RESTRICTED PF/4215/DISSERTATION

RENEWABLE ENERGY FOR POVERTY ALLEVIATIONBANGLADESH PERSPECTIVE

ABSTRACT
Renewable energy for poverty alleviation is a slogan of the third world countries for sustainable development. One way of measuring development is the per capita energy consumption. The main source of energy in Bangladesh is biomass, which is renewable in nature. Other potential renewable energy sources are biogas, solar, wind, small-scale hydro, ocean and tidal. Renewable energy technology can generate income and improve health standard of women. But such an important sector is not given proper attention. This study will analyse the state of renewable energy in Bangladesh and suggest the steps needed for its exploitation for poverty alleviation. The study uses mainly secondary information for both quantitative and qualitative analyses. For further insight, review of books, journals and proceedings of renewable energy conferences have been extensively used.

1 RESTRICTED

RESTRICTED

PF/4215/DISSERTATION

RENEWABLE ENERGY FOR POVERTY ALLEVIATIONBANGLADESH PERSPECTIVE

INTRODUCTION 1. Renewable energy can be defined as Energy that is derived from natural process that are replenished constantly.1 It is generated from solar, wind, biomass, geothermal, hydropower and ocean resources. The combustible renewable and solid-biomass, charcoal, renewable municipal waste, biogas and liquid biomass are also categorized as renewable energy. Since most of the people in Bangladesh live in rural areas, it is important to utilize renewable energy in a planned and optimal way to reduce poverty. The rural people in Bangladesh are tied to poverty because they use very little energy and in an inefficient way. The social life of rural people can be improved by increasing the quantity and quality of energy use. One of the major challenges that our Government faces is to meet the future demand of electricity in rural areas. About 70 per cent of the population does not have access to electricity and only four per cent uses natural gas.2 The most conventional solution to rural electrification is the use of large-scale thermal power plant, which can not be materialized due to economic constraints, low consumer density and inaccessibility in rural areas. At this moment, Renewable Energy Technologies (RET) available in Bangladesh are mostly at demonstration level. But in future it will contribute significantly towards sustainable energy development to alleviate poverty in remote locations of Bangladesh.

2.

The rural poor people mainly use biomass as their primary source of energy. They

spend a large portion of their income buying energy for their households. Considering environmental pollution as a global issue, it is imperative to give emphasis on renewable energy. It will provide sustainability to energy and save the environment. Most sources of renewable energy are free, vast and inexhaustible. In Bangladesh, improved cooking stoves and biogas plants are the promising sources of renewable energy. However, with the reduction of price, photovoltaic (PV) systems are also becoming popular. Due to non-availability of wind data the utilization of wind turbine can not be materialized. But, low speed wind turbine 2 RESTRICTED

RESTRICTED for lifting water is a good option for Bangladesh. For utilization of small hydro, tidal and wave energy, considerable amount of researches are required. Renewable energy can be the helpful means to alleviate poverty provided institutional supports are made. Governmental and nongovernmental interventions in RETs in the form of financial assistance, initiative and motivation will further accelerate the process. 3. In order to overcome energy crisis in rural sector, the emphasis should be given on the

introduction of various renewable sources. For this, detail study of renewable sources, potentials and way of implementation of RET is necessary. In this context, this paper shall attempt to examine the state of renewable energy in Bangladesh and suggest the steps needed for its exploitation for poverty alleviation. In doing so, it will initially introduce the overview of energy and poverty scenario in Bangladesh. The present state and potentials of RET will be discussed later on. An endeavour would also be taken to highlight the contributions of different organizations involved in this field. In the main discussion, the paper will examine how renewable energy can alleviate poverty. Finally, the difficulties in implementing renewable energy with suggestive measures will be highlighted.

AIM 4. The aim of this paper is to examine the state of renewable energy in Bangladesh and

suggest the steps needed for its proper exploitation for poverty alleviation.

OVERVIEW OF ENERGY SOURCES AND POVERTY SITUATION IN BANGLADESH Energy Scenario in Bangladesh 5. General . In 1995, the total annual per capita energy consumption in the country

was estimated as 189 kilogram oil equivalent (kgOE). Out of this, the commercial energy consumption was 71.5 kgOE and biomass fuel was 117.5 kgOE. This is one of the lowest levels of energy consumption in the world.3 The known conventional energy sources are natural gas, coal, peat, oil, hydropower and biomass. In rural areas where nearly 80 per cent of 3 RESTRICTED

RESTRICTED the people live, the main source of energy is biomass. As a whole, 60 to 70 per cent of the energy demand is met by biomass fuel.4 So, if the proper utilization of biomass can be ensured, the hard earned money of the poor people that is used to buy firewood will be saved and the health standard of rural women will improve. 6. Natural Gas. The total recoverable reserve of natural gas in 22 discovered gas fields

is 15.51 trillion cubic feet (TCF). 3.90 TCF has been extracted up to June 2000. A net recoverable reserve in July 2000 was 11.61 TCF.5 Although natural gas has a great significance in our economy, it is not commercially viable to supply natural gas to the rural areas through pipelines in future. Production of biogas that utilizes the fuel value of waste like cow dung, leaf etc. is a more feasible option for the rural areas. 7. Other Commercial Energy. In the year 2000, Bangladesh imported 3.23 million

tonnes of petroleum and petroleum products. The total extractable coal deposit is 1000 million tonnes (300 million tonnes at Barapukuria and 450 million tonnes at Khalispur). The average consumption of coal in the country, mainly for brick burning is 0.5 million tonnes, which is also met by import. The total hydropower potential of the country is 755 Mega Watt (MW) and total installed capacity at Kaptai Dam is 230 MW.6 The prospect of utilization of coal in rural areas is very limited due to non-availability and transportation difficulties. 8. Distribution of Energy in Different Sectors. In the year 2000, 69.54 per cent of the

total energy consumed was from renewable sources and 30.46 per cent from non-renewable sources. Sector wise consumption was as follows: for domestic purpose 60.63 per cent, industrial purpose 21.57 per cent, commercial purpose 1.22 per cent, transport purpose 5.35 per cent, Agriculture 2.91 per cent, others 1.28 per cent. 7 In the power sector, the main energy sources were natural gas (84.5 per cent) and hydro (4.91 per cent).8 So it is clear that renewable energy sources account for the lions share of total energy sources and that maximum energy is utilized for domestic purposes.

