🇧🇩 Energy Security of Bangladesh

[Saif]

Exploiting benefits of solar air conditioners

The market of hybrid solar air conditioner is growing globally. As the world turns hotter, the demand for air conditioners has also gone up in Bangladesh along with other tropical countries. With the constant revision of power prices (upward) in the country, electricity bills have become a major he

thefinancialexpress.com.bd

Exploiting benefits of solar air conditioners
SYED MANSUR HASHIM
Published :
Jun 07, 2024 22:59
Updated :
Jun 07, 2024 23:00

— Collected

The market of hybrid solar air conditioner is growing globally. As the world turns hotter, the demand for air conditioners has also gone up in Bangladesh along with other tropical countries. With the constant revision of power prices (upward) in the country, electricity bills have become a major headache for most people. There is a desperate need for a more affordable solution to energy consumption at not just household, but also commercial and industrial level. Rooftop solar panels are increasingly becoming visible at factory-level, but there is great potential for expanding that idea to all urban centres where a sizeable portion of the working population lives.

With easier terms of payments made possible through zero interest instalment payments, the middle class in Bangladesh (the largest consumer section) are rushing to buy air conditioners. Inverter-type split air conditioners promise to save a lot of electricity from non-inverter types, but the fact remains that in an import-driven, fossil-fuel powered energy sector, utility bills will inevitably be itching upward every year. This has given rise to technological innovation which calls for a hybrid air conditioner design, which is being developed and increasingly utilised by power-hungry, highly populated economies like China, India, etc. Indeed, market data suggest that given proper regulatory incentives, tax breaks on import of key components, the global market for such air conditioners could be worth as much as US$500 million by 2025.

The system is a combination of traditional air conditioning type (split-type) with solar panels in an effort to reduce both energy consumption and environmental impact. The Asia-Pacific region will be the focal point of this growth because of the large concentration of people living in the region that smarts under high temperatures practically throughout the year. Challenges faced by the market include higher initial costs and limited awareness among consumers. Regulatory and legal factors specific to market conditions include government policies promoting renewable energy adoption and regulations for energy efficiency standards. Overall, the market of hybrid solar air conditioner shows promising growth potential with the right support and innovation.

To read the rest of the news, please click on the link above.​

 

[Saif]

Power gets a third of Tk 108,240cr subsidies

More than a third of the subsidies allocated in the new budget is for the power sector due to what experts say is the huge spending on capacity charges.

www.thedailystar.net

Power gets a third of Tk 108,240cr subsidies
Capacity charges may take up most of it

More than a third of the subsidies allocated in the new budget is for the power sector due to what experts say is the huge spending on capacity charges.

The large sum of subsidy has raised eyebrows as the government increased electricity prices several times since January last year.

Currently, the power generation capacity is around 26,000 megawatts while the highest generation was recorded at 16,477MW on April 30 this year.

Finance Minister AH Mahmood Ali in his budget speech said 27 power plants with a combined capacity of 9,144MW were being constructed.

All sectors combined, subsidy allocation for the fiscal 2024-25 is Tk 108,240 crore, of which the power sector will get Tk 40,000 crore, or 37 percent of the total.

In the current fiscal year, the power sector got Tk 35,000 crore of the total Tk 106,897 crore subsidy.

For many years before 2021-22, subsidies for the sector used to be between Tk 7,000 crore and Tk 9,000 crore.

To read the rest of the news, please click on the link above.​

 

[Saif]

Power Grid gets large sums as govt prioritises transmission, distribution

In Bangladesh, the power generation capacity increased to 30,277 megawatts in 2023-24 from 4,942 MW in 2009, said Finance Minister Abul Hassan Mahmood Ali in his budget speech.

www.thedailystar.net

Power Grid gets large sums as govt prioritises transmission, distribution

Around a third of the budgetary allocation set aside for the power division is going to the Power Grid Company of Bangladesh (PGCB) as the government plans to make the most of installed generation capacity by expanding grids and making some of the existing facilities smart.

The finance minister has set aside Tk 29,230 crore for the power division for 2024-25, down 13 percent year-on-year. PGCB will get Tk 10,634 crore.

Coal Power Generation Company of Bangladesh, which is implementing the Matarbari power plant in Cox's Bazar, received the second-highest allocation.

Centring the power plant project, PGCB is implementing several projects in Chattogram, upgrading grids. It has received Tk 1,500 crore to carry out the tasks.

The Barapukuria-Bogura-Kaliakair 400kv project has been given Tk 2,356 crore and the power evacuation facilities project Tk 646 crore.

Among the PGCB's schemes, the highest Tk 3,555 crore has been earmarked for the Power Network Strengthening project, which started in 2016.

In Bangladesh, the power generation capacity increased to 30,277 megawatts in 2023-24 from 4,942 MW in 2009, said Finance Minister Abul Hassan Mahmood Ali in his budget speech.

Currently, 27 plants with a combined capacity of 9,144 MWs are under construction. Most of them are in the private sector.

To read the rest of the news, please click on the link above.​

 

[Saif]

The absurdity of subsidies in power sector

Squandering of funds in the name of capacity charges must stop

www.thedailystar.net

The absurdity of subsidies in power sector
Squandering of funds in the name of capacity charges must stop

VISUAL: STAR

In a frustrating if predictable move, the government has once again allocated a third of the budget for subsidies to the power sector, an overwhelming majority of which will be used to pay off capacity charges. It seems no amount of expert logic, public outrage, or even IMF prescriptions can discourage the government from wasting public funds on paying private power plants to sit idle. It has already spent more than Tk 1 lakh crore in capacity charges over the last 14 years. Research by the Centre for Policy Dialogue (CPD) reveals that capacity payments have skyrocketed from Tk 5,600 crore in 2017-18 to a staggering Tk 32,000 crore in the outgoing fiscal year, accounting for a whopping 81 percent of total subsidies in the power sector.

Instead of bringing down capacity charges as a matter of priority, the government is constructing an additional 27 power plants, which can only translate to a further increase in capacity charges in the coming year(s). What's more outrageous is that the government has decided to raise power tariffs three to four times a year apparently to lower subsidies over the next three years. Electricity prices were raised by 8.5 percent in February this year, and thrice by 5 percent each last year. Why is the public being asked to pay higher prices in the name of reducing subsidies when, in fact, the government is increasing subsidy allocation in the power sector—from 32 percent of the total allocation last year to 37 percent in the proposed budget?

