Download Link for Energy & Power Vol 24 Issue 06/userfiles/EP_V_24_07(1).pdf

Bangladesh's decision to accelerate rooftop solar deployment is a welcome response to mounting pressure on the power system. With load-shedding disrupting industry and daily life and imported fuel costs adding to economic pressure, reducing dependence on grid electricity has become increasingly important. The government's target of adding 3,000–4,000MW of rooftop solar before next summer is ambitious. The new incentive package and tax concessions could provide much-needed momentum, particularly by encouraging residential consumers, businesses and local entrepreneurs to invest in solar systems with battery storage. But setting an ambitious target is easier than delivering it. The failure of an earlier six-month program targeting 3,000MW demonstrates the difficulties involved. The latest program's short eligibility period could make those challenges even more difficult to overcome. The concerns raised by industry stakeholders and energy experts therefore deserve serious consideration. If the proposed generation cost does not reflect actual project economics, the incentive may fail to attract sufficient investment. Similarly, a short-term surplus-power purchase arrangement may not provide investors with the certainty needed to commit capital to projects with long payback periods. The government should treat the current package as a starting point rather than a finished solution. A longer implementation window, predictable and dynamic tariffs, easier financing and time-bound approvals could significantly improve its effectiveness.

Rooftop solar can help ease summer peak demand while contributing to Bangladesh's longer-term energy transition. But the priority should be not merely to announce thousands of megawatts, but to ensure that the announced capacity actually reaches rooftops.

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