061129 RECIPES Country Info Bangladesh

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Country energy informationBangladesh

September 2006

SIXTH FRAMEWORK PROGRAMME PRIORITY 3Underpinning the economic potential and cohesion of a larger and more integrated

EU

SPECIFIC SUPPORT ACTION

Project Acronym: RECIPESProject full title: Renewable Energy in emerging and developing countries: Currentsituation, market Potential and recommendations for a win-win-win for EU industry,the Environment and local Socio-economic developmentContract number: 513733Start date of contract: 1st January 2005

Introduction

The information in this report was gathered from publicly available sources (thesource list is available at www.energyrecipes.org), like surveys, statistical data fromthe internet and books and other publications. The information consists of:

1. indicators and indices;2. descriptions of the relevant energy items/subjects /themes.

Due to differences in availability of data per country the level of detail of thesereports will differ.

For all the 114 developing and emerging countries of the INCO list a report like thisis available. (see also www.energyrecipes.org for the countries) Except for the

following 15 countries, where more detailled reports are available.

The RECIPES project

The RECIPES project aims to contribute to the implementation of renewable energy

in emerging and developing countries. The RECIPES project is financed under the6th Framework Programme for Research and Technological Development of theEuropean Commission.

Argentina China Cameroon

Brazil India Ghana

Colombia Indonesia Niger

MexicoPacificIslands

South-Africa

Peru Thailand Uganda



The main objective of the RECIPES project is to provide the European Commissionand other stakeholders with pragmatic information and recommendations facilitatingappropriate action to further the implementation of renewable energy in emergingand developing countries, taking into account:

l The effects on the local socio-economic situation.l The competitive position of European renewable energy industry.l The impacts on the local and global environment.

Data collection on the situation and potential of renewable energy in emerging anddeveloping countries is the core of the RECIPES project.

An identification of the RE market potential is carried out for 15 developing andemerging countries. Local experts gathered data for all of these countries. Theresults of these in-depth studies are extrapolated to 99 other developing andemerging countries for which data is gathered through desk research.

See the RECIPES website (www.energyrecipes.org) for relevant data collected andreports produced.

Environmental problems

Many people are landless and forced to live on and cultivate flood-prone land;water-borne diseases prevalent in surface water; water pollution, especially offishing areas, results from the use of commercial pesticides; ground watercontaminated by naturally occurring arsenic; intermittent water shortages because offalling water tables in the northern and central parts of the country; soil degradationand erosion; deforestation; severe overpopulation

Environment - international agreements

Party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol,Desertification, Endangered Species, Environmental Modification, Hazardous

Wastes, Law of the Sea, Ozone Layer Protection, Wetlandssigned, but not ratified: none of the selected agreements

Energy situation

Bangladesh has small reserves of oil and coal, but potentially very large natural gasresources. Commercial energy consumption is around 66% natural gas, with theremainder mostly oil (plus limited amounts of hydropower and coal). Only around20% of the population (25% in urban areas and 10% in rural areas) has access toelectricity, and per capita commercial energy consumption is among the lowest inthe world. Noncommercial energy sources, such as wood, animal wastes, and cropresidues, are estimated to account for over half of the country\'s energyconsumption. Consumption of wood for fuel has contributed to deforestation and

other environmental problems in Bangladesh. The World Bank has estimated thatBangladesh loses around $1 billion per year in economic output due to power

outages and unreliable energy supplies.2

With only about 20% of the population connected to the electricity grid, and withpower demand growing rapidly, Bangladesh\'s Power System Master Plan (PSMP)projects a required doubling of electric generating capacity by 2010. In addition,Bangladesh also may need to replace 30%-40% of its current generating capacity,

due to aging infrastructure.2

Energy sector organisation

Bangladesh\'s Ministry of Energy and Mineral Resources (MEMR) has overallresponsibility for the country\'s energy sector, with policy formulation and investmentdecisions under its control. Within MEMR, the "Power Cell" acts as a single point ofcontact to facilitate the electricity reform and restructuring process, such as



development of Independent Power Projects (IPPs).2

Generation is handled by the Bangladesh Power Development Board (BPDB), theRural Electrification Board (REB) and Independent Power Producers (IPPs).The BPDB and the Power Grid Company of Bangladesh ltd (PGCB) are responsiblefor transmission, and distribution is handled by the BPDB, Dhaka Electric supply

Authority and Company (DESA and DESCo) and the REB.17

Renewable energy potential

According to preliminary studies, wind energy will be viable in the coastal areas,offshore islands, rivers sides, and other inland open areas both for mechanicalpower and electricity generation. So, minimum two years feasibility study is essential

for actual assessment of wind energy application.16

There are certain locations near the southeast and northeast hilly region ofBangladesh where micro or mini hydro power plants can be constructed to servelocal needs of electricity. Two potential sites for feasibility studies are Banderbanand Madhadkundu. Micro and mini hydro generators of different capacity will be set

up on an experimental basis at two selected sites.16

The potential of biogas technology is immense and this technology has far reachingbenefits especially for the densely populated rural areas. According to officialestimates, Bangladesh has a cattle population of 24 million and poultry population of75 million. The dung supplied by the cattle, about 240 million kg/day, can produce2.97 billion m3 biogas, which is equivalent to 1.52 million tons of kerosene or 3.04

million tons of coal. Poultry litters can produce 0.525 million m3/day of biogas.16