As always, it is the people who are being unfairly tasked with absorbing the burden of chronic mismanagement, collusion, and corruption in the power sector. This is simply unacceptable, particularly given that the government does not seem to be taking any visible steps to address the root causes of high production costs—a lack of transparency and accountability in awarding contracts, overreliance on expensive imported fuels, and neglecting domestic gas exploration and renewable energy sources. Subsidies make sense when they ensure cheaper and more accessible services and amenities to the public, not when they prop up big business groups at enormous cost to the country and ordinary citizens.

To read the rest of the news, please click on the link above.​

 

[Saif]

PM reiterates Bangladesh's interest to import hydroelectricity from Bhutan

Prime Minister Sheikh Hasina today sought investment from Bhutan in the special economic zone in Bangladesh for investors from the Himalayan country

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PM reiterates Bangladesh's interest to import hydroelectricity from Bhutan

Photo: PID

Prime Minister Sheikh Hasina today sought investment from Bhutan in the special economic zone in Bangladesh for investors from the Himalayan country.

She emphasised proper use of the SEZ allotted to Bhutan in Kurigram and hoped Bhutan would set up industries there, reports our New Delhi correspondent.

She made the remarks when Bhutanese Prime Minister Tshering Tobgay paid a courtesy call on her at the ITC Maurya New Delhi this afternoon.

Both Hasina and Tobgay are in Delhi to attend the swearing-in of Narendra Modi as India's prime minister.

Hasina reiterated Bangladesh's eagerness to import hydroelectricity from Bhutan through India and pointed out that a tripartite agreement was required with India, said Foreign Minister Hasan Mahmud.

"Tobgay conveyed to Hasina that Bhutan is eagerly waiting to export hydroelectricity to Bangladesh," Mahmud said.​

"Both the countries have reiterated their commitment to enhancing the existing multifaceted relations," he said.

 

[Saif]

Gas crisis hits consumers hard

A two-week-long gas crisis has been affecting homes, factories, and vehicles that run on compressed natural gas, thanks to a dip in supply following the shutdown of an LNG regasification terminal in Cox’s Bazar on May 29.

www.thedailystar.net

Gas crisis hits consumers hard

A two-week-long gas crisis has been affecting homes, factories, and vehicles that run on compressed natural gas, thanks to a dip in supply following the shutdown of an LNG regasification terminal in Cox's Bazar on May 29.

People in many areas in the capital are finding it difficult to cook at home. Some factories have closed as they could not operate due to low gas pressure. Almost all city CNG filling stations had long queues of vehicles.

Power supply to rural areas worsened as many plants use gas to generate electricity.

The government had planned to produce 17,800 megawatts of power a day during this summer, but it could generate the highest only on April 30-- 16,477MW.

The average production was between 13,000MW and 15,000MW in April-May, according to data of Bangladesh Power Development Board.

Officials attributed this production dearth to a shortage of fuel, which stems from the dollar crunch.

Bangladesh Rural Electrification Board (REB), responsible for supplying electricity to rural areas, had to conduct up to 1,100MW of load shedding a day since May 27. The districts of Mymensingh, Tangail, Dhaka, Narayanganj, Narshingdi, and Noakhali experienced the highest power cuts, according to REB.

During Cyclone Remal on May 27, the LNG regasification unit in Moheshkhali of Cox's Bazar was damaged. The unit, operated by Summit Group, was taken to a dry dock abroad last week for repairs, said Summit in a statement on June 5.

The LNG terminal is expected to be brought back in about three weeks, added the statement.

The country gets LNG from two floating storage regasification units (FSRU) having a total capacity to process 1,100 million cubic feet of gas a day (mmcfd). The incident reduced the supply to 600 mmcfd.

Petrobangla can currently supply around 2,600 mmcfd against a demand of 3,800 mmcfd.

The country's local gas production has dropped to 2,039 mmcfd from the yearly average of 2,448 mmcfd in 2016, according to data from January.

The Summit's FSRU only resumed operations in mid-April after undergoing maintenance in Singapore for two and a half months. The gas supply situation in the country had been the same back then and people had to endure gas shortage.

Sabakat Sabri, a college student from the capital's East Shewrapara, said they have been facing an acute gas crisis for about a week.

"We have been living here for 15 years, but we never experienced such a bad gas supply situation," he told The Daily Star.

Sabri said they hardly have gas in the morning. "None of my family members can have breakfast at home before heading out to work. The gas pressure does not improve even around noon. That's why we have lunch late."

He said they started using an electric stove on Sunday.

To read the rest of the news, please click on the link above.​

 

[Saif]

To overcome gas crisis, upgrade field management

Bangladesh is going through the worst gas supply shortfall in recent history

www.thedailystar.net

To overcome gas crisis, upgrade field management
Bangladesh needs to catch up with modern technology to optimise domestic gas production.

Bangladesh needs to catch up with modern technology to optimise domestic gas production. VISUAL: REHNUMA PROSHOON

The depleting reserves of most major gas fields, decline in cumulative gas production, and disruption in the expected LNG supply mean that Bangladesh is going through the worst gas supply shortfall in recent history. This is not unexpected by any means, because energy experts, for a long time, have been warning about a major gas crisis coming due to the widening gap between the supply and demand of gas in the country.

On the supply side, local gas production has declined from a peak annual rate of 973 billion cubic feet (Bcf) in FY2016 to 840 Bcf in FY2022, according to Petrobangla. The increasing industrialisation and urbanisation over the last decades, on the other hand, led to a fast uptick in gas demand. The attempt to remove the gap by supplementing the gas supply through liquefied natural gas (LNG) import did not bear the expected result, because Bangladesh cannot import enough LNG to meet its requirement for two reasons. First, the price of LNG is very high and the country currently has a dollar crisis, which would not allow the funds readily available to pay for the import bill. Second, the country has yet to build a robust LNG import infrastructure.

