[🇧🇩] Energy Security of Bangladesh

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State Minister for Power, Energy and Mineral Resources Nasrul Hamid said Germany’s experience in wind technology can make a special contribution to Bangladesh’s wind power.


He said this during a meeting with Dr. Barbel Kofler, German Parliamentary State Secretary of the Ministry of Economic Cooperation and Development in Berlin on Tuesday.

During the meeting they discussed various issues of mutual interest.

The State Minister also said that cooperative efforts between Bangladesh and Germany in the field of renewable energy will have a positive impact.

He noted that Bangladesh is successfully implementing the Solar Home System Programme with a special emphasis on innovation and resilience.

“This groundbreaking initiative is attracting rural communities to clean and sustainable energy sources; At the same time, they are self-reliant by realising their hopes and aspirations," he told the German State Secretary.

He said that the solar home system programme not only lights the house but also brings a light of hope to those who were previously in darkness.

Additionally, Bangladesh has announced its commitment to renewable energy and climate resilience through initiatives such as the Mujib Climate Prosperity Plan.

By leveraging global partnerships and resources, Bangladesh is committed to mitigating the effects of climate change, he added.

The state minister also said that the recent commissioning of a 60 MW onshore wind power has marked a significant milestone in Bangladesh’s progress in the field of energy.

This achievement not only highlights Bangladesh’s commitment to reduce its dependence on traditional energy sources but also shows its willingness to cooperate with developed countries including Germany in renewable energy.

The state minister said the innovation and partnership are a green signal for future generations of both the countries. This green signal will set an example for others to follow.

The Parliamentary State Secretary of Germany expressed interest in the overall situation of electricity and energy in Bangladesh and said that Germany will cooperate in the development of renewable energy in Bangladesh.​

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As Bangladesh government is moving forward with the goal of generating 40 per cent of electricity from clean energy in 2041, State Minister for Power, Energy and Mineral Resources Nasrul Hamid hoped that Germany will further cooperate in renewable energy sector.

“We always encourage increase of fuel-mix share of renewable energy,” he said on screen after the two-day long 10th Berlin Energy Transition Dialogue (BETD) at the Berlin headquarters of the Federal Foreign Office of Germany.

In the Berlin Energy Transition Dialogue, Nasrul Hamid held three meetings with ministers from 70 countries and discussed challenges and solutions on renewable energy and energy transition.

He raised the issue of technology transfer and finance among other countries’ ministers and talked how quick Bangladesh can go for renewable energy.

“I have talked with Germany Foreign Minister about challenges and expenses of renewable energy installation,” he said.

“We had close-door meetings on how Germany can help us to expand clean energy. Meetings were also held with Vice Chancellor of Germany and Deputy Secretary of Parliamentary Committee,” the state minister said.

He reiterated Bangladesh’s national goal of achieving 40 percent power production from clean energy by 2041 under Prime Minister Sheikh Hasina’s leadership.

Nasrul Hamid said Germany acknowledged Bangladesh’s progress in transitioning to clean energy and praised the government’s roadmap.​

https://www.thedailystar.net/news/bangladesh/news/bangladesh-robbed-14b-3-years-3574361

Says PM’s energy adviser on global oil price hike


Tawfiq-e-Elahi

Bangladesh was robbed of $14 billion in the past three years because of the spike in global oil prices, said Tawfiq-e-Elahi Chowdhury, the prime minister's energy adviser.

"All the oil companies and exporters increased the oil price. In my calculation, they have robbed us of around $14 billion since 2022. How can an economy be stable if a country's wealth is taken in such a way?"

Chowdhury's comments came at a seminar on "Unpacking the Economic Manifesto of the Awami League: Trends and Challenges for Tomorrow's Bangladesh" in Dhaka organised by the Bangladesh Institute of Development Studies (BIDS).

In the middle of 2020, crude oil prices plummeted to $25-$30 a barrel as demand shrank for the global coronavirus pandemic.

But once the impacts of the global health crisis petered out in 2021, the prices began to creep up and it went through the roof after the Ukraine war that began in February 2022.

The higher prices meant Bangladesh had to pay more for fuel, which ate up the foreign currency reserves at an alarming rate. The shrinking reserves meant the dollar appreciated substantially against the taka, raising the prices of practically everything in Bangladesh, an import-dependent country.

Subsequently, inflation hit a decade high.

Economic instability hit Bangladesh after the global fuel price started climbing, Chowdhury said, while blaming the Ukraine war for the price hike.

"Had the Russia-Ukraine war not broken out, Bangladesh would have remained in a much better shape. We are the victim of geo-political tensions."

Global lenders have also increased the interest rate of loans, which has made borrowing costlier for Bangladesh.

"Still, Bangladesh is doing well," Chowdhury added.

At the event, Finance Minister Abul Hassan Mahmood Ali blasted the people who had said Bangladesh would face the same economic turmoil as Sri Lanka. "Many had said we would become like Sri Lanka but it didn't happen."

"Many international banks and agencies have come forward to lend to us."

Germany, South Korea and Saudi Arabia are particularly coming forward to invest.

"The way new investment is coming into the country is a good thing. The country is doing well. We believe that we will be able to overcome the obstacles we are facing," he added.

Mashiur Rahman, the prime minister's economic affairs adviser; Kamal Abdul Naser Chowdhury, education and cultural affairs adviser to the prime minister; Manzoor Ahmed, an emeritus professor of BRAC University; and MM Akash, a former professor of the University of Dhaka's economics department, also spoke.

Binayak Sen, director general of the BIDS, moderated the event.​

The Islamic Trade Finance Corporation (ITFC) signed an agreement on Monday to provide $1.4 billion to the Bangladesh Petroleum Corporation, Saudi Arabia's state news agency SPA reported.

The ITFC, part of Saudi Arabia's Islamic Development Bank, said the financing was aimed at developing Bangladesh's energy infrastructure.

"This agreement is a testament to the successful long-term partnership between the two parties and the financing plan will ensure energy security for one of the fastest-growing economies in South Asia," SPA said.
SPA did not say what form the financing would take.​

The plants are located in Dhaka’s Ashulia, Narshingdi’s Madhabdi and Cumilla’s Chandina



The government has extended the contracts of Summit-owned three gas-based power plants for the next five years.

The plants are located in Dhaka's Ashulia, Narshingdi's Madhabdi and Cumilla's Chandina, which have a combined capacity of around 50 megawatts (MW).​

Yesterday, the cabinet committee on government purchase approved the extension of the power plants.

