[🇧🇩] Energy Security of Bangladesh

[Saif]

Reforms, policies that can mend the power and energy sectors

In the 15-plus years of the last government, the energy and power sectors of Bangladesh have been all but destroyed.

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Reforms, policies that can mend the power and energy sectors

VISUAL: ANWAR SOHEL

In the 15-plus years of the last government, the energy and power sectors of Bangladesh have been all but destroyed. It would not only require a long time to recover, but also many unpleasant and difficult decisions. The country has been made heavily dependent on imported fuels as well as power. Capacity charges for private power plants and payment to international oil companies (IOCs) for gas production have to be paid in hard currency. There are numerous other hard currency requirements, such as building transmission and distribution infrastructure, regasification charges, and gas exploration. To satisfy all energy and electricity demands in the country, more than $20 billion would be required annually, which will keep increasing as demand rises and gas production drops and is expected to exceed $30 billion by the end of the decade.

Wrong planning, bad management and corrupt practices by the last government have distorted the energy and power sectors, which may be linked to: i) the enactment of the special provisions law in 2010; ii) overcapacity in power generation and the oil-fired power plants; iii) arbitrary slowdown in gas exploration; iv) failure to control losses in gas transmission and distribution; and v) failure to increase renewable energy penetration.

The Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010 was meant to expedite the construction of oil-fired power plants and to supply liquid fuels (diesel and furnace oil) to these power plants to overcome the severe electricity shortage then. It was supposed to be a short-term measure to bypass the strict and time-consuming tendering process for public sector procurement. But the act was indiscriminately used for all significant procurements in the power and energy sectors. Using this law, the government started building power plant after power plant without regard to fuel availability or the actual demand for electricity. A decision that should have been technical in nature, made by engineers, was made by bureaucrats and politicians. Even though the country required a combination of different types (baseload, intermediate and peaking) of power plants, it was considered more profitable for politicians and their friends to build large baseload, combined-cycle, gas- and coal-based power plants, rather than the much-needed small or single-cycle gas-fired peaking power plants that can replace the very expensive oil-fuelled ones. The new megaprojects obviously meant hefty kickbacks and other benefits.

Construction of oil-fired power plants amounting to nearly 25 percent of the total power generation capacity was a grave offence made possible by the act. These additions caused the electricity price to go up and put enormous pressure on our foreign currency reserves. The grid was made to always be dependent on these oil-fired power plants. The fuel mix was designed in such a way that removing these power plants would lead to load-shedding and thus great public suffering. No effort was made to remove these expensive power plants, which were being used throughout the day, even at times when solar electricity was available. A calculation shows that strategic integration of solar power plants to the grid could have prevented the use of $500 million worth of liquid fuel annually.

Natural gas theft was always a significant issue in the energy sector of Bangladesh, but grew to gigantic proportions under the last government's rule of over 15 years. The Bangladesh Oil, Gas and Mineral Corporation, also known as Petrobangla, came up with a new term for the gas sector system loss called Unaccounted for Gas (UFG): the gas lost due to pilferage and leakages in the transmission and distribution lines. The UFG has grown in recent years: the average of the years 2020, 2021 and 2022 has been 9.8 percent. International good practices stipulate that this loss be below two percent. A gas network that has a technical system loss above three percent demands immediate remedial action. Non-technical system loss has been a problem because of gas theft in the industrial and domestic sectors. Domestic consumption is shown to be 11 percent, but no one knows the real amount, because most domestic connections are unmetered. Experts and sector insiders claim it cannot be more than six percent. Illegal lines and connections exist all over the country. Therefore, as much as five percent of the total gas is pilfered in the domestic sector. When we add this to the non-technical UFG, the gas loss amounts to more than 10 percent of the total gas supplied. The fact that we don't have enough gas to meet the demand and have to import liquefied natural gas (LNG) implies that any gas loss should be accounted as LNG loss. At the LNG price of $15 per MMBtu, this lost gas annually amounts to around $1 billion.

To prevent further occurrences of this kind of loss a set of reforms and/or policy changes are needed.

Power plant building policy

To prevent overcapacity of power plants and wrong generation planning, the following are recommended:

* Construction of new power plants should be decided by a committee, housed preferably at the Bangladesh Energy Regulatory Commission (BERC), composed of competent technical persons.

* Least-cost planning must be followed.

* Reserve margin (excess generation capacity over peak demand) should only be allowed to exceed 15 percent if sufficient justification is provided that it is required for accommodating intermittent renewables.

* Fuel supply must be ensured by the relevant authority before approval by BERC.

* Liquid fuel-based power plants can only be used as peaking power plants (maximum daily use must be less than four hours).

* During daylight hours, solar power plants must be used backed by either batteries or gas-fired simple-cycle power plants.


Gas exploration policy

Adequate funds must be provided to fully resume and continue gas exploration without hindrance until the point where experts and BERC are convinced that further exploration won't be cost-effective. This point may be reached when the exploration success ratio falls below 1:10, i.e., when more than 10 exploratory wells need to be drilled to yield one success.

Gas utilisation policy

One difficult issue that all governments in Bangladesh have faced is gas allocation to various sectors; the other issue they failed to tackle is to decide whether a sector should continue to exist. All sectors have been given equal priority. Prioritisation of supply to sectors critical to the economy has become an urgent issue. To ensure reliable supply of gas to the industrial sector, the possibility of the sector importing its own gas should be considered. Along with these policy reforms, rules and regulations to reduce system loss and to prevent theft are essential.

Renewable energy policy reform

The previous government failed miserably to increase the penetration of renewable energy. Even though there are several constraints in implementing renewable energy projects, most experts believe that 10 percent renewable energy in the fuel mix could have been achieved. The most blatant failure is the continuing use of fossil fuels in power generation during daylight hours; this could easily have been substituted by either rooftop solar PV installations or grid-tied solar PV power plants. A new policy must be formulated considering the realities of having to achieve net zero emission. Year-wise targets should be set for utilities, and fines must be imposed if the targets are not met.

Dr Ijaz Hossain is former dean of engineering at Bangladesh University of Engineering and Technology (BUET).​

 

[Saif]

Coal power plants charge astronomical costs for fuel

Coal-fired power plants enjoy free rein to unfairly influence the cost of its fuel on the one hand, while on the other, they burn coal having quality far less than the one the government has paid...

www.newagebd.net

Coal power plants charge astronomical costs for fuel
Emran Hossain 04 October, 2024, 00:22

Coal-fired power plants enjoy free rein to unfairly influence the cost of its fuel on the one hand, while on the other, they burn coal having quality far less than the one the government has paid for, revealed official documents and interviews with officials of major coal power plants and Bangladesh Power Development Board.

The wrecking of the economy as well as the environment by coal power plants is occurring almost silently, energy experts said, thanks to the controversial power deals and the sheer monitoring failure of the Power Development Board.

The country’s coal power plants mostly import their own fuel and there are instances in which the power development board could not even ask about the source of the coal, paying whatever the power plants demanded, furnishing invoices that were often believed to be manufactured.

The private coal import, energy experts said, also offers a golden opportunity for under and over invoicing since the import often takes place by a company related to the company owning the power plant.

