low-carbon south asia: bangladesh - christian aid

Low-carbon South Asia: Bangladesh

Poverty is an outrage against humanity. It robs people of dignity, freedom and hope, of power over their own lives.

Christian Aid has a vision – an end to poverty – and we believe that vision can become a reality. We urge you to join us.

christianaid.org.uk

This report is written by Professor Rezwan Khan, Content Adviser, and Maliha Shahjahan, Associate Consultant, Practical Action Consulting.

Photo above: The use of LPG for cooking has been encouraged to reduce the dependence on imported oil.

Photo credit: Mehrab Ul Goni, Practical Action Bangladesh

Cover: Traditional cook stoves have adverse effects on health, but are still widely used in Bangladesh.

Photo credit: Mehrab Ul Goni, Practical Action Bangladesh

Contents

1. Country context 4

2. Current energy situation 5

2.1 Total energy consumption 5

2.2 Review of current level of energy use 7

3. Future energy demand and options for energy supply 8

3.1 Renewable energy potential 8

4. Existing low-carbon policy, strategies and mitigation options 10

4.1. Policy framework and institutional mechanisms 10

4.2. Major initiatives in renewable energy development, efficient energy use and energy conservation 10

4.3. Access to finance – green banking 12

5. Potential sustainable development benefits for low-carbon development 13

6. Barriers to low-carbon development and energy access 14

7. Potential approaches to manage energy demand 16

8. Case studies 18

8.1 Case study 1: Efficient Lighting Initiative of Bangladesh 18

8.2 Case study 2: IDCOL Solar Energy Programme 19

8.3 Case study 3: Solar irrigation pumps 20

9. References 22

10. Endnotes 23

4 Low-carbon South Asia: Bangladesh

56.6% in 1991-2 to 31.5% in 2010, while extreme poverty declined from 41% to 17.6% over the same period.5

Sustained growth in recent years has generated higher demand for electricity, transport and telecommunication services, and contributed to widening infrastructure deficits. While population growth has declined, the volume of labour force is growing rapidly. This can be turned into a significant demographic dividend in the coming years, if more and better jobs can be created for the growing number of job seekers. Moreover, improving labour force participation and productivity will help the economy attain full potential.

Bangladesh aspires to be a middle-income country by 2021. This will require increasing GDP growth to 7.5-8% per year, based on accelerated export and remittance. Both public and private investment will need to increase as well. Growth will also need to be more inclusive through productive employment opportunities. To sustain accelerated and inclusive growth, Bangladesh will need to manage urbanisation more effectively, and part of this will be the increasing demand for energy.

Bangladesh is located in South Asia, bordered by India to the north, west and east, Myanmar to the south-east, and the Bay of Bengal to the south. The country’s total land area is 143,998 km2,1 and it occupies one of the largest river deltas in the world. Its topography is comprised of fertile alluvial plains and an extensive network of rivers. Due to its unique geographic location, Bangladesh remains one of the world’s most environmentally vulnerable countries and is susceptible to devastating cyclones and floods. From 1980 to 2000, nearly 60% of the worldwide deaths from cyclones occurred in Bangladesh. The effects of climate change are likely to increase, causing more frequent and severe cyclones and other natural disasters. Deforestation and the burning of biomass continue to contribute to the climate challenge in Bangladesh, with coastal areas experiencing the worst effects.

With a population of approximately 152.5 million,2 Bangladesh is among the most densely populated countries in the world. Bangladesh has made remarkable progress in several Millennium Development Goals (MDGs). Since 1991-2, the country has reduced poverty at 2.47% annually. Maternal mortality has declined by 40% in nine years from 2003. The country has already met several MDG targets, including the reduction of poverty gap ratio, attaining gender parity in primary and secondary education, under-five mortality rate reduction, containing HIV infection with access to antiretroviral drugs, children under five sleeping under bed nets treated with insecticide, and detection and cure of TB, among others.3

Bangladesh has made significant economic progress over the past decade as well. Annual GDP growth averaged 6.5% in recent years and per capita income is $7004 – doubling in less than 30 years. The country’s economy is in transition from agrarian to industrial. Although the share of agriculture in GDP has decreased steadily in recent years, currently contributing less than 20%, it still employs 47% of the working population, and a large portion of the broader service sector remains dependent on agricultural outputs. Remittance inflows have more than doubled in the last five years, now amounting to more than 10% of GDP. The national poverty headcount declined from

1. Country context

With a population of approximately 152.5 million, Bangladesh is among the most densely populated countries in the world. Bangladesh has made remarkable progress in several Millennium Development Goals. Since 1991-2, the country has reduced poverty at 2.47% annually.

Low-carbon South Asia: Bangladesh 5

2.1 Total energy consumption Energy shortage is the most critical infrastructure constraint on Bangladesh’s economic growth. Presently, 62% of the total population has access to electricity (including off-grid renewable energy), mainly through government efforts. Compared to other developing countries, power generation per capita is very low, at only 321kWh.6 The gap between electricity supply and demand in July 2012 was still 500-800MW.7 There is still much to do for the energy-poor population, especially in rural areas. Biomass supply/demand accounts for 68% of primary energy consumption, and over 90% of household energy needs. In other words, only about 10% of the population have access to modern fuels. Annual household biomass consumption is 44 million tons, or 79% of the country’s total biomass consumption. Fuel wood constitutes 41% of the total biomass cooking energy and 84% of households are depend on fuel wood for cooking.8

Table 1. Sources of electricity generation in Bangladesh and globally (2010)

2. Current energy situation

12,000 -

10,000 -

8,000 -

6,000 -

4,000 -

2,000 -

0

- 40

- 30

- 20

- 10

- 0

- -10

- -20

- -302000–01 2001–02 2002–03 2003–04 2004–05 2005–06 2006–07 2007–08

Con

sum

ptio

n of

ele

ctric

ity (M

kWh)

Ann

ual g

row

th r

ate

(%)

Domestic serviceCommercial service

Growth rate (industrial)Growth rate (others)

Growth rate (domestic)Growth rate (commercial)

Industrial serviceOthers

Figure 1. Consumption of electricity by category and corresponding growth rate9

Energy Bangladesh Global

Gas 87.5% 18%

Oil 6% 10%

Coal 3.7% 37%

Hydro 2.7% 17%

Nuclear 0% 17%

Renewable 0.5% 1%


2.1.1 Energy consumption

Domestic natural gas accounted for 68% of Bangladesh’s commercial energy consumption in 2010; imported oil and coal accounted for another 26% and local hydropower for 5.4%. Therefore, availability of gas and coal was presumed to be of considerable importance. Coal consumption was mainly limited to power generation and brick kilns.

In 2010, about 88% of the country’s power was generated from gas and about half the commercial energy consumption accounted for power generation. The contribution of coal in Bangladesh’s power generation was marginal at just 3.7%. Bangladesh has a large coal reserve, but for electricity generation the country depends on imported coal.

