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Greater availability of energy promotes economic development and facilitates meeting diverse needs associated with the manufacturing industry and agriculture. It also provides a better lifestyle for citizens. These factors lead countries to seek additional energy from hydrocarbons-- coal, oil and natural gas. However, such a dynamic has led to the assumption that greater use of hydrocarbons and fossil fuels is contributing to global warming and to climate variability. This has led the world to seek alternatives through the creation and use of renewable energy - in the form of solar energy, bio-gas, bio-fuel and wind energy.
This functional approach regarding global warming has also led to the recognition that Bangladesh will be one of the most severely affected countries and there is a need for our relevant authorities to undertake necessary measures directed towards adaptation and mitigation. The civil society has also been monitoring how Bangladesh can play a more interactive role within the evolving paradigm envisioned through the Framework Convention on Climate Change (UNFCCC).
The urgency of such a dynamic has been felt since the 24th Conference of Parties (COP24) that was held in Katowice, Poland. According to environmentalists this was seen as a significant factor that needs to be pursued very carefully and given attention by all relevant authorities. This aspect has led scientists to describe that this has raised the need for environmentalists to ascertain as to whether measures are also being taken to ensure conservation of biodiversity as well as protection of forestry.
It needs to be stated that the use of renewable energy in different forms has increased throughout the country, particularly in the case of our rural regions. Solar power through the use of solar panels has now become part of the functional matrix in these areas.
Recent estimates have mentioned that solar panels are now being used in more than three million homes. This is facilitating students to continue their studies after evening, helping families to watch television, helping to recharge nearly 100 million mobile phone users within our rural parameters, generating required power for water pumps necessary for lifting underground water for the purpose of irrigation and recharge conveyances that run on batteries. In addition, there is growing awareness and use of biogas as bio-fuel in rural kitchens.
These factors are contributing towards the socio-economic growth in our economy. It is this awareness that also persuaded our relevant authorities to try and boost the use of solar power not only in the rural but also in the urban areas.
Measures were taken to boost solar power so that its contribution within the energy platform exceeds 10 per cent of the total power generation capacity. Attention was also directed to providing approval to 19 on-grid solar power parks being created by different companies in the private sector. However, the private sector has been pointing out that they are facing one big challenge-- acquiring land being used for cultivation and agricultural purposes. They have drawn attention to the fact that a solar project with power generation capacity of 100 MW needs about 300 acres of land.
Nevertheless, it is being felt that the efficiency in generating solar power will increase in the future through new technological advances.
No discussion on use of renewable energy will, however, be complete without reference to the potential use of wind power to generate energy. This is particularly true in the case of Bangladesh.
A recent study carried out by the US Department of Energy's National Renewable Energy Laboratory has indicated that the coastal belt of Bangladesh holds wind power prospects. A comprehensive wind mapping exercise has demonstrated that the average wind flow in nine places is between 5.0 to 6.0 metres per second. This was good news for Bangladesh as, for commercial production; one needs wind speed of between 2.3 to 2.5 metres per second.
It needs to be mentioned here that electricity from onshore wind energy, according to German energy specialists, is nowadays one of the most affordable forms of renewable energy generation. The yields attainable in this respect, according to experts, depend on good energy sites, the impact of tower height and the size of rotors. In this context one needs to refer to a US study carried out on behalf of the Power Division some time ago. It found that the coastal areas of Khulna, Barishal and Chattogram Divisions have more than 6 meters per second available wind speed at the 120-meter height- sufficient for generating electricity from wind turbines. It has also come out from the mapping survey that, for wind speeds of 5.75 to 7.75 m/s, there are more than 20,000 square kilometers of land with a gross wind potential of more than 30,000 MW. This means that if we can exploit this proven potential, Bangladesh can reach the 10 per cent renewable energy target agreed upon in 2021. Unfortunately, delays in taking decisions and arranging for funds have affected this outreach.
At present some wind turbines with 3 MW capacities have been in operation for the last few years in coastal Kutubdia. However, because the centre-point of the blades are only 18 meters above the ground, they are yet to run up to full capacity. The wind turbine in Feni, with the blades centre-point 50 meters above the ground has, however, generated power reasonably well.
The Sustainable and Renewable Energy Development Authority (SREDA) has correctly formed a working Committee in this regard. Environmental engineers are trying to also set up towers to collect site-specific data in different coastal areas including Kuakata and Patuakhali.
These aspects indicate that we have several challenges ahead of us. However, we need to move forward to further our strategic interests and overcome our energy challenges. It will not only need bipartisan participation between the public and the private sectors but also active engagement from foreign investors.
Renewable energy will not only ease dependency on foreign fuel, but can have a host of positive social effects and help us move into the green belt.
It has been recently reported that the Centre for Policy Dialogue (CPD) has suggested for scrapping a total of 42 power plant projects on August 27, including 37 renewables plants with a combined capacity of around 3,102 megawatts (MW). Of them, 30 plants were to be set up under joint ventures or build-own-operate (BOO) initiatives by investors from 15 different countries.
It has also been advocated that necessary measures need to be undertaken for attracting Chinese investment in renewable projects.
Khondaker Golam Moazzem, research director of the CPD, while presenting the keynote paper also pointed out that "The Power Development Board (PDB) is now preparing to issue tenders for the development of 10 grid-connected solar power plants in the private sector, each with a capacity of 50 MW, totalling 500 MW. Chinese investors now have a particularly good opportunity to invest as they are known to offer more competitive prices than other foreign or local investors."
In this regard attention has also been drawn to the fact that nearly US Dollar 39.74 billion in global funds is available for renewable energy investments in Bangladesh, which can be accessed in the form of loans, equity, technical assistance and financial aid. According to CPD, Chinese investors prefer using funds from Chinese financial institutions such as the China Development Bank (CDB), Asian Infrastructure Investment Bank (AIIB), Exim Bank of China and Silk Road Fund. It has also been clarified that Chinese investors usually do not engage in the planning phase of renewable energy projects. They prefer local private firms or the government to plan projects and then bid for investment and equipment supply. This leads one to believe that if Chinese companies get involved, local investors can apply for financing from Chinese institutions.
However, Gan Peng, chairman of Chint Solar (Bangladesh) Co Ltd, expressed concern about higher tariffs compared to neighbouring countries. This appears to have prompted Shafiqul Alam, lead energy analyst at the Institute for Energy Economics and Financial Analysis, to call on the interim government to reduce import duties to encourage foreign investors. Two other factors have also been suggested by the CPD - (a) that in view of Bangladesh's foreign reserve crisis, the Bangladesh Bank should establish a dedicated local currency conversion channel for renewable energy investors, ensuring timely conversion of returns from BDT to USD, and (b) that the government should continue pursuing China's proposed loan assistance of US Dollar 5 billion in Chinese currency to mitigate foreign reserve pressures and further strengthen investor confidence.
In addition, it has been underlined that tax incentives, subsidies, and a favourable regulatory environment for green bond markets and venture capital investments must be provided. Simplifying administrative processes and reducing bureaucratic barriers might also lower the cost of accessing finance. This will make the investment environment more attractive. It has also been suggested that Bangladesh Bank and local private banks should establish state-backed green banks or dedicated renewable energy funds to offer lower-cost financing and accelerate renewable energy projects.
Muhammad Zamir, a former Ambassador, is an analyst specialized in foreign affairs, right to information and good governance.