They can do this by introducing special fiscal measures -- the creation of a special fund, reduced interest rates for loans taken from banks for using renewable energy technology, tax holidays on investment made with regard to production of green energy and removal of VAT/taxes imposed on accessories used in this sector. Such steps will ensure success.

WE all know that there is a close association between the availability of reliable, uninterrupted power supply in industry and commerce and in the attaining of socioeconomic potential and decent living standards. In this era of globalisation, there are few issues that better demonstrate the confluence of politics and business than energy. From fuelling the economies of the rich countries to driving economic development in poor ones, it has an effect on almost everything that we do. Consequently, ensuring the safe supply and distribution of energy has to be an important part of strategic state policy.

It is this perspective that has persuaded the present government to attach the highest importance to attaining self-sufficiency in our energy needs within the next four years.

Bangladesh's per capita energy consumption is very low. The 2008 energy consumption value stood at about 250 kgOE (oil equivalent) compared to 550 kgOE for India, 515 kgOE for Pakistan and 430kgOE for Sri Lanka. Total primary energy consumption in 2008 was 33.5MTOE (million ton oil equivalent) and the energy consumption mix was estimated as indigenous biomass 62%, indigenous natural gas 25%, imported oil 12%, imported coal and hydro together at about 1%. Of this, natural gas, an indigenous non-renewable energy resource, plays a vital role in the growth of our economy.

Today, Bangladesh generates about 4,000 MW power against the national demand of about 5,500 MW. It also produces about 1,950 MMCFD gas against the national demand of 2,400 MMCFD. It is estimated that in three years from now, at the present rate of growth, power demand will increase to 7,000 MW and gas demand to 3,000 MMCFD. In order to face this changing scenario. Bangladesh will need to add 3,000 MW power its national grid and at least 1,000 MMCFD gas by 2012.

The prime minister has recently told the Parliament that her government hopes to rid the country of the existing power crisis by 2011 by generating 1,487 MW of additional power. She has also indicated her government's firm determination to

ensure that Bangladesh is not only self-sufficient in power by 2021 but also that electricity facility will be available throughout the country.

The energy and power advisor to the hon'ble prime minister has endorsed this ambitious program. He considers that it is feasible and possible. I agree with him. It will require a coordinated and comprehensive approach that will access to all different sources of energy -- gas based, coal, fuel oil, nuclear, hydro-electric, solar, bio-gas and wind. It will need massive investment but even that can be achieved.

I will highlight some of the expected areas of advance within the renewable energy sector.

The government has already endorsed a renewable energy policy, which, inter alia, stipulates the establishment of a sustainable energy development agency. There will also be special efforts towards initiation, coordination and monitoring of national programs for energy conservation and the expansion of the use of renewable energy.

A signatory of the NPT, the government is seriously examining the possibility of nuclear power. Bangladesh has already signed a protocol deal with Russia on October 21 after prolonged discussion on possible cooperation in the field of peaceful usage of atomic energy. The country plans to install a nuclear power plant in Pabna district, some 216 km northwest of capital Dhaka. The agreement was signed in Moscow during the visit of a nine-member Bangladeshi delegation headed by State Minister for Science and Information and Communication Technology Yeafesh Osman. In line with the protocol, a joint working group between Bangladesh and Russia is being formed and its composition and schedule will be defined in the working process.

After this comes the use of solar power. Prime Minister Sheikh Hasina has recently mentioned that the government has undertaken plans to set up solar power plants to generate 280 MW by 2013. At present, Grameen Shakti, a sister organization of Grameen Bank is setting up an average of 10,000 solar panels monthly, producing about 14 MW solar power across rural Bangladesh and providing electricity to more than 280,000 rural

households.

Several other NGOs are also generating about 2 MW of solar power and distributing this to the rural population. The number of beneficiaries is around three million people. Experts believe that Bangladesh has a particular advantage in this regard because it gets optimum sunlight on an average of about 340 days every year. Power-starved Bangladesh is also examining the possibility of using solar power in all new public buildings. The emphasis will be first on new buildings and then gradually in the old ones.

Infrastructure Development Company Limited (IDCOL), a government partner non-bank financial institution promoting solar home systems in rural Bangladesh, is also planning to set up a multipurpose Solar Irrigation System (SIS) in off-grid areas of the country. Rahim Afroze, the country's largest battery cell producer, is going to assist them in this regard. Special importance is being attached to this because there are 1.3 million irrigation pumps across the country and they consume about 750 MW of electricity everyday during the irrigation season. If we are able to run about half these irrigation pumps with solar power, it could save over 284 million US dollars worth foreign exchange.

I believe that our next step, through a public-private partnership, should be to establish and install two or more solar panel factories. Necessary research already completed has indicated that the silica content near Cox's Bazar could be used for manufacturing the solar panels required for meeting the needs of Bangladesh as well as the adjoining region. Our development partners may consider assisting us in this regard. This will enhance their reputation not only as being eco-friendly but also interested in expand-

ing the green foot print.

IDCOL is presently also involved in promoting the use of manure-fed biogas stoves in the rural areas. A viable clean energy proposition, this has already been put in place in over 39,200 households. The stakeholders are confident that they will have at least 80,000 such consumers by 2011. The eventual goal is to have approximately 3 million households accessing such energy. Major donors, including the Netherlands Development Organisation and the German Development Bank, are assisting in this regard. At present, out of a total installation cost of nearlyTaka 22,000, IDCOL provides a subsidy of Taka 9,000. The rest is being financed through microcredit loans. The Bangladesh Council of Scientific and Industrial Research (BCSIR) is also playing an important role in this field. Biogas technology is important because it can also be a good source of bio-slurry based organic fertilisers.

All forms of renewable energy technologies need to be explored and promoted. That will have to include the use of wind technology, micro-hydro power units and exploitation of wave's potential in coastal areas.

One hopes that the government will assist the process of expanding the use of renewable energy by making this sector ■investment friendly. They can do this fry introducing special fiscal measures - the creation of a special fund, reduced interest rates for loans taken from banks for using renewable energy technology, tax holidays on investment made with regard to production of green energy and removal of VAT/taxes imposed on accessories used in this sector. Such steps will ensure success.

Muhammad Zam/ is a former Secretary and Ambassador E-mal mzarw@dhaka net