Low Carbon Development:

BANGLADESH Prepared by: Dr Rezwan Khan & Maliha Shahjahan

Country Context

Population 152.5 million

One of most environmentally vulnerable country

– From 1980 to 2000, nearly 60% of the worldwide deaths from cyclones occurred in Bangladesh.

• Remarkable progress in several MGD

Annual GDP growth 6.5%

The country’s economy is in transition from agrarian to industrial.

Bangladesh aspires to be a middle-income country by 2021.

Current Energy Situation

Dependence on traditional fuels: Electrification rate:

Current Energy Situation

Cont…

Sources of electricity generation of

2010 in Bangladesh compared to

global position Energy Bangladesh Global

Gas 87.5% 18%

Oil 6% 10%

Coal 3.7% 37%

Hydro 2.7% 17%

Nuclear 0% 17%

Renewable 0.5% 1%

• .

Main Sources of

Energy Natural Gas, Petroleum

Products, Compressed

Natural Gas, Liquefied

Petroleum Gas, Coal

Future Energy demand and options for

energy supply

Annual growth rate of power

consumption by sectors

In the last decade the

overall demand has

grown at about 10 per

cent on average.

Vision 2021 figures,

20,000 MW by 2021 and

11,500 MW by 2015 are

the minimum that

should be accomplished.

Future Energy Demand:

Renewable Energy Potential

Resources Potential Entities Involved

Solar Enormous Public and Private sector

Wind Resource mapping required Public sector / PPP

Hydro Limited potential for micro

or mini hydro (max. 5 MW).

Est. hydro potential: approx.

500 MW

Mainly public entities

Domestic Biogas

System

8.6 Million Cubic Meter of

Biogas

Public and Private sector

Rice Husk based

Biomass

gasification Power

Plant

300 MW considering 2 kg of

husk consumption per kWh

Mainly private sector

Cattle waste based

Biogas power plants

350 MW considering 0.752

m3 of biogas consumption

per kWh.

Mainly private sector

Existing low-carbon policy,

strategies and mitigation options

Policy framework and institutional mechanisms:

Government approach

1) energy efficiency, 2) renewable energy and 3) energy conservation

Major policy – Renewable Energy Policy

– Energy Efficiency and Conservation Rules

– Sustainable and Renewable Energy Development Authority (SREDA)

– Bangladesh Climate change strategy and Action plan (BCCSAP)

Existing low-carbon policy,

strategies and mitigation options

Policy framework and institutional mechanisms:

Government approach

1) energy efficiency, 2) renewable energy and 3) energy conservation

Major policy – Renewable Energy Policy

– Energy Efficiency and Conservation Rules

– Sustainable and Renewable Energy Development Authority (SREDA)

– Bangladesh Climate change strategy and Action plan (BCCSAP)

Existing low-carbon policy,

strategies and mitigation options

Cont… Major initiatives

Government utilities in large-scale grid

connected renewable energy based power

project development, off-grid home-based

renewable energy solutions, Efficient Lighting

Initiative.

Access to Finance

Microcredit, Greenbanking

Potential sustainable development benefits for low-carbon development

Policy subjects under the energy sphere are of a complex

spectrum, including different usage and consumer group,

diversified technology, market niche and expansion,

environmental concerns, sectorial difference and

diversity. Translation of any plan into action remains a

highly challenging task for the government, as national

priorities are often undermined by donor priorities. In

most cases equity concerns are often bypassed amid the

complexity of an energy policy.

Barriers to low-carbon

development and energy access

a) The overarching issue in this effort though is the lack of and the need to improve awareness among policy-makers, planners and decision-makers about eco-efficiency concepts.

b) In Bangladesh the largest cut in emissions will come from the power sector as the country embarks upon a very ambitious energy expansion program. Innovation, enterprise, policy support and institutional backing will be essential if a significant dent is to be made in creating efficiencies in this plan. However, it is apparent that there is a lack of capacity to develop, run and ensure proper maintenance of the technology.

c) The Bangladesh economy has been growing at above 6.5% even with a low energy supply base. This rate is expected to rise rapidly as energy availability improves, creating a twin energy challenge for the country: improving environmental sustainability and enhancing energy security.

Removal of systemic constraints, Congruent policy measures and enhance policy capacity, Consideration of energy efficient technologies and Consideration of renewable energy technologies.

Concluding Remarks: Potential

approaches to manage energy demand

– Many measures has been taken to address demand side constraints. On the other hand supply side constraints remain significant till now.

– Energy efficiency and conservation is well perceived from domestic consumers’ perspective but not from sectoral view till the use is not widely promoted.

– The potential of renewable energy have been acknowledged to a large extend. Yet limited investment is available in identification of potential renewable resources .

Leapfrog fund for low-carbon development and energy access : Who would benefit?

– Support to private sector to enhance product and market understanding can stimulate the

market.

– Support should be provided off-grid rural areas to develop isolated stand-alone mini, micro or nano grids targeting mainly isolated poor households, surrounding educational, health institutions and agricultural activities, including irrigation.

– Additional subsidy or cross subsidy will be needed for longer period of time to promote RE or efficient technology specially in grid areas.

– Introducing new technology like power generation from municipal waste can be considered for large scale government investment in the urban areas.

Concluding Remarks

Role of different types of funding in delivering sustainable outcomes – – Any type of soft loan for these private companies will inspire more competition in these

areas and it will create the market competitiveness among different businesses which is currently very low.

– To create energy access for the poor segment of rural community grant, in form of price subsidy is one of the alternatives.

– Grant to support private sector in product development can be a market stimulant.

– RE project are not financially viable, but have far-reaching environmental, social and economic impact, grant provisions should be made available to support government in formulating this kind of endeavour.

Other assistance besides funding

– Institutional Mechanism and enhance policy capacity

– Human capital

– Research and development

– Incentives and regulation for low carbon growth

– Availability of investment

THANK YOU

For further information:

rezwanm@uiu.ac.bd

maliha.shahjahan@practicalaction.org.bd