Bangladesh pivots to coal amidst renewables challenges

The market plans to increase coal-based power generation capacity. 

Bangladesh plans to increase coal-based power generation capacity as its renewable development faces challenges, GlobalData said.

Last September, the government announced plans to add over 4 gigawatts of coal-based thermal power in response to the frequent blackouts. 

On top of this, Bangladesh is facing major hurdles in developing renewables, such as inadequate grid infrastructure, a lack of robust policies, and incentives. 

Read more: Bangladesh’s non-hydropower capacity to reach over 2,600MW in 2031

“Though Bangladesh’s measures provide temporary relief to secure supply, they do not provide a long-time solution,” Attaurrahman Ojindaram Saibasan, Power Analyst, GlobalData, said. 

“Moreover, this steers the country away from its unconditional target to reduce GHG emissions by 27.56 Mt CO2e (6.73%) below business as usual (BAU) levels in 2030. The rise in electricity demand has led to an increase in gas-based generation over the years.”

In a report, GlobalData noted that the share of coal power in the total annual generation in the country is estimated to reach 12.6% in 2032.


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