‘The coal power plants are holding people hostage. There will be no relief from the situation unless the government fixes prices for importing coal of certain qualities,’ said Hasan Mehedi, member secretary, Bangladesh Working Group on Ecology and Development, a platform of green activists.

India’s Adani Power Limited is considered a classic example of how far the coal power producers can go in manipulating their fuel price.

Adani produced per unit power spending Tk 7.54 for fuel last year, the second highest among the fuel cost charged by six major coal power plants in the country.

The 1,600MW Adani power plant in Godda has boilers designed to burn coal with calorific value ranges between 3,500 kcal/kg and 5,000 kcal/kg, showed a document.

The power purchase agreement, however, allowed Adani to charge for coal with the calorific value of 6,322 kcal/kg. The power development board was not able to ask Adani about the coal’s source as its power purchase agreement with the Indian company omitted the provision for it to be informed about the source of the coal. Documents also revealed that coal with the same calorific value could be bought with varying prices on different markets.

Coal with the calorific value of 3,500 kcal/kg is the lowest quality of coal in the world, officials at coal power plants said, adding that the use of such low-quality coal is only viable when it is domestically sourced.

‘You never know. Maybe Adani is using coal mined in Jahrkhand, where the Godda power plant is located,’ said a power development board official seeking anonymity.

Jharkhand is one of the world’s largest coal miners.

On September 30, 2022, Adani floated an international tender for importing coal for the Godda power plant, selecting in December the same year the Adani Enterprise to import coal from the group’s Carmichael coal mine in Australia using sea port and railway owned, again, by Adani.

The highest fuel cost for producing a unit of power last year was reported by the 1320MW Rampal power plant, a joint venture between Bangladesh and India. Rampal spent Tk 8.16 for fuel in producing a unit of electricity, around 30 per cent more than the fuel cost spent by the 1200MW Matarbari power plant.

‘We import coal through open tender. There is nothing more to say about this,’ said Ziaur Rahman, chief procurement officer at Bangladesh India Friendship Company that owns Rampal power plant.

The Rampal plant’s boiler is designed to handle coal with calorific values ranged between 5,500kcal/kg and 5,800kcal/kg, plant authorities have said, claiming that they use coal with calorific values between 5,300 kcal/kg and 6,100 kcal/kg.

But New Age has obtained documents showing that the Rampal plant imported coal with calorific value of 5,036 kcal/kg in May and there were instances when it imported coal with less calorific value.

The documents also revealed that the Rampal power plant spent around $15 per tonne for carrying the imported coal from the Bay of Bengal to the power plant using lighterage vessels. PDB officials called the $15 freight charge as very high.

A lighterage vessel can carry 5,000 tonnes of cargo.

Bashundhara Group that imports coal for Rampal in 55,000-tonne capacity ships sends the cargo using lighterage vessels from the Bay of Bengal to the edge of the Sundarbans through 5–6 shipments every month.

‘High fuel cost could also imply lack of plant efficiency, suggesting waste of fuel,’ said Monowar Hossain, superintendent engineer of 1200MW Matarbari coal power plant.

At the Matarbari coal power plant in Cox’s Bazar, the boiler is designed to burn coal with calorific value between 4200kcal/kg and 5200 kcal/kg. The plant authorities say they mostly use coal with calorific value of 4600 kcal/kg.

Matarbari uses the least expensive fuel as it produced a unit of power spending Tk 6.13 last year.

At the 1320MW Payra power plant in Patuakhali, a mixture of coal is used as fuel. ‘We use a mixture of coal for power generation,’ said its plant manager Shah Abdul Moula.

Officials at major power plants interviewed for the report revealed that they all mixed coal for power generation trying to maintain an average calorific value in line with their design.

Coal prices greatly differ depending on their quality.

On October 1, the price range for five categories of coal in the Indonesian market was between $31.78 and $127.72.

‘Plants are expected to use the best quality coal,’ said Shafiqul Alam, lead energy adviser at the Institute for Energy Economics and Financial Analysis.

‘A higher calorific value coal will generate more energy compared with lower calorific value coal during combustion process. This means with a higher calorific value of coal, less fuel will be consumed,’ said Shafiq.

The power development board estimated that the fuel cost charged by the Adani Power could be lowered by a third by cutting off the unjust privileges awarded to them for importing fuel.

PDB officials refused to speak on record. A committee formed by the interim government is currently evaluating power deals signed during the tenure of the now ousted prime minister Sheikh Hasina’s repressive regime under the protection of an indemnity law.

The country’s power generation capacity increased by six folds over Hasina’s 15-year tenure, astronomically raising the power development board’s loss to 100 per cent.​

 

[Saif]

Govt should address prickly coal issues of power plants

THE use of coal having calorific values lower than what are stipulated or designed in producing power by independent coal-fired plants has greatly hampered power generation, adding...

www.newagebd.net

Govt should address prickly coal issues of power plants
05 October, 2024, 00:00

THE use of coal having calorific values lower than what are stipulated or designed in producing power by independent coal-fired plants has greatly hampered power generation, adding to the cost, draining the national exchequer, harming the environment and burdening consumers by way of increased tariff. Controversial power purchase agreements coupled with the oversight failure of government authorities have given the power producers free rein to unfairly influence their fuel cost. Plant owners import fuel on their own and leave the Power Development Board with no option to ask about the source of the coal imported, allowing the plants to charge the government at will with invoices that are often believed manufactured. Experts believe that private coal import has also offered the scope for under- and over-invoicing as the coal import takes place at the hands of the companies that run the plants. Experts, therefore, believe that the plants have held people hostage and see no way out from the situation unless the government sets the price of coal, the cost of its transport and the calorific values of coal. Power Development Board estimates show that the fuel cost that Adani Power charge could be lowered by a third by not dishing out the privileges it has so far been given for fuel import.

The 1.6GW Adani plant at Godda in India is designed to burn coal with calorific values in the ranges of 3,500–5,000 kilocalories a kilogram whilst the power agreement has allowed Adani to charge for coal having the calorific value of 6,322kcal/kg and the Power Development Board cannot ask anything about the source of the coal imported as the agreement has no such provision. The 1.3GW Rampal thermal power plant, which the joint venture Bangladesh India Friendship Company owns, is designed to handle coal having calorific values in the ranges of 5,500–5,800kcal/kg whilst plant authorities claim that they use coal having calorific values in the ranges of 5,300–6,100 kcal/kg. But documents say, as New Age reported on October 4, that the plant imported coal having the calorific value of 5,036 kcal/kg in May and there are instances of even coal with lower calorific values having been imported. The cost of the fuel that the Rampal plant uses is about 30 per cent costlier than the cost of the fuel that the 1.2GW Matarbari plant uses. The freight charge that the Rampal plant shows, as power board officials say, is also very high. A high fuel cost also implies lack of plant efficiency, suggesting the waste of fuel. Coal with high calorific value generates more energy and a low consumption of fuel in the combustion process.

