The Prospects of the use of the renewable energy in Bangladesh

Course: BUS 221(Business Communication)

Prepared for
Hasina Marium
Faculty

Prepared By
Saiful Mahmood Russel Homayra Binte Wali Farah Hasan Sarah Nayel Ali 101 009 025 101 185 025 101 192 025 101 227 025

Students M.H. School of Business, Presidency University

Date of Submission: 5th April 2011

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Letter of Transmittal

Hasina Marium Faculty M.H. School of Business Presidency University Dear Madam: Subject: Submission of report. Here is the report which is due on 5th April 2011 as a requirement for completing the course on Business Communication (BUS 221). To prepare this report we have conducted with RAHIMAFROOZ RENEWALE ENERGY
LTD, which is one of leading companies in Bangladesh. Energy is the most critical resource

for human development. This energy is mainly obtained from two broad sources: nonrenewable and renewable. Non - renewable commercial energy, the main source of which is natural gas, Oil and coal are limited. Worldwide, there is a major transition

underway in the energy sector because of future energy security. Bangladesh is

continuing to exit the electric power capacity crisis and the reservation of natural gas decreasing rapidly. Its true the use of renewable energy would be one of solution of the current energy crises of Bangladesh as well as goods opportunity in the renewable energy sector. Thats why we have tried to prepare this report. We thank for giving us an opportunity to work on this area. It has developed our knowledge base on renewable energy sector of Bangladesh. If you find any difficulty regarding understanding any part of the report, please feel free to contact the undersigned. Regards Saiful Mahmood Russel Homayra Binte Wali Farah Hasan Sarah Nayel Ali

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Dated: 5th April 2011

Table of Contents
Topics
Executive Summary 1. Introductions 1.1. Origin 1.2. Scope 1.3.Purposes 1.4.Historical Background 1.5.Limitations 1.6.Sources 1.7.Method 1.8.Reports Preview 2. Company Profile 3. Definition 3.1.What is Renewable Energy 4. Importance Assessment 5. Technical Assessment 5.1.Solar 5.2.Wind Energy 5.3.Hydro 6. Market assessment 6.1.SHS (Solar Home System) 6.2.Solar Street Light 6.3.Telecom Solution 6.4.Bio Gas 7. Environmental Assessment 8. Policy Assessment 9. Finding and discussion 9.1.Power Generation 9.2.Rural Energy Services 9.3.Barriers to the prospect of Renewable Energy 10.Conclusion 11.References 15 16 17 17 17 18 19 20 8 9 10 10 11 12 12 12 12 13 13 13 14 14

Page
6 7-8 7 7 7 7 8 8 8

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List of Illustration
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No.
Fig-1 Fig-2 Fig-3 Fig-4

Topics
Yearly Installed Solar Home System Plans Yearly Growth Biogas Natural Recourses use in Commercial Energy Ratio of Commercial and Renewable Energy

Page
13 14 15 17

Executive Summary
Energy is the most critical resource for human development. Commercial energy is obtained from two broad sources: non-renewable and renewable. Non - renewable commercial energy, the main source of which is natural gas, Oil and coal. Bangladesh has small reserves of oil and coal, but potentially very large natural gas resources. Oil is the second most important energy, imported and huge amount foreign currency is required. And the coal reservation is in unusable condition. Bangladesh is continuing to exit the electric power capacity crisis and the reservation of natural gas decreasing rapidly. Therefore, based on the available information, it can be said that Bangladesh would be in serious energy crisis after 2020. To pull the country from the imminent crisis, renewable energy particularly solar energy could be the prime solution of economic development. Solar energy is used in limited scale producing about energy, now - mainly Solar Home Systems (SHS). Many GO/NGOs are engaged in introducing and popularizing the system. As well as many foreign and local investors are invested for developing and providing services the use of solar energy. Main barrier is the high cost of generating solar energy. In spite of that in remote areas where cost of grid electricity is too high, this system works well. Moreover with the passage of time, investment cost on solar energy devices is continuously decreasing. On the other hand, due to scarcity of nonrenewable energy resources there is a possibility of increasing their cost in the long run. As a result it would be cost effective in future. The government should consistently encourage promotion of solar technology by giving fiscal concessions and subsidy to the industry since it is pollution free. Bangladesh holds the potential to cost-effectively meet a significant fraction of its future electricity demand through the use of renewable generation technologies, possibly adding as much renewable capacity as the current overall electric power capacity of the country.
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1.1.

