Bangladesh switches to solar energy as Middle East crises drive energy risks
Bangladesh has issued tenders for solar power of 495 megawatts, as it aims to reduce its dependence on imported fuels. The?Iran war? is driving a global rise in energy prices.
The Bangladesh Power Development Board invited bids on 10 grid-connected projects ranging in size from 25 MW up to 100 MW.
Private investors are expected to develop the plants. They will be located near existing'substations' in order to reduce grid strain and support grid stability. BPDB officials?said that the deadline for final bids is June 28.
Although Bangladesh had previously set targets for renewable energy expansion, progress was slow. The urgency is now increased by the heightened geopolitical uncertainties.
South Asia, a nation of around?175 millions people, is heavily dependent on imported coal, oil and liquefied gas. This makes it susceptible to price fluctuations in the global market.
Fuel shortages due to the Iran War and the closure of the Strait of Hormuz have prompted the government into scrambling for alternative sources of energy, as well as introducing measures like fuel rationing and shorter hours of office.
Officials have said that expanding solar 'capacity' is critical to ensure a more affordable and stable electricity supply, while reducing the exposure to volatile fuel markets.
The government also approved tax incentives to facilitate the importation of fully electric vehicles, including buses and trucks. This is an expansion on earlier approvals for electric'school buses.
Analysts have said that the push for solar energy and electric vehicles would require major investments in grids and storage facilities. (Reporting and editing by Ruma Bavier; Ruma Paul)
(source: Reuters)
