[🇧🇩] Energy Security of Bangladesh

[Bilal9]

Bangladesh's Summit reviewing cross-border power deals after India rule change

Bangladesh's Summit Group plans to renegotiate preliminary deals to import renewable power from India after a recent rule change by New Delhi allowed generators that exclusively export their electricity to sell locally, the utility's chairman said

www.thedailystar.net

Bangladesh's Summit reviewing cross-border power deals after India rule change

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Bangladesh's Summit Group plans to renegotiate preliminary deals to import renewable power from India after a recent rule change by New Delhi allowed generators that exclusively export their electricity to sell locally, the utility's chairman said.

India amended its power export rules less than a week after former prime minister Sheikh Hasina fled Bangladesh early this month amid deadly protests, enabling Adani Power to connect its Godda coal-fired plant -- the only generating station under contract to export all its output -- to India's domestic grid.

"After the policy change, my partners in India might be more willing to sell in India. Our company will be investing in transmission in Bangladesh and we will have to assume more risks," Summit Group Chairman Aziz Khan told Reuters.

The conglomerate, which operates over a dozen fossil fuel-based power generation plants, signed preliminary deals with Indian partners including Tata Power Renewable Energy Ltd last year to construct and source supply from 1,000 megawatts (MW) of renewable projects.

A spokesman for Tata Power declined to comment on Summit's plans.

Green power imports are crucial for slashing emissions in Bangladesh, which gets nearly 99% of its electricity from fossil fuels. Land scarcity in the densely-populated country of over 170 million has constrained higher solar additions.

Summit Power International, the Singapore-based holding company for Summit Group's power generation assets, is exploring options including delaying investments until there is more policy clarity, and renegotiating financial terms to account for higher risks, Khan said.

"Such quick changes in policies are always a matter of concern as they have long-term implications," Khan said, referring to India's rule change.

Summit's plans to import clean electricity via India from 700 megawatts of hydro power plants it planned to build in Bhutan and Nepal as a part of $3 billion in regional clean power investments also face uncertainty due to a new government in Bangladesh, Khan said.

No final decisions on the cross-border investments have been taken yet, Khan said, adding that the company would continue to invest within Bangladesh.

Khan said the new Bangladesh government's decision to suspend a law allowing awards of power supply contracts without tenders also contributed to his decision to review projects.​

All the brothers in Summit Group are in really intense hot water for negotiating 'unfair' power deals to benefit Hasina and Adani and indirectly, Modi's Hindutva apparatus.

One of the clauses of the signed power supply agreement between Adani and the Bangladesh PDB says that Bangladesh will be bound to pay Adani 35% of the negotiated monthly electricity charges even if Adani does not supply one unit of electricity to Bangladesh!

I am surprised the Bangladesh Govt. has not officially notified Indian Govt and the Adani organization that this agreement is null and void already....

 

[Saif]

I am surprised the Bangladesh Govt. has not officially notified Indian Govt and the Adani organization that this agreement is null and void already....

Bangladesh cancelled the energy deal with Adani? What's your source?

 

[Saif]

Much-cherished oil refinery building thru fresh bidding

A much-cherished crude-oil refinery will now be built through fresh competitive biddings as the interim government Thursday cancelled controversial S Alam Group's deal and made the latest decision. The long-delayed refinery project, 'installation of ERL unit -2', will be implemented under

thefinancialexpress.com.bd

Much-cherished oil refinery building thru fresh bidding
Interim govt scraps proposed SA Group deal
M Azizur Rahman
Published :
Aug 30, 2024 00:37
Updated :
Aug 30, 2024 00:37

A much-cherished crude-oil refinery will now be built through fresh competitive biddings as the interim government Thursday cancelled controversial S Alam Group's deal and made the latest decision.

The long-delayed refinery project, 'installation of ERL unit -2', will be implemented under public procurement rules (PPR) -2008, the energy and mineral resources division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) decides.

State-run Bangladesh Petroleum Corporation (BPC) will estimate the overall project cost by taking into account the latest foreign-currency rate, prepare the development project proposal (DPP) and send it to the Planning Commission for approval.