Origin

This report has been assigned by our course instructor Hasina Marium , Faculty M.H. Business School, Presidency University as a requirement for fulfill of the course on Business Communication (BUS 221). This report is due on 5th April 2011.

1.2.

Scope

In this report we have tried to focus the current position of the use renewable energy in Bangladesh. There are different forms of renewable energy in Bangladesh. But in the report we mainly describe the prospects of solar energy. As well as this report covers the technical, market, policy assessment of the Renewable energy in Bangladesh.

1.3.

Purposes

The aims of The Prospects of the use of the renewable energy in Bangladesh are to:
1. Renewable Energy is an alternative source of energy. 2. Mainstream forms of RE. 3. RE replaces conventional fuels in the distinct areas. 4. Social and Environmental impact. 5. Polices and guideline for RE .

1.4.

Historical Background

Bangladesh has a plentiful supply of renewable sources of energy. These sources are biomass, solar energy, tidal and wave. Bangladesh is an ideal location for solar energy utilization. Daily average solar radiation varies between 4 to 6.5 kWh per square meter. Maximum amount of radiation is available on the month of March and April and minimum on December and January. More than 80% of total population of the country lives in rural areas. At present major portion of total energy needs is met by locally consumed in the house hold and ongoing rural electrification program. For overall national development GOB takes to pay special attention so that the energy needs of rural areas for subsistence and productive requirements are met on a sustainable basis. As a result Renewable Energy Policy has been adopted by the Government of Bangladesh on 18 December 2008.

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INTRODUCTIONS

The policy has set a target of generating 5% of the total electricity from renewable sources

1.5.

Limitations

This report has prepared based on secondary information. There are number of NGOs and private companies (such as Grameen Saktee, BRAK, Rahim Afrooz solar) who are working Renewable Energy sector. But we are able communicate with only Rahimafrooz Renewable Energy Ltd. company. In this report we have tried to focus the activities of that company.

1.6.

Sources

To prepare this report we use secondary sources of information such as websites, Journals, newspapers, others regarding reports. We have conducted with one of leading company RAHIMAFROOZ RENWEABLE ENERGY LTD. who are working this sector.

1.7.

Method

Our report has prepared based on secondary information. We have used qualitative tools to analysis the secondary data for preparing this report.

1.8.

Reports Preview

In this report Section-2 Company profile, defines about the RAHIMAFROOZ RENEWABLE ENERGY LTD. TheSection-3 Definition also defines the Key word of Renewable Energy. Section 4 to 8 explains the Importance assessment, Technical assessment, Market assessment, Environment assessment, Policy assessment respectively. The Section 9 Finding and Discussion describes the overall qualitative analysis information of the report. Appendix-A includes all reference lists that we use to prepare this report.

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by 2015 and 10% by 2020

RAHIMAFROOZ RENEWALE ENERGY LTD is a RAHIMAFROOZ Croup company working dedicatedly in renewable energy field and is the leading renewable energy company in Bangladesh. RAHIMAFROOZ RENEWABLE ENERGY LTD. began its journey as a separate company in 2006 in order to transform lives people by providing Solar Power solutions for home, agriculture, health services, school and village market places.

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2. Company Profile

3.1. What is Renewable Energy Renewable energy is derived from natural processes that are replenished constantly. In its various forms, it derives directly from the sun, or from heat generated deep within the earth. Included in the definition is electricity and heat generated from solar, wind, ocean, hydropower, biomass, geothermal resources, and biofuels and hydrogen derived from renewable resources. Renewable energy flows involve natural

phenomena such as sunlight, wind, tides, plant growth, and geothermal heat.

