Fashion Industry Charter for Climate Action convened by the UN Climate Change (UNCC) Global Climate Action in 2021, set a target a net-zero GHG emissions for the fashion industry in the second half of the twenty-first century.
Renewable energy share in Bangladesh’s energy mix stands at 3.1 percent while it aims to increase this share to 30 percent by 2030 and 40 percent by 2041. Currently, 70 of RE is solar. The potential of other solar energy sources has not be properly explored.should be explored further to scale up RE production in Bangladesh.
The 100 signatories of this charter include Bangladeshi concerns including Bangladesh Garment Manufacturers and Exporters Association. The signatories committed to moving from fossil to renewable energy and engaging their supply chains in this task. At a recent dialogue in Dhaka, it was asserted that the quicker the transition, the cheaper it will be.
The dialogue revealed that in Australia the highest rooftop capacity and PV installation reached about 30,000 MW within fifteen years. It was due to the effective Power Purchase Agreement (PPA) for the transformation to renewable energy.
To help reach our 30 percent renewable energy goals, the government must bring in competitive tariffs and increase private sector interest.
Bangladesh has set a goal of generating more than 8,080 MW of electricity from RE energy sources by 2030 against the current 958.49 MW. It has to increase its RE production to over 8 times its current capacity.
Solar panels are a key factor in the success of the solar energy industry. The service life of a solar panel is over 25 years, and it has simpler maintenance requirements. There were seven solar panel producers, and the production of these industries is almost closed except for a few.
Continuous changes in technology, quality and compliance issues, entrepreneurs not being able to gather quality certification of importing raw materials easily, and at the same time not being in a position to produce quality products because of poor research, are some of the reasons behind low local production.
Though the central bank of Bangladesh has announced several financial schemes announced for RE, they usually contain stringent conditionalities for banks. Export-oriented firms procuring capital machinery or accessories from local manufacturing firms may be considered for availing of these financing schemes.
Credit guarantee schemes (CGS) could be extended to cover all types of CMSME loans. Currently, the coverage is limited only to CMSME stimulus package loans.
Solar power is a complex business since many external factors influence the viability of photovoltaic systems, such as substantial land requirements and the availability of sunshine. The return on investment is better when these factors are aligned. The idea of a solar park has not yet flourished in the country. India has the largest Solar park in Jodhpur with a 14,000 acres area. Bangladesh has a plan for 8 Solar parks which are still in the planning stage.
Net-metering within the EPZ is not allowed to transfer power to the grid. EPC developers are not interested in setting up rooftop solar power plants under the OPEX model. Concerned stakeholders have suggested that a completely separate authority equipped with a proper budget be ensured to encourage investment in RE.
Many countries have developed different strategies for rewarding clean energy producers, one of them is providing digital currency called NRGcoin, which is based on blockchain and AI technology. Tax incentives and regulatory simplification for green certification, power purchase legislation and regional cooperation, incentives for market development, awarding projects based on the merits, GRID infrastructure development, tariff incentives, updating net metering guidelines, exploring alternatives of Carbon Taxation, etc, are some other options that can be offered to encourage clean energy production.
