Bangladesh is now facing two persistent challenges simultaneously: The harsh reality of energy poverty and the need for a sustainable energy transition. The country is on track to obtain economic well-being, however, it is plagued by the complexity of extensive energy usage, limited income, and poor energy infrastructure. Bangladesh must reduce its energy poverty and look towards becoming a regional leader in sustainable energy.
Energy poverty is severe in the villages and remote areas of Bangladesh. Even after 52 years of independence, power and clean cooking facilities are luxuries in these areas. A recent study illustrates the harsh financial reality of this energy issue involving the high energy bills, low wages, and poor energy infrastructure of buildings. The problem is worsening due to the long-term reliance on biomass, which accounts for more than half of household energy consumed.
As Bangladesh is now at the crossroads between economic growth and environmental development, the energy scenario holds the key to unlocking a brighter future. The energy and power sector is going through a great transition shifting from the dependency on fossil fuels to sustainable sources. The Mujib Climate Prosperity Plan 2021 intends to generate 40% of power from renewable sources by 2041 -- a significant step toward a low-carbon energy future.
This initiative is in line with global vision. UN Secretary-General Guterres emphasized the urgency, telling COP28 delegates: “The science is clear: The 1.5C limit is only possible if we ultimately stop burning all fossil fuels. Not reduce, not abate. Phase out, with a clear timeframe.”
Nearly 7,500MW of solar power is waiting to be added to the energy mix through novel finance structures such as green bonds. As Bangladesh has serious land scarcity it is essential to search for solutions such as utility-scale and rooftop solar, as well as offshore wind, to maximize the potential for renewable energy without the constraints of land resources.
Bangladesh is not alone in this race, foreign and private investments such as China and US-based corporations are showing interest in solar power projects, and other significant initiatives that increase renewable energy production, reduce reliance on fossil fuels, and generate economic growth. As committed in COP27, the loss and damage fund for developing countries like Bangladesh, is a ray of hope, providing necessary support towards advancing the energy transition by boosting the transfer and implementation of renewable technology.
In accordance with the Paris Agreement, the efforts to meet carbon reduction objectives by 2030 and net zero by 2050, can be reinforced by the use of committed funds. The funds become a long-term crucial catalyst that support research and development, providing new economic possibilities, and assisting those most vulnerable in climate change adaptation.
Bangladesh is going through a difficult phase of turning towards sustainable energy transformation, and regional alliances, particularly with neighbouring countries such as India, Nepal, and Bhutan. Necessitating interconnection projects and transmission lines power exchange may be improved which contribute to the common objective of providing a diversified and reliable energy supply. Taking advantage of the potential of the Bay of Bengal through floating solar farms, offshore wind, and other renewable energy sources can help to increase energy security, reduce import reliance, and encourage ecologically benign power generation.
For structural improvements that enable a fair energy transition, a strong policy framework, clear political indications, and tangible rewards are essential. Furthermore, capacity building with an emphasis on gender inclusion, equitable opportunities for women, and quality control procedures is crucial for a smooth transition including government entities, the private sector, and civil society.
With Bangladesh approaching middle-income status, it is time to revise the country's national development strategy. The energy and power industry, which is a critical component of this change, must shift to a more ecologically sound and inclusive model. Bangladesh may rise from its state of energy poverty as a regional leader in sustainable energy by implementing renewable energy initiatives, promoting innovation via research and development, and fostering collaboration among stakeholders.
Bangladesh, with its enormous potential and advantageous geographic location, has the ability to lead the way in establishing a greener, more sustainable future for the next generation. The actions taken today will go down in history as defining Bangladesh's position in the worldwide mission for a cleaner and more equitable energy landscape.
Salma Akhter is a Research Associate at Bangladesh Institute of Governance and Management (BIGM).
