Presentation made by United International University Professor and Vice Chancellor Dr M Rezwan Khan and Maliha Shahjahan from Practical Action Consulting at the "Low Carbon Options in South Asia" workshop held in Nepal in August 2014.

1. Low Carbon Development: BANGLADESH Prepared by: Dr Rezwan Khan & Maliha Shahjahan

2. Country Context
Population 152.5 million
One of most environmentally vulnerable country
–From 1980 to 2000, nearly 60% of the worldwide deaths from cyclones occurred in Bangladesh.
•Remarkable progress in several MGD
Annual GDP growth 6.5%
The country’s economy is in transition from agrarian to industrial.
Bangladesh aspires to be a middle-income country by 2021.

3. Current Energy Situation
Dependence on traditional fuels: Electrification rate:

4. Current Energy Situation Cont…
Sources of electricity generation of 2010 in Bangladesh compared to global position
Energy
Bangladesh
Global
Gas
87.5%
18%
Oil
6%
10%
Coal
3.7%
37%
Hydro
2.7%
17%
Nuclear
0%
17%
Renewable
0.5%
1%
•.
Main Sources of Energy
Natural Gas, Petroleum Products, Compressed Natural Gas, Liquefied Petroleum Gas, Coal

5. Future Energy demand and options for energy supply
Annual growth rate of power consumption by sectors
In the last decade the overall demand has grown at about 10 per cent on average.
Vision 2021 figures, 20,000 MW by 2021 and 11,500 MW by 2015 are the minimum that should be accomplished.

6. Future Energy Demand: Renewable Energy Potential
Resources
Potential
Entities Involved
Solar
Enormous
Public and Private sector
Wind
Resource mapping required
Public sector / PPP
Hydro
Limited potential for micro or mini hydro (max. 5 MW). Est. hydro potential: approx. 500 MW
Mainly public entities
Domestic Biogas System
8.6 Million Cubic Meter of Biogas
Public and Private sector
Rice Husk based Biomass gasification Power Plant
300 MW considering 2 kg of husk consumption per kWh
Mainly private sector
Cattle waste based Biogas power plants
350 MW considering 0.752 m3 of biogas consumption per kWh.
Mainly private sector

7. Existing low-carbon policy, strategies and mitigation options
Policy framework and institutional mechanisms:
Government approach
1) energy efficiency, 2) renewable energy and 3) energy conservation
Major policy
–Renewable Energy Policy
–Energy Efficiency and Conservation Rules
–Sustainable and Renewable Energy Development Authority (SREDA)
–Bangladesh Climate change strategy and Action plan (BCCSAP)

8. Existing low-carbon policy, strategies and mitigation options
Policy framework and institutional mechanisms:
Government approach
1) energy efficiency, 2) renewable energy and 3) energy conservation
Major policy
–Renewable Energy Policy
–Energy Efficiency and Conservation Rules
–Sustainable and Renewable Energy Development Authority (SREDA)
–Bangladesh Climate change strategy and Action plan (BCCSAP)

9. Existing low-carbon policy, strategies and mitigation options Cont…
Major initiatives
Government utilities in large-scale grid connected renewable energy based power project development, off-grid home-based renewable energy solutions, Efficient Lighting Initiative.
Access to Finance
Microcredit, Greenbanking

10. Potential sustainable development benefits for low-carbon development
Policy subjects under the energy sphere are of a complex spectrum, including different usage and consumer group, diversified technology, market niche and expansion, environmental concerns, sectorial difference and diversity. Translation of any plan into action remains a highly challenging task for the government, as national priorities are often undermined by donor priorities. In most cases equity concerns are often bypassed amid the complexity of an energy policy.

11. Barriers to low-carbon development and energy access
a)The overarching issue in this effort though is the lack of and the need to improve awareness among policy-makers, planners and decision-makers about eco- efficiency concepts.
b)In Bangladesh the largest cut in emissions will come from the power sector as the country embarks upon a very ambitious energy expansion program. Innovation, enterprise, policy support and institutional backing will be essential if a significant dent is to be made in creating efficiencies in this plan. However, it is apparent that there is a lack of capacity to develop, run and ensure proper maintenance of the technology.
c)The Bangladesh economy has been growing at above 6.5% even with a low energy supply base. This rate is expected to rise rapidly as energy availability improves, creating a twin energy challenge for the country: improving environmental sustainability and enhancing energy security.
Removal of systemic constraints, Congruent policy measures and enhance policy capacity, Consideration of energy efficient technologies and Consideration of renewable energy technologies.

12. Concluding Remarks: Potential approaches to manage energy demand
–Many measures has been taken to address demand side constraints. On the other hand supply side constraints remain significant till now.
–Energy efficiency and conservation is well perceived from domestic consumers’ perspective but not from sectoral view till the use is not widely promoted.
–The potential of renewable energy have been acknowledged to a large extend. Yet limited investment is available in identification of potential renewable resources .
Leapfrog fund for low-carbon development and energy access : Who would benefit?
–Support to private sector to enhance product and market understanding can stimulate the market.
–Support should be provided off-grid rural areas to develop isolated stand-alone mini, micro or nano grids targeting mainly isolated poor households, surrounding educational, health institutions and agricultural activities, including irrigation.
–Additional subsidy or cross subsidy will be needed for longer period of time to promote RE or efficient technology specially in grid areas.
–Introducing new technology like power generation from municipal waste can be considered for large scale government investment in the urban areas.

13. Concluding Remarks
Role of different types of funding in delivering sustainable outcomes –
–Any type of soft loan for these private companies will inspire more competition in these areas and it will create the market competitiveness among different businesses which is currently very low.
–To create energy access for the poor segment of rural community grant, in form of price subsidy is one of the alternatives.
–Grant to support private sector in product development can be a market stimulant.
–RE project are not financially viable, but have far-reaching environmental, social and economic impact, grant provisions should be made available to support government in formulating this kind of endeavour.
Other assistance besides funding
–Institutional Mechanism and enhance policy capacity
–Human capital
–Research and development
–Incentives and regulation for low carbon growth
–Availability of investment

14. THANK YOU
For further information:
rezwanm@uiu.ac.bd
maliha.shahjahan@practicalaction.org.bd