Impacts of CO2 emission constraints on penetration of solar PV in the Bangladesh power sector

Abstract

This paper examines the impacts of CO2 emission reduction targets and carbon tax on future technologies selection especially solar PV and energy use in Bangladesh power sector during 2005–2035. It also examines the co-benefits of energy security of the country. The analyses are based on a long-term energy system optimization model of Bangladesh using the MARKAL framework. The results of the study show that on a simple cost base, power generated from solar PV is not yet competitive with that of fossil fuel-based power plants. Alternative policies on CO2 emission constraints reduce the burden of imported fuel, improve energy security and reduce environmental impacts. The results show that the introduction of the CO2 emission reduction targets and carbon tax directly affect the shift of technologies from high carbon content fossil-based to low carbon content fossil-based and clean solar PV technologies compared to the base scenario. The cumulative net energy imports during 2005–2035 would be reduced in the range of 33–61% compared to the base scenario. The total primary energy requirement would be reduced in the range of 4.5–22.37% and the primary energy supply system would be diversified. Solar PV plays an important role in achieving reasonable energy security.