Dhaka

Investment is required so electricity distribution networks can be upgraded to keep pace with an explosion in generation capacity over the last decade, and to harness the potential of renewables and energy storage.

The power development authority has signed 20-year electricity purchase deals relating to four solar projects and has awarded the highest price paid in the country to date for ‘clean’ energy, for an island-based system which includes battery storage and diesel generation.

The nation announced a more ambitious climate change and renewables target at COP26 in Glasgow, and will be boosted by a $160 million funding pledge from the summit host nation.

The majority of the finance for the $177 million, Jamuna river project will be provided in the form of soft loans from the Indian government and officials are reportedly already planning a second 100 MW facility with a Chinese firm on nearby land.

The federal government will provide $131 million of soft loans for a $177 million, 100 MW solar park near the Jamuna river in Bangladesh’s Jamalpur district, where a second park of a similar size is being planned by Dhaka and a Chinese partner.

A leaked letter apparently sent by a diplomatic official states Beijing will no longer consider coal-related investment in Bangladesh, firing speculation that policy could be applied along all of the vast twin trade routes.

Having fallen far short of its ambition to generate 10% of its power from renewables by last year, Dhaka is preparing to reformulate its national clean power target.

More than 500 factories have registered to make their manufacturing facilities more eco friendly in the garment exporting powerhouse and the nation’s net metering rules offer an obvious step in the right direction.

The cash injection will itself help provide affordable financing for solar and other renewables projects in the power hungry south Asian nation. The national railways operator is doing its bit for solar too.