Renewable Pathways: Leading The Charge In Bangladesh-Germany Energy Collaboration – Analysis
The dynamic South Asian nation of Bangladesh is poised for a bright future fueled by its burgeoning economy. However, ensuring a sustainable energy supply to support this growth requires innovative solutions. This is where Germany, a European leader in renewable energy transition, steps in. Recognizing a shared commitment to environmental responsibility, Bangladesh and Germany have embarked on a collaborative effort – a beacon of sustainability. This paper delves into this exciting partnership, exploring its potential to illuminate a path towards a cleaner and brighter energy future for Bangladesh.
On 03 September 2023, Germany committed Tk2,215 crore (€191 million) to support Bangladesh in its energy transition and sustainable development efforts. This aid encompasses 13 projects targeting various sectors, including energy transition, sustainable urban development, supply chain improvements, biodiversity conservation, and women's empowerment. The cooperation was formalized through two bilateral agreements: one for Technical Cooperation (€55 million) and the other for Financial Cooperation (€136 million).
These agreements underscore Germany's commitment to aiding Bangladesh's progress toward a more sustainable and inclusive future. The partnership between the two nations also includes a Renewable Energy Program, which has been active from October 2018 and is set to continue until December 2023. This program, supported by KfW, focuses on promoting renewable energy technologies in Bangladesh through IDCOL. The initiative provides loan funds for commercial and industrial-scale solar rooftop projects, ensuring a shift towards cleaner energy sources. Additionally, grant funds are allocated for off-grid renewable energy projects, such as solar irrigation pumps, small solar-driven electricity grids, biogas systems, and solar cold storage facilities.
The primary objective of the Renewable Energy Program is to improve access to electricity from renewable sources, particularly for income-generating purposes. By reducing reliance on traditional energy sources, the program aims to boost local economies and significantly lower greenhouse gas emissions. This initiative reflects a broader commitment to fostering sustainable development and enhancing the quality of life for communities across Bangladesh.
Through these collaborative efforts, Bangladesh and Germany are making strides toward a greener, more sustainable future, setting a precedent for international cooperation in the realm of renewable energy and sustainable development.
In Germany, various organizations are leading advancements in renewable energy and energy efficiency. Siemens AG is at the forefront, focusing on developing advanced power distribution systems, implementing smart grid technologies, and integrating renewable energy into existing grids. Enercon GmbH specializes in wind energy, manufacturing wind turbines, and providing installation and maintenance services for wind farms. SMA Solar Technology AG is renowned for developing and supplying solar inverters, energy storage solutions, and smart energy management systems. Fraunhofer ISE, a key research institute, conducts extensive research on solar energy, energy storage, and energy efficiency, offering consultancy services to advance these technologies. E.ON SE is actively involved in investing in and operating renewable energy projects, upgrading energy infrastructure, and offering energy efficiency solutions to customers. The German Energy Agency (Deutsche Energie-Agentur - dena) plays a crucial role in advising on energy policies, promoting energy efficiency measures, and supporting renewable energy projects across the country.
In Bangladesh, several organizations are making significant contributions to renewable energy and energy efficiency. IDCOL (Infrastructure Development Company Limited) finances solar home systems, biogas plants, and other renewable energy projects while promoting energy efficiency initiatives. SREDA (Sustainable and Renewable Energy Development Authority) formulates and implements policies for renewable energy and energy efficiency, fostering sustainable energy practices nationwide. Rahimafrooz Renewable Energy Ltd. provides solar home systems, solar irrigation pumps, and energy storage solutions, contributing to the country's renewable energy landscape. Grameen Shakti focuses on installing solar home systems and biogas plants and promoting energy-efficient cookstoves in rural areas. BRAC emphasizes renewable energy access, energy efficiency, and community development through various solar energy projects and energy-efficient technologies. Rahimafrooz Solar is involved in developing and deploying solar photovoltaic systems, providing solar-powered street lighting solutions, and offering turnkey renewable energy projects, further enhancing Bangladesh's renewable energy infrastructure.
These German and Bangladeshi organizations are making notable strides in the renewable energy sector, significantly contributing to sustainable development and energy efficiency in their respective regions.
The key projects in renewable energy cooperation between Germany and Bangladesh feature two major programs: the Productive Use of Renewable Energy Program (PUREP) and the Renewable Energy Program. PUREP was implemented from April 2014 to December 2021, with a total funding of 10.5 million EUR, while the Renewable Energy Program runs from October 2018 to December 2023, with a significantly larger budget of 70 million EUR. Both programs are spearheaded by the Infrastructure Development Company Limited (IDCOL).
The main objectives of these initiatives are to enhance access to electricity derived from renewable energy sources, particularly for income-generating purposes. They aim to provide a cost-effective, modern, and environmentally friendly energy supply to areas not served by the national grid. Both programs are designed to reduce reliance on traditional energy sources such as diesel. This reduction is expected to improve living conditions, stimulate local economies, and reduce greenhouse gas emissions.
PUREP has set specific goals and activities, including replacing 1.3 million diesel-driven irrigation pumps with solar pumps by 2025. The program provides concessional financing for off-grid renewable energy technologies, such as solar irrigation pumps, biogas electricity generation on poultry farms, and solar minigrids in remote villages and river islands. It also offers sub-loans directly to investors, NGOs, or user groups and develops suitable financial products and internal procedures. With support from KfW, PUREP ensures the monitoring of technical and quality standards.
The Renewable Energy Program focuses on promoting renewable energy technologies through IDCOL. It provides loan funds for commercial and industrial-scale solar rooftop projects in Bangladesh. The program continues to support off-grid renewable energy projects, such as solar irrigation pumps and small solar-driven electricity grids in remote villages and river islands. It promotes further technologies like biogas and solar cold storage. The program also offers sub-loans directly to investors, NGOs, or user groups, develops suitable financial products and internal procedures, and monitors technical and quality standards with grant funds for accompanying measures.