Poverty in Bangladesh 9. Definition of Poverty. The widely known definition of poverty is based on calorie

intake. 9 As per the definition of World Bank, a person can take 2112 calories of food per day. 4 RESTRICTED

RESTRICTED A person consuming less than 90 per cent of this is considered to be living in absolute poverty and when it drops to or below 80 per cent he is considered to be in extreme or hard-core poverty. 10. Nature of Poverty in Bangladesh. Using the above definition and incorporating

non-nutritional aspects into the criteria, it was estimated that in 2000, 18.7 per cent of rural people (18.8 million) were living in hard-core poverty and that 44.3 percent people (42.6 million) were in absolute poverty.10 Though the main occupation of extreme rural poor is agriculture, the percentage of rural landless has increased from 25 per cent in 1960 to 50 per cent in 1998. About 50 per cent of marginal landowners hold only 3.7 per cent of the total cultivable land.11 The income from crop production is not enough to allow marginal and small households to survive. So, their basic needs exceed the agricultural income. To meet the deficits, they usually work as agricultural labourers in larger farms during the peak season and accept any other work at other times. Their income can not fulfil their nutritional requirements. So, many landless people migrate to urban areas where they again compete for scarce resources and limited opportunities. Poverty -Energy Relation 11. General. The fuel for most of the rural people is biomass, which is not an efficient

fuel. The poor people use kerosene lamp for lighting, as they do not have access to electricity Due to the burning of cow dung as fuel, the amount being used as organic fertilizer is reducing day by day. There are many problems that arise from the habitual use of biomass as energy. Few of them are discussed in this part of the paper. 12. Effect of Ineffient Use of Biomass Fuel. The rural women have to struggle to

gather lower grade biomass fuels in the form of agricultural and animal residues. Use of these fuels has the following effects: a. As the calorific values of these fuels are low, higher quantity of biomass is

required to meet the same energy demand. Therefore, time spent on gathering these fuels is high.

5 RESTRICTED

RESTRICTED b. c. The agricultural and animal residues formerly supplied nutrients to the soil. There is a range of health problems associated with this fuel cycle. Increased

Increased dependence on them as fuel results an ecological imbalance. exposure to smoke during cooking can cause acute respiratory infection, lung diseases, low birth weights, and eye problems. Adverse health effects can further increase poverty by increasing medical care expenditure and diminishing productivity. 13. Lack of Organic Fertilizer. In rural areas of Bangladesh, about 80 per cent of the

total cow dung is being used as cooking fuel. Thus, the use of inorganic fertilizers has increased. On the other hand, inorganic fertilizers are not energy sustainable. Fertilizer factories are the second biggest consumer (34.5 per cent) of natural gas.12 Extensive biogas plant installation can meet both the requirements. 14. Problems in Using Kerosene Lamp. Most of the villages do not have electricity.

They use kerosene lamps for lighting. This provides poor illumination, inadequate working hours at night, causes eye irritation and respiratory problems. It also limits the attainment of education. Better illumination from photovoltaic systems may justify their higher cost provided the time is used more productively.

RENEWABLE ENERGY: PRESENT STATE AND ITS POTENTIAL IN BANGLADESH

Present State of Renewable Energy in Bangladesh 15. General. No significant steps were taken by the government to implement viable

renewable energy plans except the tree plantation project. However, different organizations have taken limited scale steps to popularise improved cooking stoves, biogas plants and solar photovoltaic systems, which will be addressed subsequently. 16. Steps Taken by the Government. Though renewable energy is the major source of

energy, it is not given proper importance. Nothing was mentioned in the First Five Year Plan (FYP). In the Second, Third and Fourth FYPs, allocations were 0.09, 0.33 and 0.30 per cent of 6 RESTRICTED

RESTRICTED total energy budget respectively. No allocation has been made in Fifth FYP.13 In the Fourth FYP, total allocation was Tk. 270 million. Different sub-allocations were Improved Cooking Stove, Insulated Box Cooker, Briquetting Plant, Biogas Plant, Solar Thermal Conversion, Solar Photo Voltaic, Wind Power, Micro Hydro, Strengthen Energy Monitoring and Economic Wing.14 In Fifth FYP, it has been mentioned that the government extension agencies, Non Government Organizations (NGO) and private enterprises be involved without giving any financial allocation. 17. Improved Cooking Stove. Institute of Fuel Research and Development (IFRD) played Up to December 2002, about 3,00,000 households were provided with

the leading role in carrying out the research, demonstration and dissemination of improved cooking stoves. improved stoves.15 Directorate of Ansar and Village Defence Party (VDP), Rural Electrification Board (REB) and NGOs have been the partner organizations of IFRD.16 There is a great need to focus on the implementation of the improved cooking stove project to cover maximum number of households within a reasonable period. 18. Bio Gas Plant. During 1988-92, 141 floating-top biogas plants have been installed.

During 1995-2000, a total of 4,664 biogas plants have been installed by IFRD all over the country, costing Tk. 91.3 million. In the period 2000-2004, a total of 20,000 plants are have been installed.17 The Government has also given a subsidy of Tk. 7,500 to establish a biogas plant. To make such projects attractive, community based biogas plants is a good option. One such project was established at Nikli upazila of Keshoregonj district that supports 150 families. 19. Solar Photo Voltaic System. A number of organisations are carrying out feasibility tests by demonstrating pilot projects to earn the confidence of the rural people. Most notable one is the pilot project of solar PV at Karimpur and Nazirpur unions of Narshingdhi district. Total 1370 PV systems have been installed to electrify 1000 households and two health care centres.18 Similar projects have been undertaken by Local Government Engineering Department (LGED), Power Development Board (PDB), Bangladesh Atomic Energy Commission (BAEC), REB, Public Health Department, Grameen Shakti, Bangladesh Rural Advancement Committee (BRAC), to mention a few. Some of their contributions are reflected in the Table 1.

