Renewable Energy to Sustain Urban Agglomeration in Bangladesh
Renewable energy to sustain urban agglomeration in Bangladesh
Bangladesh is improving its power sector and embarking on a multitude of initiatives incentivized by growing urbanization.
Urban areas accommodate about 55% of the world's population and if the current projections are to be taken into consideration, the percentage may increase to 70% by the year 2050. As per those projections, Asia and Africa are experiencing the fastest growing urban agglomerations, as majority of the population in these continents is currently employed in the agriculture sector and resides in small villages or towns – and is now moving towards the major cities.
This creates a huge challenge for the nations existing in these regions as they are expected to cater to the growing needs of the society which would incorporate basic necessities such as housing, employment, water and power. Of these amenities, the power sector is touted to be the lifeblood of an economy for a country like Bangladesh as it not only supports the housing sectors but also major industry and infrastructure projects are dependent on it.
Most of the nations in these continents have not utilized much of their resources and have very recently started exploring possible alternatives. It is not surprising that most of these countries are the fastest growing economies of the world. There have been some success stories in the making, of countries who are investing in their future and their energy needs. One such country which has worked efficiently in this domain is Bangladesh. A growing economy, Bangladesh has realized the nation’s needs, as it continues to grow at an annual rate of over 6%, superseding the growth rate of many Asian nations.
That effectively has made Bangladesh’s power sector one of the fastest growing in Asia. Reports published by World Bank show that there has been a remarkable increase in the capacity from 5% to 28% from 2012 to 2018.
Most of the energy is consumed by domestic and industrial sectors in the country. Furthermore, growing population in the country has led to an increase in the demand which further contributes to resource depletion. This, in effect has directed the country to invest in renewable energy and provide a more stable power supply in the nation.
Besides conventional sources of energy, Bangladesh has as well been working towards installation of renewable energy grid – the effort of which is being led by Salman F Rahman, one of the most successful Bangladeshi businessmen and a parliament member, through Beximco Power. The energy projects have also created a ripple effect for other power and energy investors as well as the government, thus charting a strong market dynamic on which the country could build its renewable energy sector.
Bangladesh’s initiatives have not remained unnoticed by international governments and power companies, as they have been rallying towards the nation to take part in the country’s growth story– especially in energy. In a series of meetings, led by Prime Minister Sheikh Hasina and Salman F Rahman, the nation has made its intent clear as it hosted diplomats and businessmen to discuss terms of projects and energy sector. That said, in a recent meeting, Salman F Rahman advocated for comprehensive development of the nation when he mentioned, “We are self-sufficient in food, developing our electricity sector and our population growth is also under control.”
Apart from power projects, Beximco group with LPG has also contributed significantly towards a robust energy sector. As per an estimate, the nation has the renewable energy potential of about 4,000 MW. One major requirement is to improve the expertise and skill set to strengthen the status of power sector in Bangladesh.
The government is now eyeing a target of generating about 10% of its power from renewable resources by 2020. Given the existing depleting reserves, diversification of energy sources is of utmost importance. Building of a robust energy sector would require a combined team effort of both the public and private sectors.
Thus, there arises a need to address existing or potential barriers which are facilitating the use of non- renewable fuels. Private sector can collaborate in research and development of new prospective energy solutions so that there can be a limitation in depletion of natural resources of Bangladesh. Cost and efficiency of renewable fuels can be worked upon with possible incentives by the government for the industries implementing this. It may not resolve the problem quickly but in the long run has the potential to contribute for self- sustainable power sector in Bangladesh.