The consumption pattern of electricity varies according to the consumer. Overall power consumption has increased every year (Figure 1). Power consumption growth at the domestic level has slowed almost every year since 2001/2. A similar pattern emerges with commercial services. The annual rate of increase between 2000/1 and 2007/8 was the highest for commercial services at 15.6%, followed by domestic services (13.8%), industrial services (13.3%) and other services (6.4%).

2.1.2 Main sources of energy

The primary energy sources in Bangladesh are gas and coal. There have been initiatives to meet energy demand satisfactorily and make optimum use of increased gas supply. The demand for imported oil is increasing.

Natural gasNatural gas is the most important domestic source of energy. So far, 23 gas fields have been discovered with a spectacular failure:success ratio of 3.1:1. Two of the gas fields are offshore. Gas is produced from 17 gas fields (79 gas wells). The average daily gas production capacity is about 2,000 million standard cubic feet per day (mmcfd), of which international oil companies produce 1,040mmcfd and state-owned companies produce 960mmcfd. Gas production recorded on 24 February 2010 was 1,996.7mmcfd. At present, the daily projected gas demand throughout the country is 2,500mmcfd. The demand gap has been addressed by using other fossil fuels like imported diesel and the demand is increasing.

The Energy and Mineral Resources Division has already undertaken an array of strategies to increase gas production to overcome the shortage. The plans would see 188mmcfd, 290mmcfd, 995mmcfd (including

500mmcfd liquefied natural gas), 500mmcfd and 380mmcfd, gases added to the national gas grid by 2010, 2011, 2012, 2013 and 2015 respectively. Production capacity is expected to increase to about 2,353mmcfd by December 2015. In reality, the production capacity has increased much faster than projected, with the addition of 5,500 billion cubic feet (bcf) during 2011 and 34,500bcf expected in 2012.10

Petroleum productsBangladesh imports about 1.3 million metric tons of crude oil annually to meet commercial energy demand. In addition, about another 2.7 million metric tons of refined petroleum products is imported per annum. Condensate is mixed with crude oil. The transport sector is the major consumer of liquid fuel, followed by agriculture, industry and the commercial sector. Eastern Refinery Limited, a subsidiary of Bangladesh Petroleum Corporation, can process 1.3 million metric tons of crude oil per year.

Compressed natural gas (CNG)CNG-run vehicles were introduced in 1997 to significantly reduce the dependence on imported fuel. There are 565 CNG refuelling stations and 162 workshops have already been set up to convert fuel engines into CNG-run engines.

Liquefied petroleum gas (LPG)LPG is used in areas where pipeline distribution is difficult and expensive. The use of LPG has been encouraged to reduce the dependence on imported oil, especially for household cooking. Currently the supply of LPG in the country is 95,500 metric tons, of which 22,500 metric tons are produced by the public sector and 73,000 metric tons by private businesses. The potential demand of LPG in the country is 200,000 tons. To popularise LPG and encourage business, the government is providing incentives, such as tax exemptions on some appliances and bottled LPG.

Liquefied natural gas (LNG)LNG import is actively being considered to reduce the dependence on imported oil and domestic gas. There is a plan to import 500 million units of LNG. The site for an LNG plant has been selected, but Bangladesh has to set up necessary infrastructure on its own, including a receiving station, storage tank, re-gasification process and a 90km pipeline from Maheshkhali to Anwara.

CoalBangladesh has significant coal reserves. Coal reserves of about 3.3 billion tons comprising five deposits at depths of 118-1,158 metres have been discovered so far in the


northwest – Barapukuria, Phulbari and Dighipara coal fields in Dinajpur, Khalashpir in Rangpur and Jamalganj in Joypurhat. Of these deposits, four (118-509 metres) have extractable reserves. As an alternative to natural gas, coal can be extensively used to reduce dependence on imports. However it has high carbon implications. The depth of the Jamalganj coal deposit is 640-1,158 metres with 1,053 million tons which cannot be extracted with current technology. The possibility of extracting coal bed methane needs to be explored. The government is actively reviewing the laws relevant for exploration and production of coal bed methane. So far, only Barapukuria coal field is under production.

2.2 Review of current level of energy useFour key constituents of the SE4ALL13 goals are: household cooking needs (sometimes called thermal needs), rural electrification (including small-scale renewable energy as well as micro- and mini-grids), energy efficiency, and larger commercial-scale grid-connected renewable energy.

Lack of access to modern energy services and the use of traditional fuels for cooking, heating and lighting hinders economic development and has severe health impacts. Household energy use is complex, with many homes ‘fuel stacking’, that is using multiple fuels/stoves at one time. In many countries, more than 90% of the population is dependent on solid fuels for household needs (Figure 2). In Bangladesh, 89% of the population depends on traditional fuel-free biomass as cooking fuel. A comparison of the most energy-poor countries in the Asia-Pacific region is shown in Figures 2 and 3.

In the past two decades, many countries in the region have demonstrated substantial progress in expanding grid-based electrification as well as distributed energy systems. Electricity has brought multiple development benefits wherever there have been improvements to supply. Bangladesh is one of the countries striving to increase its rural electrification rate, both through grid solutions, such as large-scale efforts to extend centralised electricity networks, and off-grid or mini- and micro-grid options such as solar home systems and micro-hydro dams. Only 41% of the population has access to electricity in Bangladesh (Figure 3).

Figure 2. Percentage of people dependent on traditional fuels in selected Asia-Pacific countries (2012)11

0% 20% 40% 60% 80% 100%

Figure 3. Electrification rate in selected Asia-Pacific countries as a percentage of population (2009)12

East TimorNorth Korea

CambodiaAfghanistan

LaosMyanmar

Solomon IslandsPapua New Guinea

BangladeshIndia

NepalPakistan

ChinaVanuatu

IndonesiaThailand

SamoaVietnamBhutan

Sri LankaMongolia

FijiPhilippines

Malaysia

0% 20% 40% 60% 80% 100%

MyanmarAfghanistan

Solomon IslandsPapua New Guinea

East TimorCambodia

VanuatuBangladesh

NepalLaos

PakistanIndonesiaMongolia

BhutanIndia

Sri LankaFiji

PhilippinesSamoa

VietnamThailand

ChinaMalaysiaMaldives


Demand for electricity rises with income and people’s desire for better living standards. In the last decade, overall demand has grown at about 10% on average. Demand from residential and commercial consumption is growing the fastest (Figure 4).

In December 2009, the installed capacity of power plants was 5,803MW and the rated capacity was 5,250MW. In these circumstances, the Vision 202114 figures of 20,000MW of power generation by 2021 and 11,500MW by 2015 are the minimum that should be achieved.

