Potential of Renewable Energy Technologies in Bangladesh

by Dipal  C. Barua,  First Zayed Future Energy Prize Winner,  Chairman  & CEO , Bright Green Energy Foundation ,  Founding Managing Director ,  Grameen Shakti , Co-Founder & Former Deputy Managing Director ,  Grameen Bank

Bangladesh stands at the cross roads at the beginning of the 21st Century.   It has huge potential, but it must over come many challenges especially the   challenges of Global Warming and Energy Crisis, to realize its full potential .    Only 21% of the rural people are connected to the grid ,  even the urban people suffer from frequent  load shading .   Our industries are failing to get the power , they need to  function

We are in the front line of facing the   threats of Climate Change. Our people are increasingly battered by cyclones and tornadoes.  We are facing salinity, deforestation, drought and irregular weather. We need to change our living style, food habit and especially adopt technology which would help us to face the challenge of the climate change

Against this backdrop ,   I will talk about the potential of renewable energy technologies in Bangladesh.  Renewable Energy can give us  unlimited energy and at the same time protect us against the threat of climate change .

Let us not forget  that , our new Government has been elected with a mandate of “Change''  and will be leading us to the potential of the 21st Century.  Our  Government has set a target of making Bangladesh a middle income country by 2021.  Renewable Energy is a key  tool to make this vision come true.

Our Government is aware of  the importance of renewables    . That is why a   target of meeting 10% of energy needs through renewable energy technologies by 2020  has been set  .  All VAT and taxes have been removed from solar panels.  Bangladesh Bank has created a special fund of 200 crore Tk for facilitating not only ETPs, but also renewable energy technologies. Honorable Prime Minister Office will soon install Solar Home Systems.  

Question arises: Is Renewable Energy Technology suitable and practical for Bangladesh?  Let us say a resounding “Yes”.  Renewable Energy is the energy of  the 21st Century .   Bangladesh has a huge potential for renewable energy if the right policy and initiatives are undertaken as this article will show

Our Energy  Mix  :  Where We stand  Today  

Bangladesh  is a country which is 90% dependent on gas. Though once thought only seven years ago that the country was floating on gas, no additional sites have been identified. The result has been recurrent power failure and no dependable energy source to fuel power plants. The demand for power will rise to 20,000 MW by 2020.  Bangladesh has to find alternatives as quickly as possible.  But, what are these alternatives?

According to Energy experts coal cost up to US$ 5 to US$ 6 cents per kilowatt hour,   nuclear power also costs same, while solar power US$ 30 to 35 cents.  Therefore, many policy makers in Bangladesh are advocating nuclear and coal power for Bangladesh

On the other hand let us consider the following facts : We are blessed with lots of sunshine.  This increases the efficiency of Solar PV technology.   Our Government has also removed VAT/Tax from Solar panels. This gives us huge incentive to scale up Solar PV technology. We have recently in January reduced  the prices of Solar Home Systems by Tk. 2000- Tk. 4, 000, and will go for further reduction soon. Not only that price of solar panels is coming down in the world and will reach grid parity within a few years. This is also our experience in Bangladesh - the price of Solar Home Systems has come down over the years , if we take inflation into account. When we started our Solar PV Program in 1996, only few could afford a system and now middle income and increasing number of low income group can afford a system.

Let us not also forget that Bangladesh has developed an integrated sustainable market based model for taking renewable energy technologies especially Solar Home System to the rural people for meeting their basic energy needs such as bright light, powering a TV, a small DC fan, mobile phones etc.   More than 3, 50,000 Solar Home Systems have been installed in Bangladesh benefiting over 3 million rural people.

IDCOL ,   GTZ ,  Kfw ,  World Bank , USAID and other development partners have played a very important  role in developing our Solar PV technology Sector .  When I started my  lone journey in 1996 , Grameen Shakti  was  a small renewable energy technology provider,  now it has  become  one of the largest and fastest growing RET companies in the world .  It has alone installed over two third of the systems installed in Bangladesh .  

