Solar Solutions to Bangladesh's Power Crunch
- Bangladesh is taking steps towards decarbonizing its energy sources – embracing solar power as the cheapest option by 2025. With falling technology prices, solar plus batteries are cheaper than new coal or gas power plants and could lead to energy independence and emissions reductions.
Bangladesh, which is heavily reliant on fossil fuels to generate 97 percent of its electricity, is hoping to decarbonize its energy sources. According to Bloomberg New Energy Finance (BNEF), solar power has the potential to become the cheapest source of power by 2025. By the end of the decade, solar plus batteries will be cheaper than new coal or gas power plants. The falling technology prices are a sign of hope for the country, which has struggled with energy shortages due to the depleting gas reserves and rising energy imports. Due to the pandemic and the high cost of gas imports, the country’s foreign-currency reserves have been drained. To reduce emissions, the government is exploring co-firing coal power plants with ammonia and blending hydrogen with natural gas. BNEF suggests that solar is a more affordable and climate-friendly option.
Can Solar Power Become the Cheapest Source of Power in Bangladesh by 2025?
- Bangladesh has established ambitious goals to increase renewable energy to 10 percent of its electricity mix by 2021 and up to 24 percent by 2030.
- The country has already taken several steps towards meeting its renewable energy goals, such as building several solar power plants and initiating a solar rooftop program.
- Solar power in Bangladesh has become increasingly cost competitive and is now cheaper than traditional sources of electricity in some parts of the country.
- In order to further reduce the cost of solar power in Bangladesh, the government has implemented several policies such as subsidies for solar manufacturers and incentives for businesses to install solar systems.
- In order to achieve its goal of becoming the cheapest source of power by 2025, Bangladesh must continue to promote renewable energy sources and invest in infrastructure to support the growth of the solar industry.
- The government must also continue to provide incentives for businesses to install solar systems, as well as support research and development into new technologies that could help make solar power more efficient and cost-effective.