3.1 Renewable energy potentialRenewable energy sources include biomass (combustible renewable and waste), hydropower, solar, wind, ocean and geothermal energy. Various sources of renewables are being explored to reduce carbon-based fuel dependence in conventional power generation.

Solar energy, for both small and large-scale electricity generation, has good prospects in Bangladesh.

Bangladesh is in an appropriate geographical location to harness solar power and receives an average daily solar radiation of 4-6.5kWh/m2. Solar photovoltaic (PV) cells are gaining acceptance for providing electricity to households and small businesses in rural areas. About 264,000 households presently use solar energy.

The abundance of biomass makes it a potential source of bio-diesel. The most common forms of available biomass are rice husk, crop residue, wood, jute stick and sugarcane bagasse. Exploration of these resources for electricity generation is still at a preliminary stage.

Biogas is another promising renewable energy resource. Presently there are about 50,000 household and village biogas plants throughout the country. There is a huge potential for expansion in rural areas.

Gasohol (a blend of ethanol and gasoline) is being used in many countries. A private sector project aims to produce gasohol from molasses, a by-product of the sugar industry, to be blended with petrol.

3. Future energy demand and options for energy supply

Figure 4. Percentage annual growth rate of power consumption by sectors, 2000-07

8.5 8.41

9.77

11.511.23

0

2

4

6

8

10

12

TotalOtherCommercialIndustrialDomestic


The potential of other renewable energy sources, including hydroelectricity and wind, are not clearly understood. Micro and mini hydro have limited potential in Bangladesh, with the exception of Chittagong Hill Tracts. Hydropower assessments have identified some possible sites which could supply 10kW to 5MW, but these have not been built.

Wind energy has a limited potential, mostly in coastal areas. The government has encouraged research and experimentation to explore alternatives. Other renewable energy sources include biofuels, geothermal, river currents, and wave and tidal energy. The potential of these resources is yet to be explored.

Table 2. Potentials of different types of renewable energy resource15

Resources Potential Entities involved

Solar Enormous Public and private sector

Wind Resource mapping required Public sector/public-private partnership

Hydro Limited potential for micro or mini Mainly public entities

Domestic biogas system 8.6 m3 Public and private sector

Rice husk-based biomass 300MW considering 2kg of husk Mainly private sector

Cattle waste-based biogas 350MW considering 0.752m3 Mainly private sector

The potential of other renewable energy sources, including hydroelectricity and wind, are not clearly understood. Micro and mini hydro have limited potential in Bangladesh, with the exception of Chittagong Hill Tracts. Hydropower assessments have identified some possible sites which could supply 10kW to 5MW, but these have not been built.


4.1. Policy framework and institutional mechanismsThe government has taken a number of initiatives from three distinct approaches towards universal energy access – energy efficiency, renewable energy and energy conservation. National level policy and rules were drawn up as part of defining the institutional framework.

In 2008, a renewable energy policy was adopted by the government. This envisions 5% of total generation from renewable sources by 2015 and 10% by 2020. The policy has several objectives, including:

• To harness the potential of renewable energy resources and the dissemination of renewable energy technologies (RETs) in rural and urban areas.

• To enable, encourage and facilitate public and private sector investment in renewable energy projects.

• To develop sustainable energy supplies to substitute indigenous non-renewable energy supplies.

• To scale up the contribution of renewable energy to electricity production.

• To facilitate the use of renewable energy at every level of energy usage.

• To promote development of local technology in the field of renewable energy.

• To promote clean energy for the clean development mechanism (CDM).

However, concerns about the sustainability of the CDM and the current low carbon price do not make it an encouraging incentive. Currently, the government is reviewing its renewable energy policy. The most recent inclusion is the draft energy efficiency and conservation rules prepared by the government in October 2012. These are applicable for demand side energy conservation in three sectors, residential and commercial buildings, industry and services, and public sector. It also states sector-wide measures to create public awareness and wider promotion of energy efficiency and conservation practices.

Both documents mention establishment of the Sustainable and Renewable Energy Development Authority (SREDA) as a focal point for the promotion and development of sustainable energy as part of an attempt to establish an institutional mechanism to implement the renewable energy policy and the draft rules. However, the formation of SREDA is still in process.

Promoting low carbon development has also been part of the carbon emission reduction strategy under the Bangladesh Climate Change Strategy and Action Plan (BCCSAP). One of the six pillars of the BCCSAP is ‘Mitigation and low-carbon development: to evolve low-carbon development options and implement these as the country’s economy grows’. The implementation of BCCSAP is supported by a multi-donor trust fund, Bangladesh Climate Change Resilience Fund.

4.2. Major initiatives in renewable energy development, efficient energy use and energy conservation Power generation in Bangladesh is highly dependent on indigenous gas supply. In its power generation expansion programmes, the government intends to diversify the fuel mix, with development of renewable energy being one of the important strategies adopted as part of the fuel diversification programme.

Government utilities are involved in developing large-scale, grid connected, renewable energy power projects. For off-grid home-based renewable energy solutions, many private companies and national NGOs are working in Bangladesh under the auspices of the government’s financial institution, Infrastructure Development Company Limited (IDCOL).

The first significant PV-based rural electrification programme was the Narshingdi project, initiated with French funds. Since the introduction of the first solar home system (SHS) in 1996, this has become the biggest renewable energy programme in Bangladesh and over 2 million units have been installed through an integrated programme undertaken by the government through

4. Existing low-carbon policy, strategies and mitigation options


Table 3. IDCOL’s target of power generation from renewable energy sources

estimated that the project saved nearly 146MW of power in its first phase. ELIB is earning carbon revenue – there is an agreement of over 6.5 million carbon credits for three years for the first phase.

Government initiatives for efficient energy use:

• Steps have been taken to revise the building code to incorporate energy efficiency and solar energy issues.

• Initiatives have been taken to raise awareness among students by incorporating energy efficiency and solar energy issues in the curricula of schools, madrasas and colleges.

• Installation of solar panels in government, semi government and autonomous organisations within the next three years

• Use of CFL bulbs in all ministries and power sector entities.

• Conventional street lights to be replaced by LED and subsequently solar lights.

• Public awareness of energy conservation.

IDCOL.16 This programme is recognised worldwide as a successful SHS installation model. The government has a target to generate more than 200MW power from diverse renewable energy sources through IDCOL.

Besides IDCOL initiatives, the government has also installed solar PV at public offices and established a solar park as part of its demonstration programme. Commercial production from renewable energy is tax exempt for the next five years. Different types of awareness raising events are regularly organised by the government. The government has recently initiated a 500MW solar power programme with the support of Asian Development Bank.

