Renewable Energy Prospects in Bangladesh
Renewable Energy Prospects in Bangladesh
SUBMITTED BY:
Hasan Mohammad Siam
ID: 19209024
Session: 2018-19
Department of Applied Chemistry and Chemical Engineering University of
Chittagong.
Date of submission:
Abstract:
Globally the use of renewable energy has risen considerably in recent times.
Renewable Energy Policy of Bangladesh mandates the sourcing of 10 %
electricity from renewables by 2020. To date, total installed capacity of
renewable power in Bangladesh stands at around 631 MW comprising less than
3% share of total electricity generation, which falls far short of its target of 2000
MW. This paper takes stock of the renewable energy resources of Bangladesh
upon desk review of available literature. On an analysis of current renewable
energy scenario, it endeavours to identify the barriers in the deployment of
renewable energy and sheds light on the prospects of renewable energy in
Bangladesh. This paper recommends to extend more government support for
scalable power generation from renewables and build capacity of key
stakeholder both public and private sector.
ACKNOWLEDGEMENT :
First of all I would like to my earnest gratitude to almighty Allah for giving me such an
opportunity with physical and mental health,power of patience ,the guidance and wisdom and
to successfully writing this project paper.
Last but not least heartfelt respect and appreciation to my parents ,my lovely family members
who have indirectly contributed to my studies by encouragement and support.
1 Introduction 1-2
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subsequently 20% by 2030 at different sectors of power consumption. As solar is the most
dispersed form of energy offering wide range of applications using commercially available
technologies, the government has taken proper steps to include solar home system, solar
irrigation, solar mini grid, rooftop solar. Rooftop solar opens up opportunities for industrial as
well as residential consumer to utilize their idle roof spaces for sizable solar power generation
at ease with minimum maintenance. Floating Solar is also a burning issue for developing
country like Bangladesh. Introducing Renewable Energy draws attention of the foreign
investors, as they are more likely to invest on green energy.
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2. Renewable Energy Scenario in Bangladesh:
For generating electricity, Bangladesh is embracing both conventional and renewable source
of energy. Currently, the available renewable energy sources in Bangladesh are Solar, Wind,
Hydro, Biomass and Biogas. Keeping pace with the global trend, Bangladesh is now laying
emphasis on the development of Renewable Energy. Previously the renewable energy sources
in Bangladesh are only a Hydro Power Station in Kaptai, Rangamati and stand-alone Solar
Home System (SHS) in rural areas. But in the last few years, a number of projects to produce
electricity from renewable energy have been successfully completed and a lot of projects are
ongoing. The present renewable energy condition is shown in the following pie chart-
2.1. Solar:
In Bangladesh, Solar energy is the major contributor of the renewable energy. The long-term
average sunshine data indicates that the period of bright sunshine persists in the coastal
regions of Bangladesh varies from 3 to 11 hours daily . Bangladesh receives an average daily
solar radiation in the range of 4-5 kWh/m 2. In Bangladesh, solar energy turned into electricity
using mainly from SHS, grid tied Solar PV power Plant, Solar Minigrid etc. The total
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generated electricity from Solar energy is 397.03MW from which on Home Solar Home
System: Solar photovoltaic (PV) are gaining acceptance for providing electricity to
households and small businesses in rural areas. In 1988, Bangladesh Atomic Energy
Commission (BAEC) installed several pilot PV systems. The first significant PV-based rural
electrification program was the project in Narsingdi district initiated with financial support
from France. Three Battery charging stations with a total capacity of 29.4 kWp and a number
of stand-alone solar home systems (SHS) with a total capacity of 32.586 kWp were installed.
Rural electrification Board (REB) owned the systems and the users paid a monthly fee for the
services. Since 1996, penetration of SHSs increased rapidly which is now the biggest
renewable energy program in Bangladesh. So far installed 4.5 million units and ever
increasing its number due to an integrated program undertaken by the government
through its financial institution IDCOL. Several other NGOs such ASA, CMES and
BRAC are also engaged in promoting PV technology. PV modules are generally imported,
while there are a few private companies manufacturing PV accessories ([Link])
This Solar Home System (SHS) is a robust and reliable system and it owes much of its
success to a unique rural credit and ‘cost buy down’ system that it employs to improve access
by rural households .
