Can solar power help solve Bangladesh’s auto-rickshaw electricity theft crisis?

Bangla Teslas, or battery-run rickshaws, are now a familiar sight across Bangladesh's cities. They help thousands of people get around and support many livelihoods, from Dhaka's busy streets to smaller towns. 

However, I have been surprised to learn from The Business Standard that the rise of these rickshaws leads to nearly Tk4,000 crore in power theft each year in Dhaka. With challenges in the power sector and rising energy costs, the real issue is not whether these rickshaws should exist, but how we can power them responsibly.

According to TBS, an estimated 1 million battery-powered rickshaws operate in Dhaka. Even assuming a modest average of 5 kWh per day, all these rickshaws collectively consume over 4,000 megawatt-hours (MWh) of electricity per day, or about 1.4 terawatt-hours (TWh) per year. 

To put this in perspective, the average individual electricity consumption in Bangladesh is about 464 kilowatt-hours, according to Country Economy 2023. The consumption of Bangla Teslas is comparable to that of hundreds of thousands of urban households in a year. Much of this electricity is not tracked by official meters.

According to a national English daily, many informal garages and charging spots in Narayanganj are connected to the grid without authorisation. Officials estimate that approximately 50,000 battery-powered autorickshaws operate in the area, with 30,000 in the city and its surroundings. This places additional pressure on the system, causes transformer failures, increases losses, and quietly reduces utility company revenue.

Ironically, these battery-powered rickshaws are often referred to as "green transport." But if they are charged with stealing electricity made from gas or imported fuels, their environmental benefits are doubtful. This is where solar power could help. It may not solve everything, but it offers a real and scalable alternative.

If we translate Bangla Tesla's power consumption into economic terms, switching to solar power could save millions of dollars in foreign exchange by reducing the need for fuel imports. This would ease the financial burden on the national grid and bolster the country's economic stability by decreasing annual foreign-currency outflows.

Bangladesh receives 4-6 kWh of solar energy per square metre per day, making solar energy reliable and abundant. A 2-kilowatt solar system can produce 8-10 kWh per day, sufficient to fully charge one rickshaw or partially charge several. According to a recent study, approximately 500,000 battery-operated rickshaws in Bangladesh each use an average of 9.32 kilowatt-hours of electricity per day, resulting in a total daily consumption of 4,660 megawatt-hours, mostly during peak hours on the national grid.

To give a sense of scale, just 10,000 such 2-kilowatt solar arrays could offset half of the current illegal load. While switching even a portion of these rickshaws to solar power could reduce strain on the grid and decrease illicit electricity use, the study notes that it is not practical to expect each driver to install solar panels. The optimal solution is to establish solar-powered charging hubs. Other countries have shown this approach works.

In India, cities such as Jabalpur, Delhi, and Kolkata have introduced solar-powered e-rickshaw charging stations with capacities ranging from 25 to 100 kilowatts, capable of charging 20 to 50 vehicles per day. Nepal has installed 400 electric-vehicle charging stations and plans to double that number within a year.

These models succeed because they bring order to what was once informal. Solar charging hubs are licensed, equipped with meters, and can be inspected. Energy prices are clear, safety rules are followed, and reliance on the grid is reduced.

In Bangladesh, a combination of solar and grid power could be effective. Solar energy could be used during the day, with some grid power as backup at night. As battery storage becomes cheaper, it can be used more over time. According to a national English daily, establishing a solar charging station with a capacity of 125 kilowatts would cost about Tk1.5 crore. After this upfront investment, ongoing operating costs are minimal.

The projected decrease in battery storage costs could enable 24-hour autonomy. With industry targets suggesting battery costs could drop to $100/kWh by 2027, solar-grid hybrid models become more attractive, offering greater reliability and energy independence. For utilities, each unit of solar-generated charging power represents not lost demand, but recovered discipline and reduced leakage.

A brief policy roadmap

First, Bangladesh should officially recognise battery-run rickshaws as electric vehicles and license the charging infrastructure. Treating them as illegal has only forced charging to go underground, thereby increasing electricity theft. Setting clear rules is the first step toward reform.

Second, the government should encourage the establishment of licensed solar- or solar-grid-hybrid charging hubs at markets, terminals, and rickshaw depots, with clear zoning and safety regulations. These hubs should have meters, be easy to check, and operate as businesses, replacing informal garages that use illegal connections. 

To ease the transition, support systems should help integrate informal garage owners and workers into this new framework. Training programmes and financial incentives or subsidies could help them establish or transition to licensed operations, thereby securing livelihoods while ensuring compliance. Setting a clear target, such as retraining and transitioning 50% of garage owners into new hubs within three years, could add accountability and demonstrate social inclusion. This approach addresses potential resistance and paves the way for an inclusive, sustainable charging infrastructure.

Third, financial support is critical. Tax breaks for solar EV charging equipment, easier loans, and partnerships with banks and development groups can help get started. Even a small share of the money lost to power theft could fund many pilot stations. One funding model is to develop public-private partnerships, with initial costs shared between the government and private entities. Green bonds could also be issued for solar charging stations. International aid from organisations focused on renewable energy could support these developments, bridging the financial gap and encouraging the transition to legal, environmentally friendly energy solutions.

Finally, enforcement should follow the implementation of alternatives. Once legal solar charging options are available, it is reasonable to take decisive action against illegal grid tapping without harming people's livelihoods. A structured enforcement plan could be introduced in phases. First, a grace period would allow operators time to transition to legal options. During this time, community engagement initiatives could inform and educate stakeholders about the benefits and procedures of transitioning to systems powered by legal solar hubs. Targeted inspections could follow this to ensure compliance. Eventually, penalties for violations could be gradually increased, while support services are provided to those willing to transition, ensuring fairness and effective enforcement.

For banks, companies, and policymakers, this is a rare opportunity to integrate financial sustainability, social good, and environmental care. Solar power will not replace grid charging right away. But as an organised alternative, it gives Bangladesh a real opportunity to turn a long-standing problem into a cleaner, more reliable, and sustainable way to move people in cities. 

By implementing solar charging hubs, there is potential to generate carbon credits through avoided tonnes of CO2 emissions per hub. This benefits the environment and offers a compelling financial incentive for investors seeking to improve ESG scores. Quantifying these avoided emissions could unlock new global financing opportunities for Bangladesh, positioning it favourably in sustainable investment markets.

As we stand at a crossroads, embracing solar power for our Bangla Teslas allows us not only to address a critical electricity crisis but also to set a precedent for sustainable urban transportation across the region. The decisions we make today will influence the cities, livelihoods, and environment of tomorrow.

Sketch: TBS

Shafiq R Bhuiyan is a storyteller who examines the intersection of social progress, effective communication, cultural development, and corporate social responsibility while sharing insights to inspire change.  

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.