Green energy transition needs coordinated efforts, major investment: Nasrul

State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said that green energy transition needs coordinated initiative and major investment.

“The developed world, including Europe, is moving towards renewable energy. We also need to increase the use of renewable energy,” he said while addressing “2024 Policy Dialogue on Sweden-Bangladesh Partnership in Renewable Energy within the RMG Sector” at a Dhaka hotel today.

The Swedish Embassy, Swedish Energy Agency and Sweden-Bangladesh Business Council jointly organised the event.

The state minister said, in sync with the changing world, Bangladesh is also working to expand and increase the use of renewable energy.

“Efforts to provide clean electricity to businesses are continuing through net metering systems, rooftop solar, import of hydropower, and increased use of energy efficient appliances,” he added.

He said the Power Division has already developed a structure of draft on ‘Corporate Power Purchase Agreement (CPPA)’ to supply electricity generated from renewable energy to factories including the apparel industry. Initially such CPPA will be signed with some factories on a pilot basis.

Under the CPPA, renewable energy will be used round the clock which will require high storage capacity, he said, adding, in that case, costs of electricity will go up due to the use of the storage facility.

“Finally, we need to move to a smart grid. There should also be a policy on these additional costs and technology costs,” he observed.

The State Minister also said that sustainable development is not a European agenda or a global agenda, to survive in the competitive world, we also have to live with sustainable development and green transition.

He said that Vietnam and Sri Lanka are doing business focusing on efficiency, automation, business environment and Bangladesh also needs to compete more efficiently to survive.

Nasrul Hamid mentioned that global apparel brand H&M showed in their presentation that Bangladesh exports products worth $3 billion dollars a year to three Swedish companies: H&M, LINDEX and IKEA.

“Garments are supplied to the three companies through 200 suppliers, employing 0.5 million workers. The company aims to reduce greenhouse gas emissions by 50 per cent by 2030,” he said.

Among others, Head of Delegation of the European Union to Bangladesh Ambassador Charles Whiteley, Ambassador of Sweden to Bangladesh Alexandra Berg von Linde, Chairman of Bangladesh Power Development Board (BPDB) Md. Mahabubur Rahman and Country Manager of H&M Ziaur Rahman spoke on the occasion.