Restoring Balance: Bangladesh's Rural Energy Realities

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Beyond the REB, institutions that support rural energy have been working relatively independent of one another. IDCOL’s recent success in promoting solar PV systems suggests that renewable and other areas of rural energy require a level of support on par with that of grid electrification. Unlike the REB model, that of IDCOL is more decentralized, and there is no overlap between the two. Both models handle financing, provision of technical assistance, lobbying on regulatory issues, vendor approval, and support of venture development. Neither the REB nor IDCOL limits its focus to technology dissemination. Both institutions are concerned with development of the market and supporting environment for delivery of rural energy services. The recent move toward establishing REDA, while a welcome development, perhaps, does not go far enough. The recommendation is to designate an agency to handle the entire range of rural energy issues, sometimes acting as an executing agency and, at other times, playing a coordination role. Given IDCOL’s solid track record, a first step might be to strengthen its off-grid electrification unit, thereby enabling it to handle a broader range of rural energy issues. Because Bangladesh’s entire range of rural energy responsibilities is divided among a number of agencies or institutions, development of an active policy unit is needed to advise the government on the diversity of rural energy problems. Such a policy unit, which could be called the rural energy policy unit, would be responsible for formulating and promoting rural energy policies, ranging from biomass to electricity and LPG. It would work hand in hand with various agencies with major responsibility for energy in rural areas, including the REB, IDCOL, and others. There is a significant need for a group in Bangladesh dedicated to evaluating and promoting rural energy policies. It is envisioned that Bangladesh’s rural energy policy unit would eventually be independent or semi-independent of the government. Over the short term, however, it might be practical to house the unit within an existing agency or public research group. Its role would be to promote sound policies for rural areas and innovative pilot projects; it would not be involved in project development, which would be left to other agencies. In addition to providing policy support to promote rural energy, this new agency could compile and publish rural energy information. Analysis of data from the national survey undertaken for this study—the first of its kind in 25 years—would provide future market opportunities by identifying priority locations for project financing. This would be a great service to all cooperating organizations interested in rural energy, including the many above-mentioned ministries and agencies. It would be imperative to ensure that the technologies recommended were of sufficient quality to meet rural energy needs. In addition, the program scope would need to extend beyond renewable energy to include conventional off-grid power systems in remote areas. Technology coverage should be broadened to include renewable energy (e.g., micro-hydropower, PV, and wind), improved stoves, tree planting, and small diesel systems. Summing up, rural energy is a complex and, for the most part, unprofitable business. But by using a combination of loans and subsidies, both large- and small-scale businesses can become viable to better promote a wide range of rural energy services, from LPG and grid electricity to improved stoves and tree growing. Moving forward requires a combination of research, production and delivery, support, and monitoring and evaluation, all of which must be done through a variety of businesses—including rural electric cooperatives, NGOs,


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