Waning reserves, falling production

In the 1960s, the Shell Oil Company helped place Bangladesh (then East Pakistan) on the world map for gas reserves by discovering several world-class multi-Tcf (trillion cubic feet) gas fields, including Titas, Habiganj, Bakhrabad, Kailashtila and Rashidpur. After independence, new gas fields were discovered on a regular basis, but that did not significantly change the reserve situation, because most of the newly discovered gas fields were relatively smaller in size. In 1997, Bibiyana, yet another multi-Tcf gas field, was discovered by a major international oil company (IOC).

Among the very large gas fields, Titas' initial gas reserve was estimated to be 6.36 Tcf in 2010. At the beginning of 2023, the Titas gas reserve declined to 1.14 Tcf, per Petrobangla data. Similarly, Bakhrabad's initial reserve was estimated to be 1.23 Tcf, which has been reduced to only 0.35 Tcf. Habiganj, another major gas field, has been depleted from the initial reserve of 2.63 Tcf to 0.097 Tcf. The reserve in Bibiyana, the gas field with the highest production volume in Bangladesh, has declined from the initial 5.75 Tcf to 0.33 Tcf at present. The same trend is visible in some other large gas fields. The Sangu, the only active offshore gas field in the country, has been completely depleted and abandoned.

From the above, it is clear that most of the currently operational gas fields are past their youthful strength and cannot be relied upon for meeting our gas needs in the future. To attain future gas security, Bangladesh has to enter a robust exploration programme to find yet-to-find new reserves of gas.

At present, Bangladesh reels under a severe gas supply shortfall. About 78 percent of the gas supply is met through production from local gas fields. The remaining 22 percent is met with imported LNG. While domestic gas production has been on the decline for several years now, the LNG supply suffers from international price hikes and poor LNG infrastructure. The production facilities in local gas fields do exhibit various weaknesses, including less-than-optimum production volume per well compared to IOC wells. Energy experts opine that there is a scope for enhancing the rate of production in individual wells in the national gas fields.

To read the rest of the news, please click on the link above.​

 

[Saif]

Deal-making gets nod

Bangladesh expects to begin soon importing 40 megawatts of hydroelectricity from Nepal after signing a tripartite deal with India to use its transmission line as a cabinet body Tuesday gave the go-ahead. The Cabinet Committee on Government Purchase (CCGP) gave the approval for the buy of electricit

thefinancialexpress.com.bd

40mw hydropower from Nepal
Deal-making gets nod
Published :
Jun 12, 2024 01:02
Updated :
Jun 12, 2024 01:02

Bangladesh expects to begin soon importing 40 megawatts of hydroelectricity from Nepal after signing a tripartite deal with India to use its transmission line as a cabinet body Tuesday gave the go-ahead.

The Cabinet Committee on Government Purchase (CCGP) gave the approval for the buy of electricity from Nepal that costs Tk 8.17 per unit, alongside endorsing several other purchases at dollar-denominated prices.

As approved, the import of the electricity during a period of five years will cost Tk 6.5 billion.

Finance Minister Abul Hassan Mahmood Ali chaired the meeting held at the cabinet division.

Briefing reporters after the meeting was over, cabinet division secretary (Coordination and Reform) Mahmudul Hossain Khan said the committee approved a proposal of the Power Division to import the electricity under direct-purchase method.

"As the proposal got approval," he said, "Bangladesh Power Development Board (BPDB) will now sign a tripartite deal with Nepal Electricity Authority (NEA) and NTPC Vidyut Vyapar Nigam Limited (NVVN)."

However, replying to a query, he said date for signing the deal was yet to be fixed.

Mr Khan said the Prime Minister may visit Nepal soon and the power deal may be signed then.

Earlier in December last year, the Cabinet Committee on Economic Affairs approved in principle the import of 40MW electricity from Nepal. Thereafter, the BPDB floated an international tender and Nepal Electricity Authority (NEA) and NTPC Vidyut Vyapar Nigam Limited (NVVN) submitted proposals in this regard.

The government imports electricity from India, too, and buys from private power producers to cater domestic demand. Power-purchase deals with them under a special law involve capacity payment.

In Tuesday's meeting, the CCGP also approved 14 other proposals that include import of fertilisers, lentils and soybean oils.

Under one purchase approved, Bangladesh Chemical Industries Corporation (BCIC) will import 30,000 tonnes of urea fertiliser from Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat) with each tonne costing US$311.67.

Also, BCIC has been the all-clear to import 30,000 tonnes of urea fertiliser from Karnaphuli Fertiliser Company Limited (KAFCO) by spending $294.63 per tonne.

Mr Khan said the committee also approved a proposal regarding the procurement of 25,000 tonnes of TSP fertiliser by Bangladesh Agricultural Development Corporation (BADC) from Tunisia. Each tonne will cost $395.25 in this import.

The agricultural corporation has also been authorised to import 40,000 tonnes of MOP fertiliser from Canadian Commercial Corporation-each tonne costing $275.50.

Moreover, it got the go-ahead to import 40,000 tonnes of DAP fertiliser from OCP Morocco at a cost of $478 per tonne.

The Trading Corporation of Bangladesh (TCB) has been given approval for buying 20,000 tonnes of lentils from Nabil Naba Food Products Limited through open-tender method where each kilogram will cost Tk 102.50.

Under yet another purchase approval, the TCB will buy 22 million litres of soybean oil from Super Oil Refinery Limited-per litre costing Tk 150.90--to sell to needy people.​

 

[Saif]

I am against any deal with India concerning energy import because this will give them an opportunity to torpedo our energy security. After seeing the fate of water sharing of common rivers I am dead against making Bangladesh depended on India for energy import.

India looks to export RLNG to BD via pipeline

Two Indian energy companies are eyeing export of re-gasified liquefied natural gas (RLNG) to Bangladesh within next few years after laying two separate pipelines totalling 265 kilometres. After importing the gas from international suppliers, Indian state-run GAIL and private company H-Energy wil

thefinancialexpress.com.bd

India looks to export RLNG to BD via pipeline
M AZIZUR RAHMAN
Published :
Jun 12, 2024 00:57
Updated :
Jun 12, 2024 00:57

Two Indian energy companies are eyeing export of re-gasified liquefied natural gas (RLNG) to Bangladesh within next few years after laying two separate pipelines totalling 265 kilometres.

After importing the gas from international suppliers, Indian state-run GAIL and private company H-Energy will supply RLNG to separate Bangladeshi entities.