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3. Definition

The energy prospect is generally assessed on the basis of available commercial sources of energy i.e., fossil fuel like gas, coal, oil etc. Investment costs of renewable are generally higher compared to fossil fuel alternatives, but this option becomes economically viable when all externalities environmental cost, health hazards and lower operating cost are taken into consideration. Worldwide, there is a major transition underway in the energy sector because of 1. Decline in fossil fuel availability. 2. Their predicted gradual extinction and the resultant price volatility due to demand-supply gap. 3. Need to drastically cut global emissions for mitigating climate change (80% reduction by 2050). 4. Finally Energy security

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4. Impotance of renewable energy

Mainstreams forms of Renewable Energy 5.1. Solar

Solar energy is the energy derived from the sun through the form of solar radiation. Solar powered electrical generation mainly relies on

1. Solar Photovoltaics (PV) 2. Concentrating Solar Power (CSP)

The technology involves harnessing solar radiation for generation of electricity through a number of steps finally generating mechanical energy to run a generator. This technology needs to be disseminated in the country to supplement the power supply.
5.2. Wind Energy

Wind Energy has also made some inroads but its potential is mainly in coastal areas, and offshore islands with strong wind regimes. These coastal settings afford good opportunities for wind-powered pumping and electricity generation. Presently there are 2 MW of installed wind turbines at Feni and Kutubdia
5.3. Hydro

Microhydro

and

minihydro

have

limited

potential

in

Bangladesh, with the exception of Chittagong and the Chittagong Hill tracts. Hydropower assessments have identified some possible sites from 10 kW to 5 MW but no appreciable capacity has yet been installed. There is one hydro power plant at Kaptai established in the 1960s with present installed capacity of 230 MW.

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5. Technical assessment

RE replaces conventional fuels in the distinct areas: 6.1. SHS (Solar Home System) Electrification through solar PV technology is becoming more popular, day by day in Bangladesh. Solar Home Systems (SHSs) are highly decentralized and particularly suitable for remote, inaccessible areas. SHS mainly targets those areas, which have no access to conventional electricity and little chance of getting connected to the grid. It is one of its most successful uses of renewable energy. Since 1996, penetration of SHSs increased rapidly, mainly due to the efforts of Grameen Shakti, which sells PV systems on credit to rural households through its
Fig-1

extensive network. Several other NGOs such as CMES and BRAC are also engaged in promoting PV technology. PV modules are generally imported. But recently there are a few private companies manufacturing PV accessories. Rahim Afroz Solar is one leading manufacturing PV accessories company. The figure represents information about Yearly installed SHS plans by GS (Grameen Shakti). In 2010 GS was installed SHS twice then in 2009. SHSs have become increasingly popular among users because they present an attractive alternative to conventional electricity such as no monthly bills, no fuel cost, very little repair, maintenance costs, easy to install any where etc. 6.2. Solar Street Light This type of product is offered in two different models for night time security in off grid or other area of concern. The street lights have automatic dusk to dawn controllers that enables the systems to turn on automatically the evening and turn off in the morning. Rahim afroz Solar are providing this type system. They have already setup more than 100 street lights in refugee camps of UNHCR in Teknaf in 2009.

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6. Market Assessment

6.3.

Telecom Solution network coverage. But the use of solar energy proactively comes forward as a pioneer with its Solar Power Station for wireless and telecom equipments including Base Tower Station (BTS), repeated stations in off grid locations. AKTEL , one of mobile operator of Bnagladesh and Rahim Afroz Solar jointly has successfully setup Solar power station in Hatia and Ragngamati in 2009 and finally covered mobile service on that rural area.
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Telecommunication sector in Bangladesh suffers from power crisis in expanding their

6.4.

