Prevalence of Solar Energy in Dhaka City

Prevalence of Solar Energy in Dhaka City
The thesis work has been done for partial fulfillment of the requirements for the
degree of Master in Development Studies (MDS) of United International University
School of Business & Economics

United International University
Dhaka
`
Submitted by
Shamme Shamsun Nahar
ID: 125 162 001
Trimester: Summer 2017

United City, Modani Avenue,
Badda, Dhaka- 1212
`
Submitted by
Shamme Shamsun Nahar
ID: 125 162 001
Trimester: Summer 2017
Supervisor
Dr. Hamidul Huq
Professor

United City, Modani Avenue,
Badda, Dhaka- 1212
`
Acknowledgements
At the very outset, I express my deep sense of gratitude to almighty Allah for giving me the
scope to study and complete my research work.
My foremost and heartiest thanks goes to my supervisor Dr. Hamidul Huq, Professor, Master in
Development Studies Program, Department of Economics, United International University for
his constant support, valuable guidance, valuable advice, supervision and constructive
discussion throughout the study, without which the work would not have been a success. I
consider myself to be proud to have worked with him. Without his valuable suggestion and
discussions about data processing and interpretation it was not possible for me to complete the
work.
I am profoundly grateful to the Chairman of the Department of Economics for giving me

permission to work on this project work, active cooperation and providing all kinds of academic
facilities for my research work.
Special thanks to my friends and senior students for their co-operation and hereafter my
profound gratefulness to my family who has given me continuous support through the study.
Last but not the least; I am indebted to my parents for inspiration and blessings, which made
possible the project work within time.
1
Table of Contents
1. Introduction...............................................................................................................4
2. Objectives..................................................................................................................6
3. Methodology..............................................................................................................7
4. Findings.....................................................................................................................8
5. Conclusion.................................................................................................................9
6. References...............................................................................................................10
7. Glimpse of SHS/ Roof top solar panels in Dhaka City........................................10
8. Annexes...................................................................................................................12
2
List of Abbreviations
GHG Green House Gas

MW Mega Watt
PV Photovoltaic
SHS Solar Home System
UIU United International University
ULAB University of Liberal Arts
RE Renewable Energy
1. Introduction
3
Energy is considered as the building block of modern civilization and a prerequisite for
sustainable development. Everything what happens around us is the result of flow of energy in
one form to another form. In last few decades energy demand has increased significantly due to
the industrialization and increasing standard of living of the human being. The increasing rate of
energy consumption will be more day by day because of the increasing rate of world population.
The high interaction between energy and environment prohibits the use of fossil fuel which
causes GHG effect on earth’s environment, one of the effective ways to solve this huge
problem of energy crisis is the use of renewable energy and sustainable energy more and more.
In a developing country like Bangladesh, energy source crisis to generate electricity is a major
issue which almost hampers all developments. In Bangladesh average about 77.9% of the total
population has access to use electricity and 56% to natural gas. Separately, 92% of the urban
population and 67% of the rural population have the access to the electricity for their source of
light.1 Because of the high consumption rate of fossil fuel, it will be over near future. Dhaka as
the capital of Bangladesh is one of the most electricity deprived cities in the world. In recent
years, Dhaka is facing high demand of power supply which has created challenges for the
power stations to meet the requirement. It has become hard to solve the power crisis. Limitation
of sources, low generation capacity, high demand, derated capacity of power station
machineries etc are the several reasons behind this crisis.
Thus, inadequate supply of electricity is one of the many problems faced by city dwellers in their
daily lives in Dhaka. Massive power outages, particularly during peak summer, have become a
regular feature in the capital city for a number of years. On an average, a typical Dhaka
household experiences power failure for about three hours per day. According to Power
Division, the average daily power supply in Dhaka ranges between 3372 MW- 3456 MW where
the average demand is between 3617 MW-3782 MW. So still the deficiency ranges between
245 MW- 326 MW per day, which increases up to 1,100 MW during summer (Collected by:
Unknown Source). In a time of increasing dependence on electricity among households,
widespread power interruptions cause an enormous amount of welfare loss as a result of high
indoor temperatures and disruptions in daily household activities.
Bangladesh imports 3.5 - 4.0 million tons of petroleum and petroleum products per year that
spent about $ 5 million in 2011 which is 10% more expense compare to year 2000. A poor
country like Bangladesh cannot afford this strong dependence on foreign oil in the near future
without thinking any alternative way. For alternative solutions the existing renewable energy
sources like biomass, hydro, solar, wind and tidal energy are needed to build up in a more
useful manner to minimize the present energy shortage.1
As Bangladesh is located in tropical region, so almost all the time summer exists except few
times in winter. As a result, in summer season temperature of Dhaka rises up to 40 degree
Celsius. But people cannot use air conditioner or fan properly due to frequent load shading
here. Like other professional, students, businessman, online home worker, computer user,
industrialists are badly victim of this problem. Though in this modern age electricity is the main
and fundamental demand for common people but the country's generation plants have been
unable to meet system demand over the past decades. Corruption in administration, high
system losses, delay in completion of new plants, low plant efficiencies including erratic power
supply, electricity theft, blackouts and shortages of funds for power plant maintenance are the
problems in the Bangladesh’s electric power sector.
4
Bangladesh government has set up the goal of providing electricity to all by 2020 and to ensure
reliable and quality supply of electricity at a reasonable and affordable price. Sustainable social
and economic development depends on adequate power generation capacity of a country.
There is no other way for accelerating development except to increase the power generation by
fuel diversification. ‘’Development of Renewable Energy’’ is one of the important strategies
adopted as part of ‘’Fuel Diversification Program’’. In line with this, the government is committed
to facilitate both public and private sector investment in renewable energy projects to substitute
indigenous non-renewable energy supplies and scale up contributions of existing renewable
energy based electricity productions.2
On the other hand, according to the Annual Budget Report 2016-2017, Power Division Board of
Bangladesh has announced a renewable energy plan which includes: 2
 Finalize the plan for solar park and solar rooftop

