Business model needed for renewable energy production: Experts

Experts at a webinar today (22 December) emphasised the need to develop a business model for renewable energy production, enabling private firms to invest in the sector with transparency.

They also stressed the importance of expanding renewable energy capacity and implementing cost-reduction strategies to streamline the distressed power sector. 

Speaking at the webinar titled "Power sector reforms: Roadmap for sustainability", Mizanur Rahman, general secretary of Bangladesh Energy Society, said, "If we can create a fair competitive environment, it will be possible to generate 3,000-4,000 MW of renewable energy by 2030."

He also said, "As per the Renewable Energy Policy-2008, the previous government had set a target of reaching 10% of the total electricity generation capacity from renewable sources by 2021. But that did not happen because projects were given to those who were not qualified in the matter."

Jalal Ahemd, chairman of Bangladesh Energy Regulatory Commission (BERC), ‍said, "The Bangladesh Energy Regulatory Commission (BERC) did not have a conducive environment to work in the last 15 years. It could not take any steps to prevent the excess power projects that were taken."

Delivering the keynote presentation, IEEFA's lead energy analyst for Bangladesh, Shafiqul Alam, highlighted that the power sector's installed capacity increased by more than 100% between June 2016 and October 2024. 

"As the demand for power did not keep pace with soaring generation capacity, Bangladesh's power sector has the issue of overcapacity which results in large capacity payments," he said.

Alam suggested Bangladesh should assess future power demand more accurately to reduce overcapacity, phase out power plants of 4,500 MW capacity (including oil-based capacity of 3,500 MW) during 2025-30, increase grid-connected renewable energy capacity to at least 4,500MW in 2030, reduce load shedding and limit the T&D losses to 8%.