India's H-Energy is set to sign a deal with Bangladesh's state-owned oil, gas and mineral corporation Petrobangla, while GAIL is finalising a re-gasified LNG sales agreement with private Bangladeshi firm Dipon Gas Company.

Market analysts attribute this move by the Indian companies to sluggish domestic LNG consumption in India over the past several years.


Neighbouring India imported around 23.3 million tonnes (mt) of LNG during the fiscal year of 2023-2024 (April-March), which is a 7.17 per cent decrease compared to the country's peak LNG import volume of 25.1 mt in FY 2020-21, according to India's Petroleum Planning and Analysis Cell (PPAC).

India's GAIL and H-Energy will primarily export a combined total of around 1.6-2.0 million tonnes per annum (MTPA) of re-gasified LNG, which could be expanded through mutual negotiations.

H-Energy, a subsidiary of the Hiranandani Group, intends to supply half of the total, or 0.8-1.0 MTPA, while GAIL will handle the remaining half of 0.8-1.0 MTPA.

The pipelines, prices

H-Energy plans to supply the gas from Digha in West Bengal to Khulna in Bangladesh. This will require constructing a 155 km cross-border pipeline stretching from Kanai Chatta in East Medinipur district to Shrirampur in Khulna.

The pipeline will be divided, with 90 km laid within India and 65 km within Bangladesh.

H-Energy will cover the construction costs, while Petrobangla will be responsible for the wheeling charges.

H-Energy's selling price will be linked to Brent Crude, ensuring flexibility to fluctuate with international market movements.

GAIL will supply the gas to Jashore district in southwestern Bangladesh. The gas will be delivered through a 110 km cross-border pipeline constructed from the Benapole border.

The pipeline will be divided, with 65 km laid within India and 45 km within Bangladesh.

GAIL will build the Indian segment of the pipeline, while Bangladesh's Dipon Gas will be responsible for constructing the Bangladeshi stretch.

Dipon Gas and GAIL have not yet finalised the benchmark for setting RLNG prices.

"We are now at the final stage of inking RLNG import deals with India's H-Energy," Petrobangla Chairman Zanendra Nath Sarker told The Financial Express recently.

"All relevant issues, including payment methods, pipeline management and pricing, have already been discussed," he added.

According to the Petrobangla chairman, H-Energy will be able to deliver re-gasified LNG to Bangladesh within two years of finalising the deals. This timeframe encompasses pipeline construction and the signing of purchase and sales agreements.

"We expect to receive RLNG from H-Energy by 2027," said a senior Petrobangla official involved in the negotiations.

To read the rest of the news, please click on the link above.​

 

[Saif]

Acute gas crisis takes the lid off LNG vulnerabilities

It’s another wake-up call for the energy sector

www.thedailystar.net

Acute gas crisis takes the lid off LNG vulnerabilities
It's another wake-up call for the energy sector

VISUAL: STAR

We are worried about the acute gas crisis that has followed the shutdown of an LNG regasification terminal in Cox's Bazar's Moheshkhali after being damaged by Cyclone Remal. According to a report by this daily, the crisis has plagued many households, factories, and vehicles running on compressed natural gas (CNG). For many residents in Dhaka and elsewhere, cooking has become a daily struggle. The situation is no better for the industrial sector, where factory closures and operational disruptions have resulted in significant economic losses and job insecurity for thousands of workers. Meanwhile, CNG filling stations have been overwhelmed with long queues of cars and auto-rickshaws. The power supply in rural areas has worsened as well.

Reportedly, the two-week-long crisis will continue for some more time as the damaged LNG unit—which reduced our LNG supply by almost half, and was taken to a dry dock abroad for repairs—is not expected to be back for another two weeks. That means more outages, more disruptions, and more sufferings. The Moheshkhali unit is one of the two floating storage and regasification units (FSRUs) in Bangladesh that convert LNG, or liquefied natural gas, back to gas before supplying it to the national grid. While the present crisis has again brought into focus the country's poor LNG import/supply infrastructure—it was only recently that we commented on the risk of surplus LNG regasification capacity as well as gas compressor stations lying idle amid insufficient supply—it also exposed deeper systemic issues surrounding our energy policy.

At the heart of it is the over-reliance on imported LNG amid dwindling local gas reserves. As experts have repeatedly said, a short-term, small-scale dependence on LNG import is reasonable, but tying it with our long-term energy future is not sustainable. Yet this is what the government has been doing, and doing rather poorly as it cannot pay for the costly import thanks to the dollar crisis. What we need to focus and indeed invest more on is diversifying our energy sources so as not to be so vulnerable to economic and natural shocks like Cyclone Remal. That, right now, should start with exploring local gas, including the 48 gas wells that the government flagged for exploration in three years. We should also invest more on renewable energy sources which haven't yet got the traction they deserve.

So, while we call on the government to do everything necessary to address the present gas crisis, we should also keep an eye on the future. Exploring and extracting local gas must be a priority going forward, and the national budget must reflect that priority before it is passed. The government should also work on our vulnerable energy supply/distribution infrastructure, which is seldom discussed despite the sufferings it has caused in recent years.​

 

[Saif]

Using solar panels on 10pc of waterbodies, rooftops can meet country’s power demand: study

If the unallocated khas lands in Dhaka division can be used to produce solar power, 26 percent of the capital's electricity demand can be met, according to a new study revealed today

www.thedailystar.net

Using solar panels on 10pc of waterbodies, rooftops can meet country's power demand: study

File photo

If the unallocated khas lands in Dhaka division can be used to produce solar power, 26 percent of the capital's electricity demand can be met, according to a new study revealed today.

Besides, using only 10 percent of waterbodies for floating solar plants and 10 percent of rooftops for solar panels can meet the entire country's demand, the study said, jointly conducted by Bangladesh Environmental Lawyers Association (BELA) and Coastal Livelihood and Environmental Action Network (CLEAN).
The study was jointly conducted by Bangladesh Environmental Lawyers Association (Bela) and Coastal Livelihood and Environmental Action Network (CLEAN).

The organisations presented the study findings in a seminar at the capital's YWCA auditorium today, titled "Solar Energy Potential of Bangladesh and Reality of Land Availability".

