Electricity Access, Decarbonization, and Integration of Renewables: Insights and Lessons from the Energy Transformation in Bangladesh, South Asia, and Sub-Sahara Africa

Description

This Open-Access-Book covers different aspects of the low-carbon energy transformation in a unique manner, with a particular focus on two regions, South Asia and Sub-Saharan Africa. The first part of the book provides useful insights on changes and reforms in the energy sector of Bangladesh, while the second part illustrates the low-carbon energy transformation in South Asia and the third part covers lessons from Sub-Saharan Africa. In all of these regions, the energy sector is undergoing major changes, driven by the four D’s: Decarbonization, decentralization, digitization, and democratization. Major overhauls are taking place at all levels: The country level, where energy mixes are rapidly changing, the corporate level, where large state-owned and private companies are challenged and new actors are emerging, and the local level, where technical and regulatory change has made citizen engagement and community power an option to replace or at least complement centralized supply structures. A Foreword from Bangladesh A Foreword from Germany Contents Electricity Access, Decarbonization, and Integration of Renewables: Insights and Lessons from the Energy Transformation in Bangladesh, South Asia, and Sub-Sahara Africa Abstract 1 Preface 2 The low-carbon energy transformation 3 Focus on electricity access, decarbonization, and integration of renewables 4 Structure of the book 4.1 Introduction and welcome addresses 4.2 Part I: Energy Sector Reform in Bangladesh@50 4.3 Part II: Low-carbon energy transformation in South Asia 4.4 Part III: Lessons from Sub-Sahara Africa 5 Concluding Remarks 6 Appendix: A selection of panelists’ quotes at the MES2021 Conference References Powering up a Country into the Middle-Income Club Abstract 1 Introduction 2 Stylized facts on the Bangladesh Energy Sector during Last 50 Years 2.1 Generation Capacity 2.2 Per Capita Energy Consumption (PCEC) 2.3 Access to Electricity and System Loss 2.4 Fuel Mix Options in Electricity Generation 2.5 Move towards Competitive Market Environment and Investment Trend 3 Energy Market Reforms in Bangladesh 3.1 Policies to Facilitate Reform Initiatives 3.2 Energy Sector Reforms in Bangladesh 3.2.1 Institutional Reforms 3.2.2 Restructuring of the Core Utilities Generation Utilities Distribution Utilities Transmission Utilities 3.2.3 Independent Regulatory Body 4 Existing Controversies 4.1 Quick Rental (QR) Power Plants and Increase in Liquid Fuel Consumption 4.2 Low Reserve of Natural Gas and Issue with LNG 4.3 Slow Progress in Renewable Energy Development 4.4 Overcapacity in Generation and Issue of Capacity Charge 4.5 Subsidy Issues 4.6 Demand Forecasting Methods 5 Conclusion and Priority Actions References 100% Electrification but What Comes Next for Bangladesh? Lessons from Insiders Abstract 1 Introduction: A Project Triggered by Chance 2 IDCOL’s Journey of Success 3 IDCOL’s Journey into the Future 4 The Private Sector Perspective 5 What Africa can Learn from Bangladesh 6 What Comes Next for Bangladesh? References Policy Options While Increasing Share of Renewable Energy: Technology Choices for Peaking Power in the Context of Bangladesh Abstract 1 Introduction 2 Methodology 3 Current Scenario of the Peaking Power Plants in Bangladesh 4 Possible Technology Options in Bangladesh as Alternative to Conventional Peaking Power Plants 4.1 Case 1: Battery Storage 4.1.1 Lithium-Ion Battery Storage 4.1.2 Lead Acid Battery Storage 4.2 Case 2: Solar PV with Hydro Reservoir 4.3 Case 3: Solar PV-HFO Hybrid Plant to Address the Peak Load 5 Policy Options for Bangladesh and Conclusions References Low-Carbon Energy Transformation in China, India, Pakistan, and Afghanistan: An Overview Abstract 1 Introduction 2 China 2.1 Introduction 2.2 Production and Supply 2.3 Consumption and Demand 2.4 Renewable Energy Potential 2.5 Low-Carbon Energy Targets 2.6 Challenges to Low-Carbon Energy Transformation 3 India 3.1 Introduction 3.2 Production and Supply 3.3 Consumption and Demand 3.4 Renewable Energy Potential 3.5 Low-Carbon Energy Targets 3.6 Challenges to Low-Carbon Energy Transformation 4 Pakistan 4.1 Introduction 4.2 Production and Supply 4.3 Consumption and Demand 4.4 Renewable Energy Potential 4.5 Low-Carbon Energy Targets 4.6 Challenges to Low-Carbon Energy Transformation 5 Afghanistan 5.1 Introduction 5.2 Production and Supply 5.3 Consumption and Demand 5.4 Renewable Energy Potential 5.5 Low-Carbon Energy Targets 5.6 Challenges to Low-Carbon Energy Transformation 6 General Trends and Key Factors in Low-Carbon Energy Transformations 6.1 Decreasing Costs of Renewables 6.2 Decreasing Dependency on the Import of Fossil Fuels 6.3 Remuneration Schemes 6.4 The Impact of Fossil