Empowering Bangladesh’s Vitality Panorama: Germany’s Assist For Sustainable Growth Initiatives – Evaluation

Germany has dedicated to offering a monetary assist package deal totaling Tk2,215 crore (€191 million) to Bangladesh, earmarked for the execution of 13 tasks spanning power transition, sustainable city improvement, provide chain enhancement, biodiversity conservation, and ladies empowerment initiatives. Executed by way of two bilateral agreements in Technical Cooperation and Monetary Cooperation, signed on September 03, 2023, the allocation includes €55 million underneath the Technical Cooperation settlement and €136 million underneath the Monetary Cooperation settlement.

The agreements, ratified by Sharifa Khan, Secretary of the Financial Relations Division throughout the Ministry of Finance, and Jan Janowski, Chargé d’Affaires of the Federal Republic of Germany in Bangladesh, signify the continued dedication initiated throughout authorities negotiations in December 2022. Notable tasks underneath these agreements embody endeavors specializing in power effectivity, renewable power, vocational coaching, climate-smart city improvement, sustainable provide chains, biodiversity preservation, and help for Rohingya communities in Cox’s Bazar. The tasks are carried out by way of entities corresponding to GIZ, KfW Growth Financial institution, and BGR, overseen by the German Embassy in Bangladesh, with the goal of advancing the sustainable improvement objectives (SDGs) and aligning with the Local weather Targets of the Paris Settlement. This initiative builds upon Germany’s longstanding historical past of monetary and technical help to Bangladesh since 1972, totaling over €3 billion, with the present portfolio comprising 23 tasks amounting to €452.5 million in loans and €161.054 million in grants. 

However that is a part of a steady partnership between the 2 states. Nonetheless, this collaboration represents a constant and ongoing partnership between the 2 nations. These are a continuation of some outstanding efforts. Collectively, these endeavors will play a pivotal function in advancing Bangladesh’s efforts to diversify its power combine and set up a dependable and enduring supply of power. The sustained dedication from each events underscores a shared dedication to addressing the evolving power wants of Bangladesh and fostering a resilient and diversified power panorama for the nation’s future.

The Renewable Vitality Program (October 2018 – December 2023) with a funds of 70 million Euros, executed by the Infrastructure Growth Firm (IDCOL) and supported by KfW, is designed to propel the adoption of renewable power applied sciences. This initiative employs a dual-pronged technique: firstly, mortgage funds are channeled to IDCOL for the implementation of business and industrial-scale photo voltaic rooftop tasks in Bangladesh, positioning rooftop photo voltaic panels as financially sound investments with constructive financial implications for the broader inhabitants.

Secondly, grant funds are allotted to perpetuate the success of IDCOL’s Productive Use of Renewable Vitality Program, concentrating on off-grid renewable power tasks, together with photo voltaic irrigation pumps, compact solar-powered electrical energy grids in distant areas, and the promotion of biogas and photo voltaic chilly storage applied sciences. IDCOL disburses sub-loans on to buyers, NGOs, or person teams, and accompanying measures contain the allocation of grant funds to help the event of monetary merchandise, inside procedures, and the institution and monitoring of technical and high quality requirements within the photo voltaic rooftop market.

The Productive Use of Renewable Vitality Program (PUREP), spanning from April 2014 to December 2021 with a funding of 10.5 million Euros, is facilitated by the Infrastructure Growth Firm (IDCOL). This initiative strategically presents concessional financing for off-grid renewable power applied sciences geared in direction of income-generating functions, together with photo voltaic irrigation pumps, biogas-based electrical energy technology on poultry farms, and photo voltaic minigrids in distant areas and river islands, catering to the power wants of native populations. IDCOL disburses sub-loans on to buyers, NGOs, or person teams, whereas KfW, representing the German Authorities, supplies essential help to reinforce the monetary viability of tasks in an early market, considering backed electrical energy and diesel costs for shoppers. Moreover, IDCOL receives help in creating pertinent monetary merchandise, refining inside procedures, and guaranteeing the vigilant monitoring of technical and high quality requirements.

