Clean energy transition in rural Bangladesh: Challenges in adoption and impact

Abstract

ABSTRACT At the household level, the solar photovoltaic (PV) system is an off-grid clean energy source with significant poverty reduction potential, thereby contributing to the attainment of several sustainable development goals. Nevertheless, there has been limited adoption of renewable or clean energy technologies in Bangladesh. At present, renewable energy sources account for only 3% of the country’s electricity generation. This study thus investigates the drivers of solar PV adoption and the impact of this on household income and poverty in Bangladesh. We present an econometric analysis of data from the International Food Policy Research Institute’s Bangladesh Integrated Household Survey, 2020. Our findings indicate that only 5.51% of the sample households adopted solar PV, with the likelihood of adoption 3.8% higher in households with a mobile phone, 1.7% higher in households with internet access, and 2.8% higher among homeowners. However, the government’s programs to expand the electricity grid made the delivery of solar PV by partner organizations less competitive. Our analysis reveals that the adoption of solar PV has a positive effect on household income of between 9.31% and 13.50%. The poverty gap is likely to decrease by around 20% to 26% due to adoption. These findings are pertinent to ongoing policy development efforts targeted at increasing the adoption of renewable energy to meet the sustainable development goals. Solar PV information could be potentially disseminated through mass media and modern communication technologies that require internet access. Furthermore, increasing the installation of solar PV systems in rented houses may promote the adoption of solar PV. It is imperative to implement policies that provide incentives for the installation and utilization of solar PV.