Fuel Subsidies 6.5 Chinese Influence on Foreign Energy Policies in the Context of the Belt and Road Initiative 7 Discussion and Conclusion References Consequences of Lockdown Due to COVID-19 on the Electricity Generation and Environment in South Asia Abstract 1 Introduction 2 Current Scenario of Power Sector of Bangladesh, India, and Sri Lanka 3 Comparison of Electricity Generation during Pre-pandemic and Pandemic Regime 4 COVID-19 Impacts on the Environment: GHG Emission 4.1 A. Calculation of GHG emission in Bangladesh 4.2 B. Calculation of GHG emission in India 5 Conclusion References Integrating Wind and Solar in the Indian Power System Abstract 1 Introduction 1.1 Indian Policy Context 1.2 Flexibility in the Indian power system 1.3 Power System Modelling studies in India 2 Modelling approach 2.1 PyPSA-India Model Description 2.2 Technical Constraints 2.3 Scenario Description 2.4 Production capacities 2.4.1 Transmission system 2.4.2 Power system flexibility 2.4.3 Nomenclature of Scenarios 3 Aggregate Scenario Results 3.1 Results Summary 3.2 Curtailment 3.3 Plant Load Factor 3.4 System Costs 3.5 Operation of the Coal Fleet 3.5.1 Unit-Wise PLF by Scenario 3.5.2 Unit-Wise Coal PLF and Unit Starts Versus Marginal Cost 3.5.3 Two-Shift Operation of the Coal Fleet 3.6 Insights in the Operation of Gas and Hydro 3.7 Role of Battery Storage 4 Conclusion References Decentralized Electrification Pathways in Sub-Saharan Africa—Assessment of Experiences and Business Models Abstract 1 Introduction 2 Aims & Objectives 3 Methods 4 Electrification Barriers 5 Drivers 6 Technological Pathways 7 Conclusions References Identifying Effective Electrification Approaches and Combinations Thereof to Meet Universal Electricity Access Targets in Eastern Africa Abstract 1 Introduction 2 Literature Review 3 Methods 4 Results 4.1 Firms in the Electrification Industry 4.1.1 Rural Electrification Agency 4.1.2 National Electricity Utility 4.1.3 Private Electricity Generation and Distribution Companies 4.1.4 Off-grid Solar Companies 4.2 What Shapes Firms in the Electrification Industry—The Industry Regime 4.2.1 Core Capabilities On-Grid Mini Grids Off-grid Solar 4.2.2 Industry Mindset 4.2.3 Values, Identity and Mission 4.2.4 Regulations, Laws, and Standards Electricity Licensing Laws or Regulations Rural Electrification Fund Net Metering Distribution Grid Code Electricity Supply Reliability and Quality Mini Grid Regulations Off-grid Solar Quality Standards 4.3 What Influences Firms in the Electrification Industry—External Environments 4.3.1 Socio-Political Environment National Electrification Plans and Strategies Financing Plans for Electrification Influence of Development Agencies The Role of Civil Society Public-Private Partnership Models for Electrification Electricity Concessions Sufficient Electricity Access and Energy Mobility 4.3.2 Economic Environment—What selection pressures, exerted by markets, are faced by different firms? Rural Electrification Agency National Electricity Utility Small Private Electricity Generation and Distribution Companies Off-grid Solar Companies 5 Discussion 5.1 Representing the Electrification Industry using the TEF—A Summary of the Findings 5.2 Postulating the Reorientation and Recreation Required to Make Progress Towards the Universal Electricity Access Goal 6 Concluding Remarks References Are Mini-Grid Projects in Tanzania Financially Sustainable? Abstract 1 Introduction 2 History of Mini-Grid Projects in Tanzania 2.1 Regulatory Framework 2.2 Financing Mini-Grid Systems in Tanzania 2.3 Tariff Regulatory Policy in Tanzania 3 Methods and Data 3.1 Description of Project Site – Mafinga Town 3.2 Solar Resource 3.3 Levelized Cost of Energy 3.4 Modelling the Energy Flow and the LCOE 3.4.1 The PV+Battery system model 3.4.2 Battery Storage System 3.4.3 Generator model 3.4.4 Modelling the LCOE 3.4.5 The Annualized Cost 3.5 Data and Load Estimation 3.6 Electricity Demand Estimation 4 Results 4.1 The Profitability of the Proposed Mini-Grid System 4.2 Sensitivity Analysis 5 Conclusion and Policy Implication Appendix A: Base Case Cost Summary Appendix B: Future Case Cost Summary References Establishing Local Power Markets and Enabling Financial Access to Solar Photovoltaic Technologies: Experiences in Rural Tanzania Abstract 1 Introduction 1.1 Access to Energy in Rural Tanzania 1.2 Energy Inclusion and Financial Inclusion Barriers 1.3 Tanzanian Microfinance and VICOBAs 1.4 Financing SPTs in Rural Tanzania 2 Intervention Methodology and Implementation 2.1 Project Stakeholders 2.2 Theory of Change 2.3 Data Collection Methodology 2.4 Activities Implemented and Financial Scheme Established 3 Results 3.1 SPTs Awareness 3.2 Community Members’ Financial Education and Engagement 3.3 SPTs Financing and Supply Chain 3.4 After Sale Services 3.5 Threats: Environmental Factors and Covid-19 4 Conclusion References