I have made Grameen Shakti internationally recognized for its pioneer role in demonstrating that renewable energy technology is a viable alternative  for the rural people and can reach them on a mass scale . It has  received over 14 national and international awards ranging from Ashden Outstanding Achievement Award to  Right Livelihood Award which is also known as the Alternative  Nobel Prize   .  This year brought great honour for  me– I received the First –Ever Zayed Future Energy Prize of US$ 1.5 million from the Crown Prince of United Arab Emirates , where the present Head Office of  IRENA is situated. Our Solar PV technology   Program has become world renowned and a replicable model world wide .  Grameen Shakti and other organizations  serve the  most disadvantaged isolated communities  concentrated in remote islands,  vulnerable to climate threat . If we go to a remote island like Sandwip today, we can see hundreds of solar panels on roof tops of rural homes and businesses.  This is the success story of Bangladesh.     

A Solar Home System can provide un- interrupted fuel free supply for 25 years with negligible maintenance cost (battery replacement cost after 5 years). Though the initial installation cost is high, but the tradeoff is the large savings afforded to the economy’s power grid since each household with a PV Solar Home System is actually the owner of an individual PV power plant.  At the current growth rate of SHSs, it is expected that power generated by the photovoltaic cells will exceed 300 MW within the next few years and 700 MW by 2015.   

We have developed an innovative installment based financial model to reduce the cost of Solar Home System to monthly kerosene cost. I took the pioneer role to   develop  ,  fine-tune and implement a  financial model where monthly payment of a Solar Home System matches the monthly energy expense ( the cost of kerosene )  of  a rural household   Bangladesh has gained the capacity of producing all components of   Solar Home Systems except for the Solar Panel.     Not only that, we have taken the assembly, repair and maintenance of one of most updated technologies to the rural level. Our rural technicians especially rural women know how to assemble, repair solar accessories such as invertors, mobile chargers, charge controllers etc.  They also know how to install Solar Home Systems.   I designed and developed Grameen Technology Centers  to train rural women  on  assembly and repair of solar accessories .   Currently, there are over  45 Grameen Technology Centers which has trained more than 5000 rural women as Solar technicians who are promoting Solar Home Systems in their communities as well as assembling ,  repairing solar accessories etc .

Despite many challenges, biogas technology has been a boon to small farmers and large poultry firms.  A farmer with 4 cows or 200 poultry birds can construct a biogas plant to have cooking gas, bright light and especially organic fertilizers. Large poultry firms can produce electricity, reduce their energy cost and rent the extra gas to their neghbours. Installment based monthly payments over two or three years have reduced

the upfront cost of a biogas plant and have made it an attractive investment. Biogas technology is becoming slowly popular among the rural people.   Over 20 Biogas villages have been established where around 50% of the villagers have set up biogas plants.  We have constructed around 28, 000 biogas plants under BCSIR and LGED initiatives from 1996 to 2004 and over 10, 000 biogas plants from 2006 till now, under  IDCOL, SNV,  GTZ and other organizations.

 We believe that the growth of biogas plants would have been higher since 2006, if poultry firms did not suffer from bird flue scare. If we can link up biogas technology with our agriculture and livestock sector we can ensure food security through larger agriculture and livestock output while at the same time increasing the number of biogas plants to achieve decentralized electricity production.  Biogas technology can be a good source of  organic fertilizers.

In Bangladesh, there` are about a hundred and fifty thousand poultry firms, with at least 10% of them with more than five thousand birds each. So we can have at least 50 MW of off-grid power generation from biogas technology. Taking all potential into account, we can generate at least 1000 MW electricity from bioenergy. 

The present Government is providing subsidies to promote biogas technology.  This is helping us to accelerate the growth of the technology – we are training more masons , expanding into new potential areas,   organizing projection meetings to attract more clients  etc.  We hope to be soon like China where Biogas plants are a part of rural life.   We can take help from China,  Germany and Sweden etc  to develop this sector further.   

A  Vision for the Future: 

We can dream of a future where Renewable Energy Technology is the major contributor to our energy mix.  We can dream of Bangladesh – a country which has risen to the challenges of Global warming and transformed itself in to modern country where renewable energy technology is the every day norm.  

We can dream of providing all modern facilities to thousands of rural villages through renewables  by the next decade    Renewable Energy Technology can bring  a true Green Revolution to  the rural people  , developing their agricultural output ,  giving them food security ,  providing  modern  health,  education, communication facilities  ,  creating new businesses and jobs for all.

Is it too far fetched to dream?  We do not think so.   When I  started promoting Solar Home Systems to the rural people in 1996, most people thought it was a utopian dream. It was an unachievable target. There were many challenges such as too high cost ,  no technology expertise,  limited supply  of solar accessories .  We overcame all these.

