Popularising solar power

Access to electricity in Bangladesh is one of the lowest in the world. The coverage at present stands around 30 per cent of the total population. The rural areas of Bangladesh, where nearly 80 per cent of the population live, are seriously deprived of electricity. The government in its national energy policy clarified its vision that it wants to bring the whole country under electricity supply by the year 2020. But major extension of electricity supply through grid expansion is not a viable option for most parts of Bangladesh in the foreseeable future mainly due to inaccessibility. Some experts say that at the current rate of conventional electrification, it will take decades to provide access to electricity to all people in the country. In contrast, favourable natural conditions like sufficient sunshine for production of electricity from the sun's rays exist on a regular basis throughout rural Bangladesh. Expert studies have suggested that as much as 10,000 mw of solar electricity can be produced over the medium and longer terms if the solar option is adopted and aggressively pursued. This amount of electricity would be more than twice the total amount now being produced conventionally. What has been holding back progress, thus, in this very promising sector, specially in the backdrop of the acute crisis of power in the country? It is not that government has been unaware of the great promises of solar power. In 2009, Bangladesh Bank created a taka 2.0 billion fund and for drawing from the same by all the state owned and private commercial banks. Under its terms and conditions, the banks would draw from this fund under a re-finance mechanism. The banks would take from this fund at a rate of interest of 5.0 per cent only and later lend the same to borrowers in the solar power sector charging the highest rate of 10 per cent for such loans. There was good intention from Bangladesh Bank. But regrettably, the banks are probably showing no interest in this special scheme as they find it as not so profitable. They are most interested to extend credit to trading, unproductive sectors and as consumer loans where they can charge much higher interest from customers. The management of some banks contend that they do no have extensive countrywide networks to utilize this scheme from the central bank. But they could of course use the NGO network for the purpose. Thus, taka 1.97 billion out of the taka 2.0 billion refinance scheme is lying idle with Bangladesh Bank, according to reports. It is imperative that Bangladesh Bank should have urgent and productive discussions to put pressure on the banks to have this solar power promotion scheme implemented fully and at the fastest. Government also made import of solar panels and other paraphernalia duty free to encourage more people to opt for solar power. But according to media reports, a section in the National Board of Revenue (NBR) is playing tricks and forcing importers to pay duties in one way or the other. Government should investigate such unethical behaviour on the part of a section of the NBR and take appropriate measures. The making of solar panels and related equipment also needs to be promoted in the country through the giving of special fiscal concessions to entrepreneurs who would join this field. According to a recent report in this paper, government is actively considering deep cuts on import duties of solar products and equipment. These cuts need to be ensured in the upcoming budget and the concessions reflected through proportionate fall in the prices of these products at the users' level.