Bangladesh far away from clean energy goal

In 2017, Bangladesh took a significant step towards sustainability by launching a 3MW solar power plant in Sharishabari of Jamalpur district. However, progress in renewable energy has been disappointingly slow, adding only 459MW to the grid since then.

Despite a spike last year, constituting the highest annual increase of 200MW, a mere 3 percent of total energy production (689MW) is currently from renewable sources.

The Mujib Climate Prosperity Plan, unveiled at COP26, targets 6,000MW-16,000MW by 2030, requiring an additional 5,500MW in the next six years. With a heavy reliance on fossil fuels contributing to global warming, the total capacity stands at 25,481MW.

Sluggish progress is attributed to policy hurdles, including heavy taxes on solar imports, non-transparent tariff fixing, and a lack of planning. Government indecision exacerbates the issue.

Land scarcity, often cited as a bottleneck, has been debunked by studies showing ample unused Khas land. High taxes and tariffs hinder affordability compared to global leaders like China and the US. Unsolicited contracts inflate prices; transparent tenders could make renewable energy more accessible.

Despite expected cost reductions from newer technologies, investors face high tax rates of 37-56 percent. Policy adjustments and incentives are needed to encourage clean energy investment.

Fragmented responsibility among five entities, including the IPP cell, complicates the process. Strengthening SREDA as a single authority is crucial for efficient implementation.

Hope lies in 15 approved renewable projects totalling 1,724MW. Alongside operational and upcoming solar and wind plants, they could raise the renewable share to 4 percent by 2025. Yet, achieving the Mujib Climate Prosperity Plan demands immediate and concerted efforts.

Now is the time for action. The government must prioritize the sector, addressing policy issues, reducing taxes, and streamlining processes. A transparent bidding process will attract investment, driving down costs for accessible clean energy.

The climate crisis demands urgent action. Bangladesh has the potential to lead in renewable energy, but a collective effort from the government, businesses, and citizens is crucial. Let’s not miss this opportunity for a sustainable and prosperous future.