Now after 13 years, we have a thriving Solar Home System sector with growing demand and   increasing efficiency at lesser costs.  

Let us now explore the possibilities of renewable energy technologies:    

• Low Cost Solar solutions:We are already installing Solar Home Systems in the rural areas to light up homes and businesses. We have started using CFL, LED to promote energy efficiency and give our rural clients better options at lesser costs.   Small Solar Home Systems of 10 and 20 watts have become popular in rural shops and low income households.  Small shops in urban areas can also use Small Solar Home Systems for lightening instead of illegal grid connection. We can also promote Solar Home Systems in slums and low income urban households to meet their lightening needs. We can promote Rickshaws to use solar lanterns.  We can use solar technology in street lights and bill boards. 

• Education, Health Care & Telecommunication:  Our Government has promised Computer for each school.  Solar PV technology can provide the power to bring computers to each rural school.  Education can be facilitated in night schools, hostels etc.  We have installed solar powered computers and televisions in several rural schools and plan to carry out more such initiatives in cooperation with the Government. Solar PV technology can power refrigerators and other electronic equipment in rural areas.  We have already installed several solar refrigerators in remote rural clinics.  We can scale up this program, if long term credit facilities are available for rural clinics to install solar refrigerators. Solar Thermal can meet the demand for hot water at reduced cost at both rural and urban clinics.  We can use Solar PV technology to power mobile phone base stations. Leading mobile phone companies in Bangladesh have already taken steps to power their base stations with solar.           

• Solar Panels for irrigation: We can use Solar panels for irrigation.  There are some 200, 000 pumps consuming around 750 MW electricity.  We can replace them all with solar panels.  Individual Solar Panels for irrigation may not be cost effective.  If we can install a mini grid, then it can provide light to the village at night and pump water in the daytime.  The solar mini grid could also be connected to main power grid to reduce load shading and transmit the extra electricity to the grid.  

• Protecting our mothers& sisters from In-door air-pollution:  Improved Cooking Stoves can be one of the most cost effective devices to stop in-door air-pollution and reduce deforestation.  We have already constructed around 80,000 Improved Cooking Stoves through local technicians. We are receiving huge positive response from women because of 50% less fuel cost and smoke free cooking. We can construct at least 10 million cooking stoves by 2010 if proper initiatives are taken. 

• Biogas in Cylinders & from Urban Wastes:We can use biogas technology not only generating cooking gas, but also for generating pure methane gas which can used for running vehicles, power pumps and other electronic equipment. This will facilitate rural development. Though some large sized biogas plants in Bangladesh are generating electricity, it is only for meeting the owners’ own energy needs. We can scale this up if we can purify the gas and place it in cylinders.  We can use all types of wastes ranging from animal dung to crop residues for this purpose. This is successful technology which has been implemented in India, Sweden and many other countries.  Our Government which is promoting independent power generation should also facilitate this type of technology. We can use biogas technology in urban areas to convert wastes into electricity, gas and organic fertilizers.  One such initiative has already been set up in Narayangang to convert market wastes into organic fertilizers. Cities in Germany have laws to sort out their wastes so that they can be recycled and turned into energy.    

• Each Urban Building a Powerhouse: We can install grid connected Solar Systems on roof top of urban buildings. To study the suitability of such grid connection, a model of 1.1 k W Solar Pv system was installed on the roof top of the Renewable Energy Research Center of Dhaka University on August 2008. The model ran successfully. According to this model 1 MW electricity can be generated from forty building roof tops.  Urban households can escape from load shading while transmitting the extra electricity to the grid. This would tremendously reduce the over load on our grid system. We can initiate feed in tariff to popularize Solar Pv technology in urban buildings. Large Shopping Centers, Restaurants can also install Solar PV technology to meet their lighting needs.  Recently, we installed Solar Pv technology in a posh Gulshan Restaurant.  We can promote the use of CFL, LED to increase energy efficiency and use insulators to make air conditioners, unnecessary. These are proven technologies which have been used successfully in Europe. Less use of grid electricity for urban consumption, will free electricity for use in the agricultural and industrial sector.             

• Greening Our Vehicles:We can also easily green our transport.  We can use solar and battery powered hybrid to run small vehicles.  We already see battery powered three wheelers in Dhaka city. Instead of charging themselves at gas stations, Solar hybrid vehicles  can charge themselves at the solar stations. These Vehicles can also store extra power and transmit it  to the grid.     