 Prepare business model for solar rooftop system
 Establish 45,00000 solar home system
 Prepare and publish the first ‘’Central Renewable Energy Database’’ in Bangladesh
Considering this plan, Power Division Board has undertaken an overall research initiative
consisting: 2
 Responsible energy conservation
 Energy efficiency and demand management
 Renewable Energy
 Conventional energy
 Transmission and distribution
 Energy, environmental and socio-economic impact analysis
Due to depleting nature and mono fuel dependent energy policy, it has become very essential to
find an alternative energy source for Dhaka. However, Power generation is going to take a
complete new shape in twenty first century. Fossil fuels like coal, gas, petroleum are not going
to be plenty for electricity generation as renewable energy presents a better substitute to fossil
fuels with greener impact on environment. Though hydroelectricity offers a potential amount of
renewable energy to the world, yet it is not available to all the places of the globe. Solar energy,
on the other hand, has all the opportunity to take over the existing power generation system.
It is known that solar energy is produced by transferring the heat of the sun. Solar electricity is a
renewable source of energy that has been with use since the onset of life. It is captured through
solar panels and converted to solar electricity using PV technology. PV solar panels are longer
lasting and efficiently convert energy from the sun to electricity.
Solar energy is now one of the most emerging technologies around the world. In almost every
corner of the world people are conducting research on how to improve the proficiency of this
technology. It is only because solar technology is still not enough efficient considering both the
5
costs and the amount of power produced. It therefore has significant potential for Bangladesh as
it does not require any sophisticated technology or fossil fuels to function.
But despite having huge potential, the solar rooftop or panel system in Dhaka city has not been
a success story, due to the lack of a feasible business model to implement the system on a
large scale. Recently the government has decided to make mandatory installation of solar
panels in case of high-rise buildings having more than 10 floors in Dhaka and other major cities
in a bid to ease the nagging power crisis. Nevertheless, this initiative is failing to attain its
desired goals as a result of the irregularities of the consumers including the lack of
understanding of the people about solar energy.3
Though renewable are slowly finding a potential market in Bangladesh, still there are lots of
barriers and the expected outcomes from the past initiatives are not encouraging as the total
utilization level is meager. Time-bound targets for mass dissemination of different renewable
energy technology options have to be adopted by the Government of Bangladesh for fulfilling its
requirement of universal electrification program by the year 2020.
Considering all these facts, this paper was focused on the study of people’s understanding
towards the prevalence of solar energy in Dhaka city and to assess the importance of solar
energy in the socio-economic including the environmental growth of Dhaka city.
2. Objectives
According to the background of the paper, the objectives of the paper were-
1. To study the mindset of the people regarding the acceptance of solar energy instead of
electric power supply in Dhaka city
2. To assess the significance of solar energy in the socio-economic and environmental

development of Dhaka city
3. Methodology
To conduct the study, some stages were followed to maintain the proper flow. The stages
included:
6
3.1 Finalizing study area: Once the topic of the study was decided, selecting the study
area was the main priority. Dhanmondi and Mohammadpur areas of Dhaka were
selected as the study areas. The reason behind selecting these two areas was they
cover a large business area including universities, medical centers and residential zone
which helped to conduct interviews of different stakeholders of the study.
3.2 Selecting stakeholders for interview: For stakeholders consultation, criteria and
number of stakeholders were selected:
Type of people Area Number of

