Executive Summary
This particular study aims to assess the current status of solar-based net metering systems in Bangladesh and explore their potential for driving a renewable energy transition. The specific objectives included examining the current status of net solar system installations, evaluating the cost-benefit of implementing net-meter based solar systems in industrial premises, and exploring the scalability of such installations in Export Processing Zones (EPZs).
Despite being a relatively new concept in Bangladesh, net metering has gained traction globally, prompting a detailed examination of practices in countries like the United States, selected European nations, India, Sri Lanka, and Pakistan. Since its adoption in 2018, the Net Energy Metering Guideline has significantly contributed to the expansion of renewable energy, with 2015 solar net metering systems installed by 2023. These systems were predominantly installed in commercial buildings (55%), followed by residential (28%) and industrial (16%) structures.
The study projected the energy generation and CO2 emission reduction potential of these systems, with industrial installations expected to lead, generating 52. 6% of total energy and contributing equally to CO2 emission reduction. A comprehensive cost-benefit analysis revealed that investment arrangement A, leveraging BB’s refinancing facility, yielded the highest positive net present value (NPV) equivalent to USD 0. 75 million, emphasizing the critical role of financing in promoting sustainable investments.
Furthermore, simulation results underscored the potential impact of implementing Net Energy Metering (NEM) in EPZs, suggesting that utilizing 20-30% of industrial plot areas for solar PV-based Net Metering Systems (NMS) could add 222 MW to 333 MW of renewable energy capacity to the national grid. This analysis highlights the importance of integrating renewable energy solutions within industrial zones to enhance energy sustainability and reduce reliance on non renewable sources.
This study advocates for the promotion of Net Energy Metering (NEM) systems, particularly targeting industrial clusters. It emphasizes the critical importance of coordination between the Bangladesh Power Export Zones Authority (BPEZA) and the Sustainable and Renewable Energy Development Authority (SREDA) to expedite NEM implementation in industrial clusters, including upcoming economic zones. Currently, NEM systems are predominantly installed in buildings with three-phase connections, warranting further research and pilot activities to enhance technical efficiency.
While SREDA focuses on promoting NEMs in urban residential and commercial buildings, it’s essential to recognize the significant potential in rural areas, characterized by ample rooftop spaces and south-facing houses. Strategically, SREDA should consider expanding its efforts to penetrate sub-urban and rural regions. Additionally, to enhance financial feasibility, community-level operational and capital expenditure (OPEX and CAPEX) setups should be explored.
By capitalizing on these recommendations, stakeholders can develop targeted strategies to expedite the deployment of solar-based net metering systems, ultimately contributing to a more sustainable energy future for the nation.
Download Research Report
Comments