Both programs aim to achieve enhanced access to renewable energy for income-generating purposes, a reduction in reliance on diesel, a boost in local economies, improved living conditions, and a reduction in greenhouse gas emissions. PUREP, supported by the German Government via KfW, emphasizes early market financial viability considering subsidized electricity and diesel prices for consumers. In contrast, the Renewable Energy Program adopts a twofold approach, combining loan funds for solar rooftop projects and grant funds for off-grid renewable energy projects, with an estimated solar rooftop potential in Bangladesh of at least 400 MW.
The "Improvement of Power Transmission Program in the Western Zone / Energy Efficiency in the Grid-Based Power Supply" runs from May 2016 to June 2024 with a total funding of 139.5 million EUR. It is implemented by the Power Grid Company of Bangladesh Ltd. (PGCB) and aims to enhance the reliability and efficiency of power transmission across Bangladesh, achieve CO2 savings, address environmental and social issues, improve staff safety, conserve nature, and ensure an equitable distribution of electricity. The program includes rehabilitating and constructing key substations and transmission lines, adding 11 new substations and 200 km of new transmission lines, and offering investment-related training and capacity-building activities for PGCB, along with setting up an environmental and social unit in PGCB.
The "Modernization of Power Distribution – Smart Grids Phase I" is scheduled from October 2021 to December 2025, with a funding of 122.2 million EUR. Implemented by the West Zone Power Distribution Company Limited (WZPDCL) and the Bangladesh Rural Electrification Board (BREB), the project focuses on improving living conditions and business operations by reducing losses and providing a more reliable and efficient electricity supply. Specific activities include renovating 43 substations, constructing and renovating distribution lines, introducing automated, data-based network control systems (SCADA), and strengthening WZPDCL and BREB in various operational aspects.
The "Energising Development Bangladesh (EnDev)" program runs from January 2021 to December 2023 with a total funding of 2.25 million EUR. It is implemented by the Bangladesh Bondhu Foundation (BBF) and aims to provide efficient and clean cooking solutions and promote the productive use of solar energy technology. The program supports the development of markets for modern energy facilities, including e-cooking appliances and biomass-based improved cooking technologies, and promotes solar battery charging for e-rickshaws. Activities include market promotion for clean alternative cooking fuels and higher-tier stoves, community support for Covid-19 affected areas, market development for e-cooking appliances through Result-Based Financing (RBF), training for stove builders and sales staff (including local women), and demonstrating business cases for solar battery charging of e-rickshaws.
The "Improvement of Power Transmission Program" aims to enhance power transmission reliability and efficiency, achieve CO2 savings, address environmental and social issues, and improve safety and conservation efforts. The "Modernization of Power Distribution – Smart Grids Phase I" seeks to reduce power outages and distribution losses, improve electricity supply reliability and efficiency, and achieve CO2 emission savings. The "Energising Development Bangladesh (EnDev)" program aims to increase access to efficient and clean cooking solutions, develop markets for modern energy facilities, enhance solar battery charging solutions for e-rickshaws, and support local communities' livelihoods. Some other prospects related to these include investment-related training and capacity-building activities and additional funding for environmental and social unit setup for the "Improvement of Power Transmission Program." The "Modernization of Power Distribution" focuses on automated grid operation and better supply management, leading to an increase in nationwide grid-connected installed electricity generation capacity. The "EnDev" program collaborates with SREDA, ongoing GIZ energy projects, and the planned transformative mobility DKTI project, addressing the challenge that only 8% of the population has access to gas for cooking.
The Sustainable and Renewable Energy Development Authority (SREDA), Bangladesh Solar & Renewable Energy Association (BSREA), Bangladesh Garments Manufacturers & Exporters Association (BGMEA), and Consumers Association of Bangladesh (CAB) are collaborating on the Renewable Energy & Energy Efficiency Programme (REEEP). This initiative, running from November 2018 to January 2022 with a budget of 4.15 million EUR, aims to promote renewable energy and energy efficiency in Bangladesh, helping the country achieve its 10% renewable energy target. The Policy Advisory for Promoting Energy Efficiency & Renewable Energy (PAP) operates under the REEEP and focuses on providing policy guidance and support to enhance energy efficiency and the adoption of renewable energy. It is aligned with Bangladesh's renewable energy goals and aims to integrate sustainable energy practices into national policies. The Energy Efficiency & Grid Integration of Renewable Energy (EEGIRE) II project, running from August 2021 to July 2024 with a budget of 5 million EUR, is part of the Power Division of the Ministry of Power, Energy and Mineral Resources (MoPEMR). This project aims to improve energy efficiency and facilitate the integration of renewable energy sources into the national grid, thereby enhancing the overall efficiency of energy usage in Bangladesh. Another project under the Power Division of MoPEMR, with a budget of 3 million EUR from June 2021 to May 2024, focuses on similar objectives, although specific details about its activities and goals were not provided.
Hence the efforts represent a transformative partnership, fostering a future powered by clean and sustainable energy in Bangladesh. Through knowledge exchange and technology transfer in the field of renewables, this collaboration promises to revolutionize Bangladesh's energy landscape. The projected adoption of solar, wind, and other renewable sources will not only enhance energy security and environmental well-being but also pave the way for a more prosperous and sustainable future. As Bangladesh embarks on this journey with Germany's steadfast support, this partnership serves as a shining example for other developing nations seeking to embrace a clean energy future. The success of the initiatives has the potential to illuminate a path for a more sustainable and equitable world for all.