The Enhancement of Energy Transmission Program within the Western Zone and Vitality Effectivity within the Grid-Based mostly Energy Provide, spanning from Could 2016 to June 2024 with a monetary allocation of 139.5 million Euros, is overseen by the Energy Grid Firm of Bangladesh Ltd. (PGCB). Bangladesh’s transmission sector, demarcated by the Jamuna/Padma River, displays an asymmetry in improvement between the quickly progressing japanese area (Dhaka space) and the comparatively lagging western aspect, contributing to regional segregation. To deal with this, the Western Zone Challenge focuses on rehabilitating and developing key substations and transmission traces within the western transmission community, together with the institution of three new substations and three transmission traces. Concurrently, the Vitality Effectivity Challenge targets the rehabilitation and building of important substations and contours in PGCB’s transmission community, involving the creation of 11 new substations and 200 kilometers of latest transmission traces nationwide. The overarching aims embody contributing to a extra dependable and environment friendly transmission and distribution system all through Bangladesh, attaining CO2 financial savings, addressing environmental and social considerations, enhancing employees security, preserving nature, and establishing equitable situations for affected communities. Complementary measures contain investment-related coaching, capability constructing actions for PGCB, and the institution of an environmental and social unit supported by a 2 million Euro fund.

The Modernization of Energy Distribution – Sensible Grids Section I, scheduled from October 2021 to December 2025, with a funds of 122.2 million Euros, includes collaborative efforts between the West Zone Energy Distribution Firm Restricted (WZPDCL) and the Bangladesh Rural Electrification Board (BREB). The present downstream transmission and distribution networks lack the capability to accommodate the burgeoning power provide, leading to frequent energy outages and prolonged shutdowns, notably in rural areas. This case prompts reliance on conventional but partially dangerous power sources like biomass or gasoline. KfW’s initiative focuses on the refurbishment of 43 substations, the development and renovation of distribution traces, and the implementation of an automatic, data-driven community management system. The overarching aims embody enhancing residing situations for the inhabitants, bettering working situations for companies by minimizing losses, and attaining a extra dependable and environment friendly electrical energy provide. KfW helps the promotion of safer, dependable, and steady power by way of collaborative efforts with WZPDCL and BREB. The funding measures goal to scale back distribution losses, decrease CO2 emissions, and improve general provide. Moreover, two accompanying measures goal to strengthen WZPDCL and BREB throughout varied operational elements.

Energising Growth Bangladesh (EnDev) operates from January 2021 to December 2023, with a funds of two.25 million Euros, and is run by the Bangladesh Bondhu Basis (BBF). The earlier part concerned a pilot challenge by EnDev to stimulate the marketplace for clear various cooking fuels, corresponding to briquettes constituted of waste biomass, together with faecal sludge, and higher-tier stoves. In response to the Covid-19 pandemic in 2020, EnDev undertook initiatives to help affected communities, together with help for companion entrepreneurs to restart companies, set up of photo voltaic power methods in native well being complexes, and livelihood help by way of the supply of photo voltaic and renewable power. Within the present part (2021 – 2023), EnDev goals to foster the event of the e-cooking equipment market in Bangladesh by way of a Outcome Based mostly Financing (RBF) scheme, providing incentives for producers and importers. The aims embody offering environment friendly and clear cooking, supporting the marketplace for trendy power services, together with e-cooking home equipment and biomass-based improved cooking applied sciences, and aiding the event of photo voltaic battery charging for e-rickshaws. EnDev helps the coaching of range builders and gross sales employees, together with native girls for restore and after-sales service, known as ‘Bondhu Chula medical doctors.’ Moreover, EnDev seeks to display enterprise circumstances for photo voltaic battery charging of e-rickshaws by way of stand-alone or grid-connected internet metering methods, collaborating with SREDA, ongoing GIZ power tasks, and the deliberate transformative mobility DKTI challenge specializing in e-mobility methods and regulatory frameworks for the transport sector.

