Renewable Energy Context, Scope, Application and Green Business in Bangladesh

Professor Dr. Kazi Abdur RoufNoble International University

Senior Research Fellow

Faculty of Environmental Studies

York University, Canada.

Paper presented at the Association for Non-profit and Social Economy Research (ANSER) Conference 2015

Ottawa, Canada

June 3-5, 2015

Why Renewable Energy Necessary

• Energy is inevitable for development and its demand is increasing day by day

• Energy from fossil fuel (coals, diesel, kerosene, wood etc.) generates carbon, CO 2 emissions, and green house emissions

• Fossil fuel pollute air, and destroy environment resulted global warming

• Energy scientists are looking for alternative energy resources uses that are environmentally friendly and good for human being

• They are provoking for renewable energy (solar radiation energy, bio gas energy, wind energy, water wave energy, CNG energy and hydropower energy) use

• PV technologies produce very small amount of CO2 compared to the emissions from conventional existing fossil fuel energy technologies

• RE uses is less harmful to living beings and environment

Topic

• This paper talks about fossil fuel energy and renewable energy use

• Their consequence/impact in the nature and society.

Methodology

• Author incorporates his working experience with Grameen Shakti (GS)

• Collected data from different RE implementing organizations in Bangladesh

• During his visit to Bangladesh in 2014-2015.

Objectives of the Study

• The study explores RE resource sources, scenarios of RE

• Identify Demand of Energy

• Discern utilization different types of RE programs and use

• RE business models and their benefits in Bangladesh.

Environmental (CO2) Issues in Bangladesh

• Green house gases (CO2 Ch4, and N2O) emitted in burning of different types of fuel lead to air pollution, environmental pollution and global warming.

• Gradual increase of global temperature and its consequences affect Bangladesh, risen the sea level of Bay of Bengal. It is because of climate change

• Nine warmest years in the 20th century have occurred since 1980 and 1990s were probably the warmest decade of the second millennium (IPCC, 2001).

• Fossil fuel energy use, the largest sole source of CO2 emissions and a large contributor of CH4 and N2O emissions, accounted for 81.7 percent of emissions

• Earth’s atmosphere receives around 27,000 million tons of CO2 in the recent years

• USA is the largest CO2 emitter in the world, which releases 5,729 million tons of CO2 every year with 19.7 million tons of per capita emission

• Next CO2 contributor is China releases 3,719 million tons with 2.9 million tons of per capita emission

• From 1973 to 2006, the emission of CO2 has increased at a rate of 79.05%.

Item GHG emission factor

Kerosene 2.5 ton CO2/ton

Wood/straw 1.7 ton CO2/ton

Diesel genset 1.3 ton CO2 /MWh

Diesel 0.897 ton CO2/MWh

Bangladesh grid (natural gas 90%) 0.452 ton CO2/MWh

Natural gas 0.452 ton CO2/MWh

Hydro, Solar, Wind 0

Environmental IssueTable 1: GHG emission factor

Source: SWERA, 2007

Government National Energy Policy• First National Policy (NEP) Bangladesh 1996

• Government adopted Private Power Generation Policy

• In 1996, import duty and value added tax from solar PV and wind turbines were withdrawn

• In April 2004, Bangladesh Energy Regulatory Commission (BERC) was established

• NEP 2004 are targeted to provide energy for all

• Bring entire country under electrification by the year 2020 (MPEMR, 2004).

Renewable Energy Policy• Renewable Energy Program in Bangladesh emphasized on the exploitation of

solar, wind, biomass gasification, biogas and hydro energy

• Major objectives of the renew able energy policy aim to exploit potential RES

• Disseminate RETs in the rural, peri-urban and urban areas • Policy has targeted to develop RES to meet 5% of the total power demand by

2015 and

• 10%by the year 2020 (MPEMR, 2008).

Category Year 1973 Year 2006 Growth % 1973-2006

Primary energy supply 6,115 Mtoe 11, 741 Mtoe

92.00

Final energy consumption 4,672 Mtoe 8,8084 Mtoe 73.03

Electricity generation 6,116 TWh 18,930 TWh 209.52

Electricity consumption 439 Mtoe 1,347 Mtoe 206.83

CO2 emission 15,640 Mtoe 28,003 Mtoer

79.05

Table 2: Comparison of World Energy related Data (1973 and 2006)

Source: Prepared from International Energy Agency (2008).

Description Quantity of emission

Energy-related Carbon Dioxide Emissions 32.9 million tons

Per capita energy consumption 4.0 million Btu

Per capita carbon dioxide emissions 0.23 tons

Table-3: CO2 Emission Energy Production in

BangladeshSource: IEA, 2003

Category 2000-01 2001-02 2002-03 2003-04 2004-05Gas Production Gas (109cft)

372.16 391.53 421.16 454.59 486.75

Consumption (109cft)Electricity 175.27 190.03 190.54 199.40 211.02Captive 0 0 0 32.03 37.87Fertilizer 88.43 78.78 95.89 92.80 93.97Industrial 47.99 53.56 63.76 46.49 51.68Tea-garden 0.65 0.72 0.74 0.82 0.80Brick field 0.44 0.53 0.52 0.12 0Commercial 4.06 4.25 4.56 4.83 4.85Domestic 31.85 36.74 44.80 49.22 52.49CNG 0 0 0.23 1.94 3.62Total Consumption 348.69 364.61 401.04 427.65 456.30

Table-4: Production and consumption of Natural Gas in BangladeshSource: BBS, 2006.