All three plants were established in 2003 and the contracts expired on November last year.

There will be no provision of capacity payments in the extended power plants, said Md Mahmudul Hossain Khan, secretary for coordination and reforms of the cabinet division.

"They will only get the operational charges which would cost Tk 6.04 per unit," he said.

In the next five years, the government would save Tk 0.0725 per unit electricity while the total save would be Tk 6.81 crore.

Meanwhile, the Summit Group informed the cabinet meeting on economic affairs that it has formed a special purpose vehicle company named Summit LNG Terminal II Co Ltd, which will build and operate the country's third Floating Storage and Regasification Unit.

The unit with 600 mmcfd capacity was supposed to be built by the Summit Oil and Shipping Co Ltd.​

The government built two compressor stations in 2016 to supply gas at adequate pressure to different districts, but the expensive machinery has been underutilised due to inadequate gas flow.

The compressor at Elenga in Tangail has never been used because of inadequate gas supply.​

The one in Ashuganj, Brahmanbaria, was used only 9.79 percent of the time in 2023.

The state-run Gas Transmission Company Limited (GTCL) built the facilities at a cost of Tk 1,331 crore. Most of the funds were borrowed from the Asian Development Bank.

South Korea's Hyundai Engineering Co Ltd set up the stations that, according to a recent Petrobangla report, have a "design life of 25 years". Almost a third of their life has elapsed.

From 2019-20 to 2022-23 fiscal years, GTCL paid Tk 309 crore to five foreign firms for operating, maintaining and servicing the machinery, according to a report by a technical committee of Petrobangla.

The compressors were supposed to be supplied with imported LNG and gas from the fields in Sylhet and Brahmanbaria.

The one in Ashuganj was supposed to supply households and businesses in and around the capital with adequate pressure of gas. The one in Elenga was meant to supply gas to the southwestern districts across the Jamuna river.

Both the compressors require at least 650 pounds per square inch (psi) at the intakes. The compressors are capable of raising the pressure to 1,000 psi, according to the report submitted to the GTCL in the last week of February.

From May 16, 2016, when the Ashuganj station began operation, to the end of 2022, the most it operated in a year was 94 percent of the time in 2019, and has been declining since.

After the Ashuganj station caters to the huge demand in Dhaka and Gazipur, there is not enough gas left for the Elenga station to operate, the report says.

In 2023, the average pressure in Elenga was 367 psi. When the facility was commissioned in 2016, the pressure was only 4.13 percent of the requirement of 650 psi, it adds.

According to Petrobangla data, around 2,700 million cubic feet per day (mmcfd) of gas is supplied to the national grid against a demand of around 4,000 mmcfd.

The shortfall persists thanks to the decline in gas production and inadequate import of LNG amid the foreign currency crunch.

As the compressor stations become a burden, the technical committee recommends the one in Elenga be used as a gas metering and flow control facility only.

The committee, formed in October last year, also recommends relocating the Elenga station to a suitable place in the southwestern region, subject to LNG import from India after 2026.

Since modifying the compressors to reduce their intake requirement will cost 7.2 million euros, it is not recommended.

Appointing local engineers to run the facilities would lower the operational and other costs, the report observes.

According to the project document, GTCL was supposed to train 25 of its engineers at the ESD Simulation Training Institute in Scotland.

The company's Managing Director Shahnewaz Parvez told The Daily Star that not all 25 officials received the training. Besides, those who received the training eventually did not work at the compressor stations because of their location in remote areas.

"As the salary is much higher in the power sector than the gas sector, some of them switched jobs," he said.
"If we find enough gas, the stations will run as they are supposed to," he added.

Zanendra Nath Sarker, chairman of Petrobangla, the parent organisation of GTCL, said, "Our primary target is to reduce operational costs of the stations. No decision has been made yet."

Prof M Shamsul Alam, vice-president of Consumers' Association of Bangladesh, said it seemed to him that the compressor stations were built in the first place to embezzle public money.

"They built these without properly measuring the gas flow. It is like the power plants that only receive capacity payments and do not generate electricity," says Shamsul Alam.

Due to such illogical investments, gas transmission fees increased threefold in the last few years, and the general public are bearing it.

"We have nothing to do but seek justice from the Almighty," Alam said.

Iftekharuzzaman, executive director of Transparency International Bangladesh, said building the facilities was an inexcusable wastage of public money.

"Question may be raised if the ADB as the source of the lion's share of the investment in the boneheaded project was motivated more by its own parochial interest in money lending business than value for money for Bangladesh.

"Equally depressing is that the only way the government could have fallen into the trap of the multilateral lender was perhaps because there was a vicious collusion of ADB officials with a section of powers that be. Neither can be absolved of the responsibility for the burden of this white​

SYFUL ISLAM
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A rush for approving renewable energy-based power plants is evident as 350-megawatt projects have already been given the go-ahead in last three months, auguring well for green transition.

Moreover, some 506MW green power projects have been in the queue for tariff approvals from the cabinet committee on government purchase, officials said.

On what experts see as the cusp of much-needed green-energy transition in Bangladesh, for that matter, the world over, many local and foreign companies are also showing interest in making solar and wind power plants in the country.

Last year alone, solar power plants with an aggregate capacity of 2.194 gigawatts received government approval to help lessen shortage of electricity amid dollar crisis that forces many fossil fuel-based existing power plants to lie idle.

Sources at the Cabinet Division said the cabinet committee on government purchase on March 27 was scheduled to approve four proposals regarding the setting up of 506MW renewable energy- based power plants in different parts of the country. However, the meeting, chaired by the finance minister, didn't take up the proposals for discussion and deferred until the next meeting.

According to one proposal submitted to the cabinet division for tariff approval, a consortium of SAL-GTECH wants to set up a 300MW solar power plant in Islampur upazila under Jamalpur district on Build, Own and Operate (BOO) basis. This will be one of the largest solar-power plants in the country.

Also, a consortium of Sungrow Renewable Energy Investment Ptd Ltd and Theia Power (Singapore) Pte Ltd wants to set up a 100MW solar plant in Rajbari Sadar Upazila, which is also in the line for tariff-rate approval.

Another consortium comprising Huiheng Wind Power Limited, Hong Kong, and Jupiter Energy Ltd, Bangladesh, wants to build a 100MW wind power plant in Bashkhali of Chattogram for which the power division has sought tariff approval from the CCGP.

