Energy sovereignty is the process of ensuring a country's own energy security and independence, where dependence on foreign fossil fuels is reduced and the use of local renewable energy is increased. Currently, Bangladesh's energy mix is generated from about 97% fossil fuels, and the amount of energy generated from renewable energy is only 3%. However, the government has set a target of generating 40% of electricity from renewable energy by 2041. The country has successfully installed 4.1 million units under the Solar Home System programme, which proves the potential and capacity of renewable energy in Bangladesh.

Current Challenges

Bangladesh's total installed capacity is currently 27,515 MW, but 99% of it is dependent on energy imports. This dependence is putting pressure on the country's energy security and foreign exchange reserves. In the fiscal year 2023-24, Tk382.89 billion has been given as subsidies to the energy sector. There is 10.33% system loss in the grid system, which is much higher than international standards. There is a gap between electricity demand and supply, and this is causing load shedding, which is a major challenge for the country's energy sector.

Renewable Potential

Bangladesh has a huge potential for renewable energy. In the case of solar energy, the country has a potential of 50,000 MW of power generation, but it is currently limited to only 1,200 MW. Bangladesh is very suitable for solar radiation of 4-6.5 kWh/m²/day. In the case of wind energy, Bangladesh has the potential to generate 20,000-30,000 MW of power in its coastal areas, where the wind speed is 5-7 m/s. 35 million tonnes of agricultural waste and other organic matter are produced annually, which can be converted into 42 terawatt hours of power generation. In the case of hydropower, the Kaptai Dam has an installed capacity of 230 MW, but small-scale hydro projects can be effective in the Chittagong Hill Tract to meet local demand.

Technical Blueprint - 5 Pillars

A 5-tier plan is needed to make Bangladesh’s power network more efficient and sustainable.

1. Grid Modernisation: Smart grid technologies, such as Advanced Metering Infrastructure (AMI) and smart meters, will facilitate real-time management of the power system. In addition, energy demand will be forecasted using artificial intelligence (AI).

2. Energy Conservation: Battery Energy Storage Systems (BESS) will be used to store 10-15% of renewable energy. Pumped hydro systems can be installed in hilly areas.

3. Hybrid Systems: Solar-wind composite parks and solar-diesel mini-grids will be installed in coastal areas, which will ensure a stable supply of renewable energy.

4. Transmission: HVDC lines and digital substations will be used, such as the Bheramara HVDC line, which is already operational.

5. Demand Management: Time-of-use tariffs will limit the time when consumers use electricity, which will reduce energy consumption during peak demand.

Implementation Roadmap

A three-phase plan has been adopted for Bangladesh's energy independence:

Phase 1 (2025-2027): 2,000 MW solar, 500 MW wind, and 100-500 MW battery energy storage system (BESS).

Phase 2 (2028-2030): 5,000 MW solar, 1,500 MW wind, installation of smart grids in major cities.

Phase 3 (2031-2035): 10,000 MW total renewable energy, 40% target achieved, installation of 2-3 GW storage facilities.

The successful implementation of this plan requires an investment of about 35.2 to 42.6 billion US dollars, which will be raised through Public-Private Partnerships (PPP) and the International Climate Fund.

Policy and Finance

To create a new energy market, Bangladesh should introduce a reverse auction system, which will set competitive prices for electricity. A 10-year income tax holiday will be provided from 2025, and a 100% net metering system will be introduced. Long-term debt will be available through green bonds and sukuk bonds. There will be opportunities to participate in the international carbon market through the public-private partnership (PPP) model and renewable energy markets (RECs). The European Union has proposed a €400 million loan and plans to expand its partnership with the Green Climate Fund.

Energy servitude is crucial to ensuring Bangladesh's economic sustainability. The use of renewable energy will create thousands of 'green jobs', save foreign exchange and ensure the country's energy security. It will be possible to build a climate-resilient Bangladesh by 2041. Key recommendations: install smart grids, implement energy conservation technologies and finance through green bonds.

News Link: Engineering Energy Sovereignty: A Technical Blueprint for Renewable Integration