The days are coming soon when buyers will not be interested to buy from firms which are not using carbon-neutral energy. As carbon footprint for fossil fuel is high, manufacturing industry needs to move quickly to solar power. At present, 90 per cent people of Bangladesh have access to electric powe Contact online >>
The days are coming soon when buyers will not be interested to buy from firms which are not using carbon-neutral energy. As carbon footprint for fossil fuel is high, manufacturing industry needs to move quickly to solar power. At present, 90 per cent people of Bangladesh have access to electric power with per capita energy generation at around 464 kwh, as per Ministry of Power Energy and Mineral Resources.
According to the Vision 2021, the government has set a target to increase installed electricity generation capacity to 24,000 MW by 2021, 40,000 MW by 2030 and 60,000 MW by 2041. The available power generation capacity till October 23, 2019 was 14610 MW at evening peak and 13390 MW at day peak.
To meet the targets of renewable energy generation, various short and long term renewable energy projects are being implemented. In addition to renewable energy generation, measures have also been adopted to promote energy efficiency through greener technology. Table 1 below shows renewable energy sources in Bangladesh:
The table shows that solar energy is the main source of renewable energy and next is hydro technology. Bangladesh government has announced several policies for encouraging renewable energy. To develop energy sector and promote renewable energy, Bangladesh enacted Sustainable and Renewable Energy Development Authority (SREDA) Act in 2012 for effective utilisation and conservation of renewable energy both in the public and private sectors.
Two key policies directly relate to solar energy development are Guideline for Implementation of Solar Power Development Programme-2013 and Net Metering Guideline-2018. The former concerns solar power development as a whole, and the latter relates to only those renewable energy or solar projects that connect to the grid to add surplus power to the grid.
There are two main models used for generating solar power in different countries. In the Capex Model, an Engineering, Procurement and Construction Contractor (EPC contractor) develops rooftop solar project and hands it to the rooftop owner. Rooftop owner pays the EPC contractor for the completion of the solar project. In the Opex Model, a developer develops and owns the roof top solar PV projects and supplies the electricity to the factory/rooftop owner against a price through a long term contract.
According to a study conducted by IFC, with rooftop solar, factories could reduce grid power consumption by 5 to 20 per cent. Development of rooftop solar sector could create jobs as local capacity of private investors and other value chain actors would be developed. Installation of rooftop solar would reduce the GHG emissions, leading to less negative health impact of air pollution.
It is environment-friendly with less carbon emission. According to a IFC study on opportunities for renewable energy solutions in Bangladesh textile sector, the rooftop Solar PV potential across the Bangladesh textile industries will be 109MW for on-grid replacement which will subsequently reduce 98591 tonnes of CO2 emission.
This will encourage private investors to invest in residential, commercial and industrial buildings. This inclusion will reduce capital expenditure of private investors and increase renewable energy production.
Solar PV developer should get financial benefits. Financial support will encourage the developers more to generate power from renewable sources. Incentives need to be designed for both large and small industries. Over and above, policies governing generation of solar power should be very clear so that all concerned in this sector can work with confidence.
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