The government is learnt to have set up a committee to evaluate the power purchase agreements signed during the 15 years of the Awami League government, toppled on August 5, under the shield of an indemnity law. The government should repeal the indemnity law and hold the people responsible for such a chaotic energy situation to account. But it should first urgently attend to the issues of the use of coal and its import for power plants.​

 

[Saif]

Banglalink launches new co-branded cards in collaboration with EBL, Mastercard

Banglalink, in collaboration with Eastern Bank PLC (EBL) and Mastercard, has launched three new co-branded cards exclusively for Banglalink Orange Club members. These cards – the Mastercard World Credit Card, Mastercard Titanium Credit Card, and Mastercard Prepaid Card – offer a range o

thefinancialexpress.com.bd

Spot LNG supply
Govt mulls over fresh int'l bid
M Azizur Rahman
Published :
Oct 08, 2024 00:23
Updated :
Oct 08, 2024 00:23

The interim government is eyeing to float an international tender afresh to seek expressions of interest (EoIs) from interested global players for the supply of liquefied natural gas (LNG) on a spot basis.

Officials said the state-owned Rupantarita Prakritik Gas Company Ltd (RPGCL), a wholly-owned subsidiary of Petrobangla, would float the tender soon.

The RPGCL is now carrying out all necessary work, including vetting from law ministry, before inviting the bid.

It will float the tender seeking EoIs in line with the government's policy to continue importing LNG through both long-term contracts and spot deals.

Currently, a total of 23 LNG suppliers are shortlisted by the RPGCL for supplying LNG from the spot market.

The RPGCL sought prices from all of them for purchasing LNG from the spot market, but only half a dozen suppliers took part in the bidding.

The government has moved afresh to float tender to ensure that more such global suppliers participate in the bidding and the purchasing price of LNG from the spot market becomes competitive.

Sources said the Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources has not decided yet whether the existing 23 listed suppliers will be removed from the suppliers' list or not.

Like the existing ones, the RPGCL has planned to pick up a pool of LNG suppliers who would be interested in supplying LNG on a spot basis in line with the RPGCL's request, they added.

The shortlisted suppliers would be requested to submit price quotations for supplying LNG time to time, when Petrobangla would feel necessary, he said elaborating the process of buying LNG under spot terms.

LNG would be purchased from those shortlisted firms, whose offer would be best suited from the funds of the government of Bangladesh, the sources added.

They would be asked to supply lean LNG as per specification on a delivered ex-ship basis to LNG terminals-floating, storage and regasification units (FSRU) and land-based LNG terminal-of Petrobangla near Moheshkhali Island or any other place in Bangladesh.

LNG suppliers will be shortlisted based on but not limited to the age of the firm, historical LNG delivery experience both in FSRU-based and land-based terminals, and ability to delivery lean LNG.

Shortlisted LNG suppliers will be notified and provided with draft master sale and purchase agreement, and draft confidentiality agreement, which would be required to be signed for selection.

The interested LNG suppliers may either be a single or joint venture of more than one firm or associate firm may also be included, if necessary.

The imported spot LNG should have a gross heating value ranging 1,025-1,100 British thermal unit (Btu) per standard cubic feet, according to sources.

The imported spot LNG would require to be blended with locally produced natural gas, which is sulfur-free and sweet gas, before it is delivered to end-users.

The selected firms would supply LNG on a delivered ex-ship basis and the vessel size should range between 125,000 and 220,000 cubic metres.

Sources said the RPGCL would buy spot LNG based on market prices, availability of terminals, increased regasification capacity and downstream demand.

The RPGCL is in charge of the LNG purchase for the country.​

 

[Saif]

Gas discovery in Bhola could be a game changer

Bangladesh has recently made an extraordinary breakthrough with the discovery of a massive 2.5 trillion cubic feet (tcf) of natural gas reserves in the Bhola district. This discovery was achieved with the technological assistance of the Russian energy giant Gazprom, marking one of the most signific

thefinancialexpress.com.bd

Gas discovery in Bhola could be a game changer
Mohammed Imran Chowdhury
Published :
Oct 08, 2024 21:33
Updated :
Oct 08, 2024 21:33

A gas field in Bhola Photo : Agency

Bangladesh has recently made an extraordinary breakthrough with the discovery of a massive 2.5 trillion cubic feet (tcf) of natural gas reserves in the Bhola district. This discovery was achieved with the technological assistance of the Russian energy giant Gazprom, marking one of the most significant finds in the country's history. This new reserve not only provides a critical boost to Bangladesh's energy security but also holds substantial implications for its geopolitical positioning in the region and beyond.

A STRATEGIC ENERGY ASSET: The Bhola gas discovery comes at a crucial time when the country is struggling with energy shortages, frequent blackouts, and a reliance on imported energy. The newfound reserves will likely lessen the country's dependency on imported Liquefied Natural Gas (LNG) from countries like Qatar and Oman. With 5.1 tcf of natural gas now in its grasp, Bangladesh has the potential to meet domestic energy needs for the coming decades, powering industries, households, and transport sectors while significantly reducing its import bills.

This energy independence will enhance Bangladesh's strategic standing within South Asia. As one of the most densely populated countries, securing a stable domestic energy supply will bolster its economic growth and help sustain its industrial sectors, particularly textiles and agriculture, which are vital contributors to the nation's GDP.

GEOPOLITICAL SHIFTS AND REGIONAL DIPLOMACY: The discovery, facilitated by Gazprom, highlights Bangladesh's evolving ties with Russia, a country that has long been a significant player in the global energy sector. This partnership could mark a shift in Bangladesh's geopolitical alliances. While traditionally maintaining close ties with China, Bangladesh's collaboration with Russia on this gas project demonstrates the intent to diversify its international partnerships.

Moreover, as Bangladesh becomes more energy-independent, its bargaining power in regional diplomatic dialogues will increase. The country could adopt a more assertive stance in negotiations over cross-border energy issues, such as the import of electricity from neighbouring India and Bhutan or future energy grid connections with Southeast Asia.

Bangladesh's increased energy production could also give it an opportunity to become a regional energy hub. The gas from Bhola could be exported to neighbouring countries, such as India and Myanmar, enhancing Bangladesh's role in South Asia's energy market.

BALANCING RELATIONS WITH MAJOR POWERS: The involvement of Gazprom in this discovery signals a deepening relationship with Russia, but it also poses a delicate balancing act in Bangladesh's foreign policy. The U.S. and China, both of which are major stakeholders in Bangladesh's development, may view the growing Russian presence with some caution.

As Russia's influence in the region grows through energy ties, Bangladesh will need to navigate its relationships carefully to avoid alienating either of these global powers. This is especially important as Bangladesh remains a beneficiary of U.S. development aid and is a key partner in China's Belt and Road Initiative (BRI).

ECONOMIC BENEFITS AND INDUSTRIAL GROWTH: From an economic perspective, the discovery could help Bangladesh boost its industrial sector and reduce energy costs. Natural gas plays a critical role in powering Bangladesh's industrial zones, particularly in the production of fertilisers, power generation, and the country's thriving textile sector. With an abundant supply of natural gas, domestic industries will become more competitive, reducing production costs and making Bangladeshi products more appealing in international markets.

