Renewable Energy Context, Scope, Application and Green Business in
Bangladesh
Professor Dr. Kazi Abdur Rouf
Noble International University
Senior Research Fellow
Faculty of Environmental Studies
York University, Canada.
Paper presented at the Association for Non-profit and Social Economy Research
(ANSER) Conference 2015
Ottawa, Canada
June 3-5, 2015
Why Renewable Energy Necessary
• Energy is inevitable for development and its demand is increasing day by day
• Energy from fossil fuel (coals, diesel, kerosene, wood etc.) generates carbon, CO 2
emissions, and green house emissions
• Fossil fuel pollute air, and destroy environment resulted global warming
• Energy scientists are looking for alternative energy resources uses that are
environmentally friendly and good for human being
• They are provoking for renewable energy (solar radiation energy, bio gas energy,
wind energy, water wave energy, CNG energy and hydropower energy) use
• PV technologies produce very small amount of CO2 compared to the emissions from
conventional existing fossil fuel energy technologies
• RE uses is less harmful to living beings and environment
Topic
• This paper talks about fossil fuel energy and renewable energy use
• Their consequence/impact in the nature and society.
Methodology
• Author incorporates his working experience with Grameen Shakti (GS)
• Collected data from different RE implementing organizations in Bangladesh
• During his visit to Bangladesh in 2014-2015.
Objectives of the Study
• The study explores RE resource sources, scenarios of RE
• Identify Demand of Energy
• Discern utilization different types of RE programs and use
• RE business models and their benefits in Bangladesh.
Environmental (CO2) Issues in Bangladesh
• Green house gases (CO2 Ch4, and N2O) emitted in burning of different types of fuel lead to air
pollution, environmental pollution and global warming.
• Gradual increase of global temperature and its consequences affect Bangladesh, risen the sea
level of Bay of Bengal. It is because of climate change
• Nine warmest years in the 20th century have occurred since 1980 and 1990s were probably the
warmest decade of the second millennium (IPCC, 2001).
• Fossil fuel energy use, the largest sole source of CO2 emissions and a large contributor of CH4
and N2O emissions, accounted for 81.7 percent of emissions
• Earth’s atmosphere receives around 27,000 million tons of CO2 in the recent years
• USA is the largest CO2 emitter in the world, which releases 5,729 million tons of CO2 every
year with 19.7 million tons of per capita emission
• Next CO2 contributor is China releases 3,719 million tons with 2.9 million tons of per capita
emission
• From 1973 to 2006, the emission of CO2 has increased at a rate of 79.05%.
Environmental Issue
Table 1: GHG emission factor
Source: SWERA, 2007
Item
GHG emission factor
Kerosene
2.5 ton CO2/ton
Wood/straw
1.7 ton CO2/ton
Diesel genset
1.3 ton CO2 /MWh
Diesel
0.897 ton CO2/MWh
Bangladesh grid (natural gas 90%)
0.452 ton CO2/MWh
Natural gas
0.452 ton CO2/MWh
Hydro, Solar, Wind
0
Government National Energy Policy
• First National Policy (NEP) Bangladesh 1996
• Government adopted Private Power Generation Policy
• In 1996, import duty and value added tax from solar PV and wind turbines were
withdrawn
• In April 2004, Bangladesh Energy Regulatory Commission (BERC) was established
• NEP 2004 are targeted to provide energy for all
• Bring entire country under electrification by the year 2020 (MPEMR, 2004).
Renewable Energy Policy
• Renewable Energy Program in Bangladesh emphasized on the exploitation of
solar, wind, biomass gasification, biogas and hydro energy
• Major objectives of the renew able energy policy aim to exploit potential RES
• Disseminate RETs in the rural, peri-urban and urban areas
• Policy has targeted to develop RES to meet 5% of the total power demand by
2015 and
• 10%by the year 2020 (MPEMR, 2008).
Table 2: Comparison of World Energy related Data
(1973 and 2006)
Source: Prepared from International Energy Agency (2008).
Category
Year 1973
Year 2006
Growth
% 19732006
92.00
Primary energy supply
6,115 Mtoe
Final energy consumption
4,672 Mtoe
11, 741
Mtoe
8,8084 Mtoe 73.03
Electricity generation
6,116 TWh
18,930 TWh 209.52
Electricity consumption
439 Mtoe
1,347 Mtoe
206.83
CO2 emission
15,640 Mtoe
28,003
Mtoer
79.05
Table-3: CO2 Emission Energy Production in Bangladesh
Source: IEA, 2003
Description
Quantity of emission
Energy-related Carbon Dioxide Emissions
32.9 million tons
Per capita energy consumption
4.0 million Btu
Per capita carbon dioxide emissions
0.23 tons
Table-4: Production and consumption of Natural Gas in
Bangladesh
Source: BBS, 2006.