Speakers at the seminar said Bangladesh is committed to achieving the target of 100 percent renewable energy by 2050, but the current number is only three percent.

The study said Dhaka division's unallocated khas lands are around 3,388 acres and the electricity demand is 5,276 MW.

"It is possible to generate 1,367 megawatts of solar electricity by using those lands. Besides, floating solar plants across 10 percent of Dhaka's 1,48,235-acre waterbody can produce 5,985MW of electricity," the report said.

Then, if 10 percent of rooftops in Dhaka are used for solar panels, it can produce 10,779MW of electricity, it added.

Hasan Mehedi, CEO of CLEAN, said there should be a change at the policymaking level. There are also opportunity for setting up wind power plants in the country, he added.​

 

[Saif]

https://thefinancialexpress.com.bd/trade/china-bangladesh-launch-joint-venture-for-100mw-solar-power-plant

China, Bangladesh launch joint venture for 100MW solar power plant
Published :
Jun 13, 2024 20:17
Updated :
Jun 13, 2024 20:17

A new 100 megawatt (MW) solar power plant will be built at Madarganj of Jamalpur district by December 2025 with an investment of US$170 million.

A joint venture (JV) agreement between China's CREC International Renewable Energy Company and Bangladesh's state-owned B-R Powergen Limited (BRPL) was inked at Biduyt Bhaban in the city Thursday to build the power plant.

Chinese company will have 70 per cent stake in the JV, while the state-owned BRPL, jointly owned by Bangladesh Power Development Board and the Bangladesh Rural Electrification Board (REB), will have 30 per cent stake in the JV.

Power Division senior secretary under the Ministry of Power, Energy and Mineral Resources (MPEMR) Md Habibur Rahman was the chief guest at the event.

Speaking on the occasion Mr Rahman hoped that the country will be able to generate around 1,200 MW of electricity from renewable energy by 2030.

The government has been working to generate 40 per cent of the country's overall electricity generation from clean energy by 2040, he added.

He urged the sponsor company to build the power plant in time.

Some 241 families will be rehabilitated under the project where a primary school, health centre, mosque, market, pond and graveyard will also be built.

Separately, Bangladesh University of Engineering and Technology (BUET) officially launched the Infrastructure Development Company Limited (IDCOL) financed Rooftop Solar Project (BRSP) in its campus Thursday.

The official ceremony declaring the project's commercial operation date (COD) was held at BUET's auditorium.

The 3.27 megawatt-peak (MWp) BRSP is a collaborative effort of BUET and GPPS Consortium Ltd.

Funded by IDCOL, the project is expected to generate substantial cost savings for BUET, reducing their electricity bills by an estimated Tk 600 million over the next 30 years.

Chaired by vice chancellor of BUET professor Dr Satya Prashad Majumder, executive director & CEO of IDCOL, Alamgir Morshed, deputy CEO & CFO of IDCOL S. M. Monirul Islam, managing director of the PEGEL a major shareholder of GPPS Consortium Ltd Asma Jahan Hoque and pro-VC of BUET Dr Abdul Zabbar Khan were the special guests at the funcdtion.

Addressing on the occasion, the IDCOL top brass lauded the BRSP as a crucial step forward for renewable energy in Bangladesh's education sector.

He emphasized the project's alignment with the government's commitment to clean energy and reducing dependence on fossil fuels.

Professor Majumder expressed his gratitude to IDCOL for their financial support, which played a key role in bringing this ambitious project to life. He also commended GPPS Consortium for their successful implementation despite challenges.​

 

[Saif]

Cyclone damage disrupts four June spot LNG deliveries

Bangladesh has cancelled and deferred four spot liquefied natural gas (LNG) cargoes scheduled for delivery in June as one of its LNG terminals remains out of operation following damage caused by Cyclone Remal in late May. State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has cancelled one ca

thefinancialexpress.com.bd

Cyclone damage disrupts four June spot LNG deliveries
M AZIZUR RAHMAN
Published :
Jun 16, 2024 09:36
Updated :
Jun 16, 2024 09:36

Bangladesh has cancelled and deferred four spot liquefied natural gas (LNG) cargoes scheduled for delivery in June as one of its LNG terminals remains out of operation following damage caused by Cyclone Remal in late May.

State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has cancelled one cargo and deferred two from Gunvor Singapore Pte Ltd; and has also cancelled one cargo from QatarEnergy Trading LLC, according to market sources.

The operation suspension at the Summit terminal has led to a 500 million cubic feet per day (mmcfd) shortfall in gas supply to the national grid. The supply crunch affects power generation amid high power demand due to hot weather requiring increased use of air conditioning and irrigation for paddy fields.

However, a senior Petrobangla official has downplayed the impact.

He said that gas-guzzling industries, power plants and households are unlikely to be affected too much, as the Eid-ul-Azha holiday begins on Sunday and the capital would take time to shake off the festive mood -- letting the gas demand remain lower.

The official added that regular maintenance work is also scheduled for Chevron's Bibiyana and Jalalabad gas fields during the Eid vacation, coinciding with the period of lower demand.

However, due to the unavailability of the Summit terminal, there could be an uptick in load-shedding after the Eid holiday when people return to work.

The Petrobangla official, citing a letter from Summit, said the terminal's floating storage and regasification unit (FSRU) will not be in operation until July 13.

"But we hope that Summit will be back earlier as it in the letter intended to resume operation as soon as possible," the official added.

The official said the FSRU has already left its mooring facility at Moheshkhali Island in the Bay of Bengal for repairs, which will be carried out either in Singapore or the Middle East.

Before departing, the FSRU regasified around 40,000-50,000 cubic metres of LNG that were on board at the time of the cyclone damage, he added.

More delivery rescheduling likely

The senior Petrobangla official shared the details of cancelled and deferred LNG cargoes.

He said Gunvor Singapore Pte Ltd was awarded three tenders by Bangladesh's highest public procurement body the Cabinet Committee on Government Purchase to deliver spot LNG cargoes for June 7-9, June 9-11 and June 28-29.

Bangladesh was supposed to purchase the June 7-9 and June 9-11 cargoes from Gunvor at $10.4622 per million British thermal units (MMBtu), while the June 28-29 cargo was priced at $12.9697 per MMBtu, the official added.

