Potentials of Solar Energy in Bangladesh

Bangladesh’s power sector now stands at a crossroads where the challenges cannot be resolved merely by constructing new power plants. Framing alternative pathways to ensure power and energy security in the country has now become crucial against the backdrop of deficits in domestic gas production, the high cost of imported LNG and oil, foreign exchange pressure and volatility in the international oil and gas market. The government has therefore drawn up an ambitious plan to generate 4,000 megawatts of electricity from rooftop solar panels in one year. It conforms to the medium-term target of producing 10,000 megawatts, or 20 per cent of the country's total power, from renewable energy by 2030.  
Under the plan, the government has opened the rooftop-based solar power market to private investors rather than investing its own money in expensive projects. The private companies would finance the effort by installing and maintaining the solar panels. The owners of buildings and factories will consume the generated power, and any surplus can be sold to the national power grid. 
This initiative is undoubtedly commendable, as most of the rooftops in the country, including those of factories, markets, hospitals, public and private offices and institutions, and residential buildings, remain unused. Therefore, if these rooftops are utilised to generate power, costly investments in land acquisition and power plant installation can be avoided. 
The manufacturing sector can be its biggest beneficiary, as many manufacturers cannot utilise their full production capacity owing to a dearth of gas and electricity. If solar panels are installed on the rooftops of large factories, most of their daytime power needs can be met. It is especially applicable to the RMG, textiles, jute, medicine and drugs, food processing and ceramic industries. 
The Operating Expenditure (Opex) Model can play an important role in this initiative. Under this model, a third-party developer (often a renewable energy service company) installs, owns and maintains the solar power system on the rooftop at zero upfront cost under a Power Purchase Agreement (PPA) lasting 15 to 25 years. In that case, factory owners would not have to buy solar panels at high cost, and opportunities would be created to use renewable energy without putting additional pressure on industry capital. 
The large-scale adoption of renewable energy also has ramifications for international trade, especially against the backdrop of the need to reduce carbon emissions and increase environmentally friendly production. If the country’s export-oriented industries can significantly enhance the use of renewable energy in production, then the acceptability and credibility of their products in Europe and other large markets can increase. Besides, it can contribute to Bangladesh’s export competitiveness by reducing costs. 
Bangladesh spends large amounts of foreign currency each year to import oil and natural gas. It places severe strain on foreign exchange reserves and consumers when oil and gas prices surge in international markets. Therefore, more reliance on renewable energy can significantly reduce that pressure. In the long run, that would translate into less need for importing fuel. The recent crisis in the Middle East has once again shown that excessive dependence on the international supply chain is highly hazardous for import-dependent countries like Bangladesh. Solar energy does not carry such geopolitical risks. 
If this concept of installing rooftop solar panels could be extended to the village level, a solar economy could be built across the country. If local service providers are prioritised, the market would not remain dependent on large Dhaka-based companies. Preferential treatment for start-ups and new entrepreneurs, and special facilities for female entrepreneurs, are also positive aspects of current government policy. If the planned production of 4,000 megawatts really materialises, employment opportunities would also be created for thousands of skilled and unskilled workers, including engineers, designers, maintenance and sales. Besides, financiers and suppliers would also benefit. The government has also spoken about linking up the initiative to solar-energy-driven irrigation, cold storage, power charging stations, floating solar panels, etc.  
Irrigation and crop preservation are major problems in Bangladesh's agricultural sector. Therefore, the spread of solar-powered irrigation systems would reduce dependence on diesel and grid power. Similarly, farmers would not have to sell their commodities at low prices if small- and medium-sized solar-powered cold storages were built in villages. That would facilitate preservation of fruits, vegetables, fish and milk. The rural economy will therefore benefit if renewable energy initiatives thrive in rural Bangladesh. 
The private sector has raised some logical demands to facilitate its involvement in renewable energy ventures. These include concessionary credit facilities, bankability of projects, attractive and long-term tariffs for selling surplus power, one-stop approval of net metering and reasonable tariffs for imported machinery. Another critical issue is quality control. If low-quality panels, inverters, or weak connections are used, then problems may arise within a few years. Besides, the structural capacity of the roof and fire cum power safety will also have to be addressed rigorously. In addition, transparency and accountability will have to be ensured to prevent nepotism in the selection of service providers and the entry of fake companies. 
Large power plants, major projects, and substantial investments have been prioritised in Bangladesh’s energy sector in the past. The initiative to install rooftop solar panels on a large scale has therefore created an opportunity to move away from that longstanding policy by emphasising decentralisation of power generation. If thousands of factories, offices, hospitals, schools, colleges, universities, shops, markets and residential buildings start producing electricity, many consumers will also become producers. If this laudable initiative succeeds, pressure on fuel imports will be reduced, expenditure control in industrial production will be facilitated, opportunities will be created for new investment and employment, the modernisation of the agricultural sector will be accelerated, and the country’s energy security will be bolstered and consolidated. 
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The writer is former Editor of Bangladesh Quarterly. He can be reached at [email protected]