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The decision by the Dhaka Electric Supply Company (DESCO) to generate 120 MW of rooftop solar power by installing on-grid solar systems across its eight operational circles is a commendable initiative. These systems will be deployed on rooftops in urban areas and integrated into DESCO's distribution network through net metering. Each of the eight operational circles has been designated to generate 15 MW of solar power. To facilitate this, bids have been invited from international engineering, procurement, and construction (EPC) contractors to design, build, finance, operate, and maintain the systems. At a time when the global focus is shifting towards clean energy, this move is poised to significantly strengthen Bangladesh's energy sector. Moreover, DESCO plans to purchase electricity from the contractors at rates lower than the retail electricity prices set by the Bangladesh Energy Regulatory Commission (BERC), making it a cost-effective solution for sustainable power generation.
Bangladesh has been steadily advancing on solar power generation over the years. Currently, the country's total clean energy generation capacity stands at 1.558 gigawatts, with solar energy contributing 1.264 gigawatts. Notably, Bangladesh is a global leader in the adoption of Solar Home Systems (SHS), a vital segment of renewable energy that has been recognised as the world's largest off-grid renewable energy programme. According to a report by the Paris-based energy think tank REN21, as of 2020, more than six million SHS units and kits were operational worldwide, benefiting approximately 25 million people. Bangladesh alone accounts for over four million of these installations, making it the largest SHS market globally.
This achievement is a testament to the success of the SHS initiative. The Infrastructure Development Company Ltd (IDCOL) has played a pivotal role in spearheading this programme since its inception in 2003. This initiative has illuminated the lives of nearly 18 million people-approximately 12 per cent of the country's total population-which previously relied on kerosene lamps for lighting. The programme, supported by multiple donors, has proven particularly beneficial for inhabitants of isolated char areas and other remote locations where grid connectivity remains a distant dream. Currently, according to the Ministry of Power, Energy, and Mineral Resources, 2.86 per cent of the country's total electricity generation comes from renewable sources, including solar energy.
The REN21 report also highlights the crucial role of micro-credit schemes in expanding the SHS market in Bangladesh. The country's micro-credit model has enabled millions of households to adopt SHS, setting an example for other nations looking to develop decentralised renewable energy solutions. Furthermore, the rise of mini-grids and stand-alone systems, along with pay-as-you-go business models supported by mobile technology, has transformed energy access for many underserved communities.
The impact of SHS in off-grid areas is profound, though often underappreciated by those in urban regions. In the char, island, and haor areas, where conventional electricity access is nearly impossible, SHS has revolutionised daily life. Initially, many residents adopted SHS primarily for lighting. However, over time, the technology has facilitated economic transformation by enabling irrigation, small-scale industries, and other productive ventures. Small businesses, once inconceivable in these areas, are now thriving due to innovative solar-powered solutions.
As the momentum of SHS adoption continues, its expansion is expected to reach an even larger segment of the population. Currently, approximately 38 per cent of Bangladesh's population lacks access to electricity. While grid connectivity is increasing due to new power stations, a significant portion of the rural population will likely remain off-grid. This presents a crucial opportunity for SHS to bridge the electricity gap.
To fully capitalise on the potential of SHS, it is essential to support market expansion through strategic policy interventions. The existing mechanism has already demonstrated its benefits, and with the right measures, further progress is inevitable. However, challenges persist, particularly in balancing imports and local production. Domestic manufacturers are advocating for higher import duties on solar components to protect local investments. Policymakers must carefully evaluate the domestic manufacturing sector's ability to meet growing demand and maintain high quality. Achieving a sustainable balance between imports and local production will require close collaboration among stakeholders, including the government authorities, manufacturers, and energy providers.
Another pressing concern is the integration of solar power with national grid expansion. Reports indicate that in several rural areas, households that invested in solar panels are now facing uncertainty as grid connectivity is being introduced. A lack of coordination in government planning could lead to inefficiencies, resulting in financial losses for SHS users. To mitigate such challenges, a harmonised approach is necessary, ensuring that solar investments complement, rather than conflict with, national electrification efforts.
In conclusion, Bangladesh's progress in solar power adoption, particularly through the SHS initiative, is a remarkable success story in renewable energy.
With DESCO's new on-grid rooftop solar project and the ongoing expansion of SHS, the country is making significant strides towards a cleaner and more sustainable energy future. However, to maximise the potential of solar power, a well-coordinated strategy is essential-one that balances local production with imports, integrates SHS with grid expansion, and fosters innovation through supportive policies. If these challenges are addressed effectively, solar power will not only supplement Bangladesh's energy needs but also serve as a catalyst for economic and social transformation across the country.