7 RESTRICTED

RESTRICTED

Table 1. Utilisation of Solar PV System. Organisation Involved (a) LGED 19 Location (b) Baliadangi Upazila, Thakurgaon District Shoilkupa Upazila, Jhenaidah. Sherpur Kamarul Rural Health Clinic, Terokheta Upazila, Khulna. Amboria Union Parishad Building, Kustia Dighinala Buddhist Temple Kutubdia Upazila Enginnering office Belaichari Upazila of Chittagong Hill tracts. Savar Shiloa Tea Estate Shandip hospital Moheshkhali hospital At different locations 2332 1880 1000 21743 Capacity in Watt (c) 2625 1800 225 1500 600 1080 375 300 14000 Remarks (d) To electrify 35 houses. To electrify in a rural market. To electrify a tourist resort. Solar Home Lighting System Solar water pump Solar water pump Small Solar Refrigerator 405 PV home system. To electrify their rural offices and some target groups. To electrify their rural offices and some target group.

PDB 20 BAEC 21

Public Health Department Grameen Shakti BRAC

Poshika

20.

Other Applications of Solar Systems.

A German supported NGO, Ananda, has

fabricated a longer and efficient version of solar drier. Similar effort has been undertaken by the Institute of Food Technology to develop a solar drier costing Tk. 3000. In Noakhali, it has been commercialised to dry coconut powder for biscuit factories. Small parabolic reflector type solar cookers were produced by IFRD but could not be materialized. However, Ananda 8 RESTRICTED

RESTRICTED has installed a large of parabolic reflector type cooker that is used to cook for a student hostel in a 48 litre pot.22 21. Wind Energy. Wind energy utilization is still limited to the measurement of wind

speed at various stations, rather than the implementation of actual projects. LGED has installed wind pumping systems at seven locations all over the country. Each wind pump can lift 20,000 litre water per day at a wind speed of 4 metre/second (m/s) at 10 meter water head. BRAC, Grameen Shakti, Bangladesh Committee for Advance Studies (BCAS) are engaged in the development and dissemination of wind technologies. Grameen Shakti installed wind generators of 1.3 kW at Chokoria Shrimp farm and BRAC installed 11 wind turbines at various coastal sites.23 All the installations are functioning and their performances are excellent. Grameen Shakti had also installed four wind-diesel hybrid generators at the cyclone shelters of Grameen Bank at Coxs Bazar, Borguna and Patuakhali districts. BCAS had installed a water wind pump at Patanga for irrigation purpose costing about Tk. 3,25,000.24 Potentials of Renewable Energy in Bangladesh 22. Biomass. Biomass is the most significant energy source in Bangladesh. Different

forms of biomass includes rice husk (26 per cent), cow dung (19 per cent), rice straw (16 per cent), twigs and leafs (14 per cent), badges (7 per cent), fuel wood (5 per cent) and jute stick (4 per cent).25 Biomass energy can be utilized for biomass-fired electric power plant, liquid fuels like bio-ethanol and bio-diesel, biogas and improved stove technology. The Government of Bangladesh has taken a lot of steps to popularise tree plantation movement since 1990. Moreover, introduction of trees in farmlands has reduced the burden on our reserve forests for firewood as cooking fuel. But to keep the momentum and accelerate the rural economic activities, the use of biomass fuel should be modified in a scientific manner to get the optimum result. The potentials of scientific use of biomass will be discussed subsequently. 23. Improved Cooking Stoves. In Bangladesh, approximately 18 million households

have conventional cooking stoves.26 Only about 0.3 million stoves could be replaced by improved cooking stoves, which is 1.6 per cent of the total households. The improved cooking stoves can save 50-60 per cent fuel as compared with traditional ones and save cooking time. There are 22 models of improved cooking stoves. The wide range of improved stoves can suit the requirement of various target groups ranging from the poorest homes to a busy hotel with 9 RESTRICTED

RESTRICTED commercial scale stoves. The design is simple and anyone with some training can make a stove with only clay as a material. The cost ranges from Tk. 30.00-1500.00 for various models.27 To accelerate the existing programmes by IFRD, the government should take adequate steps through social awareness and mass education programme. This easy and profitable technology can be explored to alleviate poverty. 24. Biogas Plant. The biogas technology provides fuel for cooking and lighting, gives

natural fertilizer for increased food production and also provides better sanitation. The technology is simple and consists of keeping waste out of contact with air. The gas is taken from the top for use as fuel. The residue left after gas evolution consists of sludge, slurry and water effluent. These are used as fertilizer and animal feed. About 1.9 million biogas plants can be installed basing on the possession of five cows per household in Bangladesh. The cow dung of five cows is sufficient for cooking purpose, lighting lamp, etc. 28 But, so far only 24,500 biogas plants could be installed. This is only 1.29 per cent of the total potential. About 99 per cent of the plants are in operation and 91 per cent of the households having such plant can meet the requirements for cooking fuel. There are 256 diploma engineers employed by IFRD to implement biogas plants in different phases. The cost of a plant depends on its size. To establish a 100 cubic feet biogas plant, the total cost is about Tk. 25,000.00. It includes capital cost, set up cost, maintenance cost, and annual operating cost. Its expected life is 20 years. Annual savings from firewood, kerosene and fertilizer are Tk. 13,240.00. 29 Thus, it is economical from a long-term perspective. However, increased capacity will provide more return. As an input, poultry waste, leaves, water hyacinth, kitchen organic waste etc. can also be added and sanitary latrines can be connected with the digester. More number of biogas plants can be installed with the help of micro credit facilities provided by the government and NGOs. 25. Biomass Gasifier Programme. This programme can use the rice husk. Rice husk is a

carbonaceous fuel and can be burnt under controlled air and water to produce a combustible carbon monoxide based fuel called producer gas. This gas, after cleaning and filtration, is injected into a diesel consuming set duly modified to run with gas and diesel. 1 litre of diesel can be saved by 5 kg of rice husk. The possibilities are going to be tested at Sherpur 25 kW biomass gasifier.30 Depending on the result, other such projects can be undertaken around the areas where rice mills are located. Grameen Shakti has established a 10 kW generator based on biomass gasifier in Tetulia at Ponchogorh. 31 10 RESTRICTED

RESTRICTED

26.

