GP sets 50% carbon cut goal in six years, seeks policy support

Grameenphone, a leading mobile phone operator of the country, seeks policy support to realise its goal to reduce carbon emissions by 50% by 2030 through using renewable energy in line with its parent company, Telenor.

The company advocates for the implementation of a Corporate Power Purchase Agreement (CPPA) policy in Bangladesh, similar to policies in other countries.

Such a policy will facilitate increased adoption of renewable energy by providing a framework for corporations to procure renewable energy directly from producers, according to Hans Martin Hoegh Henrichsen, Chief Corporate Affairs Officer of Grameenphone.

The mobile phone operator has developed a comprehensive strategy to tackle corporate power purchase, said the GP official, during a media briefing recently.

GP will buy the renewable power directly from producers, Hans said. The generator will supply it to the national grid and Grameenphone will take its share from there, he said. The renewable energy that Grameenphone injects in the national grid will be deducted from its total consumption in the system from the grid, said Hans.

"The issue involves the national grid, distributor utilities and the power producers. Every party will get individual charges or bills. That's the reason we want CPPA policy, where the issues of billing or charges will be mentioned. And these should be negotiable", he explained.  

Through the policy corporate organisations and power generation companies can enter into direct contracts with each other and negotiate the price of electricity, continued Hans.

Thus, the policy will allow renewable energy producers to supply electricity to large corporate consumers like Grameenphone through the national power grid and will allow corporate customers to purchase renewable electricity from renewable power producers through the grid, he also added.

However, GP will not enter into the production of renewable energy or it will not make direct investment in it.

"We have no experience in power production. Our expertise lies in mobile networks and telecommunications systems. So we will take energy from third party producers," said the official.

Asked why GP is not taking energy from the existing producers who are also supplying power to the grid, Hans told TBS, "As the producers already inked contracts with the government and are supplying renewable energy to the national grid already, so we have no way to sign a new contract with them now."

GP will also heed to the power producers safety entering into long-term contracts.

"Grameenphone will enter into long-term contracts with renewable energy producers through CPPA. It may be [for] 15 years", said Hans.

As per him, CPPA will also give guarantees that the electricity generated by a producer will not remain unsold. "Thus, the producers will feel secure and will be more inclined to invest. On the other hand, buyers also will be interested in purchasing from them due to the opportunity of bargaining."

Asked why a fresh policy is required when there is already one in place, Hans said, "Existing policy is allowed to supply power to a particular point of area, a relatively small area like an economic zone.

"But as the Grameenphone has towers and operating systems across the country, commercial power purchase agreement under current policy will not work for its aim to use renewable energy in its network. Therefore, we are pursuing CPPA," explained Hans.

"This will allow us to contribute to the national grid with a portion of renewable energy from any point of the country."

Hans also said CPPA can play a crucial role in boosting foreign direct investment on businesses advancing the renewable energy transition in the country. "Apart from this, there is a lot of potential for foreign investment in setting up new power plants based on renewable energy. This will also play a role in expanding energy access in rural areas, driving economic development."

And thus, this can help on job creation, technology transfer, community development, and environmental conservation, he added.

The policy can enhance corporate sustainability, brand reputation, and energy security as well, said the official.