Additionally, the discovery has the potential to attract more foreign direct investment (FDI) into Bangladesh's energy sector. With proven reserves, international companies may see Bangladesh as a more attractive destination for energy exploration and development projects. Such investments could lead to new job opportunities, technology transfers, and improved infrastructure in the country.

CHALLENGES AND ENVIRONMENTAL CONSIDERATIONS: While the discovery is a significant achievement for Bangladesh, it also brings new challenges. The extraction, transportation, and distribution of natural gas require significant infrastructure investment. The government will need to ensure these activities are accomplished efficiently and transparently to avoid mismanagement and corruption, issues that have plagued many resource-rich nations in the past.

Furthermore, there is growing global pressure to move away from fossil fuels towards renewable energy sources. Bangladesh, like many developing countries, faces a difficult dilemma: balancing immediate energy needs and economic development with long-term sustainability goals. The country must ensure that while it takes advantage of these newfound gas reserves, it also invests in renewable energy projects to align with global environmental commitments.

Mohammed Imran Chowdhury is an ex-banker and a financial consultant.​

 

[Saif]

Summit urges govt not to cancel its FSRU deal

Summit Group yesterday urged the interim government to withdraw its recent decision to terminate an agreement over the establishment of the group’s second floating regasification plant for liquified natural gas (LNG) imported by Bangladesh.

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Summit urges govt not to cancel its FSRU deal

Summit Group yesterday urged the interim government to withdraw its recent decision to terminate an agreement over the establishment of the group's second floating regasification plant for liquified natural gas (LNG) imported by Bangladesh.

Summit LNG Terminal II Co (SLNG II), a unit of Summit Group, did not breach any conditions precedent of agreements signed with Petrobangla to build the "Floating Storage and Regasification Unit (FSRU)", said a Summit press release.

A condition precedent is an event that must come to pass before a specific contract is considered to be in effect, according to investopedia.com.

SLNG II said they received a notice from Petrobangla on October 7 notifying of the termination of the project situated at Moheshkhali in Cox's Bazar.

They said the notice mentioned that SLNG II did not submit a "performance bond" by June 28 or within the stipulated 90 days as per prior agreements.

A performance bond is a bond issued by a bank or other financial institution guaranteeing the fulfilment of a particular contract.

Summit, Petrobangla and Rupantarita Prakritik Gas Company had finalised a "Terminal Use Agreement" and "Implementation Agreement", it said.

The two documents were vetted and approved by the cabinet committee and signed on March 30 this year, said the statement.

"But the date (June 28) fell on a Friday (not a banking day in Bangladesh), the performance bond was delivered on the next possible working day, with acknowledgement by Petrobangla," said SLNG II.

"Our lawyers have confirmed that SLNG II had not breached any CPs (conditions precedent) of the agreements," it said.

"Even if any CP was delayed, Petrobangla did not notify SLNG II (about it) within the agreed 30-day window and had therefore deemed the CP as accepted," it added.

Summit Group is the largest private sector investor in Bangladesh's energy sector with a proven track record of developing long-term infrastructure projects, said SLNG II.

It urged the government to uphold the sanctity of contracts and to ensure that investors' rights are protected and treated fairly and equitably.

The statement said the last government took a strategic decision to make a transition from coal-fired power generation to natural gas, a cleaner energy source, in late 2020.

Following the decision, Summit Group submitted a proposal October 11, 2021 to implement an FSRU on a "Build, Own, Operate, and Transfer" (BOOT) basis, it said.

The proposal was approved on June 14, 2023, followed by two years of extensive negotiations and consultations with international law firms to address the contractual and technical challenges, it added.

In addition, a long-term "Sale and Purchase Agreement" was signed to supply 1.5 million tonnes of LNG per year, starting in October 2026.

"To fulfil the initial conditions precedent of the agreements, SLNG II has committed to invest approximately $15 million to implement the country's third FSRU," reads the press release.​

 

[Saif]

Bangladesh can generate 5 per cent electricity by 2030: report

Bangladesh can generate maximum 5 per cent of its electricity from renewable energy by 2030 given the pace the country is adopting the technology, said a report released by the Paris-based International Energy Agency on Wednesday...

www.newagebd.net

Bangladesh can generate 5 per cent electricity by 2030: report
Staff Correspondent 10 October, 2024, 05:42

Bangladesh can generate maximum 5 per cent of its electricity from renewable energy by 2030 given the pace the country is adopting the technology, said a report released by the Paris-based International Energy Agency on Wednesday.

By 2030, solar photovoltaic is projected to become the largest renewable generation technology.

Bangladesh’s renewable energy share in power generation stands at a mere 1.6 per cent, far behind its regional counterparts, the report said.

The IEA’s ‘Renewables 2024’ report highlights that while solar PV technology is expected to account for a staggering 80 per cent of global renewable capacity growth, countries in the Asia Pacific region, including Bangladesh, are struggling to keep pace.

China alone is set to account for a 60 per cent of the global renewable capacity growth.

Nations like India are leading the change with rapid renewable expansion, securing over half of the Asia Pacific region’s renewable growth from 2024 to 2030.

Philippines, Thailand, and South Korea are also set to see their variable renewable energy shares rise significantly, yet Bangladesh is mired in slow adoption and infrastructural challenges.

This stagnation not only hinders Bangladesh’s energy security but also limits potential economic benefits associated with renewable energy deployment.

As the IEA notes, the accelerated deployment of low-cost renewable technologies, especially solar PV and wind, could provide Bangladesh with substantial economic and environmental advantages.

The country’s ongoing reliance on imported fuels for power generation, however, exacerbates its energy security concerns, further emphasising the urgent need for a robust transition to renewable energy sources.

‘Policymakers are embracing solar and wind like never before, but they are still two steps behind the reality on the ground. The market can deliver on renewables, and now governments need to prioritise investing in storage, grids, and other forms of clean flexibility to enable this transformation. The next half decade is going to be one heck of a ride,’ Ember’s director of global insights Dave Jones quoted in a press release issued on the occasion of the report’s release.

To avoid falling further behind in this global energy revolution, Bangladesh must urgently implement supportive policies and investment strategies aimed at boosting its renewable energy capacity, the report said.​

 

[Saif]

Petrobangla to import LNG worth Tk 6.57 billion from Singapore

State-owned Petrobangla (Bangladesh Oil, Gas and Mineral Corporation) will import a cargo, containing 3.37 million MMBtu of liquefied natural gas (LNG) from the international spot market at a total cost of Tk 6.57 billion. Gunvor Singapore Pte Ltd will supply the amount of LNG and per MMBtu price

thefinancialexpress.com.bd

Petrobangla to import LNG worth Tk 6.57 billion from Singapore
UNB
Published :
Oct 09, 2024 19:45
Updated :
Oct 09, 2024 19:50

State-owned Petrobangla (Bangladesh Oil, Gas and Mineral Corporation) will import a cargo, containing 3.37 million MMBtu of liquefied natural gas (LNG) from the international spot market at a total cost of Tk 6.57 billion.

Gunvor Singapore Pte Ltd will supply the amount of LNG and per MMBtu price will be $13.93, according to UNB.

Advisers Council Committee on Government Purchase (ACCGB) approved a proposal for the purchase during a meeting on Wednesday with Finance Adviser Dr Salehuddin Ahmed in the chair.