Yet another conglomerate of DP Clean Tech UK Limited and Impact Energy Global Limited tries for tariff approval to set up a six-megawatt waste-to-energy power plant in Mymensingh City Corporation.

A senior Power Division official told the FE that tariff proposals of a good number of renewable energy-based power plants were also ready to be forwarded to the cabinet committee for its seal of approval.

"Like in 2023, this year a good number of green power plants will also get approval as government's attitude towards renewable energy has changed positively," he says.

On March 14, a meeting of the CCGP approved thee proposals for setting up solar power plants in Khulna, Moulvibazar and Rajbari districts.

Of the projects, a joint-venture company of Energon Renewables (BD) Ltd and PWR will set up a 100MW solar power plant in Rupsa upazila under Khulna district.

Also, a consortium of Thien Phu Vietnam New Energy Joint Stock Co and Dream Finder Limited will set up a 100MW solar plant in Rajnagar upazila under Moulvibazar district.

A consortium of China Datang Overseas Investment Co Limited and Engreen Engineering Limited will set up a 100MW solar power plant in Goalanda Upazila under Rajbari district.

Earlier on February 29, the committee also approved a proposal for the setting up of a 50MW solar plant at Beel Sulongi in Netrakona district.

Dipal C Barua, former president of Bangladesh Solar and Renewable Energy Association (BSREA), applauds government's recent positive attitude towards promoting clean energy that is now a global priority.

He says renewable energy-based power plants are now getting utmost importance within government circles as electricity from other sources has become much costlier amid dollar dearth.

"If the positive attitude towards renewable energy continues, the country will see huge green-power expansion in the near future," adds.

Mr Barua, also chairman of the Bright Green Energy Foundation, sounds upbeat that the setting up of increased number of renewable energy-based power plants will help lessen dependence on fossil fuel and cut emissions as well.

This energy transition is billed important to ward off climatic catastrophe looming over the world, as clear from infrequent droughts, rains and storms.​

Why open-pit coal mining in Phulbari will be disastrous


A procession brought out by local women during the Phulbari movement in 2006. PHOTO: MUNEM WASIF

A plan to extract coal through open-pit mining in Phulbari and the northern part of Barapukuria coal mine area is being revived by the government, despite strong opposition by locals and environmentalists due to its devastating impact on agriculture, environment, and livelihoods. According to BBC Bangla, the ministry of power and energy will submit a proposal in this regard shortly at the highest level of the government for approval.

In fact, when coal power plants were being built one after another in the country, we expressed our concern that even though the carrot of cheap electricity generation using imported coal was shown to justify the projects, once the power plants are commissioned, it would be said that importing coal from abroad requires a lot of dollars, so local coal needs to be extracted. Unfortunately, this concern has now proved to be valid.

The interests of the private coal power plants, jointly owned by local and Chinese companies, in buying the locally mined coal is evident in a recent press release of GCM Plc (formerly Asia Energy), which has been trying to extract coal from Phulbari by open-pit mining since 2004 without any valid license. According to the GCM press release issued on March 11, the company has received Expressions of Interest (EOI) to purchase Phulbari's coal from two of Bangladesh's current independent power producers. One is SS Power Limited which operates the 1,320MW Banshkhali coal power plant and the other is Barisal Electric Power Company which operates a 350MW unit at Barisal. It is noteworthy that a Chinese state owned company named Power Construction Corporation of China, Ltd. ("PowerChina") has a stake in both of the two power plants and GCM has signed a contract with PowerChina covering mine development works of approximately $1 billion necessary to "facilitate coal extraction" at Phulbari.
​

But the people of Phulbari region already rejected open-pit mining in the mass protests of August 2006. The government also signed an agreement with the National Committee to Protect Oil, Gas, Mineral Resources and Ports mentioning that Asia Energy will be ousted from Bangladesh and no open-pit mining will be allowed in the country. The independent experts have written extensively about its potential disastrous impact, and even reports of various expert committees formed by the government have highlighted the dangers of open-pit mining.

First, the coal beds in the Phulbari-Barapukuria region are overlain by an 80-120 m thick Dupi Tila aquifer. To maintain dry working conditions in an open-pit mine, this aquifer will need to be dewatered. Due to mine dewatering activities, the water level will decline in varying depths in a large area, up to about 20 km radial distance from the centre of the mine, according to the expert committee report formed by the government in 2005 headed by professor Nurul Islam (Nurul Islam Committee Report, 2006, page 122). According to another expert committee report formed by the government in 2012 headed by Mosharraf Hossain, former chairman of Petrobangla, local tube-wells, shallow machines, and deep tube-wells will not get ground water for agriculture and domestic purposes within a radial distance up to 27 km from the centre of the mine (Mosharraf Committee report, 2012, page 51).

The coal bed of Bangladesh differs from that of many other places in the world, where the water table is found usually below the coal bed, not above as in Bangladesh. As a result, there is no need to dewater the entire area for coal extraction in other countries. The Musharraf Committee Report states in this respect that, "It is a fact that water is being controlled in other open-pit mines elsewhere in the world. But the geological condition could be different, the glaring example being that the Nayvali lignite in India is being worked by open-pit mining since long. But the water bearing strata there is below the lignite bed and not over the coal bed which is different condition than that of Bangladesh" (Mosharraf Committee report, 2012, page 40).

Secondly, for open-pit coal mining in Phulbari, at least 6,688 hectares (66.88 sq km) of land will be acquired, of which 5,428 hectares or 54.28 sq km of land will be used as mine footprint (EIA of Phulbari Coal Project, Chapter 7 of Volume 1, Page 49). As a result, a large number of people will have to be displaced and resettled. Asia Energy claimed in 2005 that in total 54,074 people from 12,312 households would have to be displaced and resettled. In reality, the number will be much higher and is estimated to be around 1 million in the 2012 Mosharraf Committee Report (Mosharraf Committee Report, 2012, page 30). Proper resettlement of this large number of displaced people in a densely populated country like Bangladesh is an almost impossible task.