Item Quantity

Installation Capacity 5,275MW

Average demand 4,300-4,500MW

Average generation 3,200-3,300MW

Per capita generation 167 kWh

Per capita consumption 136 kWh

Table-5: Electricity Generation and Consumption in Bangladesh (2005-2006)

Source: SWERA

Fuels 1999-00 2000-01 2001-02 2002-03 2003-04Cow-dung 2441 2471 2471 2471 2502Jute stick 922 966 1010 966 922Rice straw 1375 1429 1409 12418 1218Rice hulls 2810 2810 2854 2898 2854Bagasse 314 340 366 366 392Firewood 1166 1166 1219 1219 1272Twigs and Leaves

1325 1378 1431 1484 1537

Other wastes

1186 1230 1273 1317 1361

Total 11539 11790 12033 12139 12258

Table-6: Estimates of Energy Supplied by Traditional Biomass Fuels (‘000 tons of coal equivalent)

Source: BBS (Bangladesh Bureau of Statistics, 2006)

RES Type Capacity (up to December’08) Theoretical Potential

Wind 1 M 2,000 MW

Hydro 230 MW 672 MW

Solar PV 15 MW approx 50,436 MW

Solar Thermal 3,000 m3 20<>106 m2

Biogas .3 million m3 3,675 <>106 m3

Table-7: Renewable Energy Prospects in BangladeshSource: Alam et al. (2003)

Resource Expected utilization

GHG reduction (million

tons of CO2)

Wind 1000 MW 5.0

Solar 300 MW 0.5

Biomass/Hydro 600 MW 0.6

Co-generation 300 MW 0.3

Total Renewable Energy 3200 MW 6.4

Table-8: Targets for RETSTentative Target for RETs, 2020 and GHG reduction

Source: Power Cell, 2006

Total No. SHSs

Savings of Kerosene in litters/year

Tons

CO2/year

65,000 19 million 49,000

1,00,000 29 million 75,000

Table-9 : CO2 reduction using Solar Home SystemSource: SWERA, 2007

Table-10: IDCOL Program Benefits (2014)

Program achievement: 3 million SHS

Number of beneficiaries: 13.5 million people

Power generation: 150 MW

Fossil fuel saving: 216,000 ton/yr

CO2 reduction: 503,000 ton/yr

Job creation: 60,000

IDCOL investment: USD$ 500 millionSource: IDCOL, 2014.

Option Down Payment Instalments Service charge (flat rate)

Option

-115% 36 months 6%

Option

225% 24 months 4%

Option-3

15% 36 months (with 36 post dated cheque)

5%

Option-4

1005 cash payment with 4% discount

Table-11: GS Financial OptionsSource: Grameen Shakti, 2015.

Table-12: Programs at a Glance February, 2015 (Source: Grameen Shakti, 2015)

Grameen Technology Centre 34ICS Production Center 67

Number of Upazilas covered 508 UpazilaNumber of villages covered 50,000 villages

Total beneficiaries 17.67 m Total employees 11,230

Total installation of SHS 1,583,319Total Number of Improved Cook Stove (ICS)

910,204

Total biogas plant constructed 30,847

Total installed power capacity 63.33 MWpInstallation rate Over 20,000 SHSs/ month

Number of trained technicians (woman technicians)

22,822 technicians

Number of trained customers (woman) 839,725 usersFuture plan- total installation of SHS by 2015Future plan- biogas plant construction by 2015Future plan- Improved Cooking Stove construction by 2015Green Jobs Creation by 2015

2 million100,0002 million

100,000

Study Findings (summary)

• Study finds Bangladesh has developed a Government managed private apex organization named IDCOL (Infrastructure Development Company)

• IDCOL is involved in coordinating, counselling and financing to the RE implementing agencies in Bangladesh

• Study discovers Grameen Shakti is the largest RE implementing organization not only in Bangladesh, but also in the world

• GS has developed a micro-utility RE financial model for the RE users

• IDCOL has disseminated this GS micro-utility RE financial model to the IDCOL partnered RE agencies

• RE implementing agencies apply the GS micro-utility financial model in their own programs in Bangladesh.

Nabin Udoyktas (Nus) New Entrepreneur RE Business

• Young encourages to engage in RE business

• Four Nobin Udyoktas have received Nine Hundred Thousand Taka till April, 2015

• NU projects include tailoring, textile business, telecom service, grocery shop, dairy farm etc.

• There is a plan to invest 5 million Taka among 20 Nobin Udyoktas (New Entrepreneur) by June, 2014 and

• 50 million Taka among 250 Nobin Udyokta by June 2016

Conclusion

• RE resources like solar panels, biogas plants, wind pumps etc. are expensive for the low income people of Bangladesh

• IDCOL provides subsidies to RE implementing agencies • However, still RE technology use is expensive

• RE resources could be less expensive to rural people

• RE technologies need further improvement for to not only more handy at the micro level, but also valuable at the economic scale

• RE agencies charge more than 20% and above (hide information) that needs to be reduced

Thank YouComments/Questions