Overcoming land acquisition challenges in Bangladesh’s renewable energy sector

The renewable energy sector in Bangladesh is on the verge of substantial growth, driven by the government's ambitious targets and the rising demand for clean energy. Yet, one of the most significant barriers to this progress is land acquisition. The challenges of acquiring land for renewable energy projects, particularly solar energy, are complex and multifaceted. 

From the need for large parcels of land to governmental restrictions on agricultural land use, bureaucratic hurdles at the local level, and the lack of professional land aggregators, the issues are substantial. Addressing these challenges is critical to unlocking the full potential of Bangladesh's renewable energy capacity.

The challenges of land acquisition

Larger land parcels: Solar power plants require significant tracts of land. A 1 MW solar power plant, for instance, typically requires around 3-4 acres of land. With Bangladesh's goal of generating 10% of its electricity from renewable sources by 2030 (around 4,000 MW of solar power), the country would need approximately 16,000-20,000 acres of land. This presents a major challenge in a country with over 1,333 people per square kilometre, where finding large contiguous land parcels is extremely difficult.

Restrictions on cultivable land use: The government has imposed strict restrictions on using agricultural land for non-agricultural purposes. Given that agriculture occupies about 70% of Bangladesh's total land area, options for renewable energy projects are severely limited. Developers are forced to seek out unused or barren land, which is hard to find in large enough quantities. Regions like the Barind Tract or the Chittagong Hill Tracts, where agricultural productivity is lower, could be utilised more effectively for renewable energy. However, policy restrictions complicate the process.

Bureaucratic hurdles: Acquiring land in Bangladesh often involves navigating complex bureaucratic procedures, particularly at the local government level. Obtaining the necessary permissions from the local Deputy Commissioner can take months or even years, increasing costs and delaying project timelines. The time required to complete the land acquisition process can range from 12 to 24 months, a timeframe that is far too long given the urgency of expanding renewable energy capacity.

Lack of professional land aggregators: Unlike many countries where professional land aggregators help assemble large parcels of land, Bangladesh lacks such expertise. In some cases, aggregators with political ties exploit the process, buying land in advance under family members' names to drive up prices over time. This lack of professionalism results in fragmented land holdings, making large-scale projects difficult to implement.

Land title disputes: Disputes over land titles are common in Bangladesh, where unclear or overlapping ownership claims can delay or even derail renewable energy projects. These disputes often stem from inheritance issues, unclear boundaries, or fraudulent transfers of land titles. Resolving these disputes can take years, adding uncertainty and risk for developers.

High land prices in suitable areas: In areas where land is both available and suitable for solar projects, prices tend to be high. Competition for land with good solar irradiance or proximity to the grid drives up costs, making projects financially unviable for smaller developers with limited access to capital.

Social and environmental concerns: Land acquisition for renewable energy projects can lead to social and environmental challenges, especially when the land is inhabited or used by local communities. Displacement, loss of livelihoods, and environmental degradation can spark opposition from local communities and NGOs, further delaying or cancelling projects.

Mitigation strategies and recommendations

To overcome these challenges, a combination of policy reforms and strategic initiatives is essential.

Reforming land use policies: The government should reassess its policies regarding the use of agricultural land. A more flexible policy framework that permits the use of marginal or less productive agricultural land for renewable energy could strike a balance between energy development and food security. Establishing a land classification system to categorise land based on its agricultural productivity would allow targeted relaxation of restrictions in less fertile areas.

Utilising khas land: Bangladesh has over 3.3 million acres of underutilised Khas land (government-owned land). Allocating a fraction of this land for renewable energy projects could provide a significant boost to the country's clean energy capacity. A government task force should be established to fast-track the allocation of Khas land for renewable energy, ensuring inter-ministerial coordination to expedite approvals.

Strengthening local government support: Collaboration with local governments is crucial. Simplifying bureaucratic processes and reducing the time required to obtain necessary permissions would streamline land acquisition. Local governments need capacity-building programs to understand the importance of renewable energy projects, helping them facilitate the process more efficiently.

Updating solar power development guidelines: Current guidelines for solar power plants need to be revised to reflect the challenges of land acquisition. These updated guidelines should prioritise land near grid infrastructure and contiguous parcels, reducing the need for costly transmission upgrades.

Establishing professional land aggregators: Public-private partnerships (PPPs) could be formed to develop professional land aggregators. These firms, with initial seed funding from the government and technical support from international agencies, could play a crucial role in assembling large tracts of land for renewable energy projects.

Introducing land acquisition incentives: Financial incentives, such as tax breaks or premium payments, could encourage landowners to sell or lease their land for renewable energy projects. A land lease model with guaranteed annual payments and profit-sharing mechanisms would make it more attractive for landowners to participate.

Resolving land title disputes: The government should prioritise resolving land title disputes by digitising land records and creating a centralised database that tracks ownership and disputes. Setting up specialised fast-track courts for land disputes related to infrastructure and energy projects would expedite the resolution process.

Engaging local communities: Developers should engage local communities early in the planning process to address social and environmental concerns. Establishing community development funds, where a percentage of project profits are reinvested into local infrastructure, could align community interests with the success of the projects.

Land acquisition is a significant hurdle in Bangladesh's renewable energy expansion. However, with targeted policy reforms, streamlined processes, and stronger local government support, these challenges can be overcome. 

By unlocking the potential of underutilised Khas land, revising land use policies, and introducing professional land aggregators, Bangladesh can pave the way for a more sustainable and energy-secure future. 

The country stands at the threshold of a renewable energy revolution, and with the right strategies in place, it can transform its energy landscape for generations to come. The time to act is now.

Abu Hena Mostofa Kamal is the Head of Regulatory Affairs and Land at Hero Future Energies

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions and views of The Business Standard.