Briquetting of Rice Husk. The major portion of rice husk is used in rural cooking.

The commercial utility is almost nil. Now rice husk can be compacted by briquetting with the application of pressure and temperature in a screw type machine. This technology helps to transfer the fuel to areas where there is crisis of fuel. Almost 900 of such machines are available in different parts of the country.32 It is a more convenient and efficient fuel. 27. Solar. The use of solar energy depends on geographical location, temperature,

humidity and availability of sun ray. Bangladesh is a subtropical country lying in the northeastern part of South Asia between 20034 and 26038 north latitude, and 88001 and 92041 east longitude. Average temperature varies between 200 to 300 C. Global daily average solar radiation varies from 3.12 to 5.23 kWh/m2.day.33 With this geographical location it has a reasonably good solar energy potential. A survey by World Bank reported that about 500,000 households may be the potential market for solar home systems.34 A variety of solar system have been developed and fabricated in the country. The emphasis should be given on solar driers, solar water heaters, solar cookers, solar water pasteurisation and solar distillation. The driers can be implemented for agro-based industries. 28. Wind Energy. The wind pattern of Bangladesh indicates that average wind speed is

3 to 4.5 m/s for the month of March to September and 1.7 to 2.3 m/s for the remaining period.35 These wind data were taken at a very low height by the metrological department. With this wind speed, it is not feasible to set up the commercial wind turbines. One mentionable point is that the velocity of wind increases with increase in height. The wind power is proportional to the cube of the wind velocity. Wind data logging at 50 to 100 meter is necessary to assess the feasibility of a large wind turbine that can produce 5-10 MW electricity. Recently the Government of Bangladesh has undertaken a programme to study the wind velocity at different prospective regions of Bangladesh with financial assistance from United Nation Development Programme (UNDP). The study predicts that coastal regions and remote areas like Kuakata, Khepupara, Hatia, Sandip, Chittagong, Patenga, Coxs Bazar, Teknaf etc. have sufficient wind velocity for generation of electricity and pumping water. Available wind velocities in other regions of Bangladesh are useful for driving the water pumps. 29. Small Hydro. The potential for establishment of micro hydropower plants are feasible in Chittagong Hill Tracts and some parts of Sylhet. The possibility also exists if hydro 11 RESTRICTED

RESTRICTED water turbine can be established at large irrigation projects. So the Sangu, Matamuhuri, Teesta Barrage project have some potentials to set up small water turbines. LGED has taken steps to establish hydro power plants at Mayamachara, Miresharai in Chittagong. Based on monthly discharges, an assumed hydro potential of ten major medium perennial rivers in the Northeastern region of Bangladesh, is estimated at about 161 MW of continuous power, potentials of nine Maghalaya group rivers is estimated as 35 MW.36 So, various water turbines can be used to produce electricity. 30. Tidal and Wave Energy. Bangladesh has a 710 km long coastal belt along the

Bay of Bengal. The main marine energy sources are tidal, wave and oceanic thermal energy conversion. The normal tidal head rise and fall in the coastal region of Bangladeshi is between two and eight metres. This tidal range can be converted to pollution-free clean renewable energy application by using the simple low-cost technology of a tidal wheel in the sluice gates. So, tidal power can be harnessed in the near future if it becomes a technically and commercially viable option.

CONTRIBUTIONS OF DIFFERENT ORGANIZATIONS INVOLVED IN RENEWABLE ENERGY The Organizations Working on Renewable Energy in Bangladesh 31. Government Organizations and Public Universities. Different organizations working on renewable energy projects are Bangladesh Agricultural University (BAU), BAEC, IFRD, Centre for Energy Studies (CES) of Bangladesh University of Engineering and Technology (BUET), Bangladesh Renewable Energy Association (BREA), Bangladesh Solar Energy Society of Dhaka University, Centre for Mass Education and Science (CMES), PDB, REB and all public engineering universities. 32. RET Companies. Different private organizations working for renewable energies are

Rahim Afroz Limited, Energy Systems, Simens Bangladesh Limited, Micro Electronics and Solar Energy System. They are involved as manufacturer, importer, distributor, system integrator, service agency and in research and development activities.37

12 RESTRICTED

RESTRICTED 33. Different NGOs. Different NGOs involved in RET are Grameen Shakti (PV and Wind), BRAC (PV, Wind, Biogas), Ananda (PV), Solar Energy Association and Prokaushali Sangsad (PV). 38 Major Researches Conducted in Bangladesh 34. Research Objectives. Objectives of renewable energy related research and development (R & D) activities are: 39 a. To utilize the existing traditional and commercial fuels more efficiently by

improving the efficiencies of different burning devices commonly used in the country for its conversion, reductions of the emission of green house gases in the environment and to check the health hazards of the users. b. fuel. c. Better utilization of biomass and other organic waste matters for production of Rapid production of biomass and fast growing trees for utilization of biogas as

biogas and its conversion into electricity for improving the life of rural people of the country. d. e. institutes. 35. Renewable Energy Related Research. Some of the R&D in different fields conducted Utilization of solar, wind and micro/mini hydro energy. Pilot scale dissemination of different technologies innovated by different

so far are as follows: a. Solar. Photovoltaic, water heater, cooker parabolic, cooker box type, dryer,

wood seasoning plant, solar passive architecture and drinking water disinfections. b. Biomass. Improved stoves, biogas plant, briquetting machine, biomass production in riverbed and waste land, destructive distillation of wood and wood wastes.

13 RESTRICTED

RESTRICTED c. Wind. Design and fabrication of different horizontal and vertical axis low cost

wind turbine like multi-bladed wind turbine; Savonious wind turbine mainly for water pumping and irrigation purpose. d. Mini Hydro. Water current turbine.

