Sustainable and Renewable Energy Development Authority
Power generation capacity increased by almost 20% to cross 30,000MW in 2023
The country’s overall power generation, combining grid capacity and off-grid (mainly captive) power, increased by about 5000MW in 2023 to reach a new benchmark of 30,700MW, although with demand failing to keep up, this is expected to lead to higher capacity payments for the government.
This is disclosed in available data from the state-owned Bangladesh Power Development Board (BPDB), Bangladesh Energy Regulatory Commission (BERC) and Sustainable and Renewable Energy Development Authority (Sreda).
The BPDB data shows that of the 5000MW new power generation, some 3,343MW was added to the national grid by the import electricity from India and production from newly set up local power plants while about 1400MW came from off-grid captive and off-grid solar power.
Power, energy sectors are saddled with $5 billion outstanding payment amid dollar crisis: Sources
It also shows that the country’s installed grid-connected power generation capacity has reached to 25,951 MW on December 30 in 2023 from 22,608 MW in 2022 showing a capacity enhancement of 3343 MW.
Beyond the national grid, as per BERC data, the captive power generation has increased by 1379MW to reach 4760 MW in 2023 from 3,381MW in 2022.
The captive power plants were mainly set up by industries for their own consumption to get uninterrupted power supply as the grid power does not guarantee uninterrupted supply.
Govt approves import of 40 MW power from Nepal
Sources in the power sector said that despite more than 40 percent surplus power generation in the country, still many industries prefer to use their captive power for uninterrupted supply.
A huge number of applications remain pending with the Bangladesh Energy Regulatory Commission (BERC) to set up more captive plants.
The power generation from non-conventional, or renewable sources also witnessed an increase in 2023.
The Sustainable and Renewable Energy Development Authority (Sreda) statistics show that the solar power generation capacity reached 1200MW in 2023 from 700MW in 2022.
Of the 1200 MW, the off grid is 366.76 MW while ongrid is 601.02 MW. However, the country’s hydroelectric capacity of 230 MW is included in the Sreda statistics.
Together the new off-grid captive power and grid-connected power has pushed up the country’s total power generation capacity to 30,711 MW in 2023 from about 25,700 MW at the end of 2022.
BPDB officials said that the import of 1600 MW from the Adani Group’s plant for Bangladesh in Godda, Jharkhand, has played a major role in increasing the power generation capacity of the country.
Apart from the import, the commercial operations of a number of base-load power plants played a significant role in raising power generation capacity.
Read more: Power, energy sectors are saddled with $5 billion outstanding payment amid dollar crisis: Sources
These new power plants include 600 MW second unit of Rampal Power Plant, and 1200 MW Banshkhali power plant of S Alam Group. There is also a 200 MW Solar power plant in Khulna by Orion Group.
Although this capacity enhancement in power generation is a pleasing development on the face of it, especially given the country’s long history of struggle with power shortages, BPDB officials are also quick to point out that the growing surplus capacity would also lead to a rise in capacity payments, whereby IPPs get paid even for the electricity the government doesn’t need from them.
They said that the new power plants being added to the grid were set up by the IPPs, or independent power producers (the private sector firms investing in the power sector, by building and often operating the plants), and the BPDB has an obligation to purchase power from them - to not let their investment go to waste or end in loss. Having them exit the power sector due to losses would be a bigger blow to BPDB's long-term vision.
The increasing burden of capacity payments may pinch the government, as well as the consumer, harder if the dollar crisis prevailing in the country persists. According to the Centre for Policy Dialogue, a Dhaka-based think tank, capacity payments to private, rental, and quick rental power plants have increased from Tk 5,376 crores in FY2017 to as high as an estimated Tk 28,000 crores in FY 2023.
In 2024, surplus electricity generation capacity is projected to rise to 50 percent from the existing 40 percent, as the country’s peak hour demand is about 16,000 MW, according to a top BPDB official.
It would mean even at peak demand, half the plants would be surplus to requirements, and thus lie idle.
