Grameenphone seeks policy support from the government so that it can sign Corporate Power Purchase Agreement (CPPA) in fulfilling its commitment to cut carbon emission by 50 per cent by 2030.
The country's largest telecom operator has been taking preparation and persuading the government into formulating necessary policies for going green, said its Chief Corporate Affairs Officer Hans Martin Hoegh Henrichsen in a recent interview with The Financial Express.
With a baseline set in 2019, the target reflects the company's firm position to align its operations with the objectives outlined in the Paris Agreement.
It also goes hand in hand with the government's ambitious goal to produce 40 per cent renewable energy by 2041, set in Mujib Climate Prosperity Plan.
GP's annual power consumption amounts to 506 gigawatt hours (GWh), which is 0.57 per cent of the total electricity generation in the country.
In going forward, Mr Henrichsen said GP could contribute to Bangladesh's achieving renewable energy targets, particularly in sectors like telecommunications and ready-made garments.
But he added, "We can't do this without proper policy in place".
CPPA is a long-term contract, under which a business agrees to purchase electricity directly from an energy generator.
The model enables businesses to procure electricity directly from renewable sources, such as wind, solar, hydro, or biomass power plants, bypassing traditional utilities. This move empowers corporations to reduce their carbon footprint and support sustainable energy production.
If a favourable policy is put in place, GP will be able to purchase the amount of power, which it consumes, from independent renewable power producers.
According to the standard practices of CPPA, Renewable Independent Power Producer (REIPP) develops power plants based on demand and feeds power into the national grid.
GP will pay electricity tariff to REIPP and wheeling charge to grid operator and surcharge to distribution licensee.
Mr Henrichsen said GP was actively engaged in advancing energy transition in Bangladesh, keeping in mind sustainable growth and environmental conservation.
Current renewable energy (RE) capacity in Bangladesh is 1202 megawatt (MW), about 4.63 per cent of the total capacity, according the Sustainable and Renewable Energy Development Authority.
"By advocating for the implementation of CPPA policies in Bangladesh, Grameenphone aims to pave the way for large corporate consumers to access green electricity, thereby significantly reducing their carbon footprint."
Referring to global success stories involving companies, such as Microsoft, Google, and Walmart, the GP executive said the mobile operator sees immense potential of replicating the models in Bangladesh to reap the transformative impacts of CPPAs.
Drawing inspiration from India's remarkable growth in renewable energy driven by CPPAs, he underscored the importance of supportive policies in accelerating the adoption of sustainable practices.
He also highlighted Norway's Green Investment Scheme as a testament to the effectiveness of public-private collaboration in promoting renewable energy initiatives.
CPPAs also attract Foreign Direct Investment (FDI) into the renewable energy sector, stimulating job creation, technology transfer, and community development.
"Furthermore, CPPAs enhance corporate sustainability, brand reputation, and energy security, while also expanding energy access in rural areas and driving economic development," said Mr Henrichsen.
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