HOW RENEWABLE ENERGY CAN ALLEVIATE POVERTY? Prospective Sectors for Bangladesh 36. RET institutes should implement different projects considering our socio economic aspects. The priority should be improved stoves. Already some countries like Kenya are successfully implementing such projects. Bangladesh started with improved stoves projects but progress is slow. The awareness should be developed like it was for the sanitation programme. The next priority should be given to biogas plants. For taking loans for dairy or poultry farm from any national bank, the compulsion should be given to establish biogas plant. The PV system is already popular. It is expected that within next 10 to 20 years the price of solar panel will be reduced. However, in every remote village, for common community institutes like hospitals, primary schools, mosques and markets, government should donate PV system. There are great prospects for solar driers and solar heaters in agro-based industries. Low cost windmills are economically viable for lifting water. Multiple RET projects need to be undertaken in the same rural areas. It will help the people to generate income, save time and money. The implemented projects can be the role model for other people. Strategy. 37. The strategic guidance for using renewable energy for poverty

alleviation can be as follows: a. The energy work is explicitly poverty focused and is driven by a needs led

approach. 14 RESTRICTED

RESTRICTED b. All programs are gender sensitive so accordingly target groups need to be

selected. c. Adoption of a multi technology approach based on the energy needs of the

community it is working with. d. e. Focused on small-scale decentralized technologies. Financial sustainability is given adequate importance.

Considerations 38. Technical Feasibility. Following criteria should be considered: a. The state of art of these technologies, indicating where they have been used, at

what capacities, for what purposes, and under what conditions. b. The technical resource of the site and necessary data like indicating wind

speed, solar radiation, availability of biomass. c. The operating characteristics, including requirements of local skills and

maintenance procedures. d. The level of local replicability, including locally available materials and

resources to manufacture these technologies. e. 39. Environmental implications relative to existing technologies.

Financial Feasibility. RETs should be financially feasible. It should generate income

after deducting covering operation and maintenance costs, administrative costs and payback of capital on a regular basis. The technologies should be used for different purposes in different seasons. For example, biogas technology could be used to generate electricity for irrigation in the dry season, while it could supply thermal energy for paddy parboiling in the rainy season when other biomass fuels get wet. 15 RESTRICTED

RESTRICTED

40.

Financial Sustainability. RETs need to be financially sustainable. The project should

be able to operate satisfactorily beyond the initial funding period. Necessary arrangements for monitoring, onsite services and spare parts supply would therefore be required to maintain customer satisfaction, following the wind-up of bank involvement when the capital cost is recovered. 41. Social Aspects. The technologies should be socially equitable. These requirements

raise issues of gender equity. Additional income from RETs should help reduce income disparities, and preferably have effects on employment through RET applications such as the manufacture of biogas cookers, lanterns or holders. Implementation Approach. 42. To implement any project like biogas plant, small hydro, improved

stoves, wind turbine etc. following approach can be considered: a. Pilot projects that demonstrate the installation, use, and

economic value of the project to communities, officials and financial institutions to be established. b. Training course to be provided to the community and technical

support covering the manufacture, installation and maintenance of the project. This is to ensure that community members can operate the project independently without others support. c. To establish few demonstration centres to display the purpose

of that project, and provide facilities for training courses. It will also help in replication of the project. d. Finally, helping to set-up credit scheme that will provide loans

to communities who want to establish the project. Financial and

16 RESTRICTED

RESTRICTED technical assistance can be integrated by some NGOs to implement the project initially. A Proposed Model. 43. A model to implement the RET can be formed by assisting a group of village people,

specifically from landless and marginal farm households, to form a business or a cooperative. The formation of this village organisation will be facilitated by an external agency comprising of representatives from NGOs, universities, businesses and government with experience in rural development, management and the technologies of interest. 44. Function of External Agency. This agency would be funded by national and

international sources. Its role would be to: a. Initiate the project in a particular village in close consultation with the

villagers. b. c. Assist in the formation of the Village Organisation. Facilitate the creation of the institutional capacity, by training and guiding the

village organisation in project/business management, accounting, operation and management of RETs that are appropriate to the region, and marketing of the RET product (electricity or gas) to other members of the village. d. 45. Liaison between the village organisation and the bank. The investment required for a large scale RET project needs a large

Financing.

amount of capital. Micro-credit banks such as Grameen Bank may not be able to finance them. So, other ordinary banks or a large NGO may provide the finance. However, for projects like the biogas case study, the micro-credit programmes may help to provide loans to enable individual poor women to purchase animals, tools and appliances to make effective use of the RET. During the payback period for the RET, all monetary transactions (investment, bill collection and allocation) would be carried out by the bank. Most of the total bill collected would recycle back to the target group of equity holders for operation and maintenance. 17 RESTRICTED

RESTRICTED However, the choice of RET must be appropriate to the locality in order to sustain a local market. 46. Target Group. Rural poor women need to be considered while implementing

such projects. For projects like biogas plant, the women are better targets as they are the user. Moreover, they perform better as experienced from micro-credit loans by Grameen Bank and BRAC. However, men would be the targets for RETs like irrigation and other small industries.

Benefits Obtained from RET 47. The renewable energy will help to: a. b. c. Extend working hours. Extend selling and shopping hours in the rural areas. Increase income from women-led micro-enterprises including basket making,

electronics repair, carpentry workshops, tailoring, stores, fish net weaving, and so on. d. Develop local technical retailers including local expertise in selling, maintaining,

and repairing electrical components for PV systems. e. Facilitate children's education, health benefits and recreational activities of rural

households. Poverty Alleviation by RET 48. Within limited scope of the current study, it is really difficult to assess whether

renewable energy can really alleviate extreme poverty or not. But, RET can be most beneficial way for the alleviation of poverty of the moderate poor. To prove or disprove in a scientific way, some of the model projects have to be implemented considering peoples energy need, resources available, capacity build by organizing groups, will to implement, feasibility to 18 RESTRICTED

