Bangladesh’s National Budget 2023-24 Should Focus on Solar Expansion and Energy Sustainability
Bangladesh - The upcoming national budget in Bangladesh for 2023-24 should prioritize the energy and power sectors to achieve economic sustainability and energy security.
With a reliance on imported fossil fuels and a burgeoning subsidy burden, the government should focus on spurring renewable energy expansion, particularly solar. By replacing diesel-run irrigation systems with solar power, Bangladesh could achieve its clean energy target of 40% by 2041 and contribute considerably to its climate goals. The government could allocate grant funds towards solar irrigation for a more rapid sectoral transformation and create job opportunities.
To enhance flexibility in the power system, the government should incorporate battery storage systems with new grid-scale solar projects, reducing oil-based power generation and gas-based peaking power plant operations. Although energy storage is expensive, it is getting cheaper and will likely be a more viable option in the future. The government could pilot new grid-scale solar projects backed by battery storage systems and earmark budget funds to identify suitable land for grid-scale solar projects and assess both offshore and onshore wind potential. Additionally, the government could waive or reimburse duties on rooftop solar accessories, creating an ecosystem for swift implementation of storage facilities at scale once they become financially viable.
By focusing on renewable energy expansion, incorporating battery storage systems, and waiving duties on rooftop solar accessories, the national budget in Bangladesh for 2023-24 could guide the energy and power sectors towards economic sustainability, energy security, and contribute to achieving Bangladesh's climate goals.
Source: ieefa.org