More than 5.8 million SHSs have already been installed through BREB, IDCOL, GIZ,
MoDMR in the off-grid rural areas of Bangladesh and about 13 million beneficiaries are
getting solar electricity. SHS have aggregated capacity of about 248.29MW. The program
has been acclaimed as one of the largest and the fastest growing off-grid renewable energy in
Bangladesh.
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2.2. Grid Tied Solar PV plant:
For generating large scale electricity from solar energy, multiple solar panels are wired
together to form array. This array of a photovoltaic or PV system, produces direct current
(DC) power which fluctuates with the sunlight's intensity. For practical use this usually
requires conversion to certain desired voltages or alternating current (AC) through the use of
inverters. An inverter tied to this PV system, ensures supplying the power at desired voltage,
desired frequency and phase angle. The whole arrangement is commonly known as Solar PV
plant or Solar Park. At present there are 4 Grid tied Solar PV plant in operation and a couple.
The 3 MWp Grid Connected Solar PV Power Plant at Sharishabari, Jamalpur is the first grid
connected plant that went into commercial operation in August 2017.
The 2nd solar PV power plant is 20 MWp at Teknaf Upazilla of Cox’s Bazar has started its
operation on 1 November, 2018.
7.4 MWp Solar Park at Kaptai, Rangamati is another Solar Park which has started its
operation on September, 2019. The project, costing Tk 111.2 crore, was implemented with
the assistance of Asian Development Bank on a 22-acre plot of Bangladesh Power
Development Board. Works on the project started in October 2017. The EPC of this project
was Chinese firm ZTE which will provide technical assistance for the next two years after its
inauguration
The latest Solar Park that went into operation on 13 November, 2019 is an 8 MW Solar Park
at Tetulia, Panchagarh. The project was implemented by Sympa Solar Power Limited, a joint-
venture company of Thailand based solar PV developer, Symbior Solar, and leading agro
based firm in Bangladesh, Paragon Group.
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. Figure: Solar Mini grid
Bangladesh enjoys good amount of sunshine and the use of solar energy continues to grow
while the cost of solar technology continues to decline. Incentivizing grid-connected
customers is of utmost importance to promote RE-based distributed generation. Net metering
is one of the tools to popularize the RE based electricity generation in the country. Net
metering is a policy approach designed to encourage distributed renewable energy
development by allowing utility customers to generate their own electricity from solar or any
other renewable sources and use the electricity produced to offset the amount of energy they
draw from the utility grid (sometimes called the distribution grid) and any access generation
can feed into the grid. Customers are only billed for their “net” energy use and receive credit
usually in the form of kilowatt-hour (kWh) during a given period. A net balance in favor of
the customer is carried forward to the next month, while a balance in favor of the utility is
settled at the end of the month as usual. Net-metering system has gained popularity very
quickly because at present nearly 13 MW power has already been added to National Grid
through Net-metering Rooftop Solar system.
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2.6. Wind Power:
Wind Energy has also made some inroads but its potential is mainly in coastal areas, and
offshore islands with strong wind regimes. These coastal settings offer good opportunities
for wind-powered pumping and electricity generation. Until now, there are only three Wind
Farms in Bangladesh with an aggregated capacity of Of them Wind Parks in Sonagazi
Upazilla, Feni and in Kutubdia coastal area have been in operation for the last couple of years
while the 2 MW Wind Park in Sirajganj district went into commercial operation on 16
February, 2018.60MW wind power is the largest project in Bangladesh which has already
been installed by the government at Cox’sbazar.A total of 22 turbines will be installed to
generate 60 MW power from wind, of which each turbine will be generated.
