PRACTICAL ACTION NEWS
Energy sector review, Bangladesh Authors Shamim Hasan and Lucy Stevens Practical Action Bangladesh recently commissioned a review of the national energy sector with a particular focus on the scope for renewable energy, and the potential for NGOs to play a role in improving access to modern, clean energy for the poor. The review was written by the consulting firm ‘BizEx’. There are still millions of people in Bangladesh without access to energy, and overall the sector is developing slowly. Nationally only 35% of the population is connected to electricity with a clear urban-rural divide. Only just over a quarter of rural households are connected compared to three quarters in urban areas. Bangladesh has access to some of its own energy resources, mostly in the form of natural gas and a little coal. However, most of this serves the commercial sector or urban areas and these resources are coming under increasing pressure, both from higher demand due to rising imported fuel prices, and few new reserves being discovered. This is adding to national calls for the exploration of alternative fuels. Despite the Government’s stated goal of ‘electricity for all by 2020’, it is likely that commercial demands will have the primary call on the limited expansion of electricity grid capacity in coming years. In the absence of a radical change in energy policy, rural areas are likely to have to continue to rely on off-grid solutions. From a policy perspective, there is need for greater coordination and better financial instruments to support entrepreneurs and users to help expand access to, and reduce the price of renewable energy for isolated, poor communities. This would be in line with national goals outlined in the country’s Poverty Reduction Strategy Paper because of the contribution energy can make to education, health, job creation and so on. The present Renewable Energy Policy includes a target for renewable energy to satisfy 5% of total power demand by 2010 and 10% by 2020. GTZ has been supporting the government to rewrite the National Energy Policy and to prepare a framework for the new Sustainable Energy Development Agency. The review considers the potential for various types of renewable energy. However, one problem is that the size and economic potential of most renewable energy resources (e.g. solar photovoltaic, wind power, biogas) in Bangladesh is not well known. Solar: This is the sector which has progressed the furthest. Solar energy has the potential to be used across the country and, after a decade of efforts, a viable market for solar PV now exists. Nationally it is estimated that 170,000 domestic solar systems had been installed by early 2008. Rahimafrooz (a private company) has been a leader in the market and aims to supply around 500,000 solar systems in the next three years. It has 43% of the market share in systems and 90% of the market share in batteries for solar home systems. 46
Government efforts have been directed through the Bangladesh Infrastructure Development Company Limited (IDCOL) and supported by the World Bank. Its solar programme resulted in the installation of around 141,000 home systems by August 2007. The company provides finance and helps build the capacity of partner organisations. The most successful of these is the large national NGO Grameen Shakti. BRAC also has a programme for small-scale solar home systems. Most of the buyers have been farmers and small businesses who use the electricity for productive as well as domestic uses. There seems to be more scope in this area, and one example is the potential for promoting solar pumps (already under development by Rahimafrooz). If organised on a large enough scale there is scope for claiming CDM credits for switching from diesel to solar pumps. This could prove increasingly important in the context of increasing global prices for imported oil. Various organisations are also developing cheaper, lower-powered systems using LED lights, in order to increase affordability for poorer households. Biogas: This is already a relatively popular technology for producing gas for cooking. There is some potential for converting biogas to electricity as well. It has also been promoted by IDCOL and NGOs such as Grameen Shakti. Wind: Potential is limited mostly to coastal areas. However, in this zone winds are often too strong for most existing systems during monsoon periods (March to October). Wave and tidal power: Potential exists in coastal areas, but the technology is not well developed at a global level. Micro and pico-hydro: potential is limited to Chittagong and the Chittagong hill tracts. Biofuels: There is potential for growing Jatropha and Verenda. Nationally there is scope for blending diesel with biodiesel. In some places, the oil from these plants is already used for lamps. In a densely settled country there are natural concerns about turning land used for food crops over to biofuels, meaning that they would have to be grown on unused or degraded land. There is scope for NGOs like Practical Action to partner with more established partners like Rahimafrooz and Grameen Shakti to help develop these options and support their introduction as part of integrated rural development programmes. Practical Action’s role may be in helping to pilot and demonstrate additional options for renewable energy products which can be taken up by these partners who have a wider reach to millions of potential beneficiaries.
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