BIOGAS In Bangladesh only 3% of the people enjoy the facility of natural gas coming to their homes through pipe lines who mostly live in the cities. Most of the Bangladesh's rural people depend on biomass, crop residues, plant debris, animal dung and wood for fuel creating deforestation, flood, soil erosion etc. They are the worst victims of indoor air pollution . Biogas technology is one of the best means to provide natural gas to the largest number of rural people. It can provide them with pollution free, efficient energy for cooking and at the same time protect them from diseases by giving them a cleaner environment. Successful in promoting and constructing both domestic and larger sizes biogas plants to rural villagers. It has been positive and demand is increasing day by day. All its clients are enjoying hassle free and pollution free energy for cooking and business activities. Bangladesh has the potential for developing 4.6 million biogas plants.
Fig-2

Fig-1

Social and Environmental impact

Bangladesh being one of the least developed counties of the world, has electricity coverage for only 35% of the land. Moreover, at present Bangladesh can only supply 70% of the the total power demand. 86% of the total numbers of power plants are operated by natural gas, 6% by coal, 4% by hydro power and 4% by oil, which imparts highest risk of severe environmental pollution. In modern days of global warming, every country around the world is highly concerned about
Fig-3

environmental pollution reduction and green energy. Implementation of SPV (Solar Photovoltaic Technology in power generation can significantly decrease environment pollution in terms of GHG (Green House Gas) emissions. The already installed 100,000 solar home system under IDCOL program producing 5.00 MW electricity reducing 21,773 tons CO2 emission per year. With the upcoming projects such as Solar Home System, Solar Submersible Pumps, Solar Telecom Solution and finally overall the use of renewable energy will play even bigger role in carbon emission in near future.

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7. Environment Assessment

Bangladesh the most abundantly available renewable resources are solar and biomass. There is some possibility of wind and micro hydro based energy development although they are very little in quantity and specific to some locations only. GOB encourages to and works for developing renewable energy resources to meet 5% of the total power demand by 2015. To accelerate the growth of the renewable energy sector of the country, GOB also provides fiscal incentives and police for only investors in renewable energy as well as incentives for foreign investors joining the energy market in Bangladesh. There is no proper guideline for general user whose are interest to transform the use renewable energy. As a consequence major financiers of renewable energy projects in Bangladesh are non-government organizations. But Renewable Energy projects are mainly donor driven programs for rural or distant electrification with subsidy or incentive and the market is transforming. Most of the renewable energy programs in Bangladesh are based on technology-driven and focus on Research and development, rather than emphasize promotion and encouragement of commercialization and private sector involvement. It is expected that some of the projects will attain commercialization without subsidy or incentives.

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8. policies Assessment

9.1.

Power Generation

Bangladesh has small reserves of oil and coal, but potentially very large natural gas resources. Commercial energy consumption is around 96% natural gas, with the remainder mostly oil (plus limited amounts of hydropower and coal). Noncommercial energy sources is 4%, such as wood, animal wastes, and crop residues, are estimated to account for over half of the country's energy consumption. The population connected to the electricity grid, and with power demand growing rapidly. Per capita consumption of
Fig-4

commercial energy and electricity in Bangladesh is one of the lowest among the developing countries. As a result Bangladesh is continuing to exit the electric power capacity crisis. Further, over 80% of Bangladesh's population still lives with no electricity, and the rate of grid expansion to connect rural villages is threatened by the looming capacity shortage. There are a number of underlying reasons for the crisis, but ultimately the country lacks the fossil fuel resources required to conduct a large scale grid expansion program. Bangladesh is facing, loses economic output due to power outages and unreliable energy supplies. In Bangladesh efficient utilization of electricity supply and future energy resources security is yet to assume renewable energy usage is essential. 9.2. Rural energy service It has been observed that RE technologies are economically viable for distant rural electrification program with upgrades the living standard of the rural mass. Only around 40% of the population (25% in urban areas and 10% in rural areas) has access to electricity. A large portion of the remote areas are not likely covered by the grid network due to inaccessibility and low customer density. RE technologies are considered viable alternative options for remote off-grid areas. Renewable energy can promote energy security and price stability by diversifying the energy supply. Currently, in the remote areas, usually diesel is used for few hours in the evening for off-grid electrification.