Thirdly, out of the 66.88 sq km land to be acquired for the open-pit mining project, 42.34 sq km is agricultural land (EIA of Phulbari Coal Project, Chapter 7 of Volume 1, page 51). Once the topsoil of this vast amount of three-crop land is removed, the fertility built up over thousands of years will be lost. Of this, 1,946 hectares will be used for overburden dumping and another 696 hectares for reservoirs. So, in total, 2,642 hectares (26.4 sq km) of agricultural land will be permanently unavailable for crop production. Referring to this data, the Nurul Islam Committee Report commented that: "The damaged area of 26.4 square km is equal to the area of Dinajpur town. Such misuse of land is not desirable in a densely populated country like Bangladesh" (Nurul Islam Committee Report, 2006, pages 127-128). The report of the Musharraf Committee said, 3,000 hectares of land will be taken out of cultivation for the next 50 years (30 years for mining period plus 20 years reclamation, if it happens at all). As a consequence of destruction of agricultural land, fish, vegetables and fruits, Bangladesh will lose at least Tk 25,000 crore in the next 50 years (Mosharraf Committee report, 2012, page 50).

Fourthly, Phulbari coal mine project while destroying at least 1 lakh agricultural jobs (Mosharraf Committee report, 2012, page 50), will create employment for only 2,100 people during the mine construction period, and for 1,200 people in the long term of which very few will be available for the project affected people because coal mining requires specialised technical skills (EIA report, Chapter 9 of Volume 1, page 6).

Fifthly, laboratory testing of coal and overburden materials of Phulbari area indicates that there is a high risk for Acid Mine Drainage (AMD) formation in exposed Lower Dupi Tila Formation, weathered Permian waste rock, and coal seam material of Phulbari area (EIA, Chapter 7 of Volume 1, page 47). AMD occurs when the iron sulphides unearthed by mining activity interact with water and air and produce sulfuric acid, which can cause toxic metals to enter and eventually dissolve into the water. According to the EIA report, contamination of groundwater by AMD will have an impact upon terrestrial flora and any aquatic biota residing in water bodies connected to the aquifer; for example, the Little Jamuna River of Phulbari (EIA, Chapter 7 of Volume 1, page 33).

Although, as per the EIA, there will be mitigation measures to minimise the risk of AMD formation, the Nurul Islam committee expressed doubt about the effectiveness of such measures mentioning that, despite the presence of institutional and technical measures at the federal and state levels in a developed country like the USA, the impact of AMD could not be prevented there. Thousands of miles of rivers in various states of the USA have been polluted due to AMD (Nurul Islam Committee Report, 2006, page 123).

Therefore, there is no scope for doubt that open-pit coal mining in Phulbari and Barapukuria areas will cause serious social, economic, and environmental disasters. That's why it is important to ban open-pit coal mining in Bangladesh permanently and thus kill all kinds of lobbying activities in favour of it, once and for all.
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Kallol Mustafa is an engineer and writer who focuses on power, energy, environment and development economics. ​

Matarbari Power Plant: Tk 93 lakh for two pipe cutters!

On January 9, 2024, a small shipment weighing 344.5 kilograms arrived at Chattogram port. The shipment worth $250,863 (Tk 2.75 crore) contained 19 pieces of small tools such as hammer, metal pipe cutter and silicon guns imported for state-owned Coal Power Generation Company Bangladesh Limited (CPGCBL), which is constructing Matarbari power plant in Cox's Bazar.

During physical inspection on January 11, customs officials found that the price of two German-made hammers was shown Tk 1.82 lakh. Similarly, the price of two pipe cutters made by the same German company was shown Tk 92.99 lakh.

Puzzled by such abnormal prices, the customs authorities declined to release the items and subsequently sought explanations from the CPGCBL and Power Development Board. The Daily Star has seen the letters dated February 4, 2024.

On March 27, this newspaper visited the website of the German company, KS Tools, to check the prices. The website shows the price of a look-alike hammer is 13.90 euros or TK 1,668 each, which is 55 times or 5,500 percent less than the imported price.

The company website also shows the price of a pipe cutter that matches with the imported one is 60.27 euros or Tk 7,232 each, 642 times (64,200%) less than the imported value.

Customs sources say that not only these two items, all 19 items of this shipment have been imported at absurdly high prices.

Documents from the NBR show import cost of these products has been shown 5 to 18,545 times higher than the value recorded in NBR's export-import database.

This database is basically a storage of foreign trade-related information, including export-import prices of various items, that the customs authorities use as a reference point.

The shipment in question came from Germany and the items, which also included locking pliers, toolboxes, chisels, spanners and car fitter sets, were supplied by KS TOOLS Werkzeuge, on behalf of Japan's Sumitomo Corporation, documents show.

According to the physical examination report by the customs authorities, the price of the pipe-cutting tool is 18,545 times more than the database value, the pipe wrench 1,053 times more, the monkey pliers 912 times more, the screwdriver 833 times more and the hammers 114 times more.

Contacted on February 28, Matarbari Power Plant Project Director Abul Kalam Azad said, "We think the prices are normal even though the customs said the prices are abnormal. The price may seem higher than the market price as the items were tailor-made upon a special order."

The two pipe cutters were made using "special metal" for use in the power plant, he said. "So, the price is high."

However, import documents show that the tools would not be directly used in the power plant. Besides, the tools are freely importable as they are used in all types of construction and routine maintenance work.

When The Daily Star sought a copy of the "special order" placed to the manufacturer for the pipe-cutting tool, Azad, also a director of CPGCBL, could not provide one.

Customs sources also confirmed that CPGCBL did not provide them with any such special order either.
Mohammad Fyzur Rahman, commissioner of Chattogram Custom House, said his office recently received the response from PDB and CPGCBL about the held consignment.

In the letters, the authorities mentioned that the imported products were priced as mentioned in the contract with the vendor.

"They also mentioned that it is common for certain products to have varying prices due to bulk importation. If the departments and ministry concerned have no objections regarding the additional price, then there is no need for any action," he said, adding that such incidents have occurred in the past as well.

The consignment will likely be released after collecting the duty as the items were not listed for duty-free import by the National Board of Revenue (NBR), Fyzur told The Daily Star on March 17.

CPGCBL appears to have gotten away with importing various goods at inflated prices for the project before, according to NBR records.

Multiple consignments of other agencies containing such products were also cleared through customs in Chattogram and Mongla from October 16 last year to January 15 this year, customs sources say.

The declared value of these products ranged from 5 times to 18,545 times more than the recorded value of the products in the NBR database.

"These consignments were imported under duty-free facility as those goods were brought for a fast-track mega project and the customs released the goods easily as those were imported by a state-run company," said a customs officer who examined at least two such consignments.

