Renewable Energy in Bangladesh

Mohammed Mahbub Un Nabi

Renewable Energy & SDG
Different Stake holders of RE Segment
Global Scenario vs. Bangladesh
 Renewable Energy Generation

As of end of 2017
 Current Power generation Status

Forecasted Gen. & Demand of National Grid on 04-Nov-

2018
Description Day peak Evening peak
Available generation
10,414 11,328
capacity(MW)
Forecasted demand(MW) 8,300 10,400
Yesterday's actual
7,769 9,760
generation(MW)
 Future plans and Target (Renewable Energy)
• Power System Master Plan-2010
(PSMP) to improve and expand MW
electricity supply to support GDP
growth in the 7 to 8 percent range Total
Achievement Planned (2017-
• Power generation capacity need to be
Technology up to 2016 2021 2021)
increased to 24,000 MW and 39,000
MW by 2021 and 2030 respectively.
Solar 200 250 1470
• The Renewable Energy Policy
obligates the renewable energy share Wind 2.9 300 1153
to be 10% by 2020 that means it would
Biomas 0 6 30
be 2,000 MW.
Biogas 5 0.5 7
• The PSMP-2016 has fixed a target of
Hydro 230 2 236
generating as much as 35% of
electricity from coal and 10% from
Total 437.9 558.5 2896
nuclear energy by 2041. and 15% of
electricity generation is expected to
come from a combination of
renewable sources and imported
power by 2041.
 Acts

Act & policy

SL Title SL Policy Name
No.
No. 1 Renewable Energy Policy of
1 Electricity Act, 2017 Bangladesh
2 Bangladesh Energy Regulatory 2 Energy Efficiency and
Commission Act, 2003 Conservation Master plan up to
3 The Bangladesh Power Development 2030
Boards Order, 1972 (President's 3 Action Plan For Energy Efficiency &
Order) Conservation
4 Solar Guide Book
4 Rural Electrification Board Act, 2013
5 Country Action Plan for Clean
5 Special Act for quick procurement in
Power and Energy sector, 2010 Cookstoves
6 Net Metering Guidelines-2018
The Sustainable and Renewable
6 Energy Development Authority Act,
2012
7 Energy Efficiency and Conservation
Rules, 2016
8 S R O no ACT-349/2017
 Bangladesh Bank
• Green Banking Wing

• Policy formulation and monitoring

1.

of different aspects of Green Banking

(green finance, environmental risk management, in house
• Sustainable Finance environmental management, climate risk fund, green marketing, online
banking, green branch, green product innovation, green strategic
planning etc) activities of banks and Financial Institutions (FIs);
Department was • Policy formulation and management
2.

established on July 23, 2015 of BDT 2.00 billion Bangladesh Bank

upon extinguishing the Refinance Scheme for renewable
energy and green products;
previous Green Banking
• Policy formulation and management
3.
and CSR Department with a view of USD 50 million ADB supported
to develop sustainable banking (i.e. Green Banking and
CSR) framework and to integrate it into core business Refinance Scheme for Brick Kiln
operation of banks and FIs through efficient and
effective implementation of Green Banking and CSR.
Efficiency Improvement.
 BB Refinance Scheme
• In 2009, Bangladesh Bank set up a Tk
200 crore revolving fund for banks and
financial institutions to give loans at low
interest rate to solar energy, biogas, and
effluent treatment ventures.
• The outstanding amount of the scheme
was Tk 333 crore till August 2017 while the
recovery was Tk 205 crore and total
outstanding principle amount was Tk 128
crore.
• A total of 37 banks and 22 FIs have so far
signed participation agreements to provide
loans.
• As per the recent master circular (2017) , banks
can charge 8 per cent interest on five-year loans of
the scheme, 8.5 per cent in the case of five to eight
year period and 9 per cent for above eight years.
• If the bank provides the loan through agents or
outsourcing or Micro Finance Institution (MFI), the
interest rate will be 9, 9.5 and 10 per cent
respectively, the circular said.
• But the interest rate will be 7 per cent when it
comes to the financing for the solar irrigation
pumping system, the circular added.
• But BB takes only 5 per cent interest from the
banks and FIs.
Bank Finance: Green Banking & RE
Brick
ETP
Field

Green Green
Finance Banking RE

Energy
Green Efficiency
, Less
Office Emission
 Evaluation of Solar Power based RE

Micro/Mini Solar
SHS Grid Plant

Solar
Irrigation
System
Large
Company
MFI
Social /Private
Safety Net Firms
MFI
Driven
SHS Evaluation

• The installation of more than four million Solar Home

Systems (SHS) in the last two decades has made
Bangladesh one of the biggest markets for SHS in the
world.
• Many of the solar systems are of a poor quality,
According to Engineer Mahbub Sumon, a renewable
energy expert, the average home solar system installed
in Bangladesh in the last decade merely had a
generation capacity of 20-50 watt, which is good
enough for lighting only a few bulbs and fans.
• Modern solar panels used globally have energy efficiency
of up to 22%, the Bangladesh market is still stuck with
10-12% panel efficiency.
• As a result, even after two decades of successful SHS
dissemination throughout the country, the share of
renewable energy in total electricity generation in
Bangladesh is only 0.07%.
Solar Plant to National Grid
Largest Solar Power Plant
• The power plant in Teknaf’s Hnila
has a capacity to produce 28 MW
and will feed 20MW to the local
substation during sunlight hours.
• The Bangladesh Power
Development Board or BPDB had
previously signed a 20-year deal for
20MW of power with the plant’s
owner, Joules Power subsidiary
Technaf Solartech Energy Ltd
(TSEL)
• The project was co-financed by
One Bank Ltd and Standard
Chartered Bank.
Local Startup

• Greevo launched in 2014 by
a young entrepreneur Jawad
Hasan who has earned his
degrees in the field of
engineering. 
•  G117-10KW is the first
Bangladeshi made wind
turbine that has been
designed considering low
and medium wind
conditions of the country.