An MPEMR meeting, chaired by adviser for power and energy, and road transport and bridges Muhammad Fouzul Kabir Khan, made the decision.

Officials said prior to the fall of the previous authoritarian government, the then prime minister's office had approved a proposal on building the new oil refinery under public-private joint venture with majority stakes going to the acquisitive S Alam Group.

Earlier, the BPC had sought necessary funds worth around US$2.0 billion from the government to build the proposed 3.0-million-tonne-capacity crude-oil refinery in Chattogram.

Eastern Refinery Ltd (ERL), a wholly owned subsidiary of BPC, is set to implement the project.

Sources said Bangladesh had 'failed' to build any crude-oil refinery over the past half a century after its independence, resulting in huge waste foreign currencies gone into import of refined oils from the international market.

Only 'negligence' on part of the authorities concerned is to blame, they added-in an indication of dominance of rent-seeking import lobbies.

The country's currently operational maiden refinery - Eastern Refinery Ltd - was built way back in 1968 by French company Technip, three years before the emergence of Bangladesh from the Pakistani rule.

The volume of petroleum-oil imports has increased around threefold over the past five decades to feed growing consumption in transport, industries and other commercial outlets with the expansion of the country's overall economy.

Technip carried out the front-end engineering and design (FEED) a couple of years back for the new refinery. The BPC had been in talks with Technip over the past several years to have the refinery built through a negotiation bypassing tender process.

The contractor of ERL's existing refinery was interested to build the proposed refinery under an unsolicited deal-in line with the precedence of quick-rental deals in the energy sector, now ditched with the regime change.

An Indian consulting firm, Engineers India Limited (EIL), had been engaged with the proposed project as consultant for the past several years until early 2024 before the emergence of upstart S Alam Group to lay stakes on the project, they added.

The Indian consultancy, EIL, had estimated that the cost might be around $1.80 billion if the engineering, procurement and construction (EPC) contractor was selected through competitive tendering.

The EIL's consultancy cost for the project was around Tk 2.56 billion.

The Technip-done FEED work was also reviewed and accepted by the BPC in consultation with the EIL, which was carried out at a cost of around Tk 3.72 billion.

Once implemented, the new refinery can help the country save $220 million per annum, trebling the country's crude-refining capacity to 4.5 million tonnes from the existing 1.5 million tonnes per year, market-insiders say.

To implement the project the BPC purchased land for the refinery at Tk 2.30 billion from the Ministry of Industries.

"It is sheer negligence from the government high-ups as it could not build a new refinery even over the past 50 years," energy adviser of the Consumers Association of Bangladesh (CAB) Prof M Shamsul Alam told the FE.

"A vested quarter having nexus with government high-ups has been lingering the project's execution to earn money as commission," he says, in tune with usual quips over import preference.

"Consumers are the ultimate losers," he laments.

Building the oil refinery through competitive bidding will ensure execution of the project in a transparent and accountable manner, says energy-expert Prof M Tamim, who was a special assistant of a previous caretaker government.​

 

[Saif]

Ministry denies claims of gas export to India

The Ministry of Power, Energy, and Mineral Resources has dismissed as a rumour claims on social media that Bangladesh exports natural gas to India via pipelines. In a press release on Thursday, the ministry said no natural gas has ever been exported to India, either under the previous Awami League

thefinancialexpress.com.bd

Ministry denies claims of gas export to India
FE Online Desk
Published :
Aug 29, 2024 22:41
Updated :
Aug 30, 2024 00:32

The Ministry of Power, Energy, and Mineral Resources has dismissed as a rumour claims on social media that Bangladesh exports natural gas to India via pipelines.

In a press release on Thursday, the ministry said no natural gas has ever been exported to India, either under the previous Awami League government or at any time.

It also rejected as false and misleading the demand to shut down gas lines to India's northeastern states.​

 

[Bilal9]

Bangladesh cancelled the energy deal with Adani? What's your source?

They did not cancel the deal, but word is rife in Energy ministry, PDB and other high level sources that there will at least be a severe rate revision sought.

Bangladesh has not paid Adani for a while for the power it already supplied to Bangladesh, which logically means there may be something serious (like rate revisions) is in the offing.

