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[🇧🇩] Energy Security of Bangladesh

[🇧🇩] Energy Security of Bangladesh
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Gas shortage leaves compressor stations inoperative​


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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.​

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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​
 
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Rush for green power plants amid fuel crisis​

Already govt approves 350MW facilities in three months, far more in wait​

SYFUL ISLAM
Published :​
Mar 30, 2024 00:11
Updated :​
Mar 30, 2024 00:11


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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.​
 
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Why open-pit coal mining in Phulbari will be disastrous

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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.
Out of the 66.88 sq km land to be acquired for the open-pit mining project, 42.34 sq km is agricultural land. Once the topsoil of this vast amount of three-crop land is removed, the fertility built up over thousands of years will be lost.

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.

Kallol Mustafa is an engineer and writer who focuses on power, energy, environment and development economics.
 
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Matarbari Power Plant: Tk 93 lakh for two pipe cutters!

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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.​
 
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RENEWABLE ENERGY PLANTS
Inexperienced, sick cos grab Bangladesh market

Emran Hossain | Published: 00:09, Apr 02,2024

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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.​
 

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