The Journal of Environment & Development http://jed.sagepub.com Toward Sustainable Energy Development in Bangladesh Sk Noim Uddin and Ros Taplin The Journal of Environment Development 2008; 17; 292 DOI: 10.1177/1070496508323093 The online version of this article can be found at: http://jed.sagepub.com/cgi/content/abstract/17/3/292 Published by: http://www.sagepublications.com Additional services and information for The Journal of Environment & Development can be found at: Email Alerts: http://jed.sagepub.com/cgi/alerts Subscriptions: http://jed.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Citations (this article cites 29 articles hosted on the SAGE Journals Online and HighWire Press platforms): http://jed.sagepub.com/cgi/content/refs/17/3/292 Downloaded from http://jed.sagepub.com at CNTR SCI AND ENVIRONMENT on September 15, 2008 The Journal of Environment & Development Volume 17 Number 3 September 2008 292-315 © 2008 Sage Publications Toward Sustainable Energy 10.1177/1070496508323093 http://jed.sagepub.com Development in Bangladesh hosted at http://online.sagepub.com Sk Noim Uddin Ros Taplin Macquarie University Bangladesh is one of the most electricity deprived nations in the world. Despite large potential for renewable energy sources in Bangladesh, currently their contribution to the electricity supply remains insignificant. Use of renewable energy is considered an indispensable component of sustainable energy systems, as renewables emit less green- house gas emissions compared to fossil fuel energy systems. However, to advance such sustainable energy systems, appropriate strategies and institutional settings need to be put in place for all nations. To address this, this article examines Bangladesh’s current energy strategies and institutional settings and investigates future strategies for the advancement of renewables. This article argues that further significant efforts could be made toward energy sustainability in Bangladesh and the development for a national sustainable energy strategy. Among other future strategies, implementation of the Clean Development Mechanism under the Kyoto Protocol could assist in facilitation of energy sustainability for Bangladesh. Keywords: Bangladesh; sustainable energy; Clean Development Mechanism nergy is a prerequisite for economic growth and social development. However, Eenergy security as well as economic stability (annual growth of GDP = 6.2%; World Bank [WB], 2006) in Bangladesh are threatened by spiralling population growth, scarcity of fossil fuel resources, high frequency of climatic events, and decision-making processes that often lack transparency.1 These factors have had sig- nificant impacts on the nation’s entire energy infrastructure and its current unprece- dented energy demand. Arguably, there is a huge potential for development of renewable energy sources in Bangladesh that could possibly meet this demand and assist sustainable development.2 Authors’ Note: Sk Noim Uddin gratefully acknowledges the Centre for Energy Environment Resources Development in Thailand for its facilitation of his field research administration, information, and research visits in South and Southeast Asian nations. The authors gratefully acknowledge Dr. Xiaojiang Yu, Hong Kong Baptist University, for his valuable and helpful comments on an earlier draft of the article. Sk Noim Uddin acknowledges Dr. M. Eusuf and Dr. A. Rahman of Bangladesh Centre for Advance Studies and Mr. Wim van Nes of the Netherlands Development Organization for their kind assistance in provision of information to him for this project. Financial support from Macquarie University has allowed the project to go ahead. The usual disclaimer applies. 292 Downloaded from http://jed.sagepub.com at CNTR SCI AND ENVIRONMENT on September 15, 2008 Uddin, Taplin / Sustainable Energy Development in Bangladesh 293 Sustainable energy systems typically involve the use of renewables, improvement of energy efficiency, and enhanced energy security (Lund, 2006). Renewables, which are the main focus of this article, emit considerably less emissions compared to fossil energy systems.3 However, to advance such sustainable energy systems, appropriate strategies and institutional settings need to be in place for both industrialized and devel- oping nations such as Bangladesh (Kinrade, 2007; Uddin, Taplin, & Yu, 2006). Among potential strategies, the Clean Development Mechanism (CDM),4 under the Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCCC; United Nations, 2002), appears to be an effective means toward sustainable develop- ment (Kim, 2004). CDM is seen as an example of an internationally defined mechanism that provides a platform for the creation of a wide array