Highlights:
Fluctuations in fossil gasoline prices pose a menace to Bangladesh’s macroeconomic stability, doubtlessly derailing the authorities’s constructing targets, in accordance to the South Asian Network on Financial Modeling (Sanem).
Bangladesh must lower its reliance on fossil fuels and transition to renewable vitality sources to construct certain that sustainable constructing and economic stability, Sanem really handy citing its present look findings.
This kind of transition would abet environmental sustainability, stabilise the economic system and abet sustainable constructing needs, the non-profit research organisation’s researchers talked about while presenting the findings at a dialogue held at the BRAC Centre in Dhaka recently.
They talked about the authorities must level of interest on diversifying vitality sources, adopting effective financial policies, enforcing dynamic pricing mechanisms, reassessing vitality planning, constructing strategic vitality reserves, improving vitality infrastructure, embracing evolved technologies, and encouraging foreign investments in renewable vitality tasks.
The nationwide-stage dialogue on “Exploring a Sustainable Pathway for Bangladesh’s Energy Transformation In direction of Inexperienced and Dapper Energy”, presented findings from three research.
It changed into chaired by Selim Raihan, professor of economics at Dhaka College and executive director of Sanem.
He identified, “Fifteen years in the past, the vitality sectors of our competitor countries agree with been an equivalent to ours. At the moment time, they are a long way forward, leaving us struggling to win up. Now we agree with lost vital ground.”
The economist talked about the stagnation is thanks to the affect of fossil gasoline import lobbies, which agree with ended in protection dangle, suppose mismanagement, capitalist corruption, and plundering.
“These challenges agree with made it increasingly more sophisticated for us to pivot toward renewable vitality alternatives,” he added.
He added that the switch of authorities after 5 August has created a brand original opportunity and hoped this seemingly may perchance additionally now not be allowed to fail.
At some level of discussions, Bangladesh Energy Regulatory Commission (BERC) Secretary Md Khalilur Rahman Khan criticised the fast condominium protection, announcing that incentivising capacity charges below this scheme had induced “excessive disruptions” in the energy sector.
Mohammad Amzad Hossain, joint secretary at Renewable Energy Division, added that the fast condominium energy act changed into intended as a brief-term measure however changed into problematic when extended indefinitely.
“The present authorities has discontinued this suppose, and the courts agree with repealed two provisions of the act,” he essential.
Compare findings presentation
The first look, titled “Macroeconomic Effects of Energy Value Fluctuations: Evidence from Bangladesh”, examined the affect of world fossil gasoline vitality label shocks on Bangladesh’s macroeconomy, reports UNB.
The re-examination titled “An Evaluate of Institutional Quality and Political Economy Dynamics of the Strength and Energy Sector in Light of the Renewable Energy Transition in Bangladesh”, assessed the institutional quality and political economic system of Bangladesh’s energy and vitality sector.
It recommends Bangladesh must adopt a cohesive and transparent protection framework to force its transition to renewable vitality. Key actions consist of abolishing the Mercurial Enhancement of Electricity and Energy Provide (Special Provision) Act, 2010, revising the IEPMP 2023 to piece out fossil fuels and inefficient energy crops, and restoring the capacity of the Bangladesh Energy Regulatory Commission by comprehensive reforms.
Removing high tasks on renewable vitality tools, introducing performance-primarily based fully fully subsidies, and enforcing financial incentives for vitality efficiency are serious to encouraging internal most-sector investment, it talked about.
Transparency in project tendering, investor different, and the renegotiation of Just Strength Producer (IPP) contracts to consist of “no electricity, no pay” clauses are essential to construct certain that fairness and accountability.
Empowering the Sustainable and Renewable Energy Pattern Authority with sufficient authority and sources, alongside with tough oversight mechanisms, will address protection mismatches, cessation mismanagement, and drag the country’s vitality transition.
The third look, titled “Assessing Investment Needs for Renewable Energy Transition in Bangladesh by 2041” furious about describe voltaic and wind energy constructing.
It recommends mobilising the essential investment, public-internal most partnerships, inexperienced bonds, and concessional financing from world establishments bask in the World Bank, ADB, and GCF.
Moreover, growing a dedicated renewable vitality fund with blended financing—comprising grants, loans, and fairness—may perchance abet microscopic- and medium-scale renewable vitality tasks, it talked about.