Read more: AL Pledges to Expand Modern Urban Facilities to Every Village in Smart Bangladesh
11 months ago
Sreda organises 'Bikiron' to raise awareness about energy efficiency
Sustainable and Renewable Energy Development Authority (SREDA) organised a national competition titled 'Bikiron' to create awareness among university students about energy efficiency and conservation and encourage them in conceiving innovative ideas.
The closing ceremony of Bikiron was held on Thursday.SREDA organised the completion in cooperation with Renewable Energy and Energy Efficiency Programme(REEEP II).
The event with Mohammad Alauddin, Chairman, SREDA in the chair, was also addressed by Dr. Ahmad Kaikaus, Principal Secretary to Prime Minister, as chief guest while Habibur Rahman, Secretary, Power Division, Satyajit Karmaker, Chairman (Secretary), Bangladesh Energy & Power Research Council (BEPRC) and Johannes Schneider, Head of Development Cooperation, Embassy of the Federal Republic of Germany, Dhaka, spoke on the occasion as special guests.
Read: Sreda launches help desk to provide one-stop service on rooftop solar
The Deutsche Gesellschaft fürInternationaleZusammenarbeit (GIZ) GmbH is implementing REEEP II on behalf of the German Federal Ministry for Economic Cooperation and Development.
SREDA has been taking various initiatives to spread awareness on energy efficiency and conservation. As part of Mujib Borsho celebrations, SREDA launched a nationwide awareness campaign titled "ShasroyeJalani, Shomriddho agami (save energy, brighten your future)". Bikiron was organised as part of this campaign.
Power, Energy and Mineral Resources Minister Nasrul Hamid inaugurated the competition on September 9.
Innovative solutions were invited through www.bikiron.orgfrom university students on three categories: increasing energy efficiency in residential and commercial buildings (Energy-Smart Buildings), improving quality of life using sustainable energy technology in rural areas (Energy-Smart Villages), and making children and adolescents aware of energy conservation (Energy-Smart Children).
The teams had the opportunity to further strengthen their ideas with the help of renowned experts from the sustainable energy sector. Three webinars for each category were organised for their capacity development.
Read:Sreda, BGMEA sign deal for rooftop solar power promotion in RMG sector
More than 100 teams from universities across Bangladesh submitted their ideas. After a rigorous screening process, 23 teams made it to the final round. On November 11, they presented the ideas to a jury board comprised of public and private sector experts and academia. The winners were announced on the same day.
The winning teams pitched their ideas to the audience during the event. From a cooling solution for coastal fisherman, to an innovative metering system for buildings, and a proposal for creating an energy toolkit for children – the ideas were diverse and received appreciation of the audience.
The ten winning teams of the competition were handed over awards and certificates during the event.The closing ceremony was organised to recognize these young aspiring innovators, and also to provide them guidance in their entrepreneurial journey.
Sonia Bashir Kabir, Founder, SBK Tech Ventures and Koen Everaert, Team Leader, Green Inclusive Development and Social Protection, EU Delegation spoke about the challenges and opportunities in taking a sustainable energy idea from ideation to implementation from a Bangladeshi and Global Perspective respectively.
3 years ago
Solar Home System: IDCOL partners seek govt intervention in loan write-off issue
Five largest partner organisations (POs) of state-owned IDCOL, who played a vital role in expanding the solar home system (SHS), are now seeking the government’s intervention to resolve the loan write-off issue.
Otherwise, they say, they will be deprived of the benefit and face huge losses.
Official sources said IDCOL recently forwarded a proposal to the Bangladesh Bank seeking a write-off approval of Tk 306.41 crore default loans for its 39 POs. Its 44 POs have about Tk 1,400 crore in default loans.
Also read: Is solar power the solution to Bangladesh's growing energy ...
They said these loans, provided by IDCOL, became default because of the government’s fast grid power expansion programme.
“Grid electricity expanded to the off-grid areas that discouraged SHS consumers to pay back the loans they received from POs. Such unpaid loans finally made the POs defaulters in paying back the IDCOL,” said a top official of a firm involved in the renewable energy programme.
IDCOL had distributed the loan after receiving funds from different donor agencies, including the World Bank.