RESTRICTED generate incomes with the help of RET etc. In the current research, the present state, potentials and some of the ways to alleviate poverty has been highlighted only. It is hoped that with further object-oriented research the correct findings will be established. DIFFICULTIES IN IMPLEMENTATION AND SUGGESTIVE MEASURES Difficulties 49. Lack of Knowledge. Lack of awareness and confidence about renewable systems in

rural areas are the major barriers to commercialise such systems. Some of the rural people even do not believe that PV modules can produce electricity and that biogas can be used for lighting and cooking. 50. Complicated Technology. Technology is sometimes too complicated for users and

dealers to maintain. 51. Economic and Financial Barrier. The price of RET is high in comparison to

commercial energy. The rural poor people do not have the purchasing power, so demand for such systems is less. Moreover, no government bank loan facilities are available for such technologies and high import duty of PV system is also a barrier. 52. Lack of Political Initiative. Bangladesh has good prospects of renewable energy but

there was no allocation in the budget to implement it. There is even no policy on how to expand the growth of RET. So, strong political will is necessary to formulate the policies and allocate the budget. 53. Organizational Barrier. Lack of developed market infrastructure and maintenance

facilities of the systems are also barriers for RETs growth. Without developing a good market size, local entrepreneurs will not be involved with RET related business. 54. Lack of Standardization. Bad quality products including servicing can reduce the

growth of this sector. Product quality will ultimately improve the market size.

19 RESTRICTED

RESTRICTED Suggestive Measures 55. Design, Development and Demonstration. Developing capability to design,

implement and operate small scale energy projects where they can be proven to be more accessible, more cost effective and more sustainable than other centralized energy supplies. Demonstration is equally important for dissemination of information. 56. Training. The important aspect of human resource development is education. The

technologies like solar home lighting, biogas plant, mini-hydro plant, solar water heating, photovoltaic system should be demonstrated and publicised on mass media to educate people. 57. Pricing and Marketing Reform. Unless renewable energy is affordable and

consumers are given micro credit, it will never be popular. There has to be initiatives from different organizations that will provide the market facilities to bring massive social awareness of using renewable energies. Gradually, rural enterprises will be developed to make the instruments and equipment available, and disseminate information. 58. Government Initiatives. To keep the environment pollution free and healthy,

government must formulate a good renewable energy policy. Allocation of sufficient budget is necessary. Government should build revolutionary social awareness for implementing at least low-tech RET activities. Printed and other mass media can be utilized to popularise RETs.

CONCLUSIONS 59. Bangladesh is one of the lowest energy consumers in the world. The primary energy

for the rural people is biomass for cooking and kerosene for lighting. Although natural gas has a great significance in our economy, it is not commercially viable to supply natural gas to the rural areas through pipelines in future. Moreover, the prospect of utilization of coal in rural areas is very limited due to non-availability and transportation difficulties. Electricity produced from natural gas is also limited. The solar, wind, tidal energies as well as small scale hydro turbines can produce electricity. So, the renewable energy sources will retain the lions share of total energy sources in future (Paragraph 5-8). 20 RESTRICTED

RESTRICTED

60.

To define poverty, calorie intake of food is considered as the base. Poverty can be

absolute or extreme. There is a relationship between poverty and energy. The poor people use less amount of energy. Biomass is their main fuel in the form of agricultural and animal residues. The calorific values of these fuels are low. Inefficient use of biomass causes women acute respiratory infection, chronic obstructive lung diseases and eye problems mainly from smoke. Use of kerosene for lighting causes similar problems. Adverse health effects can further increase poverty. In Bangladesh about 80 per cent of the total cow dung are used as cooking fuel, so its use as organic fertilizer has been reduced extremely. Kerosene lamps also provide poor illumination and inadequate working hour (Paragraph 9-14). 61. Though renewable energy is the major source of energy, it is not given proper

importance. In the Fifth FYP, no allocation was given in the RET sectors. To improve the efficiency of biomass fuel, IFRD played the leading role in carrying out research, demonstration and dissemination of improved cooking stoves. Up to December 2002, about 300,000 households were provided with improved stoves saving almost 50 per cent of firewood. LGED, REB, PDB, Grameen Shakti, Proshika have installed PV systems in different remote areas. LGED, BRAC, Grameen Shakti have also set up wind turbines at different coastal areas to asses their feasibility (Paragraph 15-21). 62. Biomass is the most significant energy source in Bangladesh. Biomass can be utilized

for biomass-fired electric power plant, liquid fuels like bio-ethanol and bio-diesel, biogas and improved stove technology. The most practical way for efficient use of biomass is improved cooking stoves. Approximately 0.3 million stoves out of 18 million were replaced by improved cooking stoves, which is 1.6 per cent of the total households. Another practical solution of biomass is biogas technology. Biomass gasifier, briquetting of rice husk are other means for using biomass for poverty alleviation (Paragraph 22-26). 63. The prospects of using solar energy is good. Global daily average solar radiation varies A survey by World Bank reported that about 500,000

from 3.12 to 5.23 kWh/m2day.

households may be the potential market for solar home systems. Other uses of solar energy are solar drier, solar water heater, and solar cooker, solar water pasteurisation and solar distillation. The study on wind energy utilisation predicts that in coastal regions wind velocity is sufficient for generation of electricity and pumping water. Utilization of small hydro, tidal 21 RESTRICTED

