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Bangladesh offers incentives for rooftop solar to alleviate power shortages

Bangladesh has launched a programme to encourage the installation of 'rooftop systems with battery storage. This is aimed at reducing power shortages in Bangladesh and its dependence on imported fuels.

South Asia's 175 million citizens are facing their worst power shortages for years. This is exacerbated by the lack of natural gases and worries about global fuel supplies, as tensions in the Middle East increase due to the Iran War.

According to a government announcement, consumers who install?eligible roof-mounted solar systems? by February 28, 2020 will receive 10,50 taka ($0.086 per kilowatt hour) for excess electricity that is fed into the national grid? for three years.

Bangladesh wants to reduce its dependence on imported fossil fuels by generating 20% of electricity (or?about 5,500 Megawatts) from renewable sources. By 2030, the percentage will rise to 30%.

This announcement follows a spike in power shortages that reached nearly 4,000 megawatts during the peak of August.

The shortage of natural gases has led to power plants running below capacity. In addition, the lack of coal and fuel oils has added pressure on the electrical system.

The government is scrambling to secure supplies of oil and liquefied gas (LNG), but the long queues for compressed natural gas stations (CNG), reduced industrial production and prolonged power outages have revealed the economic and social impact of the crisis.

The government has set a cap on the cost of producing rooftop solar energy, including battery storage. It is 8 takas per unit. The incentive payment also includes a 20% profit margin as well as an additional premium. The incentive payment includes a?20% profit margin and an additional premium.

Bangladesh has a total renewable energy capacity of 1,559 megawatts, with the majority of that being solar. Rooftop systems are seen by energy officials as a way to increase electricity production faster than utility-scale projects.

Instability in the Middle East has increased concerns over fuel price volatility and possible supply disruptions. This highlights Bangladesh's vulnerability, as it is a major importer of energy.

Authorities see rooftop solar as a cost-effective and quick way to increase renewable energy in one of the most densely populated nations. Battery storage will allow consumers to use solar power after daylight hours, and reduce grid demand during peak periods.

(source: Reuters)