renewable sector to use modern techniques for producing high amount of energy.

Promote the awareness about importance of saving overall renewable energy resources and using these resources in systematic manner without making any wastage of them.

Provide strong support to development modern technical tools and process in energy sector that can accelerate the overall energy production

Conduct appropriate energy audit to evaluate the overall usefulness of current procedures used in energy production and make required changes to improve the process.

Strengthen the financial process in energy sector by conducting effective official communication with international policy makers and marketers to improve the overall energy production.

Main Energy Resources in Bangladesh

Natural gas

Natural gas is prime energy resources of Bangladesh and playing a vital role in the growth of the economy. It contributes 75% of the primary commercial energy supply and 79.15% of power generation. Until 2012, 24 gas fields have been identified with proven reserve of 37.680 TCF, out of which 26.877 TCF is recoverable. Currently, 20 gas fields are in full operation, and as of June 2012, total 10.514 TCF of natural gas has been produced (Energy and Power: Ministry of Finance, Government of Bangladesh; 2012).

Oil

Haripur oil reserve which was recognized in 1989 at northwest of Sylhet district, without that there is no such focusing oil reserve in Bangladesh (Imam et al,2011). Calculated reserve is 1.4 Mtoe, out of which 0.84 Mtoe was expected to be secured as of year 2004 but the exploitation was stopped due to poor oil quality and presence of water in the oil zone ( Hossain et al,2007). Bangladesh heavily depends on imported crude and refined petroleum products for transportation, industrial heating and small-scale power generation. At present, demand for refined oil in the country is 4.87 million metric ton (MT) at an annual growth rate of 5%. Import of crude oil and refined petroleum products from financial year 1998–1999 to 2011–2012 is shown in Fig 5.

Coal

Coal is the most rich and precious energy sources not only in Bangladesh but also, it is the most common source throughout the world (Podder et al,2001). Coal stands for 3.25% of the actual generation of electricity. So far, five coal deposits have been discovered at the north-west part of Bangladesh. Current estimated reserve is approximately 3300 million MT which is equivalent to 45–50 TCF of natural gas (Energy and Power: Ministry of Finance, Government of Bangladesh; 2012). Most of the coal deposits contain bituminous type of coal and that has high calorific value. Among the deposits (Table 2), Barapukuria has a daily production capacity of approximately 2500–3000 MT, and as of June 2012, total 4.55 million MT of coal has been produced. Thermal power plant located at Barapukuria with an installed capacity of 250 MW, requires 2000 MT of coal per day.

Present Renewable energy Scenario in Bangladesh

Renewable energy sources are defined as those that are abundant in nature and derived from natural process with no depletion in the course of utilization. Bangladesh is blessed with renewable energy sources such as biomass, wind, solar and small-scale hydropower energy (Baten et al, 2009). Among the renewables, solar and biomass found promising and effective in the context of Bangladesh (Islam et al, 2006). Due to flat terrain and low water head, small scale hydropower found little interest; however, potential of small hydropower energy source is found 500MW (Wazed et al, 2008). Utilization of wind energy is limited due to insufficient ground data (Mondal et al, 2010). At present, renewable energy shares only 0.5% of total energy mix (Renewables 2012 global status report). Bangladesh is still at nascent stage to utilize renewable energy at commercial scale (Baten et al, 2009). However, according to Bangladesh Policy of Renewable Energy (BPRE) 2008, target dissimilation of renewable energy has set to 5% by 2015 and 10% by 2020 (Energy and Power: Ministry of Finance, Government of Bangladesh; 2012).

Renewable Energy Potentiality in Bangladesh

Bangladesh is blessed to have a generous amount of RES and the effective exploitation of these promises to satisfy the energy need of the country. Among the accessible energy assets, biomass is considered as the significant RES available in the country, which can reduce the utilization of and reliance on non-RES. Solar energy is also very promising as the country gets an immense scale of sunlight, due to its geographical location. It may be pertinent to share that the rural and coastal areas of Bangladesh have been enjoying the benefits of the installed solar photovoltaic (PV) panels. Besides, several government agencies and NGOs undertook some activities for delivering electricity from small scale hydro plants and wind turbines despite the fact that the country is not very suitable to consider hydropower and wind for power generation. Hence, the RE resource, such as biomass and solar can be utilized to ensure energy security. RES are the assets that are renewed persistently through natural transformations and can be reused because of their inherent properties. The RES incorporate biomass, solar, wind, geothermal and hydropower energy, but exclude conventional nuclear fuels. Figure 7 exhibits a preview of various RES available for electricity or power generation (Brown et al, 2011). From the discussion above, it can be revealed that an immense volume of RES is available in Bangladesh. Even though the use of RE technology has become a worldwide trend, the country yet greatly struggling to utilize these sources. From among the list, biogas, biomass, and solar are regarded as the probable, favourable and productive sources for the sustainable energy generation in the country. Table 4 provides a review of RE resources and potentials in Bangladesh (Das et al, 2018).

Renewable Energy Policies Evaluation

Therefore, the government has formulated various policies and adopted regulatory measures (Mollik et al, 2016). In this context, the contribution of RES in the energy mix can be an exceptional accomplishment that would influence the economic development of the nation significantly. In 2008, the National Renewable Energy Policy was introduced to promote RE by encouraging distinctive private and public platforms concerning the investment in the RE industry in place of the fossil fuel-based power sources. Since then, the uses, development, preparation, and research on the domestic RE industry have been accelerating; though for exploiting the commercial benefits of these, it will still require a comprehensive strategy.

