Solar Energy Will Be The Cheapest Source Of Energy in Bangladesh By 2025

Currently, the levelised cost of electricity (LCOE) for building utility-scale solar projects in Bangladesh is between US $97-135 /MWh, compared to US $88-116 /MWh for combined cycle gas turbines (CCGTS) and US $110-150 /MWh for coal plants.

Going forward, BNEF predicts that building PVS systems in the country will be more cost competitive than building new coal and gas power plants. The LCOE for PVS systems is expected to fall to $66-134 /MWh by 2030 and to $37-84 /MWh by 2050.

In its article entitled Bangladesh's Power Sector at a Crossroads, BNEF argued that building new thermal power plants, mixing ammonia with coal for combustion, and mixing hydrogen with natural gas to reduce emissions are not the best way for the country to reduce emissions, and that this would entail huge financial risks for the country.

However, the Bangladeshi government in its draft Integrated Energy and Power Master Plan (IEPMP) has "ignored or underestimated" the country's renewable energy potential and the role of proven technologies such as solar and wind, instead emphasizing technologies such as hydrogen, ammonia and carbon capture that are still in the development stage.

Caroline Chua, co-author of the BNEF report, said: "Renewables can improve the country's energy security by reducing reliance on LNG and coal imports, while also creating new jobs. The analysis shows that even if fossil fuel prices fall, renewables will remain more economical than thermal power plants."