Boost renewable energy to get rid of fossil fuel
Analysts say incentives should be offered to investors
Bangladesh's renewable energy sector will thrive if investors are encouraged through right incentives, analysts said yesterday.
If investors come up with more funds, the country will be able to reduce its dependence on fossil fuel for power generation, they said.
The market should be motivated so the producers of renewable energy get better prices than those in the traditional energy sector, Bangladesh Bank Governor Atiur Rahman said.
“If we can do that, Bangladesh will take a big step towards renewable energy,” he said at a programme at the auditorium of Bangladesh Institute of Bank Management (BIBM) in Dhaka.
National Board of Revenue can reduce tariff on renewable energy products and equipment to encourage producers, suppliers and distributors, Rahman added.
“The NBR is already doing so much. But it can do more. The fiscal policy can play an important role in promoting the sector.”
The government has a target to produce 10 percent of the electricity from renewable sources by 2020, to bring down the country's reliance on gas and oil.
“We should be a bit more aggressive in our expectations.”
Bangladesh Energy Regulatory Commission should form a “carbon reduction fund” with the profits from the sales of oil to incentivise the renewable energy sector, the governor said.
Md Anwarul Islam Sikder, chairman of the Sustainable and Renewable Energy Development Authority (SREDA), also backed the idea of the carbon reduction fund.
Thomas Prinz, German ambassador to Bangladesh, said his country's experience in renewable energy shows that massive investment is possible only if incentives are provided.
Now, Germany produces 26 percent of its total electricity requirement from renewable energy sources.
The ambassador thanked the central bank governor for spearheading green banking initiatives in Bangladesh and introducing 50 green products.
Prinz said his country is providing technical and financial assistance to Bangladesh in the areas of renewable energy and energy efficiency through development cooperation.
Germany can share its experience with Bangladesh on how the country has shifted towards renewable energy from fossil fuel-based power plants, said the ambassador at the launch of a project -- Green Banking for Energy Sustainable Economy.
The project, funded by Germany's international cooperation agency GIZ and jointly implemented by SREDA and BIBM, will work to strengthen the overall framework of green financing in Bangladesh.
Renewable energy sources, largely driven by solar homes systems and hydropower, account for 2.5 percent of more than 7,000 megawatts of electricity produced in Bangladesh, according to the Power Division.
BIBM Director General Toufic Ahmad Choudhury and Director Shah Md Ahsan Habib also spoke.