An overview on Renewable Energy sector of Bangladesh along with Green Energy Finance. The policy Intervention of Central Bank and Government of BAngladesh

1. Renewable Energy in Bangladesh
Mohammed Mahbub-Un-Nabi

2. Renewable Energy & SDG

3. Different Stake holders of RE Segment

4. Global Scenario vs. Bangladesh

5. Renewable Energy Generation
As of end of 2017

6. Current Power generation Status
Forecasted Gen. & Demand of National Grid on 04-Nov-
2018
Description Day peak Evening peak
Available generation
capacity(MW)
10,414 11,328
Forecasted demand(MW) 8,300 10,400
Yesterday's actual
generation(MW)
7,769 9,760

7. Future plans and Target (Renewable Energy)
• Power System Master Plan-2010
(PSMP) to improve and expand
electricity supply to support GDP
growth in the 7 to 8 percent range
• Power generation capacity need to be
increased to 24,000 MW and 39,000
MW by 2021 and 2030 respectively.
• The Renewable Energy Policy obligates
the renewable energy share to be 10%
by 2020 that means it would be 2,000
MW.
• The PSMP-2016 has fixed a target of
generating as much as 35% of
electricity from coal and 10% from
nuclear energy by 2041. and 15% of
electricity generation is expected to
come from a combination of
renewable sources and imported
power by 2041.
Technology
Achievement
up to 2016
Planned
2021
Total
(2017-
2021)
Solar 200 250 1470
Wind 2.9 300 1153
Biomas 0 6 30
Biogas 5 0.5 7
Hydro 230 2 236
Total 437.9 558.5 2896
MW

8. Act & policy
SL
No.
Title
1 Electricity Act, 2017
2 Bangladesh Energy Regulatory
Commission Act, 2003
3 The Bangladesh Power Development
Boards Order, 1972 (President's
Order)
4 Rural Electrification Board Act, 2013
5 Special Act for quick procurement in
Power and Energy sector, 2010
6
The Sustainable and Renewable
Energy Development Authority Act,
2012
7 Energy Efficiency and Conservation
Rules, 2016
8 S R O no ACT-349/2017
SL
No.
Policy Name
1 Renewable Energy Policy of
Bangladesh
2 Energy Efficiency and
Conservation Master plan up to
2030
3 Action Plan For Energy Efficiency &
Conservation
4 Solar Guide Book
5 Country Action Plan for Clean
Cookstoves
6 Net Metering Guidelines-2018
Acts

9. Bangladesh Bank
• Sustainable Finance Department
was established on July 23, 2015
upon extinguishing the previous
Green Banking and CSR
Department with a view to develop
sustainable banking (i.e. Green Banking and
CSR) framework and to integrate it into core
business operation of banks and FIs through
efficient and effective implementation of
Green Banking and CSR.
• Green Banking Wing
• 1. Policy formulation and monitoring
of different aspects of Green
Banking (green finance, environmental
risk management, in house environmental
management, climate risk fund, green
marketing, online banking, green branch,
green product innovation, green strategic
planning etc) activities of banks and Financial
Institutions (FIs);
• 2. Policy formulation and
management of BDT 2.00 billion
Bangladesh Bank Refinance Scheme
for renewable energy and green
products;
• 3. Policy formulation and
management of USD 50 million ADB
supported Refinance Scheme for
Brick Kiln Efficiency Improvement.

10. BB Refinance Scheme
• In 2009, Bangladesh Bank set up a Tk
200 crore revolving fund for banks and
financial institutions to give loans at
low interest rate to solar energy,
biogas, and effluent treatment
ventures.
• The outstanding amount of the scheme
was Tk 333 crore till August 2017 while
the recovery was Tk 205 crore and total
outstanding principle amount was Tk 128
crore.
• A total of 37 banks and 22 FIs have so
far signed participation agreements to
provide loans.
• As per the recent master circular (2017) ,
banks can charge 8 per cent interest on five-
year loans of the scheme, 8.5 per cent in the
case of five to eight year period and 9 per
cent for above eight years.
• If the bank provides the loan through agents
or outsourcing or Micro Finance Institution
(MFI), the interest rate will be 9, 9.5 and 10
per cent respectively, the circular said.
• But the interest rate will be 7 per cent when
it comes to the financing for the solar
irrigation pumping system, the circular
added.
• But BB takes only 5 per cent interest from
the banks and FIs.

11. Bank Finance: Green Banking &
Renewable Energy
ETP
Brick
Field
Green
Banking
Green
Finance RE
Energy
Efficiency
, Less
Emission
Green
Office

12. Evaluation of Solar Power based RE
SHS
Micro/Mini
Grid
Solar Plant
MFI
Driven
MFI
/Private
Firms
Large
Company
Solar
Irrigation
System
Social Safety
Net

13. SHS Evaluation
• The installation of more than four million
Solar Home Systems (SHS) in the last two
decades has made Bangladesh one of the
biggest markets for SHS in the world.
• Many of the solar systems are of a poor
quality, According to Engineer Mahbub
Sumon, a renewable energy expert, the
average home solar system installed in
Bangladesh in the last decade merely had a
generation capacity of 20-50 watt, which is
good enough for lighting only a few bulbs
and fans.
• Modern solar panels used globally have
energy efficiency of up to 22%, the
Bangladesh market is still stuck with 10-12%
panel efficiency.
• As a result, even after two decades of
successful SHS dissemination throughout the
country, the share of renewable energy in
total electricity generation in Bangladesh is
only 0.07%.

14. Solar Plant to National Grid

15. Largest Solar Power Plant
• The power plant in Teknaf’s
Hnila has a capacity to produce
28 MW and will feed 20MW to
the local substation during
sunlight hours.
• The Bangladesh Power
Development Board or BPDB
had previously signed a 20-year
deal for 20MW of power with
the plant’s owner, Joules Power
subsidiary Technaf Solartech
Energy Ltd (TSEL)
• The project was co-financed by
One Bank Ltd and Standard
Chartered Bank.

16. Local Startup
• Greevo launched in
2014 by a young
entrepreneur Jawad
Hasan who has earned
his degrees in the field
of engineering.
• G117-10KW is the first
Bangladeshi made
wind turbine that has
been designed
considering low and
medium wind
conditions of the
country.