Bangladesh shows its commitment to the Sustainable Development Goals through widespread Solar Home Systems adoption.
Bangladesh aims to produce 40% of its energy from renewables by 2041, a goal aligned with its Nationally Determined Contributions (NDCs) under the Paris Agreement. The nation’s abundant sunshine makes solar power a natural focus. The government has been driving a shift from fossil fuel-based energy sources to renewables, particularly solar, by implementing policies, offering incentives, and developing infrastructure that facilitates the transition.
The Solar Home Systems Initiative
A major achievement in Bangladesh’s green energy journey has been the ‘Solar Home Systems’ (SHS) initiative, which has transformed energy access in rural areas. Launched in 2003, the program aimed to provide affordable electricity to communities not connected to the national grid. By 2017, over four million SHS units had been installed, providing electricity to around 20 million people approximately 12% of the population.
Since 2018 the SHS initiative has had a profound impact on the lives of rural Bangladeshis, improving education, healthcare, and economic activities. With solar-powered lighting, children can study after dark, health clinics can operate more efficiently, and small businesses can extend their operating hours. Furthermore, it has significantly reduced dependence on kerosene lamps, which are not only harmful to health but also contribute to carbon emissions.
The success of SHS can be attributed to several factors, including government support, microfinance solutions, and partnerships with NGOs and international donors. The Infrastructure Development Company Limited (IDCOL) set up in 1997, a government-owned financial institution, has played a key role by providing low-interest loans to households and subsidies for SHS providers. This financial model has made the systems affordable for low-income families, allowing the program to scale rapidly.
The success of SHS can be attributed to several factors, including government support, microfinance solutions, and partnerships with NGOs and international donors.
Government Partnerships with Global Green Energy Initiatives
Bangladesh has actively pursued collaborations with international organisations NGOs, and foreign governments to advance its renewable energy agenda. Key partnerships include those with the World Bank (WB), the Asian Development Bank (ADB), the United Nations Development Programme (UNDP), and various bilateral donors who have supported solar projects through funding and technical assistance.
For instance, the WB has provided significant support for renewable energy projects in Bangladesh, including financing for the SHS initiative. In addition to funding, these partnerships have helped Bangladesh access technological expertise and global best practices, which have been crucial in scaling up renewable energy projects and ensuring their long-term sustainability.
Bangladesh is also a member of international green energy platforms such as the International Renewable Energy Agency (IRENA) and the International Solar Alliance (ISA). Through these platforms, the country has participated in global knowledge exchange, advocacy, and strategic planning to promote solar energy use and innovation in renewable technologies.
Challenges in Scaling Renewable Energy Infrastructure
Despite its progress, Bangladesh faces several challenges in scaling its renewable energy infrastructure. The country’s dense population and agricultural land requirements make it difficult to find suitable areas for large-scale solar farms. To address this issue, Bangladesh has been exploring innovative solutions, such as installing solar panels on rooftops, floating solar energy systems such as the one at Bulanpur in Chapainawabganj, and some embankments. Although solar power has become more affordable over time, the initial investment required for installation remains a barrier, particularly for low-income households. While microfinance and government subsidies have alleviated this issue to some extent, more financing mechanisms are needed to make solar power accessible to all.
Making Energy Affordable
There are several ongoing initiatives to make solar technology affordable, such as incentivising solar panel installation, offering tax exemptions for solar equipment imports, and reducing value added tax (VAT) on solar panel sales. Expanding these incentives can help lower costs and encourage more widespread adoption. Bangladesh has leveraged PPPs (Public-Private Partnerships) to mobilise private investment in renewable energy by 62%. By partnering with private companies, the government can share the financial burden and reduce risks associated with large-scale projects, while also benefiting from the private sector’s expertise and innovation.
By maintaining its commitment to renewable energy and embracing innovative solutions, Bangladesh can serve as a model for other developing nations facing similar energy challenges. The green energy revolution in Bangladesh is a testament to what can be achieved with visionary policies, strong partnerships, and a focus on sustainable development.
