Home ›› 25 Mar 2023 ›› Front
The government plans to generate 20,000 MW of electricity from renewable sources by 2041. To this end, the Ministry of Power, Energy and Mineral Resources is framing renewable energy policy 2022.
For the first time, a renewable energy policy is highlighting on land ‘co-utilisation’ measures to expand clean fuel sources.
With the focus on public-private investment, the government sets target of generating clean power from new sources, including solar, biomass, biofuel, wind, and hydrogen energy, waste to electricity details.
Also the government is emphasising on increasing the use of cheap technology to produce renewable electricity. The Centre for Policy Dialogue (CPD) in a presentation revealed this information.
The private think tank has welcomed the move for making the new renewable energy policy, but criticised it for lack of some information.
There have been at least 8-10 policies on renewable energy in the country. All policies highlight on increasing electricity generation from renewable sources. In addition, renewable sources have been prioritised in every power system master plan since 1995.
Though a little progress has been made in this regard, the government sets target of generating 40 per cent power from renewable sources by 2041 as part of its international climate change commitment.
As part of this, the government in the new policy sets a target of generating 10 per cent or 2,500 MW electricity by 2025 and 20 per cent or 6,500 MW by 2030.
The policy shows the technologies like solar parks, solar home systems, solar mini/nano grids, solar irrigation have been covered. Besides about wind energy the revised policy said Sustainable and Renewable Energy Development Authority (SREDA) has taken up 9 projects and is conducting wind mapping for identification of potential locations.
CPD says that the Netherlands is using wind energy as a source of electricity in their villages. Such new technologies could be explored for Bangladesh.
In the new revised policy, a lot of emphasis has been placed on the generation of electricity from waste, which was not detailed in earlier policies. The new policy states that maximum utilisation of municipal solid waste, medical waste; various industrial wastes will be used for power generation as well as environmental conservation.
Besides, emphasis has been placed on regional energy trading to increase the use of renewable energy. The government is talking about importing hydropower from Nepal and Bhutan, which has been under discussion for a long time.
Institutional frameworks
Bangladesh Power Development Board and Infrastructure Development Company Limited (IDCOL) are working alongside SREDA to develop renewable energy in the country.
However, besides these institutes, Power Grid Company of Bangladesh, Bangladesh Energy Regulatory Commission and Power and Energy Research Council have been added to the new policy.
CPD’s Research Director Khondaker Golam Moazzem said a major obstacle to the expansion of renewable energy in Bangladesh is institutional weakness. Although SREDA was created as a single authoritative institution, it has no power. SREDA needs to be strengthened and empowered to take policy to develop renewable energy, he added.
Bangladesh Renewable Energy Association President Dipal C. Barua told The Business Post that a separate ministry should be formed for renewable energy development.
Investment facilitations
In the new revised policy, investment in renewable energy development has been encouraged by the public-private sector. It said the network of micro credit support system in rural areas for purchasing renewable equipment has been established.
SREDA will develop mechanism for public-private subsidies. A suitable incentive scheme to promote co-utilisation of land for solar energy projects, crop cultivation and water preservation would be designed.
Besides about the fiscal incentives, new policy said that all renewable energy equipment and related materials for production will be exempted from import duty as well as VAT.
The electricity consumed by power producers for captive use will be exempted from payment of duty on electricity. Electric vehicles charging stations will be exempted from transmission and wheeling charges for 10 years from the date of establishing the stations.
CPD says in order to encourage businesses to develop renewable energy detailed research and information must be made available. At the same time, banking facilities should be increased for entrepreneurs. Duty-free access should be ensured for various sectors.
