Sustainable Energy Transition in Bangladesh

In order to accomplish the seventh objective of the Sustainable Development Goals (SDGs), which pertains to the assurance of access to clean and affordable energy, it is imperative to facilitate an energy transition from non-renewable to renewable sectors through the transformation of the global energy landscape from fossil fuel dependency to zero carbon sources. Primary energy refers to the energy forms that are naturally occurring, including but not limited to crude oil, natural gas, coal, uranium, and renewable energy sources (excluding the electricity generated from them), whereas secondary energy denotes forms of energy that have undergone transformation into different states (subsequent to conversion), exemplified by electricity and refined petroleum products. Thus, when the primary energy sources are processed into alternate forms of products, they are classified as secondary energy.

There exist particular factors pertaining to efficiency and effectiveness in the context of energy transition. The efficiency factor can be quantitatively expressed as the ratio of energy output from a system to the primary energy input within that system; for instance, the amount of electricity generated relative to the energy content of coal utilized. This metric is less applicable to renewable energy sources, given that the primary energy source is inexhaustible (as opposed to being finite). Nevertheless, it provides insights into the potential for enhancement. Specifically, it underscores the necessity for a system characterized by an energy conversion process that mitigates environmental detriment.

Sustainable Energy Transition in Bangladesh

March 25, 2025

In the examination of consumption dynamics, a comparative analysis between OECD and non-OECD nations reveals a modest growth trajectory in OECD countries, albeit not at a significantly elevated level, whereas non-OECD countries are experiencing a pronounced escalation in energy consumption. The phenomenon may be attributable to the rapid demographic and economic expansion observed in non-OECD nations. Europe and Asia exhibit a considerable reliance on oil imports, with the Middle East and the former Soviet bloc significantly contributing to global oil exports. A salient observation is that despite the United States, along with Canada and Mexico, being characterized as oil-dependent economies, they are simultaneously engaged in substantial oil production, thereby evolving into net exporters of oil. Conversely, regarding natural gas production and consumption, a notable equilibrium is evident across various global regions, primarily due to the complexities and high costs associated with gas transportation. This is attributable to the comparatively lower mobility of gas in contrast to oil. When examining coal consumption and production, the Asia-Pacific region demonstrates a near self-sufficiency. Although the transportation of coal from one location to another is not particularly challenging, it is economically unviable for businesses due to its relatively low value. Nevertheless, there exists a considerable volume of coal trade among countries within the Asia-Pacific region.

However, in the context of electricity generation, it has been observed that the share of primary energy utilized for electricity production has been progressively increasing year after year. This trend suggests a concerted effort towards the electrification of various sectors, including transportation, industrial processes, and domestic activities. This shift is primarily motivated by the recognition that electricity represents a pivotal means for decarbonizing our economic activities. Electricity generation encompasses both non-renewable and renewable energy sources; however, to achieve decarbonization, it is imperative to focus on enhancing the generation of electricity from renewable sources.

The primary demand sectors for electricity encompass industrial manufacturing, public illumination, transportation, commercial establishments, and residential households, with the supply predominantly originating from power generation facilities utilizing coal, natural gas, oil, nuclear energy, wind, solar radiation, hydropower, geothermal sources, and biomass. A critical aspect of this scenario is the effective management of the alignment between demand and supply, with the temporal aspect of this alignment being equally significant. Due to the intrinsic limitations of electricity storage capacity stemming from the idiosyncrasies of the supply chain, the synchronization of demand and supply becomes exceedingly important. In the context of storage considerations, two principal factors must be acknowledged: base load and peak load. Both base and peak loads manifest within demand curves on a daily, weekly, and yearly basis. For instance, an analysis of the electricity demand curve during a typical winter season reveals that the curve exhibits a decline commencing at midnight, subsequently increasing from morning through to afternoon, followed by a substantial escalation in the afternoon until evening when residential consumption peaks, leading to a subsequent decrease in demand. An examination of the demand curves across different seasons illustrates a diverse array of fluctuations, characterized by various peaks and troughs.

Consequently, during periods of peak electricity demand, it becomes imperative to align supply with demand in order to ascertain pricing, which invariably results in an upward pressure on price levels. This scenario ultimately necessitates a transition in our electricity generation paradigm towards renewable energy sources. Within the electricity supply chain, there exist four distinct market segments: generation (power stations), transmission (high voltage transmission lines), distribution (low voltage distribution networks), and retail. Frequently, power stations are situated at considerable distances from consumption centers; thus, the transmission of electricity from one locale to another is required to mitigate the adverse health impacts associated with pollutant emissions from power plants, which also necessitate substantial spatial requirements, particularly for coal-fired power stations that are typically located in proximity to coal extraction sites.