The government has taken many initiatives for efficient energy use and reduced consumption. One of these is the Efficient Lighting Initiative of Bangladesh (ELIB) project. The project aims to replace approximately 30 million household incandescent lamps with an equal number of energy efficient CFLs with the same or higher lumen output. During the first phase, 10.5 million CFLs were distributed in one of the biggest campaigns in the world, with nearly 5 million CFLs supplied in only one day. It is

Average unit capacity Target Total capacity

Solar home system 50W 3 million 150MW

Biogas plant for cooking gas 2.6m3 100,000 40MW

Solar mini grid 50kW 10 1MW

Solar irrigation pump 8kW 750 6MW

Biogas-based power plant 20kW 300 6MW

Biomass-based power plant 200kW 15 3MW

Total 206MW


• The gradual discontinuation of incandescent bulbs and electric heaters.

• Limiting the use of air conditioners, or keeping temperature to 25˚C.

• Encouraging the business community to use solar energy.

• Introduction of the Energy Star rating system for electric appliances.

• Discouraging the use of neon sign in markets and shopping malls at night.

• Closing markets and shopping malls by 8pm.

BCCTF has initiated some mitigation measures. A strategic energy plan and investment portfolio is being developed to ensure national energy security, energy efficiency and lower greenhouse gas (GHG) emissions. To follow a low-carbon development path, energy and technology policies will also be reviewed, and incentives provided to promote the efficient production, consumption, distribution and use of energy. Low-emission farming practices were encouraged and renewable off-grid energy systems were deployed in scattered coastal settlements. The Reduce, Reuse, Recycle initiative was introduced in several city centres. It has also emphasised introducing alternative low carbon technology in high carbon emitting sectors like brick baking kilns.

4.3. Access to finance – green bankingAccess to finance is an important issue to encourage private sector engagement in renewable energy and low carbon technology/development. Bangladesh stands second among South Asian nations in ensuring access to financial services for its citizens. Around 66% of households in Bangladesh now have access to services including credit, savings and insurance from banks or microfinance institutions and cooperatives.17 Microfinance institutions have played a major role in such outreach, especially for rural communities. However, the cost of

funds from these non-banking financial institutions is remarkably high, with an average interest of 19-20% or even higher.

Bangladesh Bank has been guiding the financial sector to embrace environmentally responsible green financing. In 2013, Bangladesh Bank opened a new department to promote green financing and corporate social responsibility activities. The new division aims to formulate a policy for green banking; to develop and implement green strategic plan; and to formulate and implement sector-wide environment policy. The green refinancing scheme for a renewable energy and industrial effluent treatment plant (worth Tk 200 crore, approximately $25.8m) is in the process of being transferred to this new department.

All banks and financial institutions, local and foreign owned, private and public sector, have engaged in this initiative. In green financing, lenders routinely carry out an environmental impact assessment of investment proposals, factoring in environmental risks in their financing decisions and denying financing for environmentally risky undertakings lacking in adequate mitigation measures. Besides this environmental screening of borrowing, green financing promotes adoption of new energy efficient, GHG emission minimising output processes and practices.

Bangladesh Bank has been guiding the financial sector to embrace environmentally responsible green financing.


Lenders to such environmentally benign projects can access refinance support if and when needed from a Bangladesh Bank window funded jointly by the bank and its development partners. Green projects supported with refinancing include SHS, solar mini grid, solar powered irrigation, solar PV panel assembly, biofuel, effluent treatment, replacement of polluting brick baking kilns with energy efficient ones, organic compost, pico, micro and mini hydropower, plastic bottle recycling, solar battery recycling, and LED bulb manufacturing.

When Bangladesh released the Bangladesh Climate Change and Strategy Plan (BCCSAP) in 2009, it became the first least developed country to develop a comprehensive national plan on climate change, with strategies incorporating elements of both low-carbon development and resilience to climate change. Despite being the vanguard, advocates of low carbon resilience development perceive the BCCSAP has more focus on adaptation, with minimal attention paid to reducing emissions and promoting low-carbon development. The explanation which is often given is that Bangladesh has played a very small role in contributing to climate change and has very low GHG emissions per person compared to larger developing countries, like India or China, and most western countries.

As issues of energy security and energy access became more important to Bangladesh, the low carbon agenda started coming into play, tied in with national concerns. In recent years, Bangladesh has started to take measures to reduce GHG, such as introducing solar powered irrigation systems and adopting new energy efficient technologies. Ultimately, for Bangladesh, increasing access to energy through low carbon technologies supports the low carbon agenda. To sustain the benefits of low carbon development, the government has already shown remarkable interest, as laid out in its policy documents.

The BCCSAP, as a policy document, has set the scale of policy, where the overall framework in climate change feeds into multiple areas of development. It is not yet clear how the synergy alters at different scales or whether an overarching objective is more effective than

a focused objective. But this exercise at least aligns with existing planning processes and incentives around policy implementation. This provides for a viable platform that has overcome the institutional barriers to cross cutting development planning – working across such diverse ministries as energy, power and mineral resources. However, policy subjects under the energy sphere are of a complex spectrum, including different usage and consumer group, diversified technology, market niche and expansion, environmental concerns, sectorial difference and diversity. Translation of any plan into action remains a highly challenging task for the government, as national priorities are often undermined by donor priorities. In most cases equity concerns are often bypassed amid the complexity of an energy policy.

5. Potential sustainable development benefits for low-carbon development

Despite being the vanguard, advocates of low carbon resilience development perceive the BCCSAP has more focus on adaptation, with minimal attention paid to reducing emissions and promoting low-carbon development.


A low carbon economy with universal energy access can be achieved by increasing energy efficiency and by reducing demand for low-carbon-intensive products. The transfer and diffusion of energy efficient and low carbon intensive technologies depend largely on the development of enabling environment. The 2012 report Technology Needs Assessment and Technology Action Plans for Climate Change Mitigation stated different approaches for the development of enabling environment to overcome barriers:

• The overarching issue in this effort though is the lack of and the need to improve awareness among policy makers, planners and decision makers about eco-efficiency concepts. This is the major cause of the weak response to date of the government to energy efficiency, conservation and renewable energy issues and it underscores the fact that a lot more needs to be done to mainstream energy efficiency and environmental issues in infrastructure projects which… has the largest scope for emission reductions.

• In Bangladesh, the largest potential for cutting emissions will come from the power sector as the country embarks upon a very ambitious energy expansion program. Innovation, enterprise, policy support and institutional backing will be essential if a significant dent is to be made in creating efficiencies in this plan. However, it is apparent that there is a lack of capacity to develop, run and ensure proper maintenance of the technology.

• The Bangladesh economy has been growing at above 6.5%, even with a low energy supply base. This rate is expected to rise rapidly as energy availability improves, creating a twin energy challenge for the country: improving environmental sustainability and enhancing energy security. In the case of Bangladesh, a least developed country facing liquidity constraints, an additional factor, the availability of investible funds (especially for more expensive clean technologies), must also be factored into the planning equation. By comparison, capital costs of clean technologies

are much higher for they embody research and development costs, deploying and disseminating costs and other costs such as those borne by consumers for switching to goods and services produced by the new technologies.18

Prioritising mitigation technologies are also influenced by cross-cutting issues, such as:

• Removal of systemic constraints: Implementation of energy efficiency measures requires a legal basis to regulate energy use and develop new alternative energy sources as renewable energy. The legal framework also provides an economic stimulus by providing tax incentives for investment and exemption from import duties. But it is also important to address common barriers (for example, fossil fuel subsidies, weak institutional capacity and high interest rates) and facilitate enabling policies and actions, which is missing in Bangladesh.

