Saudi investment in green energy will help ensure the country’s power security

Saudi Arabia’s ACWA Power has signed a non-binding Memorandum of Understanding (MoU) with the state-owned Bangladesh Power Development Board (BPDB) to set up a 1000 MW solar power plant in Bangladesh. Amid the ongoing FDI crunch and dollar depletion, the initiative will pump new energy into the economy as well as provide clean energy.
As per the non-binding MoU, ACWA Power will provide technological and financial support while BPDB will extend its administrative support for the 1000 MW solar power project. State-owned Sustainable and Renewable Energy Development Authority (SREDA) is providing necessary technical support and consultations. Undeniably, the application of modern technology is essential to overcome the land scarcity-related problem.
Many countries across the world are facing trouble generating electricity due to shortages and high prices of fuel oil and LNG, and are looking for alternative options to tackle the situation. Fossil-fuel-based electricity generation has already thrown up several challenges for our power sector. Instead, increasing renewable energy capacity would address some of the sector’s challenges and enhance energy security and affordability in Bangladesh. Overall, the challenges the power sector experiences today emanate from the increasing focus on imported fossil-fuel-based development, alongside the quest for power sector security instead of energy security.
As fiscal pressures mount due to decreasing foreign currency reserves, cost-competitive renewable energy options such as rooftop solar and utility-scale solar power systems are better suited to shore up capacity in the national grid. This would help meet the goals of enhancing energy security and affordability. In addition, it would help relieve the fiscal burden on the energy and power sectors. Moreover, surplus capacity in the sector would allow flexibility in operation with the increasing share of renewable energy. We welcome Saudi Arabia’s investment in green energy and ask the government to focus on renewable energy generation as the coming years will be tough in terms of environmental compliance and import-based energy consumption.