Bangladesh’s heavy reliance on fossil-fuel thermal power plants has raised concerns about energy security, foreign currency reserves, and pollution, according to a report by BloombergNEF (BNEF). The report highlights that further expansion of such plants could jeopardize both energy security and affordability.
Conversely, renewables, particularly solar energy, are positioned as cost-effective and sustainable solutions for meeting the country’s growing electricity demand. BNEF’s analysis shows that the levelized cost of electricity (LCOE) for utility-scale solar projects in Bangladesh will range from $97-135/MWh by 2025, making it more competitive than new coal and gas power plants.
By 2030, solar paired with batteries will achieve a cheaper LCOE than thermal power plants. Despite considering retrofitting thermal plants with cleaner fuels like hydrogen or ammonia, the report advises against building more thermal power plants, as renewables are expected to become more economical in the long run.
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