Bangladesh has fallen behind renewable energy (RE) generation target due to absence of coordination among planning, implementation and monitoring. There is no possibility now to achieve 10% contribution from RE by 2020. For a changed global perspective, we must now concentrate our attention for working out a workable business model for RE rather than focusing on lesser tariff for gradually increasing RE use and ensuring efficient use of energy. Otherwise investment would not come in RE development. Prof Dr. Saiful Huque, Director at the Energy Institute of Dhaka University, said this in an exclusive interview with Energy & Power Editor Mollah Amzad Hossain.
Reducing carbon emission is a big challenge for achieving the global warming below the agreed threshold by 2100. What are your views about Bangladesh’s preparedness in this regard?
Bangladesh like all other countries of the world is pledged to reduce emission. Bangladesh is a climate vulnerable country from carbon emissions of the developed countries. The government is working with a long term plan for combating this effect. In my opinion, these works must be monitored by neutral agency right from now. Bangladesh alone cannot make huge investment required for these. We have the opportunity for getting finance from global sources. But we have scarcity of competent human resource for this works. Those who are available are not also being allowed to work in one place for a long time. This needs to be ensured. At the same time, we must focus on developing mid level executives for these works.
Renewable energy can play a major role along side of developing energy efficiency (EE) in reducing carbon footprint. From that consideration, the government has started working on RE development and increasing EE. The government’s plan here is appreciable. But implementation of these through proper monitoring is now the main challenge.
The Bangladesh initiative for RE generation dates back to 1990s. How do you evaluate the achievement over the past 30 years?
Though the expected success could not be achieved yet, the sources are now diverse. Alongside of solar, now works are going on for waste to energy, bio gas, bio mass and solar irrigation pumps. True Feed-in-Tariff could not be introduced, yet net-metering rooftop solar is giving some form of incentives. This needs to make attractive though. Abandoning segmented approach, we must have to work under well coordinated comprehensive plan.
Power generation through RE target by 2020 was 10%. But the achievement till now is only 3%. Do you think Bangladesh can achieve this target at all within the remaining time? If not what do you think are the reasons for falling behind the target?
We have fallen way behind. I have genuine concern about achieving the target. But we must get ready for the future. We must develop efficient human resource for RE development. Power division must plan now who would replace the SREDA’s present human resource when they retire.
The main deficiency is not adopting advanced technology. We are keeping our fingers crossed when rest of the world is working on storage. Storage will be a major aspect in RE development in future. We must start on it now.
Finally, we must soul search why we failed to achieve target and must develop plan lessons learnt and work accordingly.
Power generation target from RE is now set at 15% by 2021 and 30% by 2030. Can it be achieved? What needs to be done for achieving the targets?
In business as usual case, it cannot be achieved. In my opinion, a roadmap must be worked out for achieving the targets. Reviewing the contracts signed for MW-scale projects, we must solve the impediments in their implementations. Price of land and the availability is a great problem. We can allocate land in each of the 100 Special Economic Zones (SEZs) as RE zone. Policymakers still consider RE as a specialized area. Coming out of this mentality, RE must be considered as a contributor to fuel mix. Finally through regional connectively, we must import hydro power from Nepal and Bhutan and arrange importing RE also developing these through joint investment. If we can do all these mentioned above, achievement would be greater than planned.
The power tariff for RE is 10.1 cent per unit as per the contract last signed. But the rate is much lower in India and Middle East. The government also believe that this rate would come down. What should be right tariff in Bangladesh perspective you think?
Land cost is much higher in Bangladesh. The opportunity for extracting energy from sun ray in Bangladesh is much lower than India and Middle East. Consequently tariff for solar energy can not be a slow as India or Middle East. The tariff at which contracts are being signed now will not be attractive for major investors. In my opinion a business model must be developed with the vision for reaching win-win contract. This will facilitate getting major investment in RE in future.
Different organizations including Energy Institute of Dhaka University is now working in favor of Feed-in-Tariff. But the government is not buying into this concept. Very recently purchasing solar power through net-metering has been introduced. What are your views?
Whichever countries in the developed RE, they started it providing FiT as incentive in the early stage. Gradually as RE sector matured, countries gradually came out it. But giving wrong interpretation of it, Bangladesh is staying out of it. It remains a major impediment in Bangladesh for jump start of the RE sector.
Purchase of electricity from solar rooftop has started through net-metering system. Owners would supply power to the grid after meeting their own needs. Tariff would be same as what BPDB terms as bulk tariff. It is not at all attractive for RE. This must be reviewed and a RE-friendly tariff must be introduced.
What kind of success you expect from rooftop solar? What are your suggestions for achieving success?
It will achieve success only when effective monitoring can be ensured at every stage from financing to guarantee on return on investment. But a good sign is that the government has instructed all its buildings for setting up rooftop solar installations. But we must bear in mind that mere installation will be works half done. These must be operated and maintained properly.
Many investors have signed agreement for 500-600 MW grid-connected solar power plants. But only 23 MW is now under generation. What steps should government take for the others?
I think there are three reasons for this. The first is contracts have been awarded in many cases on mere political consideration without properly professional and technical capabilities of the proponents. The second is price and land and their availability. The third is failing to work out appropriate tariff. But whatever be the reasons there must be authentic assessment why most of the investors are struggling with the contract implementation. The government must assist investors in overcoming genuine problems and try to get the projects completed as soon as possible. Contracts of those who fail to show any capability at all must be cancelled and new competent investors may be awarded these contracts afresh.
Investors alone must not be blamed. The government also lacks capacity in managing and monitoring such projects.
Wind energy is a major player in RE sector in many countries. Wind mapping indicated of significant potential for wind energy in Bangladesh. Can wind energy play a notable role in increasing RE portfolio in Bangladesh?
It is true that Bangladesh lag behind in wind power generation for lack of initiative. But this situation has created new opportunities aswell.Technology of wind power has advanced a great deal. Now the recent wind mapping has armed us with information about locations where there is potential for it. Now developing business model with appropriate tariff, we have to attract genuine investors. It is true that wind power makes major contribution in RE sector in many countries. Bangladesh will definitely achieve success if it follows the right walkway.
Private sector in Bangladesh is interested for investment in RE sector. But there is no mentionable success till. What type of incentives government should offer you think?
Local investors taking queue from global scenario has become interested in RE sector. But reality is that they have not appropriate policy and administrative support for investment. People involved with fossil fuel also have negative perception about RE. So, effective business model is not being developed. These are the reasons for RE sector not getting the required impetus in Bangladesh.
What is the status of research on RE in Bangladesh? What are you planning for it?
The facilities of the laboratories of public universities must be expanded for this. But no finance is available for this. Bangladesh Energy & Power research council is allocating fund. But students of public universities are getting very little of this. Universities cannot take program for research for lack of fund. But research is very important for RE development. The government must arrange to finance under a policy.
What is the status of human resource development in RE sector? What needs to be done to advance this? What are your plans for this?
Some universities including Dhaka University is endeavoring for developing human resources. But this is mere marginal. But the main problem in energy sector is not employing these graduates. Their employment is not guaranteed. The quality graduates are going abroad. Others are changing profession. For effective development of human resources Industry – Institutions linkage is essential. Public sector is still dominating the RE. The government needs to give policy support.
Do you think a mandatory ceiling must be created for utilities for purchasing RE for a green portfolio?
Please note that such provision exist in many countries including India. But in some cases in India, there has been financial stress in complying with mandatory obligations of RE purchase. But I think in Bangladesh, by setting a ceiling this can be introduced. It will play a role in RE development.