I did not predict a cancellation, but situation is not in favor of Adani at present. Adani's FMCG business in Bangladesh may also be affected.

 

[Saif]

Ulterior motive behind faulty energy plan

Successive governments from 2009 onwards were headed by the same party and the country ended up paying billions of dollars for establishing several mega projects that were supposed to generation of 40 Gigawatts (GW) of power by 2030. If the biggest scam over the last 15 years centred around the ban

thefinancialexpress.com.bd

Ulterior motive behind faulty energy plan
Syed Mansur Hashim
Published :
Aug 30, 2024 21:10
Updated :
Aug 30, 2024 21:10

Successive governments from 2009 onwards were headed by the same party and the country ended up paying billions of dollars for establishing several mega projects that were supposed to generation of 40 Gigawatts (GW) of power by 2030. If the biggest scam over the last 15 years centred around the banking system, then the energy scam follows close behind. Energy experts and the government's own energy professionals working in the sector were effectively silenced by disinformation. The use of certain civil society groups to whip up the myth of catastrophic environmental degradation if open-pit method of coal mining was done helped fuel this fallacy.

There is no denying that coal mining has its demerits, but the technological advancements made in the field were simply not taken into account. Then why were all these expensive coal power plants built? There was no way that Bangladesh could handle the millions of tons of coal which would be needed to keep these plants in operation from two vital points. First, huge investments would be needed in terms of setting up the physical infrastructure to transport coal and second but equally important, confrontation with a lack of requisite finance to sign long-term coal supply contracts internationally.

The idea that Bangladesh could always buy coal from the spot market was not only wrong but quite absurd because a handful of countries were both largest buyers and consumers of international coal and this included China, India, the United States and some other nations. Not only did these nations have deep pockets but also had the infrastructure and finance in place to buy up coal from far-off lands like Australia, Indonesia, etc. for many years in advance.

The idea of producing thousands of megawatts of power from coal was a pipedream, or was it? As one sifts through the emerging data in the aftermath of the change in government, it is now abundantly clear that the past regime was interested only in import. That's where the profits lay for a small coterie of business interests and corrupt officials. There was no intention to develop the economy. Developing own natural resources would have brought no profit at the individual or company level. What good would it serve if people did benefit, if industry developed or employment generated? That would mean no personal wealth for buying the $25,000 designer watch, no holidays in the Swiss Alps, no "Begum Para" in the developed world.

The scene was set for a Yeltsin-type era in Bangladesh. The country would serve the interests of a few hundred thousand people who would rip off this country in the name of development while the rest of the population would barely eke out a living. Former policymakers were dead wrong on the coal issue. If one looks at the Asia Pacific region, the global coal production reached an epic 179 exajoules (EJ), surpassing the previous year's record. Indeed, according to an article published in Forbes magazine, "The Asia Pacific region contributed nearly 80% of the global output, primarily driven by Australia, China, India, and Indonesia, which together accounted for 97% of the region's production." This is further explained in the '2024 Statistical Review of World Energy' published by the Energy Institute in June this year.

Coal didn't decline, its consumption has been rising over the last decade. Only our policymakers used the "environmental" argument to cripple the economy while rest of Asia was galloping ahead to use coal for spurring their economies. The second argument on international coal prices is that the demand has reduced over the last decade. But as stated before, global economic giants in Asia like China (followed by India) were in a competition to lock future outputs of major coal producing nations years in advance. How could an emerging economy like Bangladesh ever hope to compete at that level?

Our needs were a pittance compared to those countries. Why would any major seller even bother with our demands? It should be noted here that both high and low quality have been used in both these countries. Yes, there has been environmental fall-out, but it was deemed a national priority in both China and India to develop their economies first and invest in cleaner coal technologies to mitigate some of the environmental fallouts. Without strong economies, policymakers in those countries could not lift millions of people out of poverty and jobs would not be generated without cheap power.