2.7Hydro:
There is one hydro power plant at Kaptai established in the 1962s with present installed
capacity of 230 MW. Micro hydro and Mini hydro have limited potential in Bangladesh, with
the exception of Chittagong and the Chittagong Hill tracts. Hydropower assessments have
identified some possible sites from 10 kW to 5 MW but no appreciable capacity has yet been
installed.
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[Link] Scenario of Renewable Energy
renewable energy
capacity (excluding large
hydro), which is 1%
higher than the total for
the previous year. The
amount of new renewable
power added in 2019 was
the highest ever, at 184
GW, a full 20 GW more
than in 2018. As of total
installed capacity,
Figure#1: Renewable Energy Capacity Added per year as a percentage of Global Power
Generation & Capacity Added Per Year From 2010 to 2019 renewable energy holds
22.8% share of total global
generation capacity in
2019 (figure#1). Wind
energy and biomass
energy saw a rise in terms
of investment than the previous year, which is 6% and 9% respectively, whereas solar
energy saw a fall of 3% in capacity investment as a result of decreasing solar panel cost.
So, recent
energy trend focuses
mainly on solar, wind,
biomass energy. While
developed and developing
countries are focusing
mainly on renewable
energy over existing fossil
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fuel energy and investing
more and more towards
achieving year 2030 .
Developed economies tended to be the early adopters of renewable energy technologies such
as wind, solar and biomass – although this was not the case with biofuels, where Brazil was
one of the main centers of activity. Increasingly during the 2010s, however, and particularly
once costs fell toward parity with fossil fuel alternatives, developing economies picked up the
baton. They have usually been looking to
build additional generating capacity to meet
rising electricity demand, while for many
developed countries it has been more about
replacing existing coal, gas or nuclear
generation. (figure#3)
9
offshore wind, the global
10
[Link] of Renewable Energy
There is a misinterpretation from certain interest groups in Bangladesh that the electricity
from renewable energy is expensive. Some of the glaring reasons are discussed below in
solar, wind, hydro extents.
From the above picture, it is clear that solar, wind and hydro are three major sources of
renewable energy in Bangladesh.
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4.1 Solar
Realistically, there are a number of reasons that are restricting expected growth of utility
scale power. One of the major challenges is the difficulty of acquiring land. As per the
government rule, no agricultural land can be used for solar power project. Bangladesh is a
densely populated fertile agricultural land and non-agricultural unused land is not easily
available. A 100MW solar park for example would require about 300 acres of land. It is
expected that the efficiency of the solar panel will increase in future through new
technological advances thus requiring lesser area for generating per unit of power. But until
that happens, acquiring land will be a major problem for rapid expansion of utility-scale
solar power in Bangladesh.
The organisations engaged in building solar power plants in Bangladesh opine that unless
incentive in solar power tariff is given, their effort to develop solar industry would not be
economically feasible. It appears that the companies consider 9 US cent per unit tariff
offered by the government too low a price to build a solar plant and make a profit. Ideally,
the government negotiators should be good at offering tariff which is biased towards the
people and not towards the companies. But solar power industry in Bangladesh is yet to
stand on its feet and at this initial stage it needs incentive to grow to a reasonable strength.
Tariff incentive is perhaps a vital area which makes a company decide its future in
Bangladesh.
Another problem regarding solar and wind is the intermittency problem, since the sun
doesn't shine at night and the wind doesn't blow all the time. So, it will be uphill to manage
the uninterrupted electricity.
4.2 Wind
Bangladesh belongs to moderate to low wind regime. So, scope of massive expansion of onshore
limited in Bangladesh. The Bangladesh Power Development Board (BPDB) implemented a pilot
project in 2005, for the first time in Bangladesh, to generate electricity from wind energy at
MuhuriDam area in Feni district with an installed capacity of 0.9 MW. However, any utility-scale
commercial wind power plat is yet to be installed in the country. Wind power must still compete with
conventional generation sources on a cost basis. Even though the cost of wind power has decreased
dramatically in the past several decades, wind projects must be able to compete economically with
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the lowest-cost source of electricity, and some locations may not be windy enough to be cost
competitive. Good land-based wind sites are often located in remote locations, far from cities where
the electricity is needed. Transmission lines must be built to bring the electricity from the wind farm
to the city. However, building just a few transmission lines could significantly reduce the costs of
expanding wind The development might not be the most profitable use of the land. Land suitable for
wind-turbine installation must compete with alternative uses for the land, which might be more
highly valued than electricity generation.
