With nuclear coming online, Bangladesh can now accelerate renewables

The first of the two units of the Rooppur Nuclear plants, with a combined capacity of 2,400 megawatts (MW), is set to begin its operational procedures, following the fuel loading today, raising hope that it will likely help Bangladesh better manage its power demand.

With approximately 300MW of power from the first unit (1,200MW) coming online by August 2026, the country will likely be able to harness its optimal benefits during the summer of 2027, as it takes 10 to 12 months to operate it in full capacity.

Given the power crunch Bangladesh experiences due to scorching heat and rising demand for cooling in summers, this nuclear power plant has the potential to partially alleviate these challenges next summer. Besides, this baseload power plant can partly support in times of uncertainty that force the government to reduce fossil fuel imports, which ultimately have knock-on effects in the power sector.

The VVER nuclear plant's designed economic life is 60 years to generate stable power and thus can help the imported fossil-fuel-dependent country considerably, especially by limiting volatile and expensive liquefied natural gas (LNG) in the future.

While there is no publicly available information on tariffs, it is expected that the cost of power from the nuclear plant will be lower than the country's average grid-based power generation cost. If the cost can be kept within Tk10 per kWh, it will help the Bangladesh Power Development Board (BPDB) rein in the rising power generation costs and associated pressure to raise power tariffs.

Looking ahead, once the country brings the second nuclear unit online, Bangladesh will likely have a substantial baseload capacity, including its gas- and coal-based plants, sufficient to meet the country's power demand even beyond 2030, considering the country's subdued growth in demand. This power system capacity eventually opens opportunities for a significant renewable energy expansion, relying on both decentralised and utility-scale projects.

As baseload nuclear plants offer a significant opportunity, Bangladesh can use them judiciously to reduce load-shedding and dependence on imported carbon-intensive fuels in the near term. Over time, scaling up renewable energy will be critical to strengthening the country's energy security and resilience.

-This report was prepared based on a phone conversation with Shafiqul Alam, lead energy analyst for Bangladesh at Institute for Energy Economics and Financial Analysis.