Government Policy for Solar Irrigation Pumps in Bangladesh

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1 Government Policy for Solar Irrigation Pumps in Bangladesh S. M. Sanzad Lumen Assistant Director (Solar) SREDA ICIMOD, Kathmundu, Nepal February 20,

2 Sustainable and Renewable Energy Development Authority Power Division Ministry of Power Energy and Mineral Resources 2

3 SREDA ACT: The Sustainable and Renewable Energy Development Authority Act, 2012 SREDA Establishment: July,

4 VISSION AND MISSION OF SREDA SREDA Promotes Sustainable Energy and Builds an Energy Conscious Society to Ensure Energy Security and to Reduce Carbon Emission 4

5 Roles of SREDA Provide coordination of sustainable energy planning, including action plans linking together the activities of several agencies or organizations; Promote awareness of renewable energy and other clean energy technologies and integrate their development within overall national energy policy and development; Implement policies for mitigation of environmental issues arising out of use of Renewable Energy; Support demonstration of new technologies and new business models for renewable energy and other clean energy technologies; 5

6 Collect data and assess the renewable energy resource base, especially in the context of rural energy master plan; Stimulate market development for sustainable energy technologies, such as improved cook stoves and household biogas digesters; Provide financial support in the research and development of renewable energy technology; Support establishment of small and medium renewable energy enterprises and providers; 6

7 Bangladesh Power Sector: At a Glance 7

8 Generation Capacity : MW Peak Generation : 7418 MW (as on ) Total Consumers : 14.8 Million Electricity Growth : 10 % Transmission Lines : 9,200 km Distribution Lines : 2,81,123 km Distribution Losses : 11.8 % Per Capita Generation : 292 kwh Access to Electricity : 60% (53% Under National Grid and 7% under Solar Off-Grid Systems) Retail Tariff : Minimum 3.24 Cents/ kwhr Maximum Cents/ kwhr

9 Energy Generation by Fuel Type HSD 7% Renewable Energy 3% Imported 5% Coal 2% HFO 18% Gas 65% 9

10 Contribution of Renewable Energy Type Off-Grid Grid Connected Solar PV 145 MW 0.5 MW Wind 1 MW 0.9 MW Hydro 0.1 MW 220 MW Total MW MW Renewable Energy Share = 3.48% 10

11 Renewable Energy 2008 Development of Renewable Energy is one of the important strategies adopted as part of Fuel Diversification Program. In line with the Renewable Energy policy 2008, the Government is committed to facilitate both public and private sector investment in renewable energy projects to substitute indigenous non- renewable energy supplies and scale up contributions of existing renewable energy based electricity productions. The renewable energy policy envisions that 5% (800 MW) of total energy production will have to be achieved by 2015 and 10% (2000 MW) by 2020 from Renewable Energy sources. 500 MW Solar Program by 2016 will facilitate to reach the goal. 11

12 500 MW Solar Program Sl. No. Type and Location of the Project Aggregated Capacity 1 Solar Park on Unused Lands in Countryside 135 MW 2 Solar Mini-Grid in Islands and Remote Areas 25 MW 3 Roof Top Solar System by Consumers and Industries 30 MW 4 Roof Top Solar System by Railway Stations 10 MW 5 Roof Top Solar System by Government/ Semi Government Organizations 6 Roof Top Solar System by Remote Education Centers/ Health Centers/ Religious Establishments 41 MW 109 MW 7 Solar Irrigation Pump 150 MW Total 500 MW 12

13 Why not government subsidized projects Power Sector is hugely subsidized Liquid fuel is also subsidized Negative experience from government implemented irrigation projects Government Encourages Private Sector to come up with sustainable business model Dissemination of the technology through piloting Multiple use of Solar projects like husking, microgrid etc. along with 13 irrigation

14 Risk Cheap grid electricity for irrigation National grid intervention to the off-grid areas Liquid fuel price reduction Private Sector/Entrepreneur needs Atmosphere for secured private investment 14

15 Policy Support for Solar Irrigation Electricity connection for irrigation is discouraged Liquid fuel price is kept unchanged despite the price fall in international market For mini/micro-grid projects, government will purchase the electricity from the projects if national grid enter in the project area 15

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17 Impacts Capital flow to village Knowledge transfer to village people Improvement of socio-economic status 17

18 Thank You