Bangladesh missed the entire point of cheap, reliable power. Today, the interim government is stuck with this problem of multiple, multi-billion-dollar coal-fired plants that are sitting idle. We have wasted precious years when the coal mines could have been developed and there is no money to buy the coal from the international market now. There is no silver bullet to solve this mess and the only way out for Bangladesh is if the billions of dollars siphoned off and laundered abroad can be brought back. Then perhaps, some sort of financial settlement can be reached before seeking an exit from these contracts and investing in development of natural gas fields. A tall order, but there is no other option for today's policymakers.​

 

[Saif]

Adani says it supplies electricity to Bangladesh at cheapest rate

Adani Power, an Indian multinational power and energy company, says it supplies electricity to Bangladesh at the cheapest rate among all other imported coal-based plants, according to a CNBC report. In response to claims of supplying costly power to Bangladesh, the company pointed out the comparat

thefinancialexpress.com.bd

Adani says it supplies electricity to Bangladesh at cheapest rate
FE ONLINE DESK
Published :
Aug 30, 2024 14:26
Updated :
Aug 30, 2024 14:26

Adani Power, an Indian multinational power and energy company, says it supplies electricity to Bangladesh at the cheapest rate among all other imported coal-based plants, according to a CNBC report.

In response to claims of supplying costly power to Bangladesh, the company pointed out the comparative power costs detailed in the Bangladesh Power Development Board’s report for the 2022-2023 fiscal year.

The company sources stated that it supplies electricity to Bangladesh at a rate of Tk 14.02 per unit, compared to Tk 16.02 per unit from the Payra Power Plant and Tk 14.12 per unit from the Rampal Power Plant.

The company also referenced the average power prices over the last 12 months, as per the merit order dispatch data.

The average per unit price of electricity provided by Adani Power in last 12 months was Tk 11.89. Meanwhile, the average price of Matarbari Power Plant in the period was Tk 13.36, Payra’s price was Tk 12.00, and Rampal’s price was Tk 13.57 per unit. The cost per unit includes capacity charge, fuel cost and variable cost.

Fully commissioned in July 2023, Adani Power's Godda plant uses imported coal and supplies about 7 to 10 per cent of Bangladesh’s total power demand.

As per company sources, Bangladesh currently has long-term Power Purchase Agreements (PPAs) with four other imported coal-based power generators—Payra, Rampal, Matarbari, and Barisal Electric Power.​

 

[Saif]

Want to breach the structure of irregularities in power sector: Adviser Fouzul Kabir

Muhammad Fouzul Kabir Khan, the interim government’s adviser for Power, Energy, and Mineral Resources, has said that they want to reconstruct the power sector breaking the existing structure of irregularities in the sector. Besides, a committee will be formed to investigate the allegations o

thefinancialexpress.com.bd

Want to breach the structure of irregularities in power sector: Adviser Fouzul Kabir
Published :
Aug 31, 2024 19:04
Updated :
Aug 31, 2024 19:04

Muhammad Fouzul Kabir Khan, the interim government’s adviser for Power, Energy, and Mineral Resources, has said that they want to reconstruct the power sector breaking the existing structure of irregularities in the sector.

Besides, a committee will be formed to investigate the allegations of irregularities in this sector, he told reporters after an exchange meeting with officials in the conference room of Rupsa 800 MW Combined Cycle Power Plant located in Khalishpur, Khulna on Saturday.

“It should be remembered that this is a new Bangladesh. Everyone has equal opportunities here. As there are risks, there are solutions,” he added.

The advisor said, so far a development story was being read in our country that our per capita income and GDP is increasing and we are moving from a low-income country into a middle-income country. It now appears that this was false, said the adviser.

A power plant has been built in Khulna at a cost of around Tk 80 billion (Tk 8,000 crores), which has been added to the national GDP. Even if the GDP increases, the gas-based power plant does not seem to be able to generate electricity immediately.

“Tk 8,000 crore was spent on setting up the power plant but people are not getting any benefit from it. This is the fallacy of development.”

The meeting was attended by Senior Secretary of Power Department Md Habibur Rahman, Secretary of Water Resources and Mineral Resources Department Md Nurul Alam, Bangladesh Power Development Board Chairman (Acting) Md Rezaul Karim, Khulna Deputy Commissioner (Acting) Md Yusup Ali and officials of power and water sector.​