RESTRICTED and wave energy has little prospects and require detail investigation to utilise (Paragraph 2730). 64. Different organizations are working on the renewable energy projects for

dissemination, R&D and marketing. The R&D activities are aimed at utilising the existing traditional and commercial fuel more efficiently. It is also aimed for better exploitation of biomass and other organic waste matters for production of biogas and its conversion into electricity. The other R&D activities are for utilisation of solar, wind and micro hydro energy and in pilot scale dissemination of different technologies innovated by different institutes (Paragraph 31-35). 65. RET institutes should implement different projects considering our socio economic

aspects. Priority should be given to improved stoves, biogas plants, PV system and low cost wind turbines for lifting water. It will help the people to generate income, save time and money. The implemented projects can be the role model for other people. The guidelines can be: the RET work should be explicitly poverty focused; selection of target groups to be women oriented; adopting a multi technology approach; focusing on small-scale decentralized technologies and suitable financial support (Paragraph 36-37). 66. Technical feasibility includes resource of the site, operating characteristics, local skills,

level of local replicability and environmental implications. Financial feasibility includes profit and chances of enhancing income generation considering all costs. RETs also need to be financially sustainable. The project should be able to operate satisfactorily beyond the initial funding period. The technologies should be socially equitable. Additional income from RETs should help reduce income disparities, and preferably have effects on employment through RET applications such as the manufacture of biogas cookers, lanterns or holders (Paragraph 38-41). 67. To implement any RET project, pilot projects that demonstrate the

installation, use, and economic value of the project should be established. Training courses and technical support are to be made available to ensure that community members can operate the project independently without others support. To set up credit scheme that will provide loans to communities who want to establish the project is essential. A model to 22 RESTRICTED

RESTRICTED implement the RETs can involve external agency, village organisation and micro credit financial institution. If proper target group can be selected, it can definitely generate income and improve social life. However, it is really difficult to assess whether renewable energy can really alleviate extreme poverty or not. RET can certainly be beneficial for the alleviation of poverty of the absolute poor (Paragraph 42-48). 68. Lack of knowledge on RET, technological complicacy, economical and financial

constraints, lack of political initiatives and organisational weaknesses are the major barriers for growth of RETs. Suggested measures can be developing capability to design, implement and operate small-scale projects, human resource development by arranging appropriate training, arranging micro credit facilities and formulating a well developed RET policy (Paragraph 49-58). RECOMMENDATIONS 69. The paper recommends the following on the use of renewable energy sources to foster

poverty alleviation in Bangladesh: a. The government should undertake massive programmes to implement

improved cooking stove projects. Technical assistance can be given by IFRD. AnsarVDP and local government authorities can encourage the people for implementation of such projects. b. Community based biogas plants should be established for better sanitation and

as a source of efficient fuel. Government owned banks should be allowed to provide micro credit loans. c. All remote schools, clinics inaccessible to electricity should be given the

facilities of solar PV systems as a part of demonstration and subsequently building confidence among others to purchase such systems. d. Low cost wind power can be set up for pumping water. However, more data at

the height of above 100 meter should be collected at various potential sites for implementing large wind turbines for generating electricity. 23 RESTRICTED

RESTRICTED

e.

Immediate formulation of RET policy is necessary with sufficient budget

allocation. f. All RET agencies should coordinate activities, exchange information and take

necessary steps for training, financing, marketing, demonstrating and organising the RET projects. g. Mass media should take necessary steps for disseminating RET related

information.

Mirpur November 2004 (Total Words 6999) Distribution: Commandant Defence Services Command and Staff College Mirpur Cantonment Dhaka

MD HUMAYUN KABIR BHUIYAN Major Student Officer

24 RESTRICTED

RESTRICTED

BIBLIOGRAPHY Books 1. M. Imtiaz Hossain, Solar Radiation in Bangladesh, Photovoltaic Technology For Bangladesh, BUET, March 2001. Statistical Pocket Book of Bangladesh 2002, Bangladesh Bureau of Statistics Planning Divion, Ministry of Planning, 2004.
2.

Journals 3. M. A. R. Sarkar, M. Ehsan and M. A. Islam, Issues Relating to Energy Conservation and Renewable Energy in Bangladesh. Energy for Sustainable Development, Vol VII No. 2. June 2003. 25 RESTRICTED

RESTRICTED

4. Mozaharul Alam, Diffusion potential of Renewable Energy Technology: Energy For Sustainable Development, Vol VII No. 2, June 2003. 5. M.M Golam Hossain, Improved Cooking Stoves and Biogas Programmes in Bangladesh, Energy for Sustainable Development, Vol VII No 2. June 2003. 6. Mohammad Upal Mahfuz, Wind Energy Status at Bangladesh. Wind Engineering, Volume 25, No.3, 2001. Papers Presented in the Conference
7. A. M. Aziz-ul Huq, M. A. R. Sarkar and M. A. Hasan, Renewable Energy for

Sustainable Development, Bangladesh Context, Proceeding of the International Conference on Renewable Energy for Sustainable Development, IEB, 2003. 8. MM Golam Hossain, Prospect of Improved Cook Stoves in Bangladesh, Proceeding of the International Conference on Renewable Energy for Sustainable Development, IEB, 2003. 9. M. Nurul Islam, Renewable Energy in Bangladesh Government Policy, Proceeding of nd the 2 International Seminar on Renewable Energy for poverty Alleviation, IEB, 1999. 10. M. Anwar Hossain, Renewable Energy For Poverty Alleviation-Bangladesh Perspective, Proceeding of the National Seminer on Renewable Energy for Poverty Alleviation, IEB, 21-23 October 1997. 11. Wahidul K. Biswas, Model for empowering rural poor through renewable energy technologies in Bangladesh, Environmental Science & Policy, 4:333-344 (2001). 12. Munir Siddiqui and A. N. M. Zobayer, Sustainable Development Initiatives by LGED Through Renewable Energy, Proceeding of the International Conference on Renewable Energy for Sustainable Development, Centre for Energy Studies, BUET, 2003. 13. Naved Ahmed Chowdhury, Linking Renewable Energy with Poverty Alleviation: the ITDG Experience and Its Significance for Bangladesh, Proceeding of the 2nd International Seminar on Renewable Energy for Poverty Alleviation, IEB, Dhaka, Nov., 26-27, 1999. 14. M. A. R. Sarkar, Availability of Renewable Energy Resources in Bangladesh, Training Workshop on Renewable Energy Education & Application for Rural Communities in Bangladesh, Centre For Energy Studies, BUET, Dhaka, Nov 27-Dec03, 1999. 15. Dilip Kumar Paul and A. N. M. Karim, Economic Performance of Bio-gas Plant in the Context of Bangladesh, Proceeding of the Training Workshop on Renewable Energy Education & Application for rural communities in Bangladesh, BUET, Dhaka, Nov 27-Dec03, 1999. 16. A. Hoque, W.C. Beattie and Q. Ahsan, Alternative Energy Sources in Bangladesh, Proceeding of National Seminar on Renewable Energy for Poverty Alleviation in Bangladesh. 21-23 October, 1997.

