EU to support BD's green energy journey: Nasrul Hamid

The European Union will support Bangladesh's journey towards "Green Energy" by providing fund and technologies worth around €395 million, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said on Wednesday.

"Bangladesh's transition to renewable energy is set to receive a major boost with the finance from EU countries, Bangladesh focuses on renewable energy through setting a target to produce 40 per cent of its total energy from green sources," Nasrul Hamid told the Daily Observer.

At the Glasgow climate summit in 2021, Bangladesh announced that it would cut carbon emissions by 89.47 million tonnes by 2030 as part of its efforts to promote renewable energy, energy efficiency and conservation, he said.

The European Investment Bank (EIB) will provide Euro 395 million, Euro 45 million will be provided as a grant by the EIB and the remaining Euro 350 million will be given as loan, he said.

"EIB expressed its interest in providing loans to Bangladesh for renewable energy projects in November last year. The EU later offered a grant to supplement the loan," he said. He said Team Europe Initiative on Green Energy Transition (TEI GET) TEI GET, co-chaired by Germany and the EU, includes EU Member States Denmark, France, Italy, Spain, Sweden, The Netherlands, the European Investment Bank (EIB) as well as Norway and Switzerland are also ready to support Bangladesh's journey towards green energy.

Nasrul Hamid said the country's power sector requires investments worth around $75 billion in next 15 years to ensure a consistent and affordable energy supply.

"There are some specific challenges in implementing renewable energy, especially solar power projects. It takes a lot of land to implement large-scale solar projects in a densely populated country like Bangladesh. These challenges can be tackled through the free flow of technology and research," he said.

Bangladesh has been making strides in adopting renewable energy sources and attracting foreign investments, a joint venture led by the Saudi-based ACWA Power Company, along with two local firms, agreed to establish Bangladesh's largest solar power plant in Rampal upazila of Bagerhat, with an investment of $430 million.

"The Netherlands is set to invest around $ 1.4 billion in wind energy, they have already completed the pre-feasibility studies , and now working to complete the feasibility studies," the State Minister said.

The US Ambassador to Bangladesh Peter Haas said  that the American investment firm Blackstone was  actively exploring opportunities to invest in Bangladesh's solar energy sector, he added.

"The agreement is scheduled to be signed in Belgium in the last week of this month during  Prime Minister Sheikh Hasina's visit to attend a seminar. Prime Minister Sheikh Hasina is expected to attend the signing event, Power Division Senior Secretary Md Habibur Rahman said.

Bangladesh's 2.9 per cent of power came from renewable sources in last 10 years. In 2013, Bangladesh had the capacity to generate 329MW of renewable power, which rose to 775MW in 2022, the International Renewable Energy Agency said.