The official did not give the name of that state-run company and spoke on condition of anonymity as he is not authorised to speak to the media.

One of the consignments cleared in December last year contained ethernet switches, also known as network switches, for Matarbari project.

The price of the ethernet switches by German brand Hirschmann was $4,881.83 on the company website, but the import value was shown to be $205,218 (about Tk 2.3 crore).

Asked why the customs cleared the consignment, another customs official said, "We issued letters to PDB, CPGCBL and the project director for an explanation. Both the authorities informed us in writing that the goods were specially made for the project."

However, the user manual, catalogues and other information about the switches did not suggest the items were custom-made.

"If the project implementing authorities [CPGCBL and PDB] are okay with the additional expenditure, then we have nothing to do," he said, asking not to be named to speak candidly on the issue.

Dr Iftekharuzzaman, executive director of Transparency International Bangladesh, said the role of customs officials in blocking the latest consignment is admirable.

"The claim of procuring hand tools like pipe cutters, hammers and screwdrivers by special order is ridiculous. This could possibly be an example of large-scale corruption," he said.

He urged the government to take actions against those involved in the "scheme" and benefiting personally by overpricing products.

Energy expert M Shamsul Alam also dismissed the abnormally high prices of the tools as laughable.
"Such extraordinary prices may seem normal to those who benefit from them," said Shamsul, also dean of the faculty of engineering at Daffodil International University.

"It is not a new phenomenon. But at the end of the day, it is the consumers who have to bear these additional expenses," he noted.​

RENEWABLE ENERGY PLANTS
Inexperienced, sick cos grab Bangladesh market
Emran Hossain | Published: 00:09, Apr 02,2024



A host of inexperienced, sick companies swarmed into Bangladesh's renewable energy market, apparently attracted by lucrative tariffs that promised high profits.

The group of new renewable enthusiasts, among others, included poultry businessmen, feed mill owners, real estate traders, infrastructure construction companies, ready-made garment businessmen, a medical college hospital, and a manpower recruiting agency.

Energy experts say that implementing a quality project to harness solar, wind, and hydro energy at an affordable cost requires diverse knowledge, especially in densely-populated Bangladesh, where land is scarce and any infrastructural expansion threatens to reduce agricultural land.

In the past 16 years since adopting the renewable energy policy of 2008, energy experts say that Bangladesh has not been able to implement a single quality renewable energy project, mainly because it could not attract experienced companies interested in the sector.

As a result, the renewable energy market expanded slowly, and costs went far higher than the global average, denying people any respite from ever-increasing electricity prices.

Reputed renewable energy companies, however, are not interested in investing in Bangladesh, despite high profits, said energy experts, because of a lack of competitive atmosphere and hidden costs.

'Reputed investors avoid getting involved in anything that is not transparent,' said Dipal Barua, chief advisor of Bangladesh Solar and Renewable Energy Association, a platform for renewable energy businessmen.

A renewable energy project needs to secure approval from the cabinet committee on government purchases first before signing a power purchase agreement.

Years could be spent having the PPA signed with the Bangladesh Power Development Board before construction begins, often involving hidden costs along the way and a lot of lobbying, renewable energy investors alleged.

Companies can invest individually or through joint ventures with foreign investors, often partnering with local companies in renewable energy projects.

'Companies need to be innovative and professional to offer renewable energy at an affordable price,' said Dipal.

A review of 75 renewable energy projects listed by the BPDB, including the 10 projects in operation, revealed a host of companies that do not have any prior experience in renewable energy.

For instance, Enam Medical College Hospital, a private institution based in Savar and owned by former state minister for disaster management and relief Enamur Rahman, together with two Chinese companies, received approval in November last year for a 100MW solar power plant in Feni with a tariff of Tk 11 per unit.

'Establishing a solar power plant is very easy,' said Enam, also the chairman of the EMCH, adding that he learned all about it once visiting a solar power plant.

Institutions such as the WB, ADB, and IDCOL have already expressed interest in extending loans to the Tk 1,500 crore project, he said.

Enam owns 34 per cent of the solar plant, with his two other partners owning 51 per cent and 15 per cent.

There are half a dozen textile and garment companies, several construction companies, real estate businesses, agro-product sellers, and a motorcycle manufacturer among the companies involved in renewable energy projects.

Even a recruiting agency, along with two partners, including one from China, got approval to build a solar power project in Bandarban.

The recruiting agency was among the 150 agencies listed in 2020 by Bangladesh Manpower Export and Training as institutions that did not participate in 25 years or more in manpower export.

Fu-Wang Bowling and Services is another company listed by the BPDB as approved for building a 47MW solar power plant in Panchagarh. The solar project was listed as shelved, but it was never cancelled.

The Dhaka-based Fu-Wang Club was accused of evading more than Tk 41 crore in VAT in 2021.

Shunfeng Investment Ltd, a Chinese company, has two solar power projects, one of which rolled into operation in March 2021, four years after being approved and about two and a half years after the signing of the PPA.

In 2019, Shunfeng announced plans to sell one of its subsidiaries and shed overseas operations because of debt burdens, according to Renewables Now, a provider of business news and market intelligence services.

The second solar power project taken up by the Chinese company was approved in December 2018 and would not come into operation until June next year.

'A quality power project completes on time,' Hasan Mehedi, member secretary of the Bangladesh Working Group on Ecology and Development, a platform for green activists, said.

A solar power project should ideally be completed in 13 months, said Mehedi, explaining two other essential components of a quality project – reliable electricity supply and the use of quality machinery.

The 30MW solar power project in Rangpur came online in August 2022, almost eight years after it was approved and exactly five years after the signing of the PPA.

Bangladesh's largest solar power project of 200MW in Gaibandha came online in January last year, about eight years after being approved and over five years into signing the PPA.

Approved in 2015, the Dharmapasha 32MW solar power plant in Sunamganj is yet to be operational, eight years after the PPA was signed.

Bangladesh has in operation only 10 solar power plants with a capacity of 459.3MW.

A total of 12 countries are involved in 75 renewable energy projects, including the ones already in operation, with a capacity of 5,489.6MW.

China alone is engaged in building 22 power plants with a capacity of 1,601MW.

Bangladesh is involved in building 1,258MW, followed by Singapore co-financing solar power projects with capacity of 728MW, United Arab Emirates co-financing 470MW, Japan 400MW, India 250MW and Germany, Netherlands, United Kingdom and Korea co-financing 100MW or a bit more each.