The ACCGB also approved four other proposals, including imports of lentils, and fertiliser.

The committee also approved a proposal of the Trading Corporation of Bangladesh (TCB) to procure 10,000 metric tons (MT) of lentil from Payel Traders of Chottagram at a cost of Tk 963.9 million.

The supplier was selected through an open tender.

A proposal of Bangladesh Agriculture Development Corporation (BADC) received approval of the committee to import 30,000 MT of TSP fertiliser from OCP SA of Morocco at a cost of Tk 1.49 billion with each MT at $415.

The Ministry of Agriculture moved the proposal to import the bulk fertiliser under a state-level contract.

Two proposals of Bangladesh Chemical Industries Corporation (BCIC), moved by Industries Ministry received the nod of the ACCGB to import urea fertiliser.

Under the proposals, the BCIC will import 30,000 MT of bulk granular urea fertiliser from SABIC Agri-nutrients Company of Saudi Arabia at a cost of Tk 1.28 billion with each MT at $356.17.​

 

[Saif]

Government no longer sets gas prices: Energy adviser

The government does not determine the price of gas, says Power, Energy and Mineral Resources Adviser Fouzul Kabir Khan. During a visit to the Begumganj-4 (West) drilling site in the Sonaimuri Upazila of Noakhali On Saturday, Fouzul explained that the Bangladesh Energy Regulatory Commission is resp

thefinancialexpress.com.bd

Government no longer sets gas prices: Energy adviser
Published :
Oct 12, 2024 21:49
Updated :
Oct 12, 2024 22:13

The government does not determine the price of gas, says Power, Energy and Mineral Resources Adviser Fouzul Kabir Khan.

During a visit to the Begumganj-4 (West) drilling site in the Sonaimuri Upazila of Noakhali On Saturday, Fouzul explained that the Bangladesh Energy Regulatory Commission is responsible for setting gas prices.

“The government used to set gas prices in the past, but it no longer does. The Bangladesh Energy Regulatory Commission now determines the pricing by consulting with both consumers and LP gas importers,” the adviser said in response to questions about the two recent price hikes of bottled gas during the interim government's two-month tenure.

The adviser, while accusing previous administrations of widespread corruption, committed to maintaining a corruption-free environment, bdnews24.com reports.

“Everyone knows there has been plundering in the country. While in the interim government, we will remain above corruption. Our secretaries will also be expected to remain above corruption,” said Fouzul.

“If any corruption is detected, immediate action will be taken,” he added.

The adviser acknowledged the impact of the gas crisis on industrial production and the difficulties faced by households.

“There is a severe gas crisis in the country. We need 4,000 million cubic feet of gas, but we are only receiving 3,000 million cubic feet. As a result, we have to import gas when necessary,” he said.

Fouzul said there are no plans for new gas connections to households at this time.

“At this moment, assuring gas supply to homes would be a false promise. However, if gas supply increases in the future, we will consider this issue.”

He also said 150 wells will be drilled through the state-owned company Bangladesh Petroleum Exploration and Production Company Limited, or BAPEX, to alleviate the energy crisis.​

 

[Saif]

Bangladesh likely to keep power deal with Adani

Bangladesh is likely to set aside pricing concerns and retain a power purchase pact with India’s Adani Power in the face of supply worries and gloomy prospects for a legal challenge, two sources with direct knowledge of the matter said.

en.prothomalo.com

Bangladesh likely to keep power deal with Adani
Reuters
Dhaka/New Delhi
Published: 12 Oct 2024, 12: 35

Bangladesh is likely to set aside pricing concerns and retain a power purchase pact with India’s Adani Power in the face of supply worries and gloomy prospects for a legal challenge, two sources with direct knowledge of the matter said.

The new government has set up a panel to gauge whether its predecessor's contracts adequately protected the nation's interests, particularly projects faulted for lack of transparency that were initiated under a special expediting law.

One contract being scrutinised over price concerns is a 2017 deal to buy electricity for 25 years from Adani's $2-billion, 1,600-MW power plant in India's eastern state of Jharkhand that exclusively supplies Bangladesh.

The project meets nearly a tenth of Bangladesh's demand for power, so cancelling the Adani deal outright would be difficult, however, said one of the sources. Both spoke on condition of anonymity as the matter is a sensitive one.

Also, a legal challenge in an international court was likely to fail without strong evidence of wrongdoing, the source added.

While an exit may not be possible, the only feasible option could be a mutual agreement to reduce the tariff, the second source said.

Asked for comment on the remarks, Muhammad Fouzul Kabir Khan, the power and energy adviser, or de facto minister in the interim government, said, "The committee is currently reviewing the matter, and it would be premature to comment."

The Adani power costs Bangladesh about Tk 12 ($0.1008) a unit, an official of the Bangladesh Power Development Board said, citing the latest audit report for financial year 2023/24.

That is 27 per cent higher than the rate of India's other private producers and as much as 63 per cent more than Indian state-owned plants, he added.

Under the deal, Bangladesh has been sourcing electricity since April 2023 from Adani, along with about 1,160 MW from other Indian plants.

Adani has had "no indication" that Bangladesh is reviewing the agreement, a spokesperson in India said.

"We continue to supply power to Bangladesh despite mounting dues, which are of significant concern and are rendering plant operations unsustainable," the spokesperson said.

Dhaka is struggling to clear dues of $800 million to Adani Power, among more than $1 billion owed to Indian power companies, because of difficulty in accessing dollars to make payment.

"We are in constant dialogue with senior officials of the Bangladesh Power Development Board and the government, who have assured us our dues will be cleared soon," the Adani spokesperson added.

Adani Power was confident Dhaka would fulfil its commitments, just as the company had met its contract terms, the spokesperson added, but did not respond to a query on why its rates exceeded those of other suppliers.

Nevertheless, domestic critics, such as the Bangladesh Nationalist Party (BNP) of former premier Khaleda Zia, say pricing concerns make a review of the deal necessary.

"The deal with Adani has raised serious concerns about overpricing from the start, and it’s a positive step that the government is now reviewing it," said senior party leader Zainul Abdin Farroque.

"I hope they make the right decision."

The interim government led by Nobel laureate Muhammad Yunus took power in Bangladesh in August after deadly protests prompted then Prime Minister Sheikh Hasina to resign and flee to neighbouring India.

It has since scrapped projects such as a floating LNG terminal planned by domestic conglomerate Summit Group, with officials saying more cancellations are possible.​

 

[Saif]

Two more Palli Bidyut officials put on remand over destabilising power sector

A Dhaka court on Saturday placed two more officials of Palli Bidyut Samity (PBS) on a two-day remand each in a sedition case filed on charges of their involvement in destabilising the power sector. Dhaka Metropolitan Magistrate Akhteruzzaman passed the order as police produced the duo before the c

thefinancialexpress.com.bd

Two more Palli Bidyut officials put on remand over destabilising power sector
Published :
Oct 19, 2024 20:59
Updated :
Oct 19, 2024 20:59

A Dhaka court on Saturday placed two more officials of Palli Bidyut Samity (PBS) on a two-day remand each in a sedition case filed on charges of their involvement in destabilising the power sector.