26 RESTRICTED

RESTRICTED 17. C N Quadar, Commercialization of Renewable Energy in Bangladesh, Proceeding of nd the 2 International Seminaron Renewable Energy for Poverty Alleviation, IEB, Dkaka, Nov. 26-27, 1999. Article 18. Sufi Siddiqui, Renewable Energy in Bangladesg Issues and challenges, Energy and Power, January 2004. 19. Md. Fazlur Rahman, RE Activities of BPDB, Energy and Power, January 2004.

Web Sites

20.

www.lged-rein.or\ R &D in Renewable.

Interview by Author 21. Dr. Md. Abdur Rashid Sarkar, Professor, Department of Mechanical Engineering, Bangladesh University of Engineering and Technology, Dhaka, 12 September 2004.

Endnotes:

27 RESTRICTED

A. M. Aziz-ul Huq, M. A. R. Sarkar and M. A. Hasan, Renewable Energy for Sustainable Development, Bangladesh Context, Proceeding of the International Conference on Renewable Energy for Sustainable Development, IEB, 2003, pp. 1.
1

M. A. R. Sarkar, M. Ehsan and M. A. Islam, Issues Relating to Energy Conservation and Renewable Energy in Bangladesh. Energy for Sustainable Development, Volume VII No. 2. June 2003, pp. 77. MM Golam Hossain, Prospect of Improved Cook Stoves in Bangladesh, Proceeding of the International Conference on Renewable Energy for Sustainable Development, IEB, 2003, pp. 203.
3

M. Nurul Islam, Renewable Energy in Bangladesh Government Policy, 2nd International Seminar on Renewable Energy for poverty Alleviation, IEB, 1999, pp. 77.
5

MM Golam Hossain, no. 3, pp.203. Ibid, pp.204. Ibid, pp.205.

A. M. Aziz-ul Huq, M. A. R. Sarkar and M. A. Hasan, no. 1, pp.3.

M. Anwar Hossain, Renewable Energy For Poverty Alleviation-Bangladesh Perspective, National Seminar on Renewable Energy for Poverty Alleviation, IEB, 21-23 October 1997, pp. 1.
9

Statistical Pocket Book of Bangladesh 2002, Bangladesh Bureau of Statistics Planning Division, Ministry of Planning, 2004.
10 1 11

. Wahidul K. Biswas, Paul Bryce and Mark Diesendorf, Model for empowering rural poor through renewable energy technologies in Bangladesh, Seminar on Environmental Science & Policy 4:333-344 (2001), pp. 1.
1 12

Ibid, pp. 4.
13 1 14

M. Nurul Islam, no. 4, pp. 71-73.

Ibid, pp.72-73. Mozaharul Alam, Diffusion potential of Renewable Energy Technology: Energy For Sustainable Development, Vol VII No. 2, June 2003, pp. 93.
15 16

MM Golam Hossain, no. 3, pp. 209.

M.M Golam Hossain, Improved Cook Stoves and Biogas Programmes in Bangladesh, Energy for Sustainable Development, Vol VII No 2. June 2003, pp. 100.
17

Naved Ahmed Chowdhury, Linking Renewable Energy With Poverty Alleviation: the ITDG Experience and Its Significance for Bangladesh, Proceeding on 2nd International Seminar on Renewable Energy for Poverty Alleviation, IEB, Dhaka, Nov., 26-27, 1999, pp. 541.
18

Munir Siddiqui and A. N. M. Zobayer, Sustainable Development Initiatives by LGED Through Renewable Energy, Renewable Energy for Sustainable Development, Centre for Energy Studies, BUET, 2003, pp. 513-524.
19 20

Md. Fazlur Rahman, RE Activities of BPDB, Energy and Power, January 2004, pp. 15.

M. A. R. Sarkar, M. Obaidullah, D. K. Das and A. M. A. Huq, Availability of Renewable Energy Resources in Bangladesh, Training Workshop on Renewable Energy Education & Application for Rural Communities in Bangladesh, Centre For Energy Studies, BUET, Dhaka, pp. 7.
21 2 22

Ibid, pp.10.
23

Ibid, pp.10. Mohammad Upal Mahfuz, Wind Energy Status at Bangladesh. Wind Engineering Volume 25, No. 3, 2001. M. A. R. Sarkar, no. 21, pp.5 M. Nurul Islam, no. 4, pp.78.

24

25

26 2 27

MM Golam Hossain, no. 3, pp. 208.

2 28

M. Nurul Islam, no. 4, pp. 78.

2 29

Dilip Kumar Paul, A. N. M. Karim, Economic Performance of Bio-gas Plant in The Context of Bangladesh, Training Workshop on Renewable Energy Education & Application for rural communities in Bangladesh, BUET, Nov 27-Dec03, 1999. pp. 420.
30

Munir Siddiqui and A. N. M. Zobayer, no. 20. M. A. R. Sarkar, no. 21, pp.13. Ibid pp.13.

31

32

M. Imtiaz Hossain, Solar Radiation in Bangladesh, Phovoltaic Technology for Banglasedh, BUET, March 2001.pp. 47.
33 34

M.A.R. Sarkar, no.2, pp. 84.

A. Hoque, W.C. Beattie and Q. Ahsan , Alternative Energy Sources in Bangladesh, Proceeding of National Seminar on Renewable Energy for Poverty Alleviation in Bangladesh, 21-23 October 1997. pp.43.
35 36

Naved Ahmed Chowdhury, no. 21, pp.538.

C N Quadar, Commercialisation of Renewable Energy in Bangladesh, 2nd International Seminaron Renewable Energy for Poverty Alleviation, IEB, Dkaka, Nov. 26-27, 1999.
37 38

Ibid. Website at www.lged-rein.or\ R &D in Renewable.

39