• Congruent policy measures and enhance policy capacity: The complexity of energy efficiency, conservation and renewable energy is so diverse that it requires a separate entity. The establishment of SREDA as a focal agency has been prioritised in many different policy documents, but it is yet to be finalised. A recent study estimates that approximately $14.5bn will be required by Bangladesh over the next two decades to cover the incremental costs and risks of energy efficiency and renewable energy. While certain policy tools and financing mechanisms exist for such transformation, these are generic in nature and need to be tailored to the national context. In addition, substantial financing will be needed to build the capacity of local stakeholders and provide technical assistance. Although many policies for GHG emission reduction exist in Bangladesh, most of these policies have not been implemented because of lack of funds, shortage of trained manpower, management deficiencies, and rules/regulations of public procurement policy which does not allow the purchase of the best technology.

6. Barriers to low-carbon development and energy access


• Consideration for energy efficient technologies: In the short-term, the second largest and cheapest source of emission reduction in Bangladesh is in improving the energy efficiency in power, industry, buildings and transport. Many of these interventions are financially viable, but they have not been implemented because of other factors such as market failures. In Bangladesh, market failure is primarily caused by the low cost of energy which acts as a disincentive to reform.

• Consideration of renewable energy technologies: Although the use of renewable energy presents immense opportunities in Bangladesh, especially since prices of RETs have been declining dramatically, they are still not viable when compared to conventional energy in a financial sense although they are economically feasible.


The government has introduced numerous initiatives to address the rapidly growing energy demand. Gradual growth of electricity supply has been ensured, while people have been given more access to electricity. Many measures have been taken to address demand-side constraints. But there is still some scope for improvement. Introducing simple measures, including smart metering, power reliability-based tariffs, incentives for enhanced efficiency and punishment for inefficiency, can enhance efficient energy use for the end user.

Supply-side constraints remain significant. The IEA World Energy Outlook estimated that each additional $1 spent on energy efficiency in electrical equipment, appliances, and buildings avoids more than $2, on average, in energy supply investments.19 However, the energy loss during generation, transmission and distribution is still very high in Bangladesh.

Energy efficiency and conservation is good from domestic consumers, but not from other sectors until its use is widely promoted. Still, many sectors, including transportation, agriculture (irrigation), brick baking kilns and industry, are dependent on high amounts of carbon based fuel and inefficient technologies.

The potential of renewable energy has been acknowledged to a large extent. Yet limited investment is available to identify of potential renewable resources for grid and off-grid areas, appropriate energy cost assessment to develop commercially viable sustainable models, assessment of economic cost benefit to replace diesel or other high carbon fuel systems by renewable energy, especially in cases more likely to be used by rural communities. Communal use, including the use of energy in education and health services is not explored enough, and neither is the energy use in rural livelihoods, including irrigation, cold storage, rice husking, saw mills and flour mills.

If a leapfrog fund for low-carbon development and energy access was available, how could it be best used in your country and who would benefit? Technology promotion is often hindered because of a lack of finance. Financial support can help test technology for different types of users and develop business

solutions. Providing support to private sector for product enhancement and market analysis can stimulate the market.

The rural community is mostly deprived of energy. Government support is sometimes the only solution here, especially for isolated poor communities living in off-grid areas. Support should be provided to off-grid rural areas to develop isolated stand-alone mini, micro or nano grids targeting mainly isolated poor households, and educational, health institutions and agricultural activities, including irrigation.

Low carbon development linked to energy access is usually expensive, and when considering subsidised conventional energy, it becomes even more expensive. So, along with leapfrog funds, additional subsidies or cross subsidies will be needed for longer periods of time to promote renewable energy or efficient technology, especially in grid areas.

Introducing new technology, such as power generation from municipal waste, can be considered for large-scale government investment in urban areas. There are significant benefits in the environmental, social and economic impact of waste management through power generation, although such investments do not have strong financial viability.

What is the role of different types of funding in delivering sustainable outcomes – grants, soft loans and micro credit?Promotion of renewable energy and energy efficient technology require financial support. The government has created provisions for finance at a reduced interest rate to encourage the private sector to invest in renewable energy. These funding opportunities are more viable for private companies, and aim to make these technologies more widely available. However, the cost of finance is still high. Any type of soft loan for private companies will inspire more competition, leading to market competitiveness among businesses, which is currently very low.

Micro credit institutions have created a leverage in RET promotion, especially in rural areas. They have spurred

7. Potential approaches to manage energy demand


the growth of small to medium-sized RET projects. The tremendous success of IDCOL in the SHS project is an example. However, the client base for these interventions is highly skewed, mostly consisting of medium income households. The poorer segment of the rural community cannot afford these energy options. Price subsidy, in the form of grants, is one of the alternatives to create energy access for the poor.

Many existing interventions are promoting a particular technology, rather than creating a wide range of choice for the consumer. Private companies have also often limited their scale of operation because introducing any new product requires effort and finance to deploy technology and innovation, develop human resources and institutional capacity. RET is comparatively more expensive than other options, which often restrains businesses from entering the market. Grants to support the private sector in product development can be a market stimulus.

Grant funds are most suitable for pilot initiatives, especially for financially viable solutions. Otherwise they will create a market distortion. On the other hand many of renewable energy projects are not financially viable, but have far-reaching environmental, social and economic impacts. Such endeavours should be encouraged through grants to support the government.

Would a leapfrog fund be enough to stimulate change? What other assistance (capacity building, business management; technology transfer, market stability/development, R&D, long term finance) would be necessary to make it happen? What is the role of private sector and public-private partnerships?Any leapfrog fund in the energy sector will stimulate change, but to sustain these changes other supports are required.

Institutional mechanism and enhancing policy capacity: The complexity of renewable energy, efficient energy use and energy conservation require a dedicated government agency, with technical skill, policy capacity as well as the ability to coordinate a number of diverse agencies.

The establishment of SREDA with appropriate human resources is one possible solution, but it has not yet materialised.

To implement existing rules, policies and action plans, skilled human resources are required. Moreover, in a rapidly growing sector, national guidelines need to be reviewed and updated on a regular basis as technology progresses.

Human capital: Wide scale awareness-raising campaigns may help increase public understanding of low carbon development and its benefits, and the implication for people’s livelihoods and welfare. Training in green technology and industries can help position countries to take advantage of any new low carbon growth opportunities and markets.

