Adapting Bangladesh’s Energy Strategy For A Surge In Global Renewable Consumption By 2030 – Analysis
As the world moves toward a renewable energy future, Bangladesh has an opportunity to integrate sustainable energy sources across its power, heat, and transport sectors. Between 2024 and 2030, global renewable energy consumption is projected to increase by nearly 60%, driven by technological advancements, falling costs, and supportive policies.
For Bangladesh, aligning with this global trend is essential not only for enhancing energy security and meeting climate targets but also for reducing reliance on imported fossil fuels and fostering economic resilience. Here's a sector-by-sector analysis of how Bangladesh can adopt a proactive approach to leverage renewable energy within the context of global trends.
1. Power Sector: Scaling Up Renewable Electricity
Global forecasts show renewable electricity, particularly from solar and wind, will be the primary driver of growth in renewable energy. By 2030, renewable electricity is expected to reach 46% of global electricity generation, with solar PV and wind becoming the largest contributors. For Bangladesh, where demand for electricity is rapidly rising, expanding renewable power sources is crucial for both energy security and carbon reduction.
Steps Bangladesh Can Take:
Expanding Solar and Wind Capacity: Bangladesh has already started investing in solar energy projects, but there is significant potential for further expansion. To support this, Bangladesh could incentivize utility-scale solar and wind farms, particularly in areas with high solar irradiance and wind potential.
Decentralized Solar Power: Given the geography and challenges of grid expansion, solar home systems and mini-grids in rural areas could provide off-grid solutions, especially in regions where extending the main grid is cost-prohibitive.
Policy and Financial Support: Bangladesh could benefit from policy reforms that attract foreign investment in renewables and provide financial incentives for local renewable energy developers. Leveraging international funding, such as the Green Climate Fund, would also be essential for scaling up investment.
Grid Modernization: Variable renewables like solar and wind require an adaptive grid infrastructure. Strengthening the national grid and developing energy storage solutions, such as batteries, can ensure that renewable electricity is efficiently integrated and managed.
2. Industrial and Building Sectors: Embracing Renewable Heat Solutions
Globally, the industrial and building sectors are projected to experience significant shifts toward renewable heat, with bioenergy, solar thermal, and geothermal sources expected to meet 20% of heating demand by 2030. In Bangladesh, transitioning to renewable heat sources can be vital for decarbonizing industries and reducing fossil fuel dependency, particularly in industries with high heat demand like textiles and ceramics.
Steps Bangladesh Can Take
Bioenergy and Biomass Utilization: With a substantial agricultural sector, Bangladesh has a readily available source of biomass. Developing bioenergy facilities to produce heat from agricultural residues, such as rice husks and sugarcane bagasse, could support rural industries and reduce waste.
Solar Thermal Systems for Water Heating: Solar thermal installations for water heating in residential and industrial buildings offer a cost-effective renewable heat solution. Bangladesh could introduce incentive programs to encourage adoption in hotels, hospitals, and residential complexes, reducing demand on electricity used for heating.
Geothermal Exploration: While geothermal energy is less developed in Bangladesh, exploring geothermal potential, especially in high-temperature regions, could support long-term renewable heating objectives. Investment in research and feasibility studies is necessary to assess the viability of geothermal projects.
3. Transport Sector: Transitioning to Renewable Fuels and Electrification
The transport sector globally is set to achieve a 6% renewable energy share by 2030, with significant contributions from biofuels, renewable electricity, and emerging technologies like hydrogen. For Bangladesh, reducing emissions from transport is a critical goal, especially as urbanization and population growth increase the demand for mobility.
Steps Bangladesh Can Take
Promoting Electric Vehicles (EVs): Developing EV infrastructure, such as charging stations and incentives for EV purchases, is key to reducing transport emissions. Bangladesh could start with electric buses and three-wheelers, which are common in urban areas and well-suited for short commutes.
Supporting Biofuel Production: Bangladesh could explore biofuels derived from local feedstocks, such as jute and waste oils, to power road and marine transport. Partnerships with local industries and international biofuel programs can help establish a domestic biofuel market.
Hydrogen Pilot Projects: While hydrogen infrastructure is nascent, Bangladesh could initiate pilot projects in industrial transport applications. The introduction of hydrogen-powered buses or ferries could serve as a demonstration for future expansion and build awareness of hydrogen's potential.
Reducing Traffic and Encouraging Public Transport: By improving public transit options and discouraging private vehicle use through urban planning and policy incentives, Bangladesh can minimize overall energy demand in transport. Transitioning public transport fleets to renewable energy sources can set an example for sustainable urban transport.
4. Developing Renewable Fuel Markets for Transport and Heating
Renewable fuels, such as bioenergy and hydrogen, are essential for sectors that are difficult to electrify. Bangladesh can leverage these alternatives in both the transport and heating sectors to reduce dependence on fossil fuels.
Steps Bangladesh Can Take
Supporting Local Biofuel Production: Bangladesh could establish partnerships with local farmers to supply biomass for biofuel production, creating an integrated approach that benefits both the agriculture and energy sectors. Policies to support biofuel blending mandates could further boost demand.
Hydrogen Research and Development: Encouraging research institutions and private sector involvement in hydrogen technology can help Bangladesh build a foundational hydrogen economy. Pilot projects in industries or transport fleets would demonstrate hydrogen's feasibility and create momentum for broader adoption.
Integrating Renewable Fuels in Policy Frameworks: Bangladesh's energy policy could establish goals for renewable fuel adoption in sectors such as aviation and marine, which are harder to electrify. Incentives for renewable fuel production, along with clear government targets, can help stimulate the domestic market.
5. Addressing Investment and Policy Challenges
For Bangladesh to successfully increase renewable energy across sectors, addressing investment barriers and creating supportive policies are crucial steps. The global renewable heat market, for example, faces challenges due to high interest rates and inflation, and similar issues could impact Bangladesh.
Steps Bangladesh Can Take
Attracting Foreign Investment and Public-Private Partnerships: Given limited domestic funding, Bangladesh should actively seek international investment through public-private partnerships. Partnerships with foreign governments, multilateral organizations, and the private sector can supply the expertise and capital necessary for renewable projects.
Implementing Favorable Tariffs and Subsidies: Subsidizing renewable technologies and adjusting tariffs to make renewables cost-competitive with fossil fuels would incentivize wider adoption. Policies to encourage low-interest loans or tax credits for renewable energy installations can alleviate the initial financial burden for businesses and consumers.
Adopting Clear Renewable Energy Targets and Roadmaps: To guide sustainable energy transition, the government could establish a national roadmap with clear targets for renewable power, heat, and transport sectors. Aligning national policies with international climate goals, such as the IEA Net Zero by 2050 Scenario, will not only improve policy clarity but also make Bangladesh an attractive location for renewable investment.
Conclusion
The projected global surge in renewable energy consumption presents a valuable opportunity for Bangladesh to build a resilient, sustainable energy system. By adopting a multifaceted approach that includes expanding renewable electricity, adopting bioenergy and hydrogen, enhancing electric mobility, and investing in renewable heating, Bangladesh can align with global energy trends and address its own energy security and climate challenges.
Bangladesh's renewable energy potential can be further unlocked through supportive policies, international partnerships, and a focus on building domestic expertise. As renewable energy markets transform worldwide, Bangladesh's proactive involvement in this shift can lead to a cleaner, more sustainable energy landscape—ensuring both environmental and economic benefits for the nation.