May 2024
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Coastal Livelihood and Environmental Action Network (CLEAN)
Key Findings
Bangladesh has around 1.4 million battery-powered auto rickshaws (easy bikes). Most of those are locally made using local and imported technologies. Around 45 million people are involved with manufacturing, repairing, driving, servicing, and charging these easy bikes.
In the absence of adequate public transport systems, easy bikes became a savior for ordinary commuters in urban and rural areas. Around 25 million people use battery-powered auto rickshaws for short-distance commuting.
This transport system contributes around BDT 97,625 crore (USD 9.4 billion) to the national economy, including BDT 7,500 crore (USD 802 million) in the manufacturing industry, BDT 8,000 crore (USD 942 million) in the battery market, and BDT 82,125 crore (USD 7.6 billion) in commuting, servicing and charging services.
These vehicles also help the power sector reduce its stranded assets. The industry consumes 4,905 GWh (million units) of electricity annually, equal to 659 MW of installed capacity. The power sector is currently experiencing 64.2%% of overcapacity, so easy bikes reduce at least 5.64% of the stranded assets.
An easy bike is the cheapest mode of transportation because of the energy cost. It costs BDT 0.97 per km, nine times more affordable than a Sedan car (BDT 8.60/km). The energy cost is cheaper than popular bus services (BDT 2.15/km).
Easy bikes are safer than trucks, buses, and motorbikes on the urban streets. On average, 8.6% of accidents happened by easy bikes in the last seven years (2017-2023), while 27% occurred by trucks, 24.6% by motorbikes, and 15.71% by buses. Battery-powered auto rickshaws are also the greenest vehicles on city streets. They emit 49.56 grams of carbon dioxide per km, a 1,500 cc sedan car 159.16 grams, and a microbus 198.03 grams.
Easy bikes must be safer and greener to compete in the changing world of electric vehicles (EVs). To this end, the Government of Bangladesh (GOB) must take policy actions and schemes.
Legalizing battery-powered three-wheel vehicles with minimum licensing fees and other conditionalities considering their social, environmental, and economic contributions.
Formulating guidelines and building institutions to assess the capacity of EVs, including easy bikes.
Providing short driving courses on easy bikes and other auto-rickshaws for unemployed youths and existing drivers through the Department of Youth Development (DOYD).
Providing battery-powered three-wheeler driving licenses through a short test to ensure that the candidate drivers can comply with essential knowledge and skills of driving such a vehicle in urban areas.
Ensuring financial, technical and policy support to convert lead acid batteries to more efficient lithium-ion batteries.
Undertaking an all-out campaign to charge battery-powered three-wheelers during off-peak hours until solar power systems charge all easy bikes.
Encouraging the investors to take on more projects to install small-scale solar charging stations (SCS) nationwide.
Allocating financial resources in the national budget for installing SCS under the GOB agencies.
Providing financial subsidies of at least BDT 40,000 per KWp of residential rooftop solar systems and Feed-in Tariff (FIT) for the operation of SCS at small-scale (up to 3 MWp) and individual (up to 3 KWp) and
Ensuring Environmental and Social Impact Assessment (ESIA) for the easy bike manufacturing factories to ensure proper governance.