people
Mass people (Owners of Mohammadpur/Dhanmondi 10
buildings)
Businessman (Owners & Nilkhet 10
salesman of photocopy
and book shops)
Medical People Ibn Sina/ Japan Bangladesh 3
(Responsible persons for Friendship Hospital/ Popular
the management of Diagnostic Center
hospitals) (Dhanmondi)
Private University Students UIU/ULAB/Stamford 15
University (Dhanmondi)
Owners of Solar Home Dhanmondi 4
Panel
Total: 42 People
The selection included diverse people to make the study more informative. Firstly, mass people
involved owners of building who are out of SHS service and do not possess any idea about it.
Secondly, businessman, like owners and salesman of photocopy and bookshops in Nilkhet were
interviewed because their businesses cover a large area and suffer severely due to load
shedding on regular basis, especially in summer. It was essential to know their outlooks towards
solar panel system instead of electric power supply. Thirdly, responsible persons from different
medical centers in Dhanmondi area, such as, Ibn Sina, Japan Bangladesh Friendship Hospital
and Popular Diagnostic Center were listed for interview. People in Bangladesh are largely
dependent on private medical centers for their treatment and spend a lot of money for quality
service. But sometimes the critical patients face difficulties due to collapse in service as a result
of random load shedding. So understanding the mindset of the responsible bodies of these
medical centers about installing and utilities of solar panel system, these persons were included
as stakeholders of the study. Fourthly, Dhanmondi area comprises a large number of private
universities and among these, students of (UIU), (ULAB) and Stamford University were selected
for interview. Lastly, owners of solar home panel system were involved as stakeholders of the
study to know what type of facilities they are enjoying including a comparison between their
lifestyle before and after installing SHS. In total 42 people were selected and interviewed during
stakeholders’ consultation of the study.
7
3.3 Preparing Checklist: The next phase was to prepare checklists comprised of relevant
questions. On the basis of various types of stakeholders’ selection, checklists of the study
also needed to be categorized as per the varieties of the interviewees. As it is a qualitative
data based study, so the checklists included perception based questions rather than
statistical questions.
3.4 Data collection and processing method: For data collection of the study, individual
interview method was followed. The aim of collecting data was to explore experience,
perspective and expectation of the stakeholders along with what is salient to them.
Eventually, interviews allowed depth of exploration and provide insight beyond the prepared
checklists. After collecting qualitative data, the overall data was processed to get findings
that will help to clarify the barriers and challenges to promote solar energy in Dhaka city
instead of electric power supply.
4. Findings
Findings of the study comprise-
4.1 Lack of understanding about solar energy: Mass people including businessman,
professionals and students lack the knowledge about solar energy system. Most of them
do not have any basic idea about the solar energy production procedure. They even do
not know the responsible authority from where they can get solar panel or other tools
relevant to it including costs.
4.2 Inadequate construction and design constraints : The study has found that
inappropriate construction and design constraints stop people to install rooftop solar
panel. Besides, shade from trees and nearby buildings, obstacles on the rooftop and
rooftop orientation are also responsible in this regard.
4.3 Limited availability of commercial funding: Commercial banks do not yet have
experience making RE loans which demotivate general people to install SHS. On the
other hand, where available, there are high financing costs and short loan tenors. As a
result, people who are interested towards installing SHS cannot afford it.
4.4 Lack of sufficient data and information: Lack of adequate data and information
about SHS and solar rooftop panel prevent to conduct feasibility study and research on
solar energy and people cannot know about the utility of it.
4.5 Dependence on the weather: We are already known about the fact that solar
energy depends on sunlight. During data collection, some of the beneficiaries claim that
8
during monsoon they do not get sufficient power backup from solar panels. Especially in
recent years, sudden rain and storm have become regular phenomenon due to climate
change.
4.6 Lack of skilled labor: There is lack of skilled labor or maintenance and repair of
certain RE technologies. Sometimes beneficiaries face hassle and financial loss during
maintenance and repair.
4.7 Lack of awareness of future development: Though Government has already

