The renewable energy sector in Bangladesh has emerged as a promising arena for foreign investment. Such an assessment emerged at a virtual dialogue organized by the Centre for Policy Dialogue (CPD) on Monday.
The dialogue, titled “China’s Case Study: Opportunities and Challenges of Foreign Investment in Renewable Energy Sector in Bangladesh,” shed light on the increasing interest among foreign investors as Bangladesh aims to achieve 30% renewable energy by 2030 and 40% by 2041.
Over the past 13 years, foreign investment of approximately $30 billion has flowed into Bangladesh’s energy sector. The investments have predominantly been in fossil fuels. However, the changing global context, coupled with China’s remarkable progress in the renewable energy sector over the last four decades, has created new possibilities for foreign investment.
Countries like the United Kingdom, Hong Kong, the Netherlands, the United States, and China have shown keen interest in Bangladesh’s energy sector.
At the CPD dialogue, several proposals were discussed as a way of attracting further foreign investments in the renewable energy sector.
Mashfiq Ahsan Hriday, a research associate at CPD, highlighted the complications that foreign investors may face, including bureaucratic hurdles and delays.
He stressed that for successful foreign investment, Bangladesh must offer political stability, infrastructural development, a skilled workforce, and investment-friendly incentives. Despite these challenges, foreign investment in the energy sector reached $3,479.95 million in 2022, showing a gradual increase.
Hriday proposed creating another investment attraction agency like the Bangladesh Investment Development Authority (BIDA), increasing government investment (possibly through a public-private partnership), establishing a one-stop investment service center to reduce investor hassles, and emphasizing training in technology and workforce development. He also emphasized attracting investment in other sectors and creating an international profile for projects.
CPD Director Dr Khandaker Golam Moazzem acknowledged China’s global leadership in renewable energy and noted Bangladesh’s lower ranking.
“China is the global leader in the use of renewable energy. On the other hand, Bangladesh is opposite to such a position. Bangladesh ranks 111 out of 190 countries in the use of renewable energy. Bangladesh has a lot to learn from China’s remarkable progress in the last four decades,” he said.
Waseqa Ayesha Khan, MP and chairperson of the Parliamentary Standing Committee on the Ministry of Power, Energy, and Mineral Resources, acknowledged the progress made in the power sector but emphasized the need for quicker advancement in renewable energy. She noted that Bangladesh, as a climate-vulnerable nation, sees renewable energy as a blessing and expressed a need for foreign investments and technical support to achieve the ambitious Mujib Climate Prosperity Plan.
“Foreign investment is always welcome in our country for the renewable energy sector. We also want technical support,” she said.
Mohammad Hossain, director general of the Power Cell of the Electricity Department, explained Bangladesh’s gradual development of renewable energy, with the first renewable energy policy in 2008. Hossain discussed the challenges related to land availability and access for renewable energy projects but emphasized the government’s commitment to reaching renewable energy targets.
He noted that China plays a significant role in providing technology, solar systems, and machinery for these projects.
He concluded by stating that the government is actively supporting renewable energy, with recent projects based on renewable energy and ongoing work on smart grids, pointing towards a promising future for renewable energy in Bangladesh.
The dialogue also featured discussions with key figures such as Yao Wen, ambassador of China to Bangladesh, Wang Weiquan, deputy secretary general of the Chinese Renewable Energy Industries Association (CREIA), Qin Haiyan, secretary general of the China Wind Energy Association, and other panel discussants who shared insights into China’s renewable energy sector, investments, and activities over the past four decades.
Source : Dhaka Tribune