Dhaka Metropolitan Magistrate Akhteruzzaman passed the order as police produced the duo before the court with a prayer for 10 days remand.

The remanded PBS employees are Deputy General Manager (DGM) Ali Hasan Mohammad Ariful Islam, 48, and Assistant General Manager of Brahmanbaria SK Shakil Ahmed, 31, according to a BSS report.

Earlier on Thursday, another court of Dhaka placed six PBS officers on a three-day remand each in two separate cases.

The six officers are Rajon Kumar Das, Asaduzzaman Bhuiyan, Dipak Kumar Singha, Rahat, Monir Hossain and Belal Hossain.

Of them, Belal Hossain was accused in a sedition case, while the five others were accused in the other case.

Bangladesh Rural Electrification Board (BREB) Director (admin) Arshad Hossain filed the cases against them with capital's Khilkhet Police Station on Thursday (October 17).​

 

[Saif]

Renewable energy can play a major role in meeting challenges of environmental degradation: Speakers

Speakers at a seminar on Saturday said that renewable energy can play a major role in meeting the challenges of environmental degradation caused by climate change. They also said that the use of fossil fuels, such as oil, gas and coal, emits large amounts of carbon dioxide (CO₂) and other gre

thefinancialexpress.com.bd

Renewable energy can play a major role in meeting challenges of environmental degradation: Speakers
UNB
Published :
Oct 19, 2024 22:27
Updated :
Oct 19, 2024 22:31

Center for Atmospheric Pollution Studies (CAPS) and Pratichhabi, an organization working for the environment, jointly organized the seminar at Dhaka Reporters Unity. Photo : UNB

Speakers at a seminar on Saturday said that renewable energy can play a major role in meeting the challenges of environmental degradation caused by climate change.

They also said that the use of fossil fuels, such as oil, gas and coal, emits large amounts of carbon dioxide (CO₂) and other greenhouse gases, which are extremely harmful to the environment.

Center for Atmospheric Pollution Studies (CAPS) and Pratichhabi, an organization working for the environment, jointly organized the seminar titled "What to do to deal with environmental disasters and risks caused by climate change in the development and progress of Bangladesh" at Dhaka Reporters Unity.

With president of Pratichchbi, Mohammad Masudur Rahman, in the chair, the seminar was addressed by president of Bangladesh Institute of Planners (BIP) Dr. Adil Mohammad Khan, Professor of Electrical and Electronic Engineering Department at BIP SM Mustafa Al Mamun; Sharif Jamil, member secretary of Amara Raksha Dharitri; Professor of Mathematics and Natural Science Department at BRAC University M Mahbub Hossain, and Additional Secretary of the government, as well as gene scientist, Mohammad Mahfuzul Quader (Helal).

In the seminar, Ahmad Kamruzzaman Majumder, chairman of Atmospheric Pollution Study Center (CAPS), presented the keynote speech at the seminar.

Dr. Adil Mohammad Khan said that it is important to work to prevent climate change rather than talking about climate change in the current situation.

"It is up to us to change our destiny. To rebuild our new Bangladesh, we have to start from the streets. We need to change the strategy of urbanization and let the youth face the occupiers to bring about a positive change," he added.

Prof. Ahmad Kamruzzaman Majumdar said that the use of fossil fuels, such as oil, gas and coal, emits large amounts of carbon dioxide (CO₂) and other greenhouse gases, which are extremely harmful to the environment.

He observed that the amount of greenhouse gas emissions resulting from the use of fossil fuels is identified as one of the main causes of climate change.

"Therefore, renewable energy can play an important role in solving this crisis. A target has been set to reduce global carbon emissions by 90% by 2050, which can only be achieved through renewable energy", he added.

Sharif Jamil, Member Secretary of Dharitri Rakkhay Amara (Dhara) said that the people have to understand the environment in very simple terms.

"We have to understand the climate change and also realize its adverse effects. Only then can we become an environmentalist".

He said all the plans made about Bangladesh should be implemented and not just left as plans. We have to work to protect the coastal areas of our country from climate change.

Professor of Electric and Electronic Engineering Department SM Mostafa Al Mamun said that we are all victims of environmental disaster. We must work together to improve the way we have destroyed the environment for our own luxury.​

 

[Saif]

Power sector must belong to us, not conglomerates and foreign actors | The Daily Star

With the collapse of the autocratic regime and appointment of a pro-renewable power and energy adviser, the current challenge lies in effectively implementing the goal of using renewable energy to tackle energy crises and achieve zero emissions. We must reflect on past events to understand the...

thegreatwave.thedailystar.net

Power sector must belong to us, not conglomerates and foreign actors
Moshahida Sultana

Do you find any newspaper opinion on power and energy these days that doesn't support using renewable energy to tackle energy crises and achieve zero emissions? With the heavy power and energy debt burden, everyone today argues for the promotion of renewable energy, notably solar, wind, and biogas. But even five years ago, it was difficult to persuade people that we needed to begin developing the infrastructure to promote solar.

After becoming heavily indebted to foreign countries by introducing coal, nuclear, and liquefied natural gas (LNG) into the energy mix, the country began to understand that the installed capacity exceeded our needs. As a result, people are well aware of the capacity charge, which gradually transfers their money to the private sector. Although the process began in early 2010, public sentiment against capacity charges grew in recent years, as increasing installed capacity failed to alleviate the crisis, owing mostly to the over-reliance on imported energy sources such as coal, LNG, and oil.

With the collapse of the autocratic regime and appointment of a pro-renewable power and energy adviser, there is no longer a need to emphasise the importance of renewable energy sources. Instead, the current challenge lies in effectively implementing this goal. With 6,604 MW (21.39 percent of the energy mix) coal-based, 6604 MW (21.39 percent) oil and diesel-based, and 12,194 MW (39.5 percent) natural gas and LNG-based power capacity, Bangladesh already has excess capacity. In addition, a 2,400-MW nuclear power plant is currently under construction and scheduled for commissioning in 2026. When we focus on adding new solar capacity, we also need to consider the existing capacity.

We must reflect on past events to understand the reasons behind the adoption of coal, oil, LNG, and nuclear power. This will enable us to clearly formulate short-term and long-term strategies to overcome the current crisis and break the vicious cycle of energy insecurity.

We can attribute the current situation to a series of incremental policies implemented to address crises at different stages. Since independence, the country has never had a clear vision for implementing a long-term power and energy plan. When the power sector reform in the 1990s failed to resolve the electricity crisis, despite Bangladesh's abundant gas resource potential at that time, the government recognised the necessity for a plan. As a result, Bangladesh commissioned Japan International Cooperation Agency (JICA) to create its first master plan in 2005. This plan included proposals to diversify energy sources by incorporating LNG and domestic coal extraction. The same agency prepared successive master plans in 2010, 2016, 2018 (a revised one), and 2022 (latest). The common policies suggested in those plans primarily focused on increasing reliance on imported energy.