The Renewable Vitality & Vitality Effectivity Programme (REEEP) II, lively from November 2018 to January 2022 with a funds of 4.15 million Euros, collaborates with the Sustainable and Renewable Vitality Growth Authority (SREDA), Bangladesh Photo voltaic & Renewable Vitality Affiliation (BSREA), Bangladesh Clothes Producers & Exporters Affiliation (BGMEA), and Shoppers Affiliation of Bangladesh (CAB) to fortify sustainable power improvement in Bangladesh. The initiative focuses on fostering collaboration among the many authorities, non-public sector, and civil society actors, figuring out organizational improvement wants for SREDA and sector stakeholders in renewable power and power effectivity. The Technical Cooperation (TC) module aids the federal government in formulating conducive power insurance policies and rules, supporting SREDA in implementing a nationwide consciousness technique for power effectivity, and enhancing the capability of high-potential energy-saving sectors such because the textile and garment industries. With a aim to extensively disseminate grid-connected rooftop photo voltaic methods by way of internet metering regulation, the challenge aligns with nationwide targets. Goals embody bettering the framework and cooperation amongst SREDA and stakeholders, implementing the Nationwide Vitality Effectivity and Conservation Grasp Plan (EECMP), and offering technical help to the federal government for the photo voltaic rooftop program underneath Web Metering Tips. The challenge contributes to this by establishing a nationwide rooftop photo voltaic service desk and a web based portal at SREDA, together with standardizing related gear and ancillaries and enhancing the capability of related stakeholders for the seamless implementation of rooftop photo voltaic tasks underneath the web metering guideline.

Coverage Advisory for Selling Vitality Effectivity & Renewable Vitality (PAP), lively from August 2021 to July 2024 with a funds of 5 million Euros and underneath the oversight of the Energy Division, Ministry of Energy, Vitality, and Mineral Assets (MoPEMR), addresses the vital function of an efficient energy provide based mostly on renewable energies (RE) in a profitable power transition. Regardless of the appreciable potential of RE, their contribution has been marginal (roughly 3.0% of electrical energy technology) within the Energy System Grasp Plan, indicating a scarcity of a coordinated technique between private and non-private market actors. The belief of power effectivity potentials and conservation measures has fallen quick, jeopardizing the implementation of the power transition in Bangladesh. The challenge’s aims embody enhancing the coverage and regulatory framework to reinforce the share of renewable power and power effectivity within the energy sector, elevating consciousness amongst policymakers relating to the potentials and limitations of RE for energy technology, fostering collaboration between private and non-private establishments for RE/EE market improvement, and bettering situations for the dissemination of revolutionary RE and/or EE applied sciences in Bangladesh.

The Vitality Effectivity and Grid Integration of Renewable Vitality (EEGIRE) II initiative, lively from June 2021 to Could 2024 with a funds of three million Euros and underneath the supervision of the Energy Division, Ministry of Energy, Vitality, and Mineral Assets (MoPEMR), follows the profitable completion of the primary part, EEGIRE I (05/2018 – 05/2021), which considerably contributed to integrating solar energy into {the electrical} grid and enhancing power effectivity. The first focus of the second part is the enhancement of technical conditions for the expanded deployment of grid-connected decentralized solar energy vegetation. In pursuit of this goal, the challenge employs a multi-stakeholder strategy at varied ranges, structured into three elements representing distinct ranges of intervention. Degree one goals to empower chosen distribution corporations to function their electrical energy grids extra reliably and effectively with an growing proportion of decentralized solar energy vegetation, achieved by way of heightened digitalization. Degree two concentrates on the systematic analysis of revolutionary devices, processes, or applied sciences by power utility corporations to spice up the share of decentralized solar energy methods. Degree three facilitates enhancements to the transmission grid stability by the Energy Grid Firm of Bangladesh, serving as a vital basis for the additional growth of grid-connected decentralized solar energy vegetation.

In conclusion, Germany’s resolute dedication to offering a considerable monetary assist package deal totaling Tk2,215 crore (€191 million) to Bangladesh, spanning numerous tasks in power transition, marks a major stride in bilateral cooperation. Signed by way of two pivotal agreements in Technical Cooperation and Monetary Cooperation, the allotted funds, €55 million and €136 million respectively, underscore Germany’s dedication to addressing the multifaceted challenges confronted by Bangladesh within the realm of power. With tasks executed by entities corresponding to GIZ, KfW Growth Financial institution, and BGR, the initiative aligns with sustainable improvement objectives and the Local weather Targets of the Paris Settlement. This collaboration builds upon Germany’s longstanding help to Bangladesh, relationship again to 1972, with the present portfolio comprising 23 tasks totaling over €3 billion. The continuing partnership signifies a steady dedication initiated throughout authorities negotiations in December 2022. As these energy-related tasks unfold, they may contribute considerably to Bangladesh’s power combine diversification, guaranteeing a sustained and dependable power supply for the nation’s enduring improvement. The collaborative efforts reinforce a shared dedication to addressing Bangladesh’s evolving power wants and fostering a resilient and diversified power panorama for its future prosperity.