Research and development: Technology progression and diffusion requires support. Understanding of technology promotion needs to be perceived from both technology perspective as well as its social, cultural and economic implication. Research support should be available for technology development, product development, innovative distribution and business model development.

Incentives and regulation for low carbon growth: There is a role for government leadership to identify low carbon growth sectors which may provide competitive advantage and employment growth. The development of new opportunities must be backed by sufficient support from the government and the international community. This includes the creation of an appropriate policy environment, provision of necessary training, investment promotion and awareness-raising, and collaborative partnership between the public, private and NGO sectors.

Investment availability: Transformation into a low carbon economy requires expenditure, which is beyond the capacity of the national government. International investment is imperative, both in the form of foreign direct investment and development assistance.


8.1 Case study 1: Efficient Lighting Initiative of Bangladesh Power shortage during peak hours poses a major challenge in Bangladesh, triggering blackouts and brownouts affecting urban and rural consumers across the country. Increasing power generation takes time and emergency measures can only partially address the situation. The Efficient Lighting Initiative of Bangladesh (ELIB) was launched in 2010 by the government as a demand-side management measure.

8.2.1 Project objective

The ELIB programme aims to deploy energy-efficient compact fluorescent lamps (CFLs) in place of incandescent lamps.20 Another objective is to create long-term availability of low cost, high-quality CFLs in a sustainable manner. The ELIB programme was expected to earn carbon revenue through the Clean Development Mechanism (CDM).

8.2.2 Project detail

Funded by the Bangladesh Rural Electrification and Renewable Energy Development (RERED) project and World Bank, ELIB was designed to deploy 27.5 million CFLs among residential consumers of high-density load centres in Bangladesh. The programme included procurement of better quality CFLs, supporting a systematic distribution system, conducting a comprehensive consumer awareness scheme, and a monitoring and evaluation plan. The first phase was launched relatively quickly, to reduce load-shedding of the next peak season, which was at that time the summer of 2010.21

Rural Electrification Board (REB) was the key implementing agency responsible for overall management of the programme, including consumer awareness, and monitoring and evaluation plans at national level. In addition, a portion of the CFLs was distributed by other utility agencies in their respective service territories.22 IDCOL acted as the coordinating entity (bundling agent) for the CDM transaction associated with the CFL project.23

On 19 June 2010, almost 5 million CFLs were distributed in exchange for incandescent bulbs among residential consumers in selected areas of 27 districts of Bangladesh. It was the largest single-day campaign in the world. During Phase I, the programme distributed 10.5 million CFLs through more than 1,400 urban and rural distribution centres throughout the country.

8.2.3 Development benefit and impact

The energy sector and economy in Bangladesh have benefited in many ways:24

• Estimates show that using 10.5 million CFLs in place of incandescent bulbs, has saved up to 146MW of power (although the initial estimate was much higher, at 250 MW).

• In 2009, there were only two CFL manufacturers in Bangladesh, producing about 9.6 million CFLs. The programme spurred market demand and by 2012, there were 19 manufacturers with a production capacity of over 30.64 million bulbs.

• The market expansion clearly indicates higher customer demand (particularly in urban areas, where, before the project, customers could presumably afford the bulbs but lacked the awareness to buy them).

Initially, it was planned to distribute 17.5 million CFLs during the second phase. But, as the growing demand shows, many urban households have already switched to CFLs. In the current revised plan, the second phase distribution will be restricted to rural areas where people cannot afford to pay for CFLs. The estimated number of CFLs to be distributed has decreased to 7.25 million.25

8.2.4 Opportunities and risks

Quality issues emerged after distribution. A post-installation survey within a few months of indicated a 34% lamp failure rate. A lifetime test by the national testing institute on sample bulbs indicated that the average life of the CFLs was significantly less than the number of hours mentioned in the technical specifications.

8. Case studies


There is also a negative environmental impact of improper disposal of CFL bulbs. According to the technical specifications the mercury content is minimum, no more than 5mg per unit. Given the large number of CFLs distributed through the project, they have the potential to damage public health and could significantly affect the environment if not disposed of properly.26

Based on the lessons from the first phase, the government has included several new measures. In the next phase:27

• A national guideline for collection of expired CFL bulbs will be developed, incorporating good practices.

• There should also be awareness-raising initiatives, including safety instructions on CFL packets, proper collection and disposal of expired CFL bulbs in a safe manner. The project will also explore options for recycling the glass from destroyed incandescent light bulbs.

• IDCOL will provide technical support to the manufacturers/suppliers for environmental improvement of battery recycling and CFL recycling.

8.2.5 Types of investment needed

In 2009, $15m was spend to implement the first phase of ELIB. The main benefit of the programme was expected to be avoiding the cost of installing, operating and maintaining power generation plant capacity equal to the electricity saved by using CFLs instead of incandescent lamps. The reduction in GHG due to reduced energy requirements was another expected benefit.

The financial internal rate of return (FIRR) and economic internal rate of return (EIRR) of the programme were calculated to be 44% and 52% respectively. Including the CDM benefits, the FIRR and EIRR of the programme were calculated as 52% and 60% respectively. But the poor quality of CFLs resulted in a failure to match the projected power savings during peak demand, so GHG reductions were not as high and therefore CDM credits and the potential carbon revenues were lower.28

8.2 Case study 2: IDCOL Solar Energy ProgrammeSHS programmes have been supported by many government agencies since the 1970s with limited success. IDCOL began its SHS programme in 2003, with a completely different method than the previous grand approaches. The IDCOL model focuses on developing a consumer focused integrated sustainable model, which is now a global example.29


The project aimed to scale up renewable energy to improve off-grid electricity supply in rural areas through SHSs for affordable lighting.


IDCOL30 has devised a credit scheme for marketing SHS units and making these an affordable alternative to grid electricity for poor people in remote areas. IDCOL manages the funds to support the program. Besides financial support, it provides technical support to develop the capacity of partner organisations (PO), including, staff and customer training, logistics support for record keeping, and promotional support. An independent Technical Standards Committee is responsible for determining technical standards of the equipment, review and approve the equipment, and evaluate feedback from suppliers/dealers and POs to develop industry standards for PV equipment. IDCOL also maintains an inbuilt monitoring and evaluation mechanism to ensure funds are being used for the intended purpose; POs/sponsors comply with established technical, after-sales service, and consumer protection standards; customers are satisfied with the services; and hazardous wastes such as used batteries are safely recycled.31


The negative environmental impacts of this project can stem from improper disposal and recycling of lead acid batteries. Lead sulphate is a water-soluble substance that can contaminate groundwater.32


Another challenge is the affordability of SHS for the ultra-poor. The average price of SHS per Watt peak (Wp) is approximately Tk 400 ($5.15) and the minimum size sold is 20 Wp, which costs Tk 8,000 ($103). Such an amount as a one-time expenditure poses a daunting challenge for many rural households. Hence, those who can afford to purchase SHS panels are relatively more affluent households.33