Countries like Norway, France, and the United States have invested in solar power projects with capacities of only 50MW each.

Some approved solar power projects have been waiting to sign the PPA for six years.

The tariff per unit for these projects ranges between Tk 20.87 and Tk 7.68. The average tariff is above Tk 10 per unit.

In 2022, the International Renewable Energy Agency estimated the global average cost of solar electricity to be Tk 5.42, saying that solar energy production costs have fallen by 89 per cent and wind energy costs by 69 per cent since 2010.

In 2023, solar tariffs fell to Tk 5.8 in Japan and Tk 3.04 in India.

The Institute for Energy Economics and Financial Analysis's lead energy analyst, Shafiqul Alam, estimated that the reasonable solar power tariff in Bangladesh should be Tk 8.5 per unit, which can be easily reduced to Tk 6.5 with some government initiatives.

'Bangladesh's renewable energy sector undoubtedly is too lucrative to attract all kinds of investors,' he said.

Some of these investors also include Bangladeshi giants involved in the fossil fuel business. They have earned millions of dollars in capacity charge and other costs since 2008, as fossil fuel-based power generation capacity jumped by over fivefold.

Fossil fuel accounts for about 97 per cent of Bangladesh's installed power generation capacity of 26,844MW.

Bangladesh has set a target of sourcing 10 per cent of its power from renewable sources by 2020.

Energy experts suspect part of the delay in implementing renewable energy projects is deliberate, for delayed renewable energy means more fossil fuel use and even more profits.

PDB member Khandaker Mokammel Hossain admitted that renewable projects were not very effective.

'These projects are selected unsolicited and picked by the ministry. The credentials of companies implementing the projects rarely get verified,' he said.​

Power demand soars past 15,000MW
Load-shedding exceeds 1,800MW
Staff Correspondent | Published: 00:38, Apr 04,2024




The power demand rose even further, crossing the 15,000MW mark, despite a slight drop in day temperature between Tuesday and Wednesday.

At 12 midnight past Tuesday, the Power Grid Company of Bangladesh's daily generation data showed that the overall load-shedding stood at 1,826MW with the generation of 12,488MW.

The power demand reached 15,100MW at 10:00pm on Tuesday.

A heat wave meanwhile continued to sweep Bangladesh for the fourth consecutive day on Wednesday in Dhaka, Khulna and Rajshahi divisions.

'The heat wave will continue with the temperature jumping up another round in two to three days,' said meteorologist Bazlur Rashid.

Except for the north-eastern Sylhet region, rain is unlikely to occur anywhere else in the country.

Bangladesh continues to witness frequent power cuts, lasting for an hour or more in one go, particularly in rural areas.

The poor bear the brunt for they need to go out for work under the sun. The Bangladesh Meteorological Department warned that the days are set to get even more uncomfortable when southerly wind stops.

The BMD said that moisture incursion will continue over the next few days, increasing the feeling of heat and discomfort. At 6:00pm on Wednesday, humidity stood at 51 per cent.

On Wednesday, Bangladesh's highest maximum day temperature of 38.5C was recorded in Chuadanga and Ishurdi.

In Dhaka, the highest maximum temperature was recorded to be 36C.

April is the hottest month when day temperature often reaches 40C or beyond affecting vast swathes of the country with severe heat waves.

The BMD in its monthly outlook has predicted two to four mild heat waves and one to two severe to very severe heat wave to sweep the country.

The Power Cell has predicted the power demand to reach 17,500MW this month.

Bangladesh should not have a problem with meeting the power demand given its current installed generation capacity of over 26,000MW.

But the installed capacity remained unused because of the dollar crisis. Bangladesh cannot import enough gas, oil and coal to run its power plants.

The power plants sitting idle is even more harmful for they generate capacity charge without supplying any power.

Over 14 years since 2009, Bangladesh paid Tk 1,00,000 crore in capacity charge.

The incumbent government spent $33 billion in the power sector over the same period of time, increasing the country's power generation capacity more than five folds without matching it with the transmission and distribution capacity.

The Flood Forecasting and Warning Centre on Wednesday predicted less than normal rainfall in the first two weeks of April.

In the past summer, Bangladesh saw load-shedding exceed 3,000MW mainly because of the fuel crisis.

This would be the third year of an acute power outage since the government officially introduced rotating power cuts on July 19, 2022.

The government had initially promised not to roll out power cuts unannounced but failed to keep the promise because the crisis turned out to be far greater than expected.​

https://thefinancialexpress.com.bd/views/coal-mine-development-at-dighipara-and-the-challenges

Coal mine development at Dighipara and the challenges​

Published :​

Updated :​

In the backdrop of increased coal demands (Bangladesh requires 33.6 million tonne coal supply annually to feed its installed coal fired power plants) and growing concern for timely import to feed the coal fired power plants, the government has taken initiatives to review the prospect of mining for more domestic coal. A meeting was organised on February 11, 2024 at the Ministry of Power, Energy and Mineral Resources to assess issues related to mine more coal from the existing coal fields in the country. State Minister for Power, Energy and Mineral Resources attended the meeting. Officials discussed the current state of the five discovered coal fields in northern Bangladesh (Jamalganj, Barapukuria, Khalashpir, Dighipara and Phulbari).

It may be mentioned that an underground coal mine was built during 1994-2005 period at Barapukuria coal field with a capacity to mine one million tonne coal annually from its nearly 400 million tonne coal reserve. Since 2005 mining in the field has been on. So far, nearly 14 million tonne of coal could be mined from Barapukuria coal field. The mined coal has been feeding the Barapukuria coal fired power plant with 525 MW installed capacity ( due to insufficient coal production and supply from the mine, the captive Barapukuria power plant has been operating at a reduced level of its installed capacity). Barapukuria coal field's geology and underground mining method do not permit extraction of more than 4000 tonne coal daily from the mine. On the contrary, Barapukuria power plant has been solely dependant on the mine's coal supply. The power plant requires 5,000 tonne coal daily to operate optimally. Since the beginning of mine operation, Barapukuria coal mining company has been dependant on Chinese contractor XMC-CMC consortium for mine operation and the contractor receives US$ 85 for each tonne of coal production from the mine. Barapukuria Coal Mining Company sells the produced coal to the mine mouth Barapukuria Power Company at US$176 per tonne. Earlier, Petrobangla had engaged the Chinese Contractors to build the coal mine and Bangladesh obtained loan (suppliers credit) from the government of China for developing the mine.


