Bangladesh Can Add 3,400 MW Solar to Cut Peak Power Costs

Analysis by the Institute for Energy Economics and Financial Analysis shows Bangladesh can integrate 1,700 to 3,400 megawatts of solar capacity within its existing grid without infrastructure overhaul, reducing reliance on expensive fossil fuel plants during daytime peaks. The country recorded its highest ever demand of 15,648 MW at 9 pm on 19 April 2023, underscoring the urgency of diversifying its generation mix.

Bangladesh's power system experiences two daily demand peaks — a daytime peak and a higher evening peak. In April 2023, the average daytime peak demand was 11,504 MW against an evening peak of 12,833 MW. IEEFA's energy curve analysis covering March 2022 to February 2023 finds that 1,700 to 3,400 MW of solar can be absorbed within current system capacity, reducing consumption from costly plants during daylight hours. For evening peaks, the analysis indicates Bangladesh can accommodate 2,500 to 4,000 MW of wind power capacity.

Renewable energy presents the cheapest route for Bangladesh to manage peak demand while reducing its heavy dependence on fossil fuel imports, which have contributed to tight fiscal conditions and foreign currency shortfalls. Globally, renewables added 295 GW of new capacity in 2022, representing 83% of all new power capacity additions. India, by comparison, saved US$4.2 billion in fossil fuel import costs attributable to solar energy in just the first six months of 2022 — a relevant benchmark for Bangladesh as it pursues its 2041 development goals.

Land constraints, often cited as a barrier to renewable scale-up, are surmountable through proper resource mapping, particularly given that Bangladesh is arranging land for 97 special economic zones. The National Renewable Energy Laboratory has identified coastal areas with wind speeds of 5.75 to 7.75 metres per second suitable for wind development, and Bangladesh is advancing feasibility studies for two offshore wind sites. A solar-wind hybrid approach can address both day and evening demand peaks. Investment certainty will be essential, as future renewable projects will largely follow the independent power producer model requiring international participation.

Key figure — 15,648 MW — Bangladesh's highest ever peak power demand, recorded at 9 pm on 19 April 2023.