4.2 Hydro
Bangladesh is a riverine country but most of the rivers are low tidal, which is the glaring
issue in installing hydro power plant. The heaviest tidal river is karnaphuli. Bangladesh has
set up a hydro plant in Karnaphuli with an installed capacity of 230MW. The rest of the rivers
are out of consideration due to low tidal velocity. What is more interesting is that Bangladesh
proposed Nepal for setting up hydropower plant on their rivers by Bangladesh’s investment.
From the above discussion it appears that the rapid growth of renewable energy in power
generation will change the world for better in not so distant future. The use of traditional
fuels oil gas and coal will gradually decrease to be replaced by renewable solar winds etc till
a time when the formers will find their place in history book. Bangladesh does not have an
option to remain isolated when rest of the world embraces a future with smarter and cleaner
renewable energy for their power. The challenges in developing renewables may be high, but
it is the government which should extend its hand to help it grow in the initial stage
If the Government of Bangladesh takes a genuine initiative to lead and promote renewable energy in Bangladesh
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increasing the share of renewable energy in the energy mix as renewable energy emits no
greenhouse gas on a net basis. Achieving these goals have accelerated the implementation of
utilization of renewable energy to a great extent. Bangladesh is intending to produce at least
10% of total power generation from renewable energy as per the proclamation of PSMP
[Link] is producing only 2.85% of total electricity from renewable sources of
which hydro and solar occupies the major portion. SREDA targets to generate 10% of power
(that is about 2000 MW) from renewable sources within 2020 but in contrast to current
pandemic situation this claim seems now mere a dream according to the available data.
SREDA is looking forward to gradual increase in using renewable resources for which
government of Bangladesh has taken initiatives to ensure substantial use of renewable
technology. It is anticipated to accomplish around 2177 MW from renewable technology
within 2021 .
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Solar 80.93 317.01 397.94
Hydro 230 0 230
Wind 0.9 2 2.9
Biomass 0 0.4 0.4
Biogas 0 0.63 0.63
Total 311.83 320.04 631.87
[Link]
solar home system gives a hope. Already 248 MW from Most prominent source of renewable
energy in Bangladesh solar energy as it receives 4.5 KW/m2 solar radiation on average. But the
challenge is the scarcity of land due to agricultural, industrial and habitual usage of land in this
densely populated country. The outline of 100% access to electricity for such instance comes at a
stake since many remote areas are inaccessible for grid expansion due to nature of land and cost
contradictions. In this circumstances, introduction of 5.8 Million solar home units have been set up all
over Bangladesh till date and people in remote areas are encouraged to take advantages of it as costs are
gradually reducing. Solar home systems are mostly financially supported by IDCOL and SREDA in rural
areas. Apart from solar home systems, initiatives and opportunities of solar energy usage are solar park,
solar rooftop PV panes with and without net metering, solar mini, micro and nano grids, solar water heating
system, solar irrigation pumps, solar water pumps.
Rooftops of commercial and residential buildings and the open spaces of industrial zones are asked to
install Solar rooftop PV panels can be also a triggering way to increase RE usage in the scarcity of land.