The existing contract between Barapukuria Coal Mining Company (a subsidiary company of Petrobangla) and XMC-CMC Consortium remains valid until 2027. Bangladesh intends to sign an additional Contract with the XMC-CMC Consortium for securing 1.08 million tonne more coal from the mine and continue the mine operation life until 2029.

Barapukuria Coal Mining Company also plans to develop an underground coal mine at the Dighipara coal field with the hope to operate the mine for 30 years and extract 90 million tonne (10-12 per cent of the reserve) of coal from the coal field's 706 million tonne coal reserve (it may be recalled that Barapukuria coal mine was initially planned and approved for extracting 64 million tonne coal at a rate of one million tonne annually). Barapukuria Coal Mining Company earlier carried out studies with the help of several consulting firms on the status and mining options for the Dighipara coal field. The studies confirmed that the coal field expands over an area of nearly 11 square kilometres within Nawabganj and Hakimpur Upazila, Dinajpur. Estimates suggest that there are several coal seams lying under 320-506 meters below the surface there. The mineable coal seams are thick and the studies recommended so called LTCC (longwall top coal caving method, a variation of multi-slice Longwall mining method) mining method (currently implemented at Barapukuria coal mine) for mining coal at the planned Dighipara coal mine. The studies further estimated that the mine building would involve approximately US$1.644 billion and 8 years time to commence coal production. The operational cost for production of each tonne of coal might cost US$ 53 per tonne (Barapukuria pays US$ 85 to the contractor consortium for producing a tonne of coal). The over all estimated cost for per tonne coal from Dighipara mine is estimated (at this stage) to be US$ 160/tonne.

The underground coal mining at Dighipara may encounter a number of challenges including significant water inflow into the mine (estimated 20,000 cubic meter per hour requiring huge pumping arrangements), land subsidence risk (Barapukuria coal mine invited so far 585 acres of land and the subsidence depth ranges over the subsided area varying between 0.01-10.5 meters), and acquisition of approximately 14 sq.km of agricultural land with the challenge of relocating and rehabilitating of around 11,110 people from 2,798 families.

The study reports consider that the water inflow into the mine would be possible to manage by employing appropriate pumping facilities and with the implementation of the so called 'çut off wall' technology (artificial groundwater barrier walls constructed to minimise dewatering efforts and for improving safety in mining). In the construction of dams, dykes, barrier walls against tailing ponds and for surface mining adjacent to water bodies, the cut off wall technology has demonstrated efficiency in different projects of the world.

However, it is to be tested how the technology can be successfully implemented in Dighipara Coal field's unique geological conditions. The capital and operating costs for the planned mine development and operations remain a major issue. Also, the cost of coal production using underground mining method and its very limited volume of production invite further assessment and justifications for the projects economic viability.

Mushfiqur Rahman is a mining engineer. He writes on energy and environment issues.​

Energy price hikes make clean energy compelling for Bangladesh

Photo: Reuters

The Bangladesh government recently increased power tariffs for all consumer categories due to the upheavals caused by a significant gap between power generation costs and corresponding revenue. It also revised the natural gas price for power generation. While inflationary pressures will likely remain high in the wake of electricity and gas price hikes, different energy consumers will now find clean energy investment more compelling.

A brief survey of around 40 industries by the Institute for Energy Economics and Financial Analysis (IEEFA) indicates that the industry sector has significant untapped energy efficiency potential. This is despite the fact that a good number of the surveyed industries have already installed efficient lights, motors and fans, variable-frequency drives, waste heat recovery boilers, etc. However, a considerable proportion of the surveyed industries are not utilising waste heat produced by their captive generators. Only a small number of industry samples use engine jacket water in chillers and water heaters. If all industries gradually install waste heat recovery boilers and start using engine jacket water in chillers and water heaters, they can save significant energy consumption per annum on an aggregate basis.


The survey also finds that cutting costs and reaching sustainability targets are the two main drivers influencing industrial energy efficiency investment. Therefore, the recent increase in electricity tariffs—around 9.9 percent per kilowatt-hour (kWh) for medium and large industries—and gas price—2.5 percent per cubic metre for captive power generation—will likely motivate industries to foster energy efficiency further.

Bangladesh's household sector consumed 55.69 percent of the grid electricity produced in FY2022-23. As such, increasing energy efficiency in this sector holds significant importance. Although many households are already accustomed to buying efficient appliances, 120W ceiling fans are still in the market when energy-efficient 35W ceiling fans are available. Perhaps people who can purchase efficient fans are unaware of the economics of using fans that consume less energy.

A ballpark assessment shows that the payback period of a 35W ceiling fan costing Tk 6,490 has now come down to 3.3 years for a household with a monthly energy consumption of around 150kWh (assumptions: 10 hours of operation for 310 days a year and five percent VAT on energy bills). The payback period was 3.5 and 4.1 years in March 2023 and December 2022, respectively. Similarly, the payback for the same fan is now 3.1 years for a household consuming around 250kWh of energy per month. Such a financial return should motivate households to use ceiling fans with lower wattage.





Households battling high energy tariffs should, therefore, assess the energy consumption of different appliances and their respective purchase prices to make prudent investment decisions.

The recent power tariff adjustment is a boon for rooftop solar expansion, both in industries and commercial buildings. They can now enjoy more savings per kWh of energy.

While the first movers had less savings, the lucrative rooftop solar should now make inroads into all industries and commercial buildings with enough space and load-bearing capacity. Regulatory intervention will further catalyse the accelerated adoption of energy efficiency measures and rooftop solar.

The Sustainable and Renewable Energy Development Authority (SREDA), established in 2014 on the back of the growing need to promote renewable energy and energy efficiency in Bangladesh, has notable tasks ahead. As the combined rooftop solar capacity, under both net-metered and non-net-metered systems, is less than 200MW, SREDA can take a more proactive role through its solar help desk to assess what holds back industries and other establishments from investing in rooftop solar systems.

Likewise, if SREDA organises periodic knowledge exchange events on successful energy efficiency projects, it can tempt designated energy consumers and industries to gradually implement the remaining low-hanging energy efficiency measures and beyond.

Tellingly, SREDA should monitor the status of the mandatory submission of energy auditing reports by different industrial sub-sectors applicable from 2023 and 2024, respectively.

