Bangladesh is facing a complex transition from coal-based energy, according to the Global Energy Monitor in its Boom and Bust Coal 2024 report published on April 11.
The report, released worldwide, illuminates Bangladesh’s coal energy landscape and stresses the importance of transitioning to renewable energy. It advocates for a shift away from coal-based energy toward renewable sources.
Highlighting Bangladesh’s economic strain due to heavy reliance on imported coal amid fluctuations in foreign exchange rates, the report mirrors similar challenges faced by countries worldwide.
The document further examines coal usage in Bangladesh, noting “a surge of coal plant commissionings marked the final months of 2023 in Bangladesh.”
“1.9 GW of coal capacity came online, a historic high since the country’s inaugural coal-fired power station commenced operations in 2006,” the report states.
“Bangladesh’s coal plants rely heavily on imported coal… and much of its installed capacity remained underutilized throughout the year as several power stations experienced recurrent shutdowns due to fuel shortages,” it adds.
Additionally, the report indicates Bangladesh’s trend of diminishing proposed coal capacity since 2019, suggesting a gradual shift toward cleaner energy sources.
“In 2023, little progress was made on coal proposals, which have steadily dwindled since 2019 and now seem increasingly improbable. The lone project that progressed was the government-backed Maheshkhali power station, which initiated pre-feasibility studies but faced repeated delays in its anticipated commencement,” notes the Global Energy Monitor report.
Flora Champenois, coal program director at Global Energy Monitor, remarked, “Coal’s prospects this year deviate from the norm, as indications point to a reversal of this rapid expansion. However, countries with coal plants slated for decommissioning must expedite the process, and those with plans for new coal plants must ensure they are never realized.
“Otherwise, meeting our targets under the Paris Agreement and reaping the benefits of a swift transition to clean energy will remain out of reach,” she emphasizes.
Sharif Jamil, member secretary of Dhoritri Rokhhay Amra (Dhora) and coordinator of Waterkeepers Bangladesh, stated, “Bangladesh’s economy bears a significant burden from financing, fuel costs, and currency fluctuations associated with current coal-based power plant operations.
“Even operating existing coal plants at full capacity poses challenges for Bangladesh. Proposing new coal plants or continuing with existing ones heightens public health risks and exacerbates climate disruptions, which is fundamentally irrational,” he concluded.
In addition to Global Energy Monitor, the report’s co-authors include the Centre for Research on Energy and Clean Air (CREA), E3G, Reclaim Finance, Sierra Club, Solutions for Our Climate, Kiko Network, Climate Action Network (Can) Europe, Bangladesh Working Group on External Debt (BWGED), Coastal Livelihood and Environmental Action Network (Clean), Waterkeepers Bangladesh, Dhoritri Rokhhay Amra (Dhora), Trend Asia, Alliance for Climate Justice and Clean Energy, Chile Sustentable, Polen Transiciones Justas, Iniciativa Climatica de Mexico, and Arayara.
Beyond Fossil Fuels also contributed to the Turkish version of the report.