The PV panels to reduce their electricity expenses. It has been implemented as law to set up rooftop PV
panels comprising at least 20% of total sanctioned load during getting a new connection. Net metering has
been introduced in the recent years to facilitate this initiative. In this system, consumers can provide surplus
electricity from their solar rooftop panels to the grid and eventually paid for the export of generation at the
bulk rate of distribution utility which is settled at the year end. The net import is taken as usage of consumer
and net export is carried away in favour of consumes for the next month. Consumers are getting paid if there
is a net export of power at the end of fiscal year. This inceptive encourages the commercial and industrial
zones much more than before and as well as increases the possibility of more solar irradiation usage. Thus,
consumers are now considered as prosumers, the mix of consumer and producer. 109 units totalling 39.5
MW rooftop solar PV panels without net-metering and 878 units totalling 129 MW with net metering are
currently contributing to generation mix in the country.
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. More implementation of this will aid to sustainable growth in this system. Solar rooftop systems
are effective in the municipal areas.
The theme of supplying electricity directly to the grid instead of using a battery backup from solar
panels is known as solar park. This initiative can be implied in the unused open sp aces of
governmental and non-governmental organizations which are inaccessible to agricultural usage.
This initiative will ensure the efficient use of land and contribute to green energy generation. At
present, 4 solar parks providing total 38.4 MW have been installed in the area of Cox’s Bazar,
Rangamati, Panchagarh and Jamalpur and more 11 units are under construction along with 14 units
under planning. Irrigation pumps draw a significant amount of electricity form grid and this
consumption is actually limited to seasonal use. As agriculture is the principal and most required
sector for our country, this consumption has to be guaranteed, but such seasonal consumption is a
burden to the grid. Moreover, remote areas are to be covered by grid for such access. Solar
irrigation pumps are ground-breaking alternatives to this. 43% of total expenses in agriculture are
due to diesel or electricity driven irrigation pumps. Installation of solar irrigation pumps will
reduce such expenses though onetime capital investment has to be considered. It will also
contribute to the reduction of CO 2 emission percentage. Moreover, it is anticipated the this will
reduce the burden of almost 150 MW demand from the grid. Solar irrigation pumps at present are
contributing 35 MW off-grid power from 1271 units all over the country. More upcoming projects
will contribute more in this initiative. These are mostly financially supported by IDCOL.
Solar mini-grids, micro-grids and nano-grids are new ideas to the utilization of solar irradiation.
These grids are different from solar park in the sense that there are isolated from the national grid
and installed to support access to electricity in remote areas where consumptions to national grid
construction cost will not be efficient. Small areas are selected under a specified mini or micro grid
and power is generated and distributed among the habitats in those areas. This establishment is
efficient and bringing significant changes in the lifestyle and development if remote regions. 21
solar mini-grids along with 2 nano-grids are contributing 4.5 MW energy currently. 650 kWp solar
mini-grid located at Shulllah, Sunamganj is the largest mini-grid installed in the south Asian
region. These grids are maintained by IDCOL. More 1.1 MW from 6 units are under implantations
in near future. These solar grids are seemed to be effective option in the tribal regions and islands.
Definitions of isolated solar grids by SREDA are:
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System
System Capacity Conditions
type
100 kW ≤ Capacity < 5
Mini-grid
MW
Each system must consist of at
10 kW ≤ Capacity < 100
Micro-grid least 10 consumers
kW
Isolated from national grid
Nano-grid 3 kW ≤ Capacity < 10 kW
Commercial or contributory
Pico grid 500 W ≤ Capacity < 3 kW
operation among prosumers
Source by [Link]
Solar charging stations are used to charge the batteries used in the electric vehicles and other
battery-driven utilities. Currently 13 such units are operational throughout the country.
Government has already implemented 120 units of solar based drinking water system by SED
project in the southern region of Bangladesh where scarcity of pure drinking water is huge due
to salt contamination. These systems can both serve the drinking water to the people as well as
utilization of renewable (solar) energy. Telecom BTSs are encouraged to use solar powered system
to avoid interruption from grid supply and provide uninterrupted telecom service facility as well
cost minimization in the long run. 1933 units of such solar powered BTS are operation till the
date. Street lighting in the country is planned to bring under solar
energy utilization instead of grid-powered system so that a significant amount can be saved from
such consumption.
