Solar Energy in Bangladesh Flourishing – ADB,World Bank and Government (IDCOL) Funding Solar as Power Deficiency Increases

Bangladesh like India is a massive power deficient country with peak power shortage of aroudn 25% and more than 60% of the people in the country lacking access to the power grid.As prices of coal,oil and gas increase it has become harder to provide electricity to some of the poorest people in the world.Solar Energy is an ideal solution as it can provide gridless power,is totally clean in terms of pollution,health hazards and is economical as well since it saves money for building the electricity transmission.The Bangladesh government has itself realized this as the Prime Minister has put up a 21.6 Kw solar power system to power her office.The World Bank had put up $130 million in funding in 2003 which has resulted in more than 1 million homes being powered by solar energy.Note the requirements of power are very small almost 1/10th that of a Western home.Government owned Infrastructure Development Company (IDCOL) has been providing the financing for these small solar panel projects in the country.

Some solar companies in the country have also started making solar panels with Rahimafrooz Renewable Energy, a business unit of Rahimafrooz Group buying a 20 MW solar panel manufacturing linen from US based Spire Energy.Note with more localziation the costs of solar power will go down even more.

Asian Development Bank to boost Solar with 500 MW funding

The Asian Development Bank has been at the forefront in funding solar energy in Asian countries like Thailand,India and now Bangladesh.ADB had raised money through foreign currency bonds in Japan to help it fund solar energy projects across Asia which require large amounts of capital investment.Note the developing countries in Asia have massive power requirements but lack the resources as well as financial infrastructure to put up capital intensive projects like solar power plants.Note while Green Energy is expensive,fossil fuel prices have increased at a much sharper rate making the growth of clean energy sources inevitable.ADB had earlier tied up with India’s largest utility NTPC to set up solar energy plants in India.

ADB is going to help finance 500 MW of solar power in Bangladesh over the next 5 years.The funds will be distributed to various ministries in Bangladesh like power,railiways which will then set up the solar energy plants in that country.The 500MW would be distributed among nine Bangladesh ministries, which will work with the Power Division to generate solar power for various institutions, including rural health centers, schools and other socially impacted organizations.