Read Govt rooftops can generate 2,000 MW of solar power, say experts
According to World Bank’s latest data, an estimated $1,094.93 million was invested in the HSH project to provide electricity to about 20 million people — which means about $266 per household.
Of the investment, 63 percent came from the World Bank, 14 percent from the Asian Development Bank and 12 percent from the Japan International Cooperation Agency.
The entire fund was distributed by IDCOL as a soft loan which resulted in saving Bangladesh $1,852 million while providing clean energy since 2003, says a recent World Bank survey.
Also read: Rooftop solar power: 'Net metering can ensure cheaper ...
It said the project helped households gain $745 million, partner organisations $310 million and the IDCOL $379 million while the government's net benefit was $474 million, said the donor agency.
Solar industry insiders said the SHS programme was launched by IDCOL in 2003. In the last 18 years, over 5.5 million solar home systems were installed.
They said that there was a tripartite partnership to the financial model under which IDCOL provided about 70 percent of the total cost of installing the SHS as soft loans to the POs, while the remaining 30 percent was invested by the POs and the customers themselves.
Read Green energy's share of power generation lagging far behind conventional sources
3 years ago
Sreda, BGMEA sign deal for rooftop solar power promotion in RMG sector
Sustainable and Renewable Energy Development Authority (Sreda) and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Thursday signed a Memorandum of Understating (MOU) under which the state-owned agency will help garment industries to install rooftop solar power in order to transform them into green industries.
Welcoming the agreement between the two private and public bodies, Prime Minister’s Energy Advisor Dr Tawfiq-e-Elahi Chowdhury said the initiative will create some foots and grounds for promotion of renewable energy in the garment sector.
Read: Rooftop solar power: ‘Net metering can ensure cheaper electricity for garment factories’
“This will open up the door for others to follow”, he told the agreement signing function joining it virtually.
Sreda secretary Niaz Rahman and BGMEA Secretary Abdur Razzak signed the MOU on behalf of their respective sides while Sreda chairman Mohammad Alauddin and BGMEA president Rubana Huq, State Minister for Power, Energy and Mineral Resources Nasrul Hamid, Principal Secretary to the Prime Minister Dr Ahmad Kaikaus addressed the function.
As per the agreement, the Sreda and BGMEA will create coordination in raising awareness about renewable energy in the garment sector, pursue for central bank’s green funding and also investment from banking sector.
Read: Rooftop solar: Power companies instructed to float net metering promotion plan
Nasrul Hamid said the country’s industrial sector consumes nearly 48 percent of their total power generation and garment industries lead the sector by consuming 30 percent of total industrial load.
If the garment industry pursues energy efficiency, it will reduce their 17.6 percent consumption, he added.
Sreda chairman Mohammad Alauddin said there is huge scope for renewable energy promotion in garment sector.
Read Green energy's share of power generation lagging far behind conventional sources
3 years ago
One out of 150 candidates was eligible to be energy auditor: Prof Haque
Only one out of 150 candidates fulfilled the eligibility criteria for being energy auditor, in an examination of Sustainable and Renewable Energy Development Authority (Sreda).
Such experience was shared by BUET Prof Dr Mohammad Zahirul Haque at a webinar organised by Energy and Power magazine on Saturday.
The exam was held by Sreda last year just before the outbreak of Covid-19 in the country to appoint independent energy auditors.
Dr Haque said although most of the candidates were BUET students, they forgot how to calculate the efficiency in energy use.
The virtual seminar, tiled “Energy Efficiency Opportunities in RMG & Textile Industry”, was also addressed, among others by Prime Minister’s Energy Advisor Dr Tawfiq-e-Elahi Chowdhury, Sreda Chairman Mohammad Alauddin, President of Bangladesh Readymade Garments Manufacturers and Exporters Association (BGMEA) Dr Rubana Huq, energy expert Prof Nurul Islam, former president of Dhaka Chamber of Commerce and Industry Asif Ibrahim and Idcol’s chief financial officer Nazmul Haque.