5.2Hydropower: Hydropower is the most naturally accessible renewable energy. Almost 26%
of global energy comes from hydro powerplant. But it is matter of regret that we have little
opportunity for this source. We have already installed 230 MW hydro power in Kaptai. The
suitable places for dam construction and water reserve are yet not founded, especially robust
survey has not yet been done and is also quite difficult in the tribal areas due to security
concerns and transportation. Bangladesh lacks in hilly rivers which dims the opportunity of
hydropower system. Some micro hydro plants may be considered to construct. Five sites along
Sango river have seemed feasible for tun-of-river hydro plants. But relocation of the inhabitants
are grid construction expenses make such options ineffective. There are chances to build up
collaboration with the countries like Nepal and Myanmar which have upstream river water
suitable for hydro plants to make mutual investment and import power from these countries. This
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will require foreign policies and foreign bureaucrats to come in action as well as political wellness
and involvement.
5.3Wind Energy:
Till 2014, all studies conducted in Bangladesh concluded that we do not have good potential in
wind energy. But very recently this view has been changed by a study of National Renewable
Energy Laboratory (NREL) with the support of Power division, Bangladesh. Because earlier
studies have been conducted at average height of 20-30 meter from the sea level. But recent study
is done at 80 meter height. They found that, wind speed here increases with height.
Moreover, most important reason to think about wind energy is that the technology has
increasing day by day.
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.
6.1Conclusion: In Bangladesh, the proven reserved of natural gas 34 TCF which will lead
the country next 20 years and currently82% natural gas consumed in the power sector for
power production. Whereas only 3% electricity produced from renewable energy sources.
However, Bangladesh government have already announced a master plan for future
electricity generation through the demand for power growing faster rate. Therefore, this
strategy emphasizes the countries natural resource exploration and discoveries for further
improvement of the power sector and reconstruct the renewables energy resource. However,
to meet the near future demand Bangladesh needs more sophisticated research facilities and
skilled manpower for exploration activities both inland and offshore areas. The government
must work with international advanced technology using human intellectuals of the country
for energy sustainability. Renewable energy can be considered as a potential alternative to
conventional energy that comes from fossil fuel. Currently, there is an immense interest in the
use of renewable energy like solar, biofuel, geothermal, wind due to environmental and
economic concern. The government of Bangladesh has put significant effort and target to
establish different projects on renewable energy which also subsidized by the government.
Following points are considered to conclude the findings:
•The high upfront cost is the main disadvantage of installing a solar energy system,
largely because of the high cost of the semi-conducting materials used in building it.
• The cost of solar energy is high compared to non-renewable utility supplied electricity.
As energy shortages are becoming more common, solar energy is becoming more price-
competitive.
• Solar panels require quite a large area for installation to achieve a good level
of efficiency.
• The efficiency of the system also relies on the location of the sun, although this problem
can be overcome with the installation of certain components.
• The production of solar energy is influenced by the presence of clouds or pollution in the
air.
• No solar energy will be produced during night-time although a battery backup
system will solve this problem.
• Low solar energy will be produced during rainy season. However, producing
electricity with solar system like other renewable energy sources has become a silent
revolution in Bangladesh. Solar PV energy is now being successfully used for home
lighting as a sustainable source of energy. Though it had started in Bangladesh in the
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offgrid area for
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rural lighting, now urban applications are increasing day by day through hybrid system
either through grid. There is a huge possibility of solar energy business in Bangladesh.
The Bangladesh government should take necessary steps to motivate the business magnet
as well as the consumers.
6.2. Recommendations:
• Government should reduce VAT/taxes on solar accessories and raw materials especially
batteries and solar panel and strive to remove the gap between demand and supply.
• Government should provide very low interest loans to rural people for buying the solar
system.
• Energy storage should be a priority since solar energy is not available at night, rainy day,
and during winter.
• Government must subsidize initial installation costs.
• Organization should improve monitoring system on solar system to maintain quality full
service.
• Government should set solar energy system in governmental organization to reduce
load shedding.
• Organization should give proper training facility to using this system.
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6.3 References:
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