Renewable energy

To accelerate the growth of the renewable energy sector of the country, the NationalEnergy Policy (NEP) has recommended to establish Renewable EnergyDevelopment Agency (REDA). Until REDA is formed Power Cell will carry out all

primary and initial works related to development of renewable energy.Renewable Energy Development Agency (REDA) is to be established under thePower Division, Ministry of Power, Energy and Mineral Resources as a public limitedcompany for the development and diffusion (dissemination / extension) of different

type of renewable energy technologies (RETs).17

The government of Bangladesh also provides fiscal incentives for investors inrenewable energy as well as incentives for foreign investors joining the energy

market in Bangladesh.17

Bangladesh Unit

GeneralPopulation (2005) 144319628

Country area 142615 km²

Total density of population (people/km2) 1012.000 capita/km²

Growth of people % /year 2.090 %

Land use arable (%) 62.110 %

Land use perm crops (%) 3.070 %

Percentage of total people living in cities 23.900 %

HDI (2002) 0.509

Social

Illiteracy 43.100 %Year of estimation 2003

Corruption (CPI 2003) 0=high 10=low 1.300

GDP in ppp mostly $ 2004 est 275.7 billion



EconomicIncome /capita $ mostly 2004 2000

Variability of income/capita GINI index (2004) 31.800

Population below poverty line 45.000 %

Year of estimation 2004

Total External Debt in % GDP (2004 est.) 43.000 %

Inflation rate (consumer prices) (%) 6.000 %


Growth of economy 4.900 %


EDI energy development index 0.267

Energy developmentPercentage of people connected to the grid (electricity) 26.300 %

Traditional fuel consumption (% of total energy requirements2002) . Estimated consumption of fuel wood, charcoal, bagasse(sugar cane waste) and animal and vegetable wastes.

63.600

Oil consumption 71000.000 bbl/day

Fossil fuel consumptionYear of estimation 2001

Coal consumption (Million Short Tons) 0.800millions shorttonnes/year

Natural gas consumption, year 2001 if not mentioned others 9.9 billion cu m

Nuclear power production (Billion Kilowatthours) 2003 0.000 billion kWh/year

Hydro electricity capacity (2003) 0.230 million kilowatts

Renewable energy situation

Geothermal, Solar, Wind, Wood and Waste Electricity Installedcapacity (2003)

0.000 million kilowatts

RE biomass production of primary energy from combustibleRenewables and Wast TJ/Year 2002

329641.000

RE energy electricity consumption (2003) 0.000 billion kWh/year

Total Primary Energy Supply 2000 217.490 billion kWh/year

Share of total renewables in % of TPES 2000 41.200 %

Share of renewables excluding combustible renewables and wastein % of TPES 2000

0.400 %

TPES 2003 252.400 billion kWh/year

Share of Renewables in TPES % (2003) 37.400 %

Hydro (2003) 1.200 %

Geothermal, Solar, Wind, Tide (2003) 0.000 %Combustible Renewables and Waste (2003) 98.800 %

Total kWh per capita 1363.000

Energy consumption for various sectorsIndustry 28.000 %

Transportation 8.000 %

Agriculture 3.000 %

Commercial and public services 1.000 %

Residential 60.000 %

Other purposes 0.000 %

Total oil production 3581.000 bbl/day

Energy production



Total coal production (Million Short Tons) 0.000millions shorttonnes/year

Total natural gas production 9.9 billion cu m

Total Electricity Production GWh 18433.000 GWh

ElectricityElectricity production from coal % 0.000 %

Electricity production from oil % 9.000 %

Electricity production from gas % 85.000 %

Electricity production from biomass % 0.000 %

Electricity production from waste % 0.000 %

Electricity production from nuclear % 0.000 %

Electricity production from hydro % 6.000 %

Electricity production from geothermal % 0.000 %

Electricity production from solar thermal and PV % 0.000 %

Electricity production from other sources % 0.000 %

Electricity consumption GWh (2003) 16196.000 GWh

Total final electricity consumption GWh (2002) 13607.000 GWh

Electricity used by Industry % (2002) 81.000 %Electricity used by Transport % (2002) 0.000 %

Electricity used by Agriculture % (2002) 1.000 %

Electricity used by Commerce and Public Services % (2002) 4.000 %

Electricity used by Residential % (2002) 14.000 %

Electricity used by Other Non-Specified % (2002) 1.000 %

Electricity used by Non-Energy Use % (2002) 0.000 %

Documents

061129 RECIPES Country Info Bangladesh