8.2.4 Development benefits and impact

The programme has created wider access to electricity in rural areas of Bangladesh through financing solar home systems. By 2013, more than 2.5 million SHS had been installed throughout the country.34

The impact of the SHS programme at the household level is manifold. Educational attainment, women’s empowerment and quality of life have increased among SHS households. Boys and girls from such households have higher school completion rates than those who do not have solar lighting.35 Women’s mobility has increased. Households began using electric fans, television sets, refrigerators, cassette players, irons and mobile phone chargers.36

The economic state of SHS households has also improved. Rural electrification increases household income by 21% and expenditure by 11%. Households save money on kerosene, using two litres less of kerosene per month, which is 66% less kerosene than households without SHS.37

The IDCOL programme has created market demand for better technology and gradually a domestic manufacturing base has also grown. At the start of the

IDCOL programme, the market was dominated by a single imported product with 80% market share. Now, there are more than 30 SHS component suppliers from 20 countries and seven local manufacturers of batteries, charge controllers and inverters. A local company, Electro Solar, has already set up its operation for manufacturing and assembly of solar panels and three more companies are about to commence operations.38


IDCOL extends loan support to its POs. The POs extend microcredit to consumers to buy the systems and, in turn, obtain refinancing from IDCOL for up to 80% of the loans given to consumers. The households are required to pay at least 10% of the system cost as down payment. The remaining 90% is financed by a loan at 12–15% interest per annum.

IDCOL receives loan funds from World Bank, Kreditanstalt für Wiederaufbau (KfW), Asian Development Bank, Islamic Development Bank and Japan. The initial grant support for SHS has gradually reduced from $90 per SHS to zero in 2013. IDCOL is also tightening the loan terms for POs. Initially, POs received 10-year loans at 6% interest. This is now a 5-7 year loan at 6-9% interest, depending on exposure. Within a few years, IDCOL’s SHS programme will be ready to absorb commercial loans without any grant or technical assistance.

The CDM validation for the project has been completed and the agreed price is $11.65/ton for the financial analysis and at the economic value of $30/ton for the economic analysis. From both economic and financial viewpoints the project has high and robust internal rates of return (IRR) – economic IRR is 42% and financial IRR is 28%.39

8.3 Case study 3: Solar irrigation pumps Agriculture contributes a fifth of Bangladesh’s GDP. More importantly, the majority of the population depends on agriculture for their livelihood. Modern agriculture practices require mechanised inputs like irrigation. However, regular power shortages disrupt electric irrigation and lower crop production. A large number of diesel-operated pumps increases the country’s dependence on imported fuel. In view of the energy crisis and increasing price of petroleum across the globe, the government explored alternative solutions including solar irrigation pumps.40

The programme has created wider access to electricity in rural areas of Bangladesh through financing solar home systems. By 2013, more than 2.5 million SHS had been installed throughout the country.34



The project aims to reduce the dependence on diesel by introducing solar irrigation pumps in rural communities. The project has a target to install 1,300 solar-powered irrigation pumps covering over 65,000 bighas (1 bigha ~ 33 decimals) of land for rice cultivation by 2016.

8.3.2 Technology

The solar irrigation system mainly consists of solar panels and a solar submersible pump. The capacity of solar irrigation pumps ranges from 5KW to 11KW and they can operate at total head of 12-15 metres. These pumps, on average, have the capacity to lift 500,000 litres of water per day on a typical sunny day.


The project is implemented by IDCOL, following almost the same financing model as the successful SHS. IDCOL selected some NGOs, microfinance institutions or private entities (Partner Organisation or PO) to implement the program on the basis of management capacity, financial strength and micro-finance experience.

IDCOL provides the necessary technical, financial and promotional support to the POs for successful implementation of the programme. IDCOL assesses the proposals submitted by POs, approves them based on strict guidelines and disburses grants and soft loans. Proper installation and operation of the plants are ensured through periodic field visits by the IDCOL inspection team. IDCOL’s independent Technical Standard Committee approves the equipment to be used.41


The project provides grant support to improve irrigation services since installation of a solar irrigation pump is quite high – around $50,000.42 Farmers, at present, rely on some 266,000 electric water pumps which consume around 1,300MW to irrigate 1.7 million hectares. During the peak growing season, a further 1.3 million diesel-run pumps, using up to 900,000 tons of fuel, are operated to irrigate an additional 3.4 million hectares. Currently, the government provides around Tk 24-26 ($0.30-0.32) per litre of diesel as subsidy. The project could ensure reliable irrigation services for farmers, reduce GHG emissions and save foreign remittance by reducing the dependence on diesel. The project has the potential to generate 12MW of power from solar energy and save the government nearly Tk 65 crore (approximately $8.4m) in fuel-subsidy costs over 20 years.43


BCCRF has provided grants of $10m for the first phase for the solar irrigation project; the total commitment for the project is $24.5m in grant financing. As a part of the Rural Electrification and Renewable Energy Development II (RERED II) Project, World Bank provided support. The project is financed based on debt, equity and grant. BCCRF is providing up to 50% of the pump costs in grant, while International Development Association of the World Bank provides 30% as concessional credit. Private sponsors are expected to provide 20% of the pump costs as equity. Sponsors will have to have the capacity of injecting 20% of the project cost upfront in the form of equity.44

BCCRF has provided grants of $10m for the first phase for the solar irrigation project; the total commitment for the project is $24.5m in grant financing. As a part of the Rural Electrification and Renewable Energy Development II (RERED II) Project, World Bank provided support.


Government of Bangladesh, Technology Need Assessment and Technology Action Plans for Climate Change Mitigation, Government of Bangladesh, 2012, http://unfccc.int/ttclear/sunsetcms/storage/contents/stored-file-20131129151612490/Technology%20Needs%20Assessment%20And%20Technology%20Action%20Plans%20For%20Climate%20Change%20Mitigation.pdf

Government of Bangladesh, Outline Perspective Plan of Bangladesh 2010–2021: Making Vision 2021 a Reality, Government of Bangladesh, 2012, http://planipolis.iiep.unesco.org/upload/Bangladesh/Bangladesh_Final_Draft_OPP_June_2010.pdf

Ministry of Power, Energy and Mineral Resources, Renewable Energy Policy of Bangladesh, Government of Bangladesh, 2008, www.powerdivision.gov.bd/pdf/REP_English.pdf

Ministry of Power, Energy and Mineral Resources, Energy Efficiency and Conservation Rules (Initial Draft), Government of Bangladesh, 2012, www.powerdivision.gov.bd/powerdivision/uploads/21.pdf

Ministry of Environment and Forests, Bangladesh Climate Change Strategy and Action Plan 2009, Government of Bangladesh, 2009, www.moef.gov.bd/climate_change_strategy2009.pdf

AS Hussain, SR Khandker, M Asaduzzaman, M Yunus, The Benefits of Solar Home Systems: An Analysis from Bangladesh, World Bank, 2013, http://elibrary.worldbank.org/doi/pdf/10.1596/1813-9450–6724

Infrastructure Development Company Limited, Rural Electrification Board, Bangladesh: Rural Electrification and Renewable Energy Development Project II: Environmental and Social Management Framework, 2012.