• Against the Threat of Climate Change:  Our people in the coastal areas have been battered by Cyclone SIDR last year and Cyclone Aila recently. To protect ourselves , we can set up  cyclone shelters equipped with renewables; we can have solar powered seed storage banks, biogas or solar powered water desalination systems. We can promote organic fertilizers, tree plantations especially on embankments. These are just some of the ideas.  Our renewable energy programs are concentrated in the coastal areas – most vulnerable to climate threats, therefore we should take initiatives to implement some of these ideas .  

• Local Manufacturing Units & Green Jobs:We are creating green jobs and businesses through renewable energy technologies. We have provided employment to bright engineers and given them training both home and abroad. Our companies have learnt to manufacture solar batteries, invertors, charge controllers, CFL and LEDs etc. Most importantly, we have successfully taken this technology to the grassroots level. We have successfully trained rural women to assemble solar accessories at rural based production centers. We have created decent jobs for women right at in their villages.  We are also creating employment for local youth as Solar technicians, biogas plant masons etc. ILO has already recognized the potential of green jobs in Bangladesh, especially in Solar PV technology sector. We are forging ahead to create partnership with the Government to train local youth on renewable energy technologies. It is not surprising that number of jobs in the renewable energy sector is increasing and especially leading to rural employment.  This is a world wide phenomenon.

There arealsoother renewable energy technologies that need to be explored and promoted.  There are wind technology, micro-hydro, geothermal tide, wave etc.  We have 753 km coast where off shore solar –wind hybrid may have enough potential. We may also pilot test micro-hydro in Chittagong Hill tracts and similar areas

The Way Forward   : 

Our Policy makers will soon be attending Climate Change Meeting in Copenhegan.  This gives us a good opportunity to put up our ideas in the international forum.   Bangladesh will be one of the worst affected countries by climate change.  We can propose the creation of Climate Fund to mitigate and adapt to the impact of Climate change. Let us not be shy in detailing our needs:

• We can request funds to expand our fledging renewable energy sector,
• We  can  say that international financial institutions make a point to earmark a percentage of their funds for all development efforts,  ranging from health, education, women empowerment,          
• We can ask for   R & D assistance and special grants for pilot testing new ideas,
• Our universities can organize program and trainings in conjunction with international institutions,  
• Public  Private Joint Initiatives with International Investors.

Our Government has already taken a lot of initiatives to promote renewable energy technologies. We can do more:

• We can set  a ceiling for national  and private  banks for promoting renewables, at low interest rates ( below 6% ),  
• We can create a special revolving fund ( with low interest rates-below 6% )  for promoting renewables including a grant program to pilot test new ideas.  We can special government bonds to attract  investments especially from Bangladeshis living abroad,  
• We can reduce interest rate to 6% from 8% on the loan received from IDCOL,  
• We can give Tax holidays and other initiatives to attract international know-how and investment,
• We can remove VAT/Taxes from all solar accessories such as batteries,
• We can create  a window in agricultural and other rural financial institutions to provide credit for renewables, 
• We can include training and credit for renewable energy technologies in our youth development programs,  
• We can promote renewable energy technologies as we promote family planning and other development initiatives through national television, radio and various events, 
• We can pass feed – in tariff policy to encourage renewables in the urban areas,
• We can pass a law stating that urban commercial building must meet  a certain portion of their energy needs from renewables,
• We can pass municipality act to make it mandatory to recycle wastes through renewable energy technologies. We can request financial and technical assistance from our friends in Korea,   Germany and Sweden to construct large sized biogas plants in this regard.    

The need of the hour is to develop  renewable energy laws and further develop our recently passed  National Renewable Energy Policy in the light  of existing laws of other countries. We also need to have a special division for renewables under the Power Ministry

As we stand at the threshold of 21st Century, we cannot turn our back to renewable energy technology, just as we cannot say no to information technology.  Question is not whether renewable energy is feasible or economical, question is how we will adapt and implement renewable energy technology. 

Let us make an ambitious commitment of reaching 75 million Bangladeshis through renewables  by 2015  through

• 7.5  million  Solar Home Systems
• 2 million Biogas Plants 
• 20 million Improved Cooking stoves and, 
• 100, 000  Green Jobs    

Renewable Energy Practitioners  in Bangladesh have  a dream of taking renewables to every Bnagladeshi.  We have no profit motive , we just want a sustainable model which allows us to reach more and more people  to transform Bangladesh into a Land of  Green Energy