Even throughout the 2010s, when the cost of solar was declining worldwide, the JICA plans did not stress on the need for solar adoption. Bangladesh adopted a systematic planning approach that led to its reliance on imported energy and energy infrastructure, such as oil, LNG, coal, and nuclear power. Japan particularly had an interest in promoting coal and LNG because of its strategic decision to create a market for coal technology as well as LNG trade and shipping.

Meanwhile, despite strong opposition from people, Bangladesh built the Rampal power plant near the Sundarbans. The autocratic government, backed by India’s strategic interest in coal projects, remained stubborn throughout the entire period. It initially emphasised the cost-effectiveness of coal, the environmental benefits of super-ultra-critical technology, and an environmental management programme to reduce environmental risks. But the administration failed to establish a firm consensus with society. Eventually, it turned out that coal became expensive, and coal supply got uncertain due to scarce foreign exchange reserves. The current predicament involves determining the course of action for this project, given the substantial financial investment.

I believe we should address not just the invested funds but also the project's future operational expenses, coal import payments, environmental management expenses, and above all, the impact of the coal power plant on the Sundarbans. The government may consider cancelling the project and replacing it with large utility-scale solar power. This will not only save the Sundarbans and foreign currency, but it will also set an example of a carbon-free initiative.

The Rooppur power plant is another questionable project that started during the Hasina government's tenure. A report from the website “Global Defense Corp” has raised a new controversy about embezzlement of about $5 billion from the $12.65-billion project. The report lacks credibility because it claims that funds were transferred to a foreign account without providing any tangible proof of embezzlement. The Russian ambassador has also denounced it as a rumour.

However, due to the questionable cost escalation, the report, coupled with the ambassador's subsequent reaction, prompts a review of the project's expenses. In February 2011, when the first agreement was signed, the initial estimated cost was $1.5 billion - $2 billion for each unit. In 2014, the Ministry of Science and Technology proposed a cost of $6 billion. In May 2016, the cost reached $12.65 billion. This unprecedented change within just five years is questionable. Therefore, the government's lack of accountability and transparency during the project's inception necessitates an investigation into this case.

The interim government can form an independent committee to investigate the cases of overpricing. All relevant authorities must examine the records of purchase orders, invoices, and money transfers in a transparent manner. Even the pillow corruption, despite its meagre amount, warrants scrutiny to prevent overpricing. It is a serious issue because people will have to pay the extra money to Russia in the future. The nation must witness a trial of all those involved in this project's corruption.

Now, let us delve into the question of how the interim government will delegate decisions of phasing out existing plants and replacing them with solar and wind power. Can we just keep adding solar power plants and not care about the old establishments? Should we allow the market to determine which power plants to phase out? Mentionable, the need to balance demand and supply did not drive the construction of power plants during Hasina’s 15-year regime. The suppliers and their partners' rent-seeking motivations were primarily responsible. Conscious policy choice is necessary now, but this has become more difficult than ever because of the rapidly depleting foreign currency reserve and our diminishing ability to import expensive energy from the international market. We find ourselves firmly locked-in in the use of fossil fuels. The country has already invested billions of dollars and secured substantial loans for coal, LNG, and nuclear projects while neglecting exploration of domestic gas. Therefore, there is no scope for waiting to see the inefficient and expensive suppliers phasing out automatically without any government intervention.

Based on the aforementioned observations, I have identified several crucial tasks that the interim government can undertake. The first can be establishing a planning committee, which should include individuals from diverse backgrounds such as engineers, researchers, data analysts, accountants, and representatives from various organisations such as the Power Development Board (PDB), Sustainable Renewable Energy Development Authority (SREDA), Petrobangla, BAPEX, Power Cell, Hydrocarbon Unit, as well as academics, social scientists, entrepreneurs, politicians, civil society, and planners. Their job will be to deliver an immediate action plan to optimise energy use, subject to existing resource constraints (foreign currency and annual budget). This will allow us to maximise electricity generation by minimising foreign currency expenditure.

Even if the interim government does not assume responsibility for an extended period, it is its duty to establish an accountability structure and develop a check-and-balance mechanism to prevent various interest groups from exploiting the situation during a crisis. In the crisis period, we have witnessed various rental and quick rental owners take advantage of non-competitive bidding in the name of immediate crisis resolution, thereby benefiting from both subsidies and capacity charges. In this respect, we welcome the government's suspension of the quick enhancement of the Power and Energy Supply (Special) Act 2010.

However, this is not enough to ensure long-term energy security. To avoid having to rely on a foreign country to develop our own plan, the government must establish an institutional system for long-term planning. Our past experience shows that one incremental policy leads to another crisis, and a hurriedly taken incremental solution leads to the next crisis. Our power and energy sectors suffered a long, vicious cycle of crises. Only national capacity building may solve this problem in a systematic way. We need to develop the capacity of BAPEX with greater effort.

This year, the state-run oil, gas, and mineral corporation Petrobangla floated an offshore bid in 2024 to explore the country’s maritime area for hydrocarbons. This initiative, in response to the gas crisis, represents an attempt to explore domestic gas. Even if the interim government does not have the jurisdiction to sign a production-sharing contract, it may form an independent committee to explore whether, instead of signing a PSC with a foreign company, Petrobangla can lead the exploration by having full control over the management and contracting out some of the tasks to international companies. The same committee may reevaluate the contract with the Indian company ONGC and disclose the progress made since signing it in 2014. This committee must also re-evaluate the contracts with Gazprom, which was assigned to dig wells in the gas fields at a very high cost.

The government's decision to cancel S Alam Group's proposal to install Eastern Refinery Limited (ERL) Unit-2 is definitely a praiseworthy initiative. However, this should not lead to any other private company getting the contract. The public sector should have full control over the construction and management of the second refinery unit.

I welcome the government suspending a recent amendment of Bangladesh Energy Regulatory Commission (BERC) Act, which restricted people’s voice in price change. In addition to this, the government should also restructure BERC and identify a mechanism through which it can ensure democratic institutional practices in the decision-making process.

The interim government prioritises renewable energy generation, but it is also important to remember that implementing renewable energy should not come at the expense of the environment and society. The zero-carbon target should encourage no enforced evictions or unlawful use of agricultural land. Bangladesh needs to re-evaluate all the power and energy sector agreements with private and foreign entities and publish a report on why the cost of solar has been high. We learn from various sources that the cost of land, high tariffs, and costly panels are some of the reasons for the high cost of solar. However, there is no clear data on the existing solar plants to explain why the cost is high for utility-scale solar power. Should the government demonstrate a serious commitment to solar adoption, we must analyse the cost components of all existing solar plants to determine the justification of the existing purchasing power agreements.

Let us delve into the question of how the interim government will delegate decisions of phasing out existing plants and replacing them with solar and wind power.

Can we just keep adding solar power plants and not care about the old establishments?

A lack of societal trust stemming from previous unsuccessful rooftop projects can explain people's reluctance to install solar rooftops. The existence of syndicates selling low-quality rooftop solar panels also lowered public trust. The government needs to devise a strategy to cultivate this trust. We can encourage more people to use rooftop solar in residential, administrative, and industrial buildings by setting some good examples.

