It is heartening to learn that two Saudi firms are well-set for substantial investment in solar power and petroleum refinery in Bangladesh. Saudi energy-giant ACWA Power intends to invest in a 1,000-megawatt solar energy project, while another company Aramco plans investment in petroleum refinery. The Saudi envoy in the country while informing the media of the investments told that some progress is already afoot in the form of MoU with Bangladesh Power Development Board (BPDB), and that further progress would be visible soon during the upcoming visit of the Saudi investment minister to Dhaka.
As part of the government's move to attract overseas investors in generating electricity from renewable energy, the solar deal, if properly executed, will substantially boost the ongoing efforts towards augmenting use of solar power, while also reducing reliance on fossil fuels. A FE report says under the initial deal, ACWA Power will provide fiscal and technological support to build solar power plants in Bangladesh, while the BPDB will provide administrative and logistic support. What has figured as the highlight of the move is the application of modern technology which, according to experts, will find solution to the problem of land scarcity --- an issue recognised as a major impediment in installing solar-power projects in Bangladesh. At the moment, according to Power Division data, Bangladesh has very low renewable power generation--- with hydropower at 230 MWs and solar at 229 MWs or 1.0 per cent of the country's total power-generation capacity of 21,710 MWs. Despite this low renewable base, it is true that over the last decade or so, the country has struck a breakthrough in the use of renewable energy through increased use of solar power. So far, although mostly off-grid, it does cater to the demand of vast sections of the population who otherwise are not in a position to access grid electricity. This has been mainly due to the flourishing of the Solar Home Systems (SHS) across the country, particularly in remote rural areas. Most of the char and island locations and low-lying haor areas are benefiting hugely from the technology. While initially, for most users, installation of SHS was meant to have their houses well-lit, the technology soon emerged to change their lifestyle by adding value to their economic life, meeting critical needs such as irrigation, among others.
The other likely deal -- investment in petroleum refinery -- is also crucially important in that it would considerably add to the capacity of the country's lone petroleum refinery-the Eastern Refinery in Chottogram. The refinery run mostly by outmoded technology needs an urgent revamp to be able to meet the country's need for refined petroleum products at affordable costs. The current burden of importing high-cost refined petroleum, resulting largely from the Russia-Ukraine war, would have been much eased had the Eastern Refinery been in a position to produce higher volumes of refined products. It is in this respect that investment in refinery is of paramount importance.
With both the investment deals set to be firmed up, it is expected that the authorities concerned in Bangladesh would put in their best to expedite fruitful conclusion of the deals and subsequent execution.
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