Energy and Power editor Mollah Amzad Hossain conducted the seminar.
Dr Tawfiq-e-Elahi said the government entities should hear from the industry owners to remove their bottlenecks in pursuing their energy efficiency mechanism.
“There should be proper coordination between Sreda, banks and industry owners so that the industry operators can easily avail the low-cost loans for making their industries energy efficient.
Mohammad Alauddin said setting up Sreda itself reflects the government’s good intention to promote energy efficiency.
He said Sreda has so far conducted energy auditing at 12 industries in the country and their results will be released soon through a publication.
Sreda member Farzana Momtaz, who made the keynote presentation, said the readymade garment sector can reduce their energy cost by 16 percent if they pursue energy efficiency mechanism.
It will reduce their cost and they will derive most benefits from global market being treated as green industry owners, she said.
Rubana said although there is no adequate government support for energy efficiency, the garment sector itself made progress turning many of their industries into efficient.
Some seven green factories, out of 10 which were recognised as most energy efficient across the globe, belong to Bangladesh, she said adding that so far 130 industries were converted into green industries and some 500 are now in the line of turning into efficient industries.
She said the government incentives for such initiative are very inadequate.
Prof Nurul Islam said the successful case industries of the energy efficiency should be published so that others can be encouraged to see the success.
Asif Ibrahim said the government has to remove bureaucratic bottlenecks in providing support to the industries to make them efficient.
3 years ago
Nasrul urges RMG owners: Go solar for low cost, tax break
State Minister for Power, Energy and Mineral Resources Nasrul Hamid has urged the country’s garment industry owners to set up rooftop solar system under net metering policy to take advantage of green energy.
“If you set up solar power plant for your own consumption using your industry rooftop, it could be a good investment which not only reduces your power bill, but also benefits you to get a credit of green industry”, he told industry owners while addressing a virtual workshop on Tuesday.
Also read: Rooftop solar: Power companies instructed to float net metering promotion plan
Sustainable and Renewable Energy Development Authority (Sreda) organized the workshop titled: “Scaling Up Net Metered Rooftop Solar on Knitwear Industry” with its chairman Mohammad Alauddin in the chair.
The workshop was also addressed by Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) vice president Mohammad Hatem, Bangladesh Energy and Power Research Council (BEPRC) chairman Zakia Sultana.
Also read: Rooftop solar power: ‘Net metering can ensure cheaper electricity for garment factories’
The government introduced net metering policy under which a consumer can sell his unconsumed or additional electricity generated from rooftop solar to the national grid.
The State Minister said that use of efficient technology and green energy will help promote sustainable growth the industry.
Also read: Green energy in Bangladesh: Govt moves to save solar mini-grids
“It will help our appeal industries compete to the global market at lower production cost”, he said.
Nasrul Hamid said the government has initiated a move to reach electricity to off-grid areas through solar home system, mini-solar power grid and submarine cables.
Also read: Govt rooftops can generate 2,000 MW of solar power, say experts
He said the government set a target to generate 10 percent of electricity from renewable energy sources.
To achieve this target, he said, the government has taken different steps including a net metering system to promote the use of rooftop solar power.
3 years ago
Renewable energy: Government urged to allocate specific budget, set target
The government needs to allocate a specific budget, set a target and formulate policy guideline to promote renewable energy in the country, experts and stakeholders said Saturday in a webinar.
3 years ago
Sreda, BCSIR to work together for developing hydrogen fuel
As there is good potential for development of hydrogen fuel, Sustainable and Renewable Energy Development Authority (Sreda) and Bangladesh Council of Science and Industrial Research (BCSIR) have said they will work on the issue through a joint collaboration.
3 years ago
Green energy's share of power generation lagging far behind conventional sources
Though Bangladesh has made substantial strides in overall power generation over three terms of the Awami League, the government's efforts to meet its own target for power generation from renewable energy have failed to keep up.
3 years ago
Rooftop solar power: ‘Net metering can ensure cheaper electricity for garment factories’
Garment factories can get cheaper electricity if they go for net metering after setting up rooftop solar system for electricity generation.
3 years ago