For households, the awareness level of energy efficiency should go beyond the general understanding that energy-efficient appliances save energy. Instead, they need to grasp that an appliance with the lowest wattage among its peers and serving the same needs is the most energy-efficient. Energy labels can help consumers choose the most efficient appliance. SREDA should coordinate with the government's Power Division to promptly approve and enforce the standards and labelling regulations.

While energy efficiency and rooftop solar offer green energy investment opportunities, challenges in accessing finance or limited financing lead to negative knock-on effects. The Bangladesh Bank's refinancing scheme of Tk 400 crore ($36.44 million) is the least costly loan facility on offer for which environment-friendly projects of 70 categories compete. The rooftop solar financing facility of the Infrastructure Development Company Limited (IDCOL) is just a fraction of what the sector needs. Likewise, IDCOL's credit line of $256.5 million for RMG and textile sector energy efficiency, supported by the Green Climate Fund, is not enough.

Conversely, the commercial banks' ability to deploy funds for loans at current market rates would not garner the interest from industries or commercial buildings.

It is therefore necessary to mobilise finance at scale, drawing on the window of opportunities that different multilateral development banks offer. The Bangladesh Bank may create a dedicated low-cost financing scheme for rooftop solar like it developed for the brick kiln sector, supported by the Asian Development Bank (ADB).

In the throes of energy sector challenges, rooftop solar and energy efficiency would help Bangladesh manage the situation better. And if the country can advance energy efficiency and rooftop solar, taking a sectoral approach, it will end up with manifold larger benefits than one may think of. The investment signal is favourable as Bangladesh is already in the high energy cost regime and tariffs will rise further.

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Shafiqul Alam is lead energy analyst at the Institute for Energy Economics and Financial Analysis (IEEFA).​

Three more solar power plants await government nod​

Published :​

Updated :​

Three more solar power plants in private sector are under process of getting approval from the government.

According to official sources, the solar power plants are 100 MW power plant at Banshkhali in Chattogram, 300 MW at Islampur in Jamalpur and 100 MW at Sadar Upazila in Rajbari district.

The Consortium of Huiheng Wind Power Limited of Hong Kong and Jupiter Energy Ltd., of Bangladesh will develop the 100 MW Banshkhali plant while SAL-GTECH Consortium will set up the 300 MW Islampur plant and Consortium of Sungrow Renewable Energy Investment Pte. Ltd. and Theia Power (Singapore) Pte. Ltd., will set up the 100 MW Rajbari power plant.

Official sources said the Power Division has already moved three separate proposals to the Cabinet Division to place the offer of the three consortiums to the meeting of the Cabinet Committee on Government Purchase (CCGP) for final approval of the government.

"If the CCGP approves the proposals, the Power Division will ask the Bangladesh Power Development Board (BPDB) to sign power purchase agreement with them," a top official of the Power Division told UNB.

He, however, did not disclose the detailed tariff rate of the solar power from these plants, but said the BPDB will buy electricity from the plants under long term contract with a tariff rate of about 10 US cents.

In recent months, the government has been emphasising increasing the share of renewable energy, especially solar power for power generation as part of its plan to raise its share to 40 per cent by 2041 from the existing below 3.0 per cent.

State Minister for Power, Energy and Mineral Resources Nasrul Hamid has recently said that, despite several odds, Bangladesh will generate 40 percent of its electricity from renewable sources by 2041.

He reiterated the country's target at Ministerial-level Multi-Stakeholder Roundtable on "Implementation of COP28 Decisions in the Energy Sector - Opportunities, Constraints, and Next Steps: The Way Head" in the Berlin Energy Transition Dialogue 2024 on March 20.

Currently, as per statistics of Sustainable and Renewable Energy Development Authority (SREDA), so far about 989.61 MW of solar power plants were set up across the country of which 371.48 MW is off-grid and remaining 618.13 is on-grid while the country's on-grid total power generation capacity is more than 25,000 MW and off-grid power generation capacity is another 5000 MW.

The Power Division's official documents show that in the last 3 years, the government approved proposals for setting up of about 13 solar and wind power plants having total capacity of 609 MW by 2025.

"Letter of intent (LOI) and notification of award (LOI) were issued to the private sponsors of these renewable energy projects,"said a top official, referring to the documents.

He said of these projects, two are wind power projects having (30+70) 100 MW and remaining 11 are solar power projects.​

Petrobangla now plans to invite int'l bidding for onshore hydrocarbon exploration: Chairman
UNB
Published :
Apr 08, 2024 19:56
Updated :
Apr 08, 2024 20:10



After floating bids for offshore oil and gas exploration, Petrobangla now plans to invite international bidding for onshore hydrocarbon exploration.

"We're now working on preparing the bidding documents for onshore oil and gas exploration," said Petrobangla Chairman Zanendra Nath Sarker while speaking at a workshop of the energy reporters at Petrocentre in the city.

He noted that his organisation will appoint a foreign consultant to assist Petrobangla in attracting the international oil companies (IOCs).

Petrobangla organised the workshop for the members of the Forum for Energy Reporters Bangladesh (FERB) to inform them about the technical and financial issues of the "Oil and Natural Gas Exploration Under Bangladesh Offshore Bidding Round 2024".

Earlier, Petrobangla, the oil, gas and mineral corporation, floated the offshore bidding on March 10 this year inviting international oil and gas companies to explore in Bangladesh's maritime area in the Bay of Bengal.

The tender, named "Oil and Natural Gas Exploration Under Bangladesh Offshore Bidding Round 2024", was published in local newspapers and websites of concerned government entities including Bangladeshi missions abroad on Sunday giving six months time until September 9, 2024 for submission of the bids.

As per the floated tender, a total of 24 offshore blocks -- of which nine are shallow blocks -- and 15 deep sea blocks are available for the bidding round.

The nine shallow sea blocks are SS-01, 02, 03, 05, 06, 07, 08, 10 and 11) and 15 deep sea blocks are DS-08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 and 22.

The bidder, singly or in association with other companies, can bid for one or more blocks.

Contracts will be signed with the successful bidders in line with the Bangladesh Offshore Model Production Sharing Contract 2023, said the tender.

The country has a total of 48 gas blocks of which 26 are offshore and 22 onshore blocks.

The Petrobangla officials informed that some 11 onshore blocks will be placed for bidding as currently two international companies remained engaged in 11 onshore blocks.​