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9. Finding and discussion

Bangladesh imports diesel. It is obvious, that by substituting the diesel with RE energy can This report tries to outline the prospects for renewable energy, mainly solar power and biogas in Bangladesh and estimates the potential for commercial applications now and in the future. Bangladesh holds the potential to cost-effectively meet a significant fraction of its future electricity demand through the use of renewable generation technologies, possibly adding as much renewable capacity as the current overall electric power capacity of the country. 9.3. Barriers to the prospect of Renewable energy There are different types barriers experiences are describe below 1. Policy Barriers There is no proper utility regulations and guideline to renewable energy development and standardized power purchase agreement. 2. Technical Barriers Local manufacturing and/or assembly of renewable energy technology components are currently very limited, although the knowledge, skills, expertise and facilities are available in the country. Limited technical capacity to design, install, operate, manage and maintain renewable energy based modern energy services. 3. Economic and financial barrier High initial capital costs. Higher perceived risks of the renewable energy technology. Financial institutions are unfamiliar with financing renewable energy projects. 4. Proper information barriers Lack of awareness of renewable energy in public, industry, utility, financial institutions and policy-makers. Little empirical knowledge on the costs and benefits of the range of technologies available for providing renewable energy.
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diversify the energy mix and thereby save foreign currency.

Bangladesh is continuing to exit the electric power capacity crisis because of 70% of total commercial energy is provided by natural gas and remainder almost entirely provided by sources of energy. Presently proven reserves of indigenous gas will be exhausted by 2030. So the use Renewable Energy is the alternative solution to overcome this crisis. It has been made clear from the above discussion that Bangladesh is already dependent upon traditional renewable energy technologies. The Renewable Energy Programs of Grameen Shakti and Rahim Afrooz Solar has become highly acclaimed among national makers. It is expected that the Rural Electrification using Renewable Energy will also accelerate the growth of Renewable Energy utilization in the country. The use of RE are slowly finding a niche market in Bangladesh. But still there are lots of barriers that are not encouraging as the prospects of using renewable energy. Only during national or international workshops and seminars, outsiders or the general audience are able to know some of the experience from their refined presentations. There is no coordination among different implementors and it has been seen that same tasks were done by different groups resulting wastage of scare resources. To supplement GOBs visions Electricity for all by 2020. GOB has set a target to meet 5% of the total power demand by 2020 from renewable energy sources. As a consequence Renewable Energy Policy has been adopted by th GOB on Dec 2008. It has been made clear from the above discussion that Bangladesh is already dependent upon traditional renewable energy technologies.

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10. conclusion

1. Lesikar, Flatley, Rentz, Chapter-12 Long Formal Reports, Business Communication,9th

edition, Singapore, McGraw-Hill, 373-407

2. RECIPES, Renewable Energy in emerging and developing countries: Current

situation, market Potential and recommendations, Country energy information Bangladesh, Vol-513733
3. A.K.M. Sadrul Islam and Mazharul Islam , Status of Renewable Energy Technologies

in Bangladesh, ISESCO Science and Technology Vision, Vol-1, Page-51-60

4. Nasima akter, Alternative energy situation in Bangladesh a country review, Regional

Alternative Energy Technologies, vol-15

5. Dr. Anwar Hossain and Dr. Khalequzzaman, Utilization of Renewable Energy in

Bangladesh, Bangladesh Academy of Sciences, Dhaka, Bangladesh

6. Islam Sharif, RENEWABLE ENERGY DEVELOPMENT IN BANGLADESH,

IDCOL.
7. GOB, Renewable Energy Policy of Bangladesh, Ministry of Power, Energy and

Mineral Resources Government of the Peoples Republic of Bangladesh

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Referances