Separately, Bangladesh also cancelled a spot LNG cargo from QatarEnergy Trading LLC, which was scheduled for delivery between June 19-21. The price of this cargo was set at $10.30 per MMBtu.

Each of the four cancelled or deferred LNG cargoes contained a volume of around 3.36 million MMBtu, the official said.

The RPGCL, a wholly owned subsidiary of Petrobangla, looks after LNG trading in Bangladesh.

The official said Petrobangla has also approached its long-term LNG suppliers, Qatargas and OQ Trading International, requesting them to reschedule several LNG delivery cargoes in order to manage the situation caused by the terminal outage.

He also feared that additional LNG cargo cancellations might be required due to the ongoing situation.

Five LNG cargoes rescheduled in previous cyclone

During the previous Cyclone Mocha in 2023, Petrobangla was forced to reschedule at least five LNG cargoes when the country's floating LNG terminals were shut down, according to market insiders.

At that time, Bangladesh deferred deliveries from both long-term suppliers and spot supplier TotalEnergies.

To read the rest of the news, please click on the link above.​

 

[Saif]

Flames seen over Sylhet skies no cause for alarm, says Chevron

Chevron Bangladesh has announced the start of gas well maintenance at the Jalalabad gas field in Sylhet’s Lakkatura. Flames will be visible in the sky for the next 60 hours from early Tuesday. The US oil and gas company has assured local people that there is no cause for alarm. Chevron Pub

thefinancialexpress.com.bd

Flames seen over Sylhet skies no cause for alarm, says Chevron
BDNEWS24.COM
Published :
Jun 17, 2024 19:16
Updated :
Jun 17, 2024 20:25

Chevron Bangladesh has announced the start of gas well maintenance at the Jalalabad gas field in Sylhet's Lakkatura.
Flames will be visible in the sky for the next 60 hours from early Tuesday.

The US oil and gas company has assured local people that there is no cause for alarm.

Chevron Public Relations Officer Sheikh Zahidur Rahman said in a press release on Sunday that the flaring was part of routine maintenance and that all necessary measures had been taken to ensure the safety of the local community and the environment.

Residents are advised to avoid the vicinity of the gas well during this period.​

 

[Saif]

Petrobangla cancels LNG spot cargo deliveries

Bangladesh's Petrobangla has cancelled some spot liquefied natural gas imports after one of the country's two import terminals was damaged during a cyclone, leaving it unable to receive shipments, two industry sources said on Tuesday

www.thedailystar.net

Petrobangla cancels LNG spot cargo deliveries

Bangladesh's Petrobangla has cancelled some spot liquefied natural gas imports after one of the country's two import terminals was damaged during a cyclone, leaving it unable to receive shipments, two industry sources said on Tuesday.

The state-owned group is tasked with importing LNG for Bangladesh, which relies on the fuel to meet power demand for its population of more than 170 million people.

Summit LNG, the operator of the damaged terminal, told Petrobangla that it had declared force majeure on LNG deliveries after its terminal was damaged, one of the sources added.

In late May, Summit LNG paused operations at its floating storage and regasification unit (FSRU) in Moheshkhali after it was significantly damaged during a cyclone.

The company later said the FSRU, which acts as a floating terminal, would proceed to Singapore or the Middle East for repairs, and that it hoped it could return to Bangladesh within three weeks of those being completed.

Due to Summit's terminal outage, Petrobangla cancelled four spot cargoes scheduled for delivery from late May to around mid-June, a senior Petrobangla official said on Tuesday.

Three of the spot cargoes were set to be delivered by Gunvor in late May and between June 7-11, and the fourth by QatarEnergy between June 19-21, added the official.

Summit LNG and QatarEnergy did not immediately respond to a request for comment on a public holiday in Bangladesh and Qatar. Gunvor declined to comment.

Summit's FSRU is one of Bangladesh's two floating LNG import terminals, with a regasification capacity of 500 million cubic feet per day, that supplies gas to the national grid. It began commercial operations in April 2019.

Bangladesh has seen annual LNG imports increase and last year shipped in 5.2 million metric tons of the fuel, according to data from analytics firm Kpler.

It has imported 2.6 million metric tons of LNG so far this year, with May shipment volumes reaching an all-time monthly record of 600,000 metric tons.​

 

[Bilal9]

New solar park going live at Saidabad in Sirajganj, behind the new station being built, immediately before the new Jamuna Rail bridge.

The park boasts capacity of 68 MW and is situated in an area of 214 acres.

 

[Saif]

New solar park going live at Saidabad in Sirajganj, behind the new station being built, immediately before the new Jamuna Rail bridge.

The park boasts capacity of 68 MW and is situated in an area of 214 acres.

As far as I know, BEXIMCO is making another solar power plant with a capacity of 200 MW.

 

[Saif]

Structure energy budget, keeping sustainability in mind: CPD

The think-tank said in a paper presented at an event on power and energy sector in the national budget for FY25

www.thedailystar.net

Structure energy budget, keeping sustainability in mind: CPD
The think-tank said in a paper presented at an event on power and energy sector in the national budget for FY25

The budget for the next fiscal year is trying to promote some anti-transition and anti-sustainability measures by backing coal-based electricity generation and setting unnecessarily ambitious power demand targets, the Centre for Policy Dialogue (CPD) alleged today.

It said the proposed budget for the power and energy sector for 2024-25 has failed to comply with required allocation for energy sustainability and energy transition.

"The budget for the power and energy sector needs to be structured from energy sustainability and energy transition point of view. Without proper planning, allocation, implementation and monitoring both energy sustainability and energy transition will not be achieved."

The observations were made in a paper presented at an event styled "Power and Energy Sector in the National Budget FY2025: Can the Proposed Measures Address the Challenges?" at the BRAC Centre Inn in the capital. Khondaker Golam Moazzem, research director of the CPD, presented the paper

The paper said some of the electoral commitments are reflected in the budget, but a number of the commitments are not reflected there. These include the retirement of rental and inefficient power plants, import of hydropower and smart grid.

Some important issues that required very distinctive fiscal measures are not being addressed. These include fossil fuel phase-out, the retirement of rental quick rental power plants, ending capacity payments, and incentivising renewable energy through fiscal measures.

