Reza Mahmud :
Experts believe there is significant potential to meet the entire 17,800 MW energy demand of Bangladesh through renewable sources, expressing optimism about attracting more private investment following the government’s announcement of tax exemptions in this sector.
Currently, Bangladesh has a capacity to produce 25,581 MW of electricity, primarily from fossil fuel-based power plants.
However, due to shortages of coal and gas, many of these plants have been unable to operate at full capacity, resulting in substantial load shedding and an acute energy crisis across the country.
Experts warn that fossil fuel-based power plants are detrimental in two significant ways: they contribute to rising temperatures and environmental degradation, and they have become a vehicle for the misappropriation of substantial amounts of national funds.
Energy expert Professor Dr. Badrul Imam told The New Nation on Monday, “Tax exemptions are a positive initiative for attracting private investment in renewable energy production.
However, I believe the government also needs to take a more active role in this sector to encourage greater private investment.”
He noted that Bangladesh has more potential for solar and wind-based renewable energy than many European countries, yet the latter have advanced significantly in this area.
BD Rahmatullah, former Director General of Power Cell at the Ministry of Power, Energy, and Mineral Resources, echoed this sentiment, stating, “Fossil fuel-based power plants have seriously harmed our environment and serve as an easy means for dishonest individuals to siphon off large sums of money.”
He added that several studies indicate Bangladesh has considerable potential for generating clean energy from renewable sources, sufficient to meet the nation’s entire electricity demand.
Sources indicate that the Power Division is planning to establish numerous additional solar power plants now that it has received notification from the National Board of Revenue (NBR) regarding the reinstatement of tax exemptions for private investments in renewable energy.
The Power Division is set to increase the number of proposed solar projects from the current ten.
The Power Division had initially planned ten solar power plants in the private sector, seeking the Finance Ministry’s approval for the NBR to reinstate a tax holiday on these investments.
Each proposed plant is expected to have a capacity of 50 MW, amounting to a total of 500 MW.
The NBR’s circular issued on 27 October states that private investors in renewable energy will benefit from a 10-year tax exemption on their investments.
“We have finally received the NBR notification, and now the number of solar plants will exceed ten,” said Dr. Muhammad Fouzul Kabir Khan, Energy and Power Adviser to the interim government.
Officials have announced that 30 to 40 more power plants will soon be established in the renewable energy sector.
Currently, Bangladesh’s electricity production capacity is 25,581 MW, mainly from fossil fuel-based power plants, while the contribution from clean, green, and renewable energy remains minimal.
The lone hydropower station in the country, Kaptai, produces 230 MW, and the only wind power plant in Cox’s Bazar generates 60 MW. Additionally, 459 MW are sourced from ten solar power plants.
Experts have pointed out that the lack of government enthusiasm is a primary reason for the sluggish advancement towards renewable energy.
Although the Sustainable and Renewable Energy Development Authority (SREDA) was established in 2012 to harness the potential of renewable energy, it has yet to make a significant impact.