Moreover, it is essential to modify voltage levels in order to minimize thermal losses incurred along power transmission lines. In the realm of electricity trading, governmental agencies engage in forecasting demand and instruct state-controlled facilities to generate electricity that will adequately meet the anticipated demand. This process is often executed with a primary focus on minimizing costs. Frequently, key resources for electricity generation remain under state control, encompassing indigenous sources such as natural gas, oil, coal, and hydroelectric power.

Other segments, such as transmission and distribution networks, are characterized by a significant infrastructure burden, resulting in diminished competition. Consequently, monopolistic entities, whether state-owned or private, exert control over the transmission and distribution networks, contingent upon the specific characteristics of each nation. Additionally, there are retail market segments that do not engage in electricity production or lack direct connections to the system; for instance, supermarkets or banks in the UK participate in the electricity market by facilitating contracts through their customer-facing operations. Furthermore, independent (state-funded) regulatory authorities oversee these market segments to ensure compliance and efficiency.

A nation in the process of development, such as Bangladesh, has substantially augmented its electricity generation capacity over the past several decades. The majority of this electricity produced underpins the expanding export-oriented industrial sector, which constitutes the primary facet of ensuring sustainable economic progress. Nevertheless, the nation has encountered a multitude of challenges in augmenting the electricity supply, largely attributable to a pronounced deficit in fossil fuel resources. According to the annual energy reports from recent years, over 85% of total electricity generation is persistently derived from conventional energy sources, with natural gas contributing more than 50% annually. This energy source has also bolstered both domestic and industrial sectors throughout the last few decades. However, the extensive utilization of these fuels, particularly natural gas, engenders concerns regarding the sustainability of their reserves for future production. Furthermore, recent survey studies have projected that the current reserves of these fuels are expected to be depleted within the forthcoming decades. Despite the existence of a reasonable coal reserve, various challenges such as elevated extraction costs and the proximity to densely populated areas compel the nation to procure a substantial quantity of coal to facilitate electricity generation. Additionally, there exists a negligible oil reserve, with domestic demand being satisfied solely through imports. The escalating prices in the global energy market, exacerbated by geopolitical conflicts and natural disasters, hinder the importation of these fuels necessary to maintain stable foreign reserves.

Consequently, the pursuit of alternative sources for electricity generation has emerged as a national objective for continued development. This ambition envisions the generation of 2400 MW from expensive nuclear fuel, which is projected to become operational within the ensuing years. This initiative entails considerable initial financial investment, challenges associated with the integration of advanced technology, and apprehensions concerning regulatory risks within the energy market. As a result, the government is prioritizing the establishment of renewable energy plants over conventional fossil fuel power plants in order to satisfy the country's substantial electricity demand, motivated by Bangladesh's advantageous geographical positioning. However, in recent years, these renewable sources, predominantly solar energy, have constituted merely 0.38% of the total electricity generation. This proportion is inadequate in light of the country's electricity requirements, particularly in view of the ongoing depletion of fossil fuel reserves. Consequently, the government continually provides various incentives to both public and private developers for the implementation of large-scale renewable projects aimed at augmenting the contribution from these energy sources. Nonetheless, developers encounter numerous obstacles in executing large-scale implementations, primarily due to the insufficient support and experience of government organizations in adapting new technologies pertinent to the establishment of these plants.

FAQ Here:

How will the transition to sustainable energy affect development in Bangladesh?

The transition to sustainable energy in Bangladesh will accelerate development in the country's energy sector in line with global trends. It will increase the use of renewable energy, such as solar, wind and bioenergy, which are environmentally friendly and sustainable in the long term. This will help Bangladesh meet its energy needs, create jobs and reduce environmental pollution.

What are the main challenges of sustainable energy management in Bangladesh?

The main challenges of sustainable energy management in Bangladesh include inadequate infrastructure for power generation, weak energy storage and distribution systems, and expensive technologies. In addition, there is a need to increase public interest in and government support for environmentally friendly energy.

How can renewable energy sources be helpful for Bangladesh?

For Bangladesh, the use of renewable energy sources such as solar, wind and bioenergy is not only helpful in generating energy, it is also helpful in creating new jobs and innovation in the country's economy. The use of these energy sources will help increase the country's energy security and reduce energy dependence internationally.

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