Endeavours for transition to green electric energy

Bangladesh has been working to increase the use of renewable energy in its energy mix. State Minister for the Ministry of Power, Energy and Mineral Resources Nasrul Hamid, MP considers that Bangladesh needs coordinated initiatives and major investment to make green energy transition. He confirms that ‘efforts to provide clean electricity to businesses are continuing through net metering systems, rooftop solar, import of hydropower and increased use of energy efficient appliances’. The minister informed further that solar power projects constituting 12,000 MW is currently at different stages of government approval.

Sustainable and Renewable Energy Development Authority (SREDA) of Bangladesh has finalised a ‘National solar energy roadmap 2021-2041’ in 2020. In the roadmap different scenarios of implementation were recommended. Emphasis was given to high deployment scenario to achieve 40 per cent share of renewable energy in the country’s commercial energy mix within 2041. Under the roadmap, within 2030 the country should achieve its target of 9,000 MW and 30,000 MW electricity by 2041. In the said roadmap low cost, renewable energy import was recommended from neighbouring countries for securing more renewable energy in the country’s commercial energy mix.

The Cabinet Committee on Bangladesh Government Purchase recently (June 11, 2024) approved the proposal to buy 40 MW of electricity (under a 5-year Agreement including transmission cost) from Nepal at Taka 8.17 ($ 0.697) per unit. As per the Agreement, Bangladesh will spend Tk 6.5 billion over 5 years for bringing in the electricity from Nepal using Bangladesh-India existing grid lines. Therefore, the electricity authorities of Nepal, India and Bangladesh will sign a tripartite Agreement for wheeling the electricity into Bangladesh national grid. Bangladesh government officials consider that the approval of the hydropower purchase agreement with Nepal demonstrated the country’s commitment to increase the share of green and renewable energy in its energy mix. Prime Minister Sheikh Hasina reiterated her country’s eagerness to import hydroelectricity from Bhutan while meeting the Bhutanese Prime Minister Dasho Tshering in New Delhi ( June 9, 2024).

Experts believe that Bangladesh realistically can generate solar energy at a cost below US cents 7.0 (present generation cost for solar electricity from commercial plants in the country is close to US 15 cents) if it adopts appropriate strategies. Bangladesh’ neighbours have been advancing fast in green energy transition using their natural advantages for generating hydroelectric power, solar and wind power. In addition, appropriate policy supports from the respective governments have helped them attracting investment in the sectors. Land scarcity remains one of the major challenges for Bangladesh for generating electric energy from the commercial size solar power plants. The private sector investment initiatives for developing large-scale solar energy firms could not meet their project implementation schedules, as they need to acquire and develop lands and infrastructure on their own prior to installing the solar PV cells with other accessories. If the government authorities provide land for developing solar power plants, project implementation lead-time and costs will be reduced significantly.

The government agencies have been actively considering investments in developing hydropower generation projects in Nepal and Bhutan to enable green electricity import from the region. Necessary infrastructure including regional high voltage electricity grid development remains in active consideration of the government. Such initiatives are positive. However, for securing a balanced and stable commercially sustainable energy system, domestic energy development options should receive priority. For securing green energy transition of the country and for consistent development towards net zero targets, solar energy potentials of the country should be developed at a faster pace.

International Energy Agency (IEA) predicts that the global investment will reach nearly two trillion US dollars in 2024 for increasing the share of clean energy-based electricity (renewable and nuclear energy) generation, power grids, energy storage facilities, energy efficiency improvements and for development of low emission fuels. The Guardian ( June 6, 2024) reports that the IEA’s executive Director Fatih Birol informed that that investment in the clean energy sector had been doubled compared to investment in fossil fuel (oil, gas and coal) sector development in 2024. Investment in oil and gas and coal sector still remains high. Climate analysts have been raising alarm that continued investments in fossil fuel development worldwide will result in missing the world’s climate friendly development targets. The world community had agreed in the 28th UN Climate Conference in Dubai to triple the share of power generated from renewable energy sources by 2023. Experts believe that the renewable energy generation capacity enhancement will be nearly doubled in a few countries only within the timeline. Other countries have a lot more to do for converting their promises into action plans for reducing their fossil fuel dominated economy. As per the Paris Climate Conference (2015) commitments, governments of the participating countries should develop their nationally determined contributions (NDCs) with specific targets and policies on renewable energy development. Under these policies, governments will focus mainly on developing solar and wind energy-based electricity generation facilities in their countries within their NDC targets.

With advancements of technology, solar and wind provide three quarters of global renewable energy growth. Both solar and wind energy producing companies have been making good businesses as well. ‘Seven Sisters’ (Exxon Mobil Corporation, Chevron Corporation, Shell Plc, British Petroleum Plc, Total Energies Se, Conoco Phillips and ENI SpA) have been dominating petroleum products production and marketing in the world. There share in the world energy (liquid and gaseous hydrocarbon) market dominated during the last century. Electricity generation had been largely dependent on the hydrocarbon supply and its use as primary fuel. Now the seven Chinese companies (Tongwei Co., GCL Technology Holdings Ltd., Xinte Energy Co., Longi Green Energy Technology Co., Trina Solar Co., JA Solar Technology Co., and Jinko Solar Co.) have emerged as dominating energy companies primarily because of their production and supply of PV (photovoltaic) cells (the device that converts light energy into electric energy) in the world market. Bloomberg (June 14, 2024) report suggests that ‘Right now, seven Chinese companies have a bigger stake in the power source of the 21st century than the Seven Sisters of oil that dominated the 20th century’.

Mushfiqur Rahman is a mining engineer.

He writes on energy and environment issues. [email protected]