Society has been suffering from collective trauma for many years. People are deeply frustrated by the revelation of money leakage and costly and low-quality services. For an interim government to bring back trust is a real challenge. However, it is not impossible if the government stays on the right track and restructures the institutions to ensure mechanisms of accountability and transparency. Only by doing so can the government value the lives of hundreds of martyrs and many more injured in the July uprising. The debt to the martyrs is now much higher than the debt to the foreign countries and their banks. While taking future decisions we must not forget that.

Moshahida Sultana is assistant professor of Department of Accounting and Information Systems, University of Dhaka.​

 

[Saif]

Dearth of reliable energy a major concern for businesses

The shortage of reliable energy is a big concern for Bangladesh due to the country’s dwindling natural gas reserves and the escalating global prices of fossil fuels, according to energy experts, as they advocated for alternatives such as renewables and liquefied petroleum gas (LPG).

www.thedailystar.net

Dearth of reliable energy a major concern for businesses
Experts say

The shortage of reliable energy is a big concern for Bangladesh due to the country's dwindling natural gas reserves and the escalating global prices of fossil fuels, according to energy experts, as they advocated for alternatives such as renewables and liquefied petroleum gas (LPG).

At a meeting held yesterday at the Pan Pacific Sonargaon Dhaka, the experts said the nearly identical commercial energy usage in FY22 and FY23 shows the acuteness of the energy shortage faced by the industrial sector.

"For a developing country, this is not a positive sign for industrialisation," said Ijaz Hossain, former dean of the Bangladesh University of Engineering and Technology (Buet), during a presentation at the event organised by the Foreign Investors' Chamber of Commerce & Industry (FICCI).

"Despite an increase in the number of factories and their production, gas supply to the industrial sector has remained constant over the past decade. This demonstrates the acute energy crisis in industrial units," he added.

Referring to Petrobangla data, Hossain warned that if the current gas consumption continues, the country's gas supply could be depleted by 2030.

According to him, discovering new gas wells is urgent.

The energy expert said without drilling at least ten new wells annually, Bangladesh may become heavily reliant on imported liquefied natural gas (LNG).

According to Hossain, Bangladesh is also losing around 10 percent of the national grid supply to illegal connections, which equates to $1 billion per year.

"This is simply theft," he added. "It has become extremely shocking."

The energy expert suggested that if illegal gas connections to domestic households were factored in, the estimated losses would be even higher.

He suggested replacing the domestic gas supply with LPG gradually, even by offering subsidies to encourage its use.

Regarding renewable energy, the former Buet teacher said Bangladesh is likely the only country worldwide where the share of renewable electricity in total electricity generation has decreased over time.

He said the contribution of renewables to national power generation declined from 11 percent in 1990 to 1.33 percent in 2023.

"Importing energy is more expensive than importing food," said Hossain. "If the government allowed around 1 percent of farmland for solar panels, around 50,000 megawatts of electricity could be generated."

At the programme, Energy Adviser Muhammad Fouzul Kabir Khan criticised the previous government's energy tariffs.

"The previous government set exuberant tariffs by claiming the sector was in emergency. But how long can an emergency persist?" he questioned.

"We have dismantled the corrupt practices established by the previous government over the past 15 years," he claimed. "The previous government bypassed the Bangladesh Energy Regulatory Commission (BERC) for setting prices, but we have restored the commission's authority.'

Khan mentioned that the current government is revising renewable energy policies. It is developing a renewable energy park in Jabalpur, where the government will provide land and transmission lines to the private sector.

The government's primary objective is to reduce subsidies in the power sector by lowering the cost of power procurement, he said.

Zaved Akhtar, president of FICCI, said investment decisions by entrepreneurs are heavily influenced by the availability of reliable energy solutions.

He called for a comprehensive roadmap for renewable energy development.

Similar to Hossain, Badrul Imam, an honorary professor at the Department of Geology at Dhaka University, suggested that Bangladesh should prioritise gas exploration, as it has not invested sufficiently in this area.

M Rezwan Khan, a professor emeritus at the Department of Electrical and Electronic Engineering at United International University, proposed allowing industries to install solar panels on their factory premises.

Mollah Amzad Hossain, editor of the Energy & Power Magazine and Nowshad Ali, country manager of GE Vernova Bangladesh, were also present.​

 

[Saif]

Bangladesh needs greater focus on renewable energy

Energy experts at a meeting in the capital Dhaka on Sunday urged the interim government for taking pragmatic actions for renewable energy projects amid growing demands for power and energy as...

www.newagebd.net

Bangladesh needs greater focus on renewable energy
Staff Correspondent 20 October, 2024, 22:40

Power, energy and mineral resources adviser Muhammad Fouzul Kabir Khan, former BUET dean and chemical engineering department professor Ijaz Hossain, GE Vernova Bangladesh country manager Nowshad Ali, Dhaka University honorary professor Badrul Imam, former United International University vice-chancellor and professor emeritus M Rezwan Khan and Energy and Power Magazine editor Mollah Amzad Hossain are present at a luncheon meeting hosted by the Foreign Investors’ Chamber of Commerce and Industry at the Pan Pacific Sonargaon in Dhaka on Sunday. | Press release photo

Energy experts at a meeting in the capital Dhaka on Sunday urged the interim government for taking pragmatic actions for renewable energy projects amid growing demands for power and energy as the country has been losing its gas reserves fast.

Speaking at the meeting on urgent energy challenges in Bangladesh and sustainable energy options, they said that the government should make investments in rooftop solar photovoltaic (PV) projects flexible, rein in gas supply for domestic use and accelerate exploration of natural gas.

The Foreign Investors’ Chamber of Commerce and Industry organised the meeting at a Dhaka hotel where investors requested the government for accessible industrial lands, net metering system and congenial atmosphere for investment.

Addressing as chief guest, power, energy, and mineral resources adviser Muhammad Fouzul Kabir Khan said that the government had taken several steps to ‘dismantle the whole architecture of corruption’ in the country.

‘Instead of independent power producer or IPP options, we are encouraging the merchant power policy mechanism to break monopoly in the sector,’ Fouzul said.

He added that the government would provide investors with land and transmission facilities in Jamalpur district-based solar power park.

Presenting his keynote paper, former dean of engineering at Bangladesh University of Engineering and Technology, Ijaz Hossain, said, ‘Bangladesh stands on a very difficult juncture as the country’s gas reserves will deplete by 2031.’

He warned that Bangladesh’s energy supply chain would be ruined if the government continued importing expensive liquefied natural gas to feed domestic consumers and CNG-run three-wheelers, depriving industries.

GE Vernova Bangladesh’s country manager Nowshad Ali moderated a panel discussion where professor emeritus of United International University M Rezwan Khan, while replying to a question, recommended that processing investments in rooftop solar PV and net metering systems should be made flexible.

‘About 8,000MW power could be generated if solar PVs cover the existing industrial unit rooftops. The amount could be raised to 12,000MW if the government relaxes the terms and conditions on rooftop power installations,’ Rezwan said.

Dhaka University’s honorary professor Badrul Imam put emphasis on low-carbon emitting energy sources while Energy and Power Magazine editor Mollah Amzad Hossain requested the interim government to review its recent decision that suspends developing several letters of intent-secured renewable power plants.​