[🇧🇩] Energy Security of Bangladesh

[Saif]

Power demand soars past 15,000MW

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

www.newagebd.net

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.​

 

[Saif]

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

Coal mine development at Dighipara and the challenges​

MUSHFIQUR RAHMAN

Published :​

Apr 01, 2024 21:41

Updated :​

Apr 02, 2024 21:37

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.​

 

[Saif]

Energy price hikes make clean energy compelling for Bangladesh

A brief survey of around 40 industries by the IEEFA indicates that the industry sector has significant untapped energy efficiency potential.

www.thedailystar.net

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.

---

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

 

[Saif]

Three more solar power plants await government nod

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

thefinancialexpress.com.bd

Three more solar power plants await government nod​

UNB

Published :​

Apr 08, 2024 12:42

Updated :​

Apr 08, 2024 12:42

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.​

 

[Saif]

Petrobangla now plans to invite int’l bidding for onshore hydrocarbon exploration: Chairman

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

thefinancialexpress.com.bd

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.​