In recent times, the domestic RE generation and the government’s participation in expanding electricity generation through RE increased approximately 560 MW (Nabi 2019). Bangladesh attempted to increase the electricity supply up to 16,000 MW by 2016 and subsequently, set the target to obtain up to 39,000 MW by 2030 according to the adopted the Power System Master Plan 2010 (PSMP) (Wares et al, 2018). The electricity generation target as encapsulated in the PSMP is presented in the following Table 5.

To secure the energy security, the government established the Sustainable and Renewable Energy

Development Authority (SREDA) though the enactment of the law—the Sustainable and Renewable

Energy Development Authority Act, 2012 (Act No. 48 of 2012). While enacting the law, the policymakers

of Bangladesh realized the need to control global warming, prevent the misuse of energy, reduce the

hazard of natural disasters and gradually reduce the dependence of fossil fuel in power generation by

promoting the use of RE.

According to this Act, energy refers to power generated using both the renewable and non-RE sources [section 2(5)]. The law bestows legal personality to the authority, i.e., SREDA [section 2(2)]. Some other relevant provisions of the law include: Responsibilities and functions of the authority section 6); the power of the authority to impose fees (section 7); the constitution of the board of directors (section 9); fund, budget, and accounts and audit (sections 19–21); power to make rules and regulations (sections 26–27), and abolition of Energy Audit Cell, etc. (section 28).

Suggestions and Recommendations

Government Leadership

Bangladesh still battles to keep its international promises to enhance the usage of renewable resources to promote a green environment. The heavily anticipated Renewable Energy Policy leads Bangladesh’s change into a green country and latches onto the prospects of practical improvement. Nevertheless, although the policies attempted to develop the RE industry in Bangladesh and achieve its sustainable goals, there remain many failures on the part of the government agencies in exploiting RES to generate energy. Other than the traditional approaches, the Government should also focus on the modern technical and regulatory approaches to overcome the challenges that they have been facing. Building codes, energy rating schemes, supportive grid connection arrangements, etc. can also be very useful tools in promoting the RE industry.

Ensuring Renewable Energy Development through Technological Means

To achieve public procurement on RE and to enhance the output of technology, it is important to encourage research, especially when the government intended for the localization of foreign imported technologies. Advancement of confined clarifications and explanations on innovative technologies or methods can frame civic perspectives, including public participation. Additionally, RE establishments in Bangladesh are designed by regional corporations, including external specialists. Information and technology directions are prerequisites to encourage the potential raising in the RE industry and to support the progressive growth for long-term goals even though such technology is imported by foreign ventures and experts.

Minimization of Renewable Power Generation Cost and Promoting Market Competitiveness

The costs of generating and transmitting power in the modern age despite all the technological advancements are staggering (Kumar et al, 2017). The matter is manifold complicated for the RE sector as the industry yet does not benefit from economies of scale. When RE is compared with existing fuel-based energy sources, the economic benefit is prospectively and considerably diminutive (Rob et al, 2018). Hence, the major challenge relating to the RE is the difficulty in anchoring the investment in the industry. In any case, the bankers and financial investors seem to have a lack of confidence to make required speculation about the RE industry. Additionally, the long process of granting bank loans for RE demotivates the participants to engage in business (Siddiqui et al, 2001). In this manner, the Government of Bangladesh needs to build up a worthwhile, practical, and controllable subsidized legal, regulatory or political instrument for RE projects.

Creating a Comprehensive Policy, Legal and Regulatory System

The regulatory framework plays a significant role in the advancement and development of RE technologies within a country’s existing energy formation. The regulatory direction is necessary to enhance the competitiveness of the energy market. Such a regulatory framework is also vital to ensure that the stakeholders comply with the established rules and regulations for energy trading. Any deficiency in the regulatory structure may cause a threat to the market liberalization process.

Conclusion

The planet-wide impacts of environmental change and the nature of global warming urge to adopt ‘hard’ International law and relevant arrangements so as to advance electricity generation through a sustainable manner. Notwithstanding, there is no urgent or explicit authoritative decision that binds the countries legally to advance the local utilization of RES to generate electricity (Karim et al, 2018), though the provisions of the recently adopted Paris Agreement to UNFCCC encourages the use of RE. The scarcity of universal legal arrangements on RE does not, in any case, undermine the significance of its utilization to limit environmental degradation. Henceforth, a binding international instrument, alongside the positive activities and mutual cooperation of the stakeholders worldwide, regional and municipal players in terms of financial and technological information exchange, may assume an instrumental job in the advancement of RE. Globally, energy is imperative to pursue any type of development, and for attaining sustainable and all-inclusive development (Karim et al, 2018). In addition, creating a friendly green climate for the future remains a challenge for every country, not particularly, for Bangladesh (Amin et al, 2019). To mitigate climate degradation and to achieve the SDG goals, Bangladesh should lead its energy sector into renewable sources. Providing an equitable opportunity to its citizens and to promote inclusive development for the society, choosing RE is one of the most strategic options that Bangladesh has in its hand now.

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