Govt plans separate tariff structure for battery swapping stations
In response to a local startup’s request, the regulatory body is considering a specific energy tariff rate to support operations
The government plans to introduce a separate tariff structure for battery swapping stations to encourage investment in the sector, according to Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed.
In response to a local startup's request, the regulatory body is considering a specific energy tariff rate to support operations. A battery swapping station is a place where electric vehicle (EV) owners can exchange a depleted battery with a fully charged one.
With investment from an international company, over 1,000 battery swapping stations have already been established in the country – a move viewed positively for managing used batteries and mitigating their environmental impact.
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"We currently have a tariff structure for EV (electric vehicle) charging stations," Jalal Ahmed said at a policy dialogue titled "Green Transitions for a Prosperous Bangladesh: Renewable Energy and Urban Sustainability Solutions," organised by Policy Exchange and supported by the International Growth Centre (IGC) at a city hotel yesterday.
In 2023, Tiger New Energy – a battery swapping station – launched in Bangladesh, offering GPS-embedded lithium batteries compatible with two- and three-wheelers.
Several apparel exporters are investing in solar energy, driven by buyer demand. Jalal Ahmed said, "While the technology is available, the high cost remains a barrier to installing solar panels in the textile and RMG sectors."
He also mentioned that despite 15 years of exploring waste-to-energy solutions, they have yet to be effective, primarily due to a cultural barrier hindering implementation.
Moogdho Mazhab, associate research fellow at the International Food Policy Research Institute, said approximately 4 million easy bikes operate in the country, many of which use illegal electricity, though their exact consumption remains unknown.
He also highlighted the lack of facilities for managing and recycling lead-acid batteries, commonly used in electric bikes.
Mazhab warned that if the use of such hazardous items continues unchecked, most children could suffer severe health impacts by 2030.
His study on lead poisoning from EV battery recycling, alongside the relocation of manufacturing from China to Bangladesh, noted the public health consequences of increased import tariffs on batteries in Bangladesh and stricter environmental regulations in China.
This shift has resulted in a decline in Chinese battery imports and the expansion of domestic lead-acid battery recycling, which has contributed to lead seepage in the environment.
Atonu Rabbani, an economics professor at Dhaka University, presented on "Opportunities and Barriers to Adopting Renewable Energy Technology in Bangladeshi Factories."
He identified the high cost of renewable energy technology as the primary barrier to sustainable energy sourcing in the apparel sector.
The second panel featured Munshi Sulaiman, director of research at the BRAC Institute of Governance and Development (BIGD), who discussed "Incentivising Source Sorting of Domestic Waste: An Experiment with Cox's Bazar Municipality."
His ongoing study revealed that around 4,000 tonnes of plastic waste are processed daily, with an additional 2,000-3,000 tonnes left unprocessed, while only 4% of recyclables are actually recycled.
Martin Mattsson, assistant professor at the Department of Economics, National University of Singapore, shared his research on "Defensive Investments to Reduce Air Pollution Harms."
He highlighted that 1.4 million people in South Asia die annually from air pollution-related health issues, yet few middle-class households use air purifiers, despite their 80% effectiveness and comparable electricity cost to a ceiling fan.
He also emphasised the Commission's commitment to a proactive approach, particularly in the power sector, while acknowledging the environmental challenges that need to be addressed to fulfil its mandate effectively.
M Masrur Reaz, chairman of Policy Exchange Bangladesh, moderated the panel on Sustainable Cities, while Shahid Vaziralli, head of Research Programme and Bangladesh Country Lead at the IGC, led the session on Renewable Energy and Energy Access.
Ashfaqul Huq Chowdhury, senior country economist at the International Growth Centre, said, "China has controlled its air pollution by spending billions, but Bangladesh cannot afford the same."