Category
Gas Production Gas
(109cft)
Consumption
(109cft)
Electricity
Captive
Fertilizer
Industrial
Tea-garden
Brick field
Commercial
Domestic
CNG
Total Consumption
2000-01
372.16
2001-02
391.53
2002-03
421.16
2003-04
454.59
2004-05
486.75
175.27
0
88.43
47.99
0.65
0.44
4.06
31.85
0
348.69
190.03
0
78.78
53.56
0.72
0.53
4.25
36.74
0
364.61
190.54
0
95.89
63.76
0.74
0.52
4.56
44.80
0.23
401.04
199.40
32.03
92.80
46.49
0.82
0.12
4.83
49.22
1.94
427.65
211.02
37.87
93.97
51.68
0.80
0
4.85
52.49
3.62
456.30
Table-5: Electricity Generation and Consumption in
Bangladesh (2005-2006)
Source: SWERA
Item
Quantity
Installation Capacity
5,275MW
Average demand
4,300-4,500MW
Average generation
3,200-3,300MW
Per capita generation
167 kWh
Per capita consumption
136 kWh
Table-6: Estimates of Energy Supplied by Traditional Biomass
Fuels (‘000 tons of coal equivalent)
Source: BBS (Bangladesh Bureau of Statistics, 2006)
Fuels
Cow-dung
Jute stick
Rice straw
Rice hulls
Bagasse
Firewood
Twigs and
Leaves
Other
wastes
Total
1999-00
2441
922
1375
2810
314
1166
1325
2000-01
2471
966
1429
2810
340
1166
1378
2001-02
2471
1010
1409
2854
366
1219
1431
2002-03
2471
966
12418
2898
366
1219
1484
2003-04
2502
922
1218
2854
392
1272
1537
1186
1230
1273
1317
1361
11539
11790
12033
12139
12258
Table-7: Renewable Energy Prospects in Bangladesh
Source: Alam et al. (2003)
RES Type
Capacity (up to December’08)
Theoretical Potential
Wind
1M
2,000 MW
Hydro
230 MW
672 MW
Solar PV
15 MW approx
50,436 MW
Solar Thermal
3,000 m3
20<>106 m2
Biogas
.3 million m3
3,675 <>106 m3
Table-8: Targets for RETS
Tentative Target for RETs, 2020 and GHG reduction
Source: Power Cell, 2006
Resource
Expected
utilization
GHG reduction
tons of CO2)
Wind
1000 MW
5.0
Solar
300 MW
0.5
Biomass/Hydro
600 MW
0.6
Co-generation
300 MW
0.3
Total Renewable Energy
3200 MW
6.4
(million
Table-9 : CO2 reduction using Solar Home System
Source: SWERA, 2007
Total No.
SHSs
Savings of Kerosene in
litters/year
Tons
CO2/year
65,000
19 million
49,000
1,00,000
29 million
75,000
Table-10: IDCOL Program Benefits (2014)
Program achievement: 3 million SHS
Number of beneficiaries:
13.5 million people
Power generation:
150 MW
Fossil fuel saving:
216,000 ton/yr
CO2 reduction:
503,000 ton/yr
Job creation:
60,000
IDCOL investment:
USD$ 500 million
Source: IDCOL, 2014.
Table-11: GS Financial Options
Source: Grameen Shakti, 2015.
Option
Down Payment
Instalments
Option
-1
Option
2
Option-3
15%
36 months
Service charge
(flat rate)
6%
25%
24 months
4%
15%
36 months
(with 36 post
dated cheque)
5%
Option-4 1005 cash payment
with 4% discount
Table-12: Programs at a Glance February,
2015 (Source: Grameen Shakti, 2015)
Grameen Technology Centre
ICS Production Center
Number of Upazilas covered
Number of villages covered
Total beneficiaries
Total employees
Total installation of SHS
Total Number of Improved Cook Stove
(ICS)
Total biogas plant constructed
Total installed power capacity
Installation rate
Number of trained technicians (woman
technicians)
Number of trained customers (woman)
Future plan- total installation of SHS by
2015
Future plan- biogas plant construction by
2015
Future plan- Improved Cooking Stove
construction by 2015
Green Jobs Creation by 2015
34
67
508 Upazila
50,000 villages
17.67 m
11,230
1,583,319
910,204
30,847
63.33 MWp
Over 20,000 SHSs/ month
22,822 technicians
839,725 users
2 million
100,000
2 million
100,000
Study Findings (summary)
• Study finds Bangladesh has developed a Government managed private apex
organization named IDCOL (Infrastructure Development Company)
• IDCOL is involved in coordinating, counselling and financing to the RE
implementing agencies in Bangladesh
• Study discovers Grameen Shakti is the largest RE implementing organization not
only in Bangladesh, but also in the world
• GS has developed a micro-utility RE financial model for the RE users
• IDCOL has disseminated this GS micro-utility RE financial model to the IDCOL
partnered RE agencies
• RE implementing agencies apply the GS micro-utility financial model in their own
programs in Bangladesh.
Nabin Udoyktas (Nus) New Entrepreneur RE Business
• Young encourages to engage in RE business
• Four Nobin Udyoktas have received Nine Hundred Thousand Taka till April, 2015
• NU projects include tailoring, textile business, telecom service, grocery shop, dairy
farm etc.
• There is a plan to invest 5 million Taka among 20 Nobin Udyoktas (New
Entrepreneur) by June, 2014 and
• 50 million Taka among 250 Nobin Udyokta by June 2016
Conclusion
• RE resources like solar panels, biogas plants, wind pumps etc. are expensive for the
low income people of Bangladesh
• IDCOL provides subsidies to RE implementing agencies
• However, still RE technology use is expensive
• RE resources could be less expensive to rural people
• RE technologies need further improvement for to not only more handy at the micro
level, but also valuable at the economic scale
• RE agencies charge more than 20% and above (hide information) that needs to be
reduced
Thank You
Comments/Questions