of partnerships, including potential for the advancement of renewables (Streck, 2004). Although investment in renewable energy and energy efficiency projects was roughly triple the official devel- opment assistance support for energy policy and renewable energy projects during 2006 in many developing nations (Clemencon, 2008), Bangladesh significantly lacks mobi- lizing investments, particularly in the advancement of renewables under the CDM scheme. This article has been developed on the basis of research examining the nation’s current energy strategy and institutional settings and addressing trends in sustainable energy development. Materials and Method The energy, economic, environmental, and social statistics quoted in this article are the most recent publicly available data. Data-gathering field trips were carried out in Bangladesh during the first quarters of 2006 and 2007. Unfortunately, in some cases the only data available at the time of the research were from the late 1990s because more recent information had not been publicly released. To ensure authenticity of data, we adopted methods involving desktop assessment of literature and case studies, together with data-gathering field trips involving interaction with key agencies and international organizations active in Bangladesh’s energy sector. A systematic assessment of docu- mentary evidence via a systems approach and key actors approach was performed regarding strategies linked to sustainable energy development in Bangladesh. However, because of a lack of reliable and comparable data, some sustainable energy issues have not been examined in depth. Nevertheless, we believe that the assessment presented is quite representative and provides a general indication of the magnitude of the task fac- ing Bangladesh if a sustainable energy future is to be pursued and achieved. Goal, Scope, and Framework To design effective strategies to move toward energy sustainability in Bangladesh, a comprehensive understanding of the nation’s current energy situation and associated Downloaded from http://jed.sagepub.com at CNTR SCI AND ENVIRONMENT on September 15, 2008 294 The Journal of Environment & Development environmental concerns is important. In this regard, this article first reviews Bangladesh’s current energy situation and analyzes the status of and potential for sustainable energy development and environmental concerns. It then provides overviews of energy strategies and energy institutions that govern the nation’s energy sector. Among other strategic approaches toward energy sustainability in Bangladesh, consideration is given to the advancement of renewable energy projects under the CDM of the Kyoto Protocol. The final part of the article examines issues associated with development and implementation of sustainable energy strategies for Bangladesh. The article concludes with recommendations for sustainable energy development in Bangladesh. Current Energy Situation in Bangladesh The critical issues related to current energy situation in Bangladesh include fos- sil energy reserves, investment and revenue conditions in relation to the electricity sector development, the status of energy or electricity accessibility, the current elec- tricity crisis, and the status of and potential for renewables, which are further dis- cussed below. Fossil Fuel Reserves Natural gas reserves in Bangladesh have been estimated to be around 424 to 909 Gm3 (Kumaraswamy & Datta, 2006). This resource provides more than two thirds of the nation’s commercial supply of current fossil fuel demand (production of nat- ural gas was 11 Gm3 in 2002) (Energy Information Administration [EIA], 2005). According to recent estimates, electricity production will alone consume 50% of the total gas produced by 2010 (Nexant, 2006). The sector-wise projected gas demand for 2008 to 2010 is given in Table 1. In addition, Bangladesh has more than 2 billion tons of low-sulphur-content coal reserves (Economist Intelligence Unit [EIU], 2005). The economic potential for these reserves is yet to be confirmed. The current status of the coal fields is given in Table 2. Development of only the Phulbari coal field (in the northeastern part of Bangladesh) has been started. Even though Bangladesh has reserves of these coal and hydrocarbon resources, efficient use of these resources is limited because of a lack of exploitation and distribution facilities. Also, although the proven oil reserves are estimated to be 56.9 million barrels, Bangladesh meets more than 90% of its oil demand through imports (Kumaraswamy & Datta, 2006). Out of the 3.6 GW of elec- tricity generated annually, 94% comes from thermal (natural gas and oil fired) and the remainder from large-scale