The CPD said there is a tendency to not provide enough attention towards the expansion of renewable energy-based power generation.

"More budgetary allocation needs to be ensured for speedy expansion of the renewable energy. Renewable energy-friendly fiscal and budgetary incentives should be proposed and recommended."

According to the paper, the integration of renewable energy into the grid has a lot to do with the upgradation of transmission and distribution system.

A special allocation of Tk 100 crore has been proposed by the finance minister to encourage the development and use of renewable energy. Though the amount is small, the initiative is appreciated since it will accelerate the breaking of carbon lock-in in the country, the CPD said.

"Prioritising the distribution and transmission network of the drilled gas is appreciated."

It, however, warned that relying heavily on imported LNG could make Bangladesh more vulnerable to changes in global prices and political issues between countries.

A subsidy allocation of Tk 7,000 crore in LNG import has been proposed in FY25. In FY24, it was Tk 6,000 crore.

"Rather than enhancing LNG import, the fund should be allocated in the domestic gas exploration," the paper said.

In Bangladesh, the power and energy sector is passing a challenging period which needs proper fiscal, budgetary and policy planning with regard to generation, transmission and distribution of electricity and generation, transmission of domestic gas.

The CPD called for stopping funding for any new fossil fuel-based power generation. "The budget should reiterate the government's commitment to phase out old, dated, and expensive fuel-based and plants by ending contractual periods."

It recommended reducing load-shedding and enhancing allocation for drilling more gas wells.​

 

[Saif]

Endeavours for transition to green electric energy

Bangladesh has been working to increase the use of renewable energy in its energy mix. State Minister for the Ministry of Power, Energy and Mineral Resources Nasrul Hamid, MP considers that Bangladesh needs coordinated initiatives and major investment to make green energy transition. He confirms th

thefinancialexpress.com.bd

Endeavours for transition to green electric energy
MUSHFIQUR RAHMAN
Published :
Jun 24, 2024 21:34
Updated :
Jun 24, 2024 21:34

This photo taken on February 17, 2024 shows a 50 MW Chinese-built photovoltaic power plant in Mymensingh District, Bangladesh Photo : Xinhua

Bangladesh has been working to increase the use of renewable energy in its energy mix. State Minister for the Ministry of Power, Energy and Mineral Resources Nasrul Hamid, MP considers that Bangladesh needs coordinated initiatives and major investment to make green energy transition. He confirms that 'efforts to provide clean electricity to businesses are continuing through net metering systems, rooftop solar, import of hydropower and increased use of energy efficient appliances'. The minister informed further that solar power projects constituting 12,000 MW is currently at different stages of government approval.

Sustainable and Renewable Energy Development Authority (SREDA) of Bangladesh has finalised a 'National solar energy roadmap 2021-2041' in 2020. In the roadmap different scenarios of implementation were recommended. Emphasis was given to high deployment scenario to achieve 40 per cent share of renewable energy in the country's commercial energy mix within 2041. Under the roadmap, within 2030 the country should achieve its target of 9,000 MW and 30,000 MW electricity by 2041. In the said roadmap low cost, renewable energy import was recommended from neighbouring countries for securing more renewable energy in the country's commercial energy mix.

The Cabinet Committee on Bangladesh Government Purchase recently (June 11, 2024) approved the proposal to buy 40 MW of electricity (under a 5-year Agreement including transmission cost) from Nepal at Taka 8.17 ($ 0.697) per unit. As per the Agreement, Bangladesh will spend Tk 6.5 billion over 5 years for bringing in the electricity from Nepal using Bangladesh-India existing grid lines. Therefore, the electricity authorities of Nepal, India and Bangladesh will sign a tripartite Agreement for wheeling the electricity into Bangladesh national grid. Bangladesh government officials consider that the approval of the hydropower purchase agreement with Nepal demonstrated the country's commitment to increase the share of green and renewable energy in its energy mix. Prime Minister Sheikh Hasina reiterated her country's eagerness to import hydroelectricity from Bhutan while meeting the Bhutanese Prime Minister Dasho Tshering in New Delhi ( June 9, 2024).

Experts believe that Bangladesh realistically can generate solar energy at a cost below US cents 7.0 (present generation cost for solar electricity from commercial plants in the country is close to US 15 cents) if it adopts appropriate strategies. Bangladesh' neighbours have been advancing fast in green energy transition using their natural advantages for generating hydroelectric power, solar and wind power. In addition, appropriate policy supports from the respective governments have helped them attracting investment in the sectors. Land scarcity remains one of the major challenges for Bangladesh for generating electric energy from the commercial size solar power plants. The private sector investment initiatives for developing large-scale solar energy firms could not meet their project implementation schedules, as they need to acquire and develop lands and infrastructure on their own prior to installing the solar PV cells with other accessories. If the government authorities provide land for developing solar power plants, project implementation lead-time and costs will be reduced significantly.

The government agencies have been actively considering investments in developing hydropower generation projects in Nepal and Bhutan to enable green electricity import from the region. Necessary infrastructure including regional high voltage electricity grid development remains in active consideration of the government. Such initiatives are positive. However, for securing a balanced and stable commercially sustainable energy system, domestic energy development options should receive priority. For securing green energy transition of the country and for consistent development towards net zero targets, solar energy potentials of the country should be developed at a faster pace.

International Energy Agency (IEA) predicts that the global investment will reach nearly two trillion US dollars in 2024 for increasing the share of clean energy-based electricity (renewable and nuclear energy) generation, power grids, energy storage facilities, energy efficiency improvements and for development of low emission fuels. The Guardian ( June 6, 2024) reports that the IEA's executive Director Fatih Birol informed that that investment in the clean energy sector had been doubled compared to investment in fossil fuel (oil, gas and coal) sector development in 2024. Investment in oil and gas and coal sector still remains high. Climate analysts have been raising alarm that continued investments in fossil fuel development worldwide will result in missing the world's climate friendly development targets. The world community had agreed in the 28th UN Climate Conference in Dubai to triple the share of power generated from renewable energy sources by 2023. Experts believe that the renewable energy generation capacity enhancement will be nearly doubled in a few countries only within the timeline. Other countries have a lot more to do for converting their promises into action plans for reducing their fossil fuel dominated economy. As per the Paris Climate Conference (2015) commitments, governments of the participating countries should develop their nationally determined contributions (NDCs) with specific targets and policies on renewable energy development. Under these policies, governments will focus mainly on developing solar and wind energy-based electricity generation facilities in their countries within their NDC targets.