published future plan about solar energy officially, but still people are in dark about the
significance of it in their daily lives including future development of the country. Enough
awareness raising strategy and policy are missing in the plan.
5. Conclusion
Despite of barriers and challenges, Dhaka city can be very prospective for generating solar
energy in the near future for its shortage in electric power supply. Higher usage of solar energy
is not only sustainable and convenient way to power household, business places and
institutions in Dhaka but also renewable and this means it will never run out of it. On the other
hand, it supplies high quality, clean and environment friendly energy services. It produces zero
emissions and helps to keep the global warming under control which is very much significant for
a polluted city like Dhaka.
This paper has focused on the alternative uses of solar energy to ensure the energy security in
near future in Dhaka including significance of solar energy in the socio-economic and
environmental development of the city. One of the main limitations of this paper is the lack of
sound empirical underpinning to establish the importance of solar energy in the socio-economic
development of Dhaka city due to data constraints.
However, Policies can be implanted properly through reducing the impending barriers
competently. And through overcoming these drawbacks, it is possible to resolve electricity
power supply crisis in Dhaka and ensure a green environment for the future generations.
.
6. References
1. Available at: Wikipedia
9
2. http://powerdivision.portal.gov.bd/sites/default/files/files/powerdivision.portal.gov.bd/ann
ual_reports/f2a0a6d3_bbd6_41e7_a852_162842dc249e/Annual%20Report%202016-
2017%20(3).pdf
3. Available at: Bangladesh Economic News
4. Shah Mohazzem Hossain, Md. Rokonuzzaman, Mohammed Hossam -E- Haider,
Sustainability, Prospect and Challenges of Renewable Energy in Bangladesh
7. Glimpse of SHS/ Roof top solar panels in Dhaka City
10
8. Annexes
Checklist 1: House Owners
1. Occupation:
2. Your approximate monthly household income:
3. Living Area:
4. What type of property do you live in:
11
5. Do you own a residential property? (Year of building house):

6. Are you aware of Climate Change?
7. How aware are you of Solar Energy Technologies?
8. Do you know where to get solar home service in Dhaka city?
9. Do you have any Solar Energy technology installed in your home?
10. Would do you do during load shedding?
11. What is your expectation from government regarding solar home technology?
12. What factors would prevent you from installing Solar Energy Technology?
13. How important a role do you think solar energy will play in meeting Dhaka city’s future
energy needs?
Checklist 2: Businessman
1. Business type:
2. Position/Designation:
3. Job Location:
4. Do you own the property?
7. Do you know where to get solar energy system in Dhaka city?
8. Which watt they use for IPS/Generator in shop?
10. Have you compared electricity bill to solar panel cost? If "Yes" Please specify whether it is
12
cheaper or more expensive.

energy needs?
Checklist 3: Students
1. Institution Name:
2. Living Area:
4. What are the effects of climate change:
5. Do you know about Solar Energy Technology?
6. How solar energy is transferred into electricity?
8. Are you aware of the rooftop solar panel in your university? (Only for students of UIU)
9. Do you any idea the cost difference between electricity bill and solar home system cost?
energy needs?
11. Do you have any interest to work on solar energy sector in future?
13
12. If the answer is yes, then specify the type of work you want to do, for example, thesis, higher
study, article writing, professional specialization etc.
Checklist 4: Responsible medical authority persons
1. Organization/Institution Name:
2. Position/Designation:
3. Job Location:
6. Do you know where to get solar energy system in Dhaka city?
7. Which WAT you use for IPS/Generator in the medical center?
8. How do you manage emergency services during back up power supply failure?
9. To what extent your service hamper during back up power supply failure?
10. Have you compared electricity bill to solar panel cost? If "Yes" Please specify whether it is
cheaper or more expensive.
14
energy needs?
Checklist 5: Owners of SHS
1. Living Area:
2. What type of property do you live in:
3. Do you own a residential property? (Year of building house):
7. Do you have any Solar Energy technology installed in your home? (Does it cover full
home?)
8. Which watt they use for solar in home?
10. What was your most important motivation to install solar panel?
11. What benefits you are enjoying after installing solar panel?
12. What was the installation cost? And present maintenance cost.
13. Have you compared your electricity/gas bill before and after installing solar panel? If "Yes"
15
Please specify whether it is cheaper or more expensive.

14. Do you get any governmental support or guidance for yearly inspection of the solar panel?
energy needs?
16

Prevalence of Solar Energy in Dhaka City

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Prevalence of Solar Energy in Dhaka City

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Prevalence of Solar Energy in Dhaka City

School of Business & Economics

School of Business & Economics

School of Business & Economics

I am profoundly grateful to the Chairman of the Department of Economics for giving me

GHG Green House Gas

 Finalize the plan for solar park and solar rooftop

2. To assess the significance of solar energy in the socio-economic and environmental

Type of people Area Number of

Findings of the study comprise-

4.7 Lack of awareness of future development: Though Government has already

1. Available at: Wikipedia

7. Glimpse of SHS/ Roof top solar panels in Dhaka City

Checklist 1: House Owners

5. Do you own a residential property? (Year of building house):

cheaper or more expensive.

Checklist 4: Responsible medical authority persons

Checklist 5: Owners of SHS

Please specify whether it is cheaper or more expensive.

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