Infrastructure Development Company Limited, Guidelines for Loan and Grant Application – IDCOL Solar Irrigation Program.

Institute of Microfinance, Access to Financial Services in Bangladesh, Institute of Microfinance, 2011, www.inm.org.bd/publication/briefs/ATFS Brochure.pdf

KM Mustafizur Rahman, Electricity Scenario in Bangladesh, The Innovators, 2011, www.unnayan.org/documents/RightsParticipation/electricity_scenario.pdf

OECD, IEA, Energy Poverty: How to make modern energy access universal?, OECD, IEA, 2010, www.se4all.org/wp-content/uploads/2013/09/Special_Excerpt_of_WEO_2010.pdf

BK Sovacool, IM Drupady, The Radiance of Soura Shakti: Installing Two Million Solar Home Systems in Bangladesh, National University of Singapore, 2011, http://issuu.com/nuslkyschool/docs/energy-governance-case-study-08

World Bank, Implementation Completion and Results Report. Rural Electrification and Renewable Energy Development Project, World Bank, 2013, www.thegef.org/gef/sites/thegef.org/files/gef_prj_docs/GEFProjectDocuments/MandE/EO_TEs_FY13/WorldBank_TEs_APR2013/1209_WB_TE_ICR.pdf

World Bank, International Development Association Project Paper on a Proposed additional Financing Credit. Rural Electrification and Renewable Energy Development Project, World Bank, 2009, www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/07/14/000333037_20090714000518/Rendered/INDEX/492660PJPR0P01101Official0Use0Only1.txt

Websites consulted:• www.powerdivision.gov.bd• www.petrobangla.org.bd• www.idcol.org• www.bangladesh-bank.org

9. References


10. Endnotes

1 CIA World Fact Book.

2 Population and Housing Census 2011.

3 Government of Bangladesh, MDG Progress Report 2012.

4 World Bank – Bangladesh at a glance (2010 data)

5 Household Income and Expenditure Survey 2010

6 Power Division, Ministry of Power, Energy and Mineral Resources, www.powerdivision.gov.bd/user/brec1/30/1

7 System Planning Directorate, Bangladesh Power Development Board.

8 Assessment of the improved stove market in Bangladesh, Winrock International and E+co for USAID, January 2012

9 KM Mustafizur Rahman, Electricity Scenario in Bangladesh, 2011.

10 www.petrobangla.org.bd

11 UNDP International Human Development Indicators Database, Global Alliance for Clean Cookstoves country specific database.

12 UNDP International Human Development Indicators Database, 2012 National Rapid Assessment and Gap Analyses, UNDP APRC Country Energy Reviews, UNDP Energy Access Case Studies supplemented with World Bank data.

13 In 2011, the UN launched Sustainable Energy for All (SE4ALL) with the vision of making sustainable energy for all a reality by 2030. SE4ALL mobilised action in support of providing universal access to modern energy services; doubling the global rate of improvement in energy efficiency; and doubling the share of renewable energy in the global energy mix. Since its launch, more than 75 countries (including Bangladesh) have chosen to pursue SE4ALL’s objectives.

14 Vision 2021 is the political manifesto of the Bangladesh Awami League party (the current ruling party). It is a political vision of Bangladesh for the year 2021, the golden jubilee of the nation.

15 www.powerdivision.gov.bd

16 IDCOL is a state-owned non-banking financial institution that administers financing for rural energy and renewable energy projects (mainly solar home systems and biogas) with 15 national NGOs. Its main responsibility is to promote economic development by encouraging private sector investment in energy projects. It engages local partner organisations in projects. It plays an important role in bridging the financial gap for developing medium and large-scale infrastructure and renewable energy projects.

17 Access to Financial Services in Bangladesh, Institute of Microfinance, www.inm.org.bd/publication/briefs/ATFS%20Brochure.pdf

18 Government of Bangladesh, Technology Need Assessment and Technology Action Plans for Climate Change mitigation, UNEP, GEF, UNEP Riso Center and Asian Institute of Technology, 2012, p51.

19 IEA, World Energy Outlook, OECD, 2006.

20 See note 15.

21 World Bank, International Development Association Project Paper. RERED Project, World Bank, 2009.

22 Other utility companies included Dhaka Electricity Supply Company, Dhaka Power Distribution Company and Bangladesh Power Distribution Board.

23 World Bank, 2009, IDA on Project Paper on- RERED.

24 World Bank, Implementation Completion and Results Report. RERED Project, World Bank, 2013.

25 IDCOL & REB, 2012, Bangladesh: RERED II Environmental and Social Management Framework

26 See note 24.

27 See note 25.

28 See note 24.

29 BK Sovacool, IM Drupady, The Radiance of Soura Shakti, National University of Singapore, 2011.

30 IDCOL was established in 1997 by the Government of Bangladesh. It is playing a major role in bridging the financing gap for developing medium and large-scale infrastructure and renewable energy projects in Bangladesh.

31 www.idcol.org

32 See note 25.

33 AS Hussain, SR Khandker, M Asaduzzaman, M Yunus, The Benefits of Solar Home Systems: An Analysis from Bangladesh, World Bank, 2013.

34 See note 31.

35 See note 25.

36 REB Midterm Report: Socio-Economic Monitoring and Impact Evaluation of Rural Electrification and Renewable Energy Program, 2006.

37 See note 36.

38 BK Sovacool, IM Drupady, The Radiance of Soura Shakti, 2011.

39 See note 24.

40 See note 15.

41 See note 31.

42 IDCOL, Guidelines for Loan and Grant Application - IDCOL Solar Irrigation Program.

43 Ministry of Power, Energy and Mineral Resources.

44 www.worldbank.org/en/news/press-release/2013/09/30/project-signing-10-million-grant-for-solar-irrigation-in-bangladesh

UK registered charity no. 1105851 Company no. 5171525 Scot charity no. SC039150 NI charity no. XR94639 Company no. NI059154 ROI charity no. CHY 6998 Company no. 426928 The Christian Aid name and logo are trademarks of Christian Aid. Christian Aid is a key member of ACT Alliance, a coalition of 100 churches and church-related organisations working together in humanitarian assistance and development. © Christian Aid October 2014 Printed on 100% recycled paper 15-J2881

Contact us

Christian Aid 35 Lower Marsh Waterloo London SE1 7RL T: +44 (0)20 7620 4444 W: christianaid.org.uk christianaid.ie E: [email protected]