12/10/2024
Why solar power cost is high in Bangladesh?
# Solar power tariffs in Bangladesh are significantly higher than in other South Asian countries, reaching over Tk12/kWh, compared to India’s Rs2.50-2.87/kWh (Tk3.55-4.08)
# Land scarcity, remote plant locations, and expensive grid connections contribute to the high cost of solar energy in Bangladesh.
# In Bangladesh, land costs for solar projects can exceed 10% of total project costs, compared to the global norm of 3-5%
# Corruption also inflates solar project costs, adding around Tk1 per unit of power
# Bangladesh levies a 37% customs duty on solar inverters, further driving up costs
# In contrast, countries like India and Pakistan provide low-cost or free land, build infrastructure, and offer tax incentives, making solar power cheaper
# Delays and fees in Bangladesh’s project approval process increase costs.
# Experts suggest policy changes, including amending land use laws and improving transparency, could reduce solar tariffs to Tk8/kWh.
Alongside corruption, land price, grid connection cost and high customs duty on inverters play a role behind the high tariff of solar power in Bangladesh, which is multiple times higher than its South Asian neighbours