With advancements of technology, solar and wind provide three quarters of global renewable energy growth. Both solar and wind energy producing companies have been making good businesses as well. 'Seven Sisters' (Exxon Mobil Corporation, Chevron Corporation, Shell Plc, British Petroleum Plc, Total Energies Se, Conoco Phillips and ENI SpA) have been dominating petroleum products production and marketing in the world. There share in the world energy (liquid and gaseous hydrocarbon) market dominated during the last century. Electricity generation had been largely dependent on the hydrocarbon supply and its use as primary fuel. Now the seven Chinese companies (Tongwei Co., GCL Technology Holdings Ltd., Xinte Energy Co., Longi Green Energy Technology Co., Trina Solar Co., JA Solar Technology Co., and Jinko Solar Co.) have emerged as dominating energy companies primarily because of their production and supply of PV (photovoltaic) cells (the device that converts light energy into electric energy) in the world market. Bloomberg (June 14, 2024) report suggests that 'Right now, seven Chinese companies have a bigger stake in the power source of the 21st century than the Seven Sisters of oil that dominated the 20th century'.

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

 

[Saif]

Finance is key to Bangladesh’s energy transition

Bangladesh must invest more in renewable energy and energy efficiency to reduce fossil fuel imports to reverse the increasing trajectory of the subsidy burden.

www.thedailystar.net

Finance is key to Bangladesh's energy transition

Visual: Star

Bangladesh is facing a double whammy. On one hand, climate-change induced events continue to ravage the country, compelling it to spend 6-7 percent of its annual budget on adaptation each year. On the other hand, transitioning to capital-intensive clean energy is also a necessity for the country given its reliance on fossil fuels, which increases costs and drives up inflation. These competing priorities mean that Bangladesh will need to consistently invest in critical climate-resilient infrastructure and clean energy technologies in the next several decades.

To achieve these goals, it is important that Bangladesh streamline its funding schemes and identify viable sources of financing.

Drivers of a clean energy transition

Cyclone Remal, which hit Bangladesh in May 2024, affected as many as 3.8 million people, damaging 150,000 houses. This was not a one-off event. Although Bangladesh is prone to cyclones of similar magnitude or more, such extreme events are likely to become frequent in future. As a result, the country will need more funding to adapt to climate change.

There are several reasons why Bangladesh should invest in clean energy. Dependence on imported fossil fuel has proven costly for Bangladesh. Apart from the high price volatility of fossil fuels in the international market during 2022-23, the recent devaluation of the Bangladeshi taka by Tk 7 per US dollar in May 2024 has made fossil fuel imports more costly. As a result, the Bangladesh Petroleum Corporation (BPC) incurred an additional cost of roughly Tk 5 billion ($42.3 million) to import fuel oil in May 2024. BPC's annual cost may increase by Tk 60 billion ($511 million), which is enough to install a combined rooftop solar capacity of more than half a gigawatt (GW).

Since importing fossil fuels such as liquefied natural gas and coal is also expensive now, the government will feel the pressure of increasing tariffs for electricity and gas.

However, raising tariffs cannot eliminate the subsidy burden. The subsidy for the power sector soared to Tk 395.35 billion ($3.34 billion) in fiscal year (FY) 2022-23 from Tk 296.58 billion ($2.51 billion) in FY2021-22 despite the 15 percent tariff hike on electricity between January and March 2023.

Bangladesh must invest more in renewable energy and energy efficiency to reduce fossil fuel imports to reverse the increasing trajectory of the subsidy burden.

Energy transition will necessitate billions in financing

According to the Integrated Energy and Power Master Plan (IEPMP 2023), Bangladesh plans to install a total of 37.8GW new renewable energy (primarily solar and wind) capacity until 2050 under the advanced technology scenario (ATS) (taking the in-between growth scenario which considered the average of the growth rates projected in the country's perspective plan and the International Monetary Fund's estimates). The IEPMP estimates that the combined capacity of 37.8GW renewable energy without energy storage systems will cost Bangladesh $37.4 billion.

However, renewable energy capacity may reach 26.2GW in 2050 under the in-between growth case, excluding ATS. The changed IEPMP scenario indicates that the country may have 17 percent renewable energy by 2050, implying that the installed renewable energy capacity will be less than 20GW.

According to IEEFA's estimate, even the installation of 20GW renewable energy capacity with battery storage for 30 percent of the capacity for four-hour back-up may require around $1 billion investment a year through 2050.

Financing the energy transition

Bangladesh should set a mission that is fit-for-purpose to lead an effective energy transition, with finance at its core. This is not only due to insufficient financing schemes, but also the challenges posed by the current banking and finance framework in the country.

For instance, Bangladesh Bank's refinancing scheme of Tk 4 billion ($33.84 million) for environment-friendly projects has recently been increased to Tk 10 billion ($84.6 million) but the cap for a loan to a solar park is only Tk 0.3 billion ($2.54 million). The loan amount is inadequate in relation to the required finance volume even for a 10 megawatt (MW) solar project.

To accelerate its energy transition, Bangladesh should explore available financing avenues, such as multilateral development banks (MDBs), green bonds, private equity funds, investment promotion and financing facilities.

The Infrastructure Development Company Limited, a non-banking financial institution (NBFI), finances utility-scale clean energy projects in Bangladesh with funding from multilateral and bilateral agencies. Likewise, another NBFI, the Bangladesh Infrastructure Finance Fund Limited, can extend debt finance to clean energy projects. However, other local financial institutions should also develop the capacity to access the low-cost finance offered by MDBs. As the country mostly imports clean energy technologies, funding in US dollars is of utmost importance to ensure a smooth opening of letters of credit (LCs) for projects.

Bangladesh Bank published a policy for the issuance of green bonds by banks and financial institutions in 2022. Green bonds can help expedite the clean energy transition in Bangladesh by raising funds for capital-intensive clean energy projects. Institutional investors have a major role to play as a large-scale renewable energy project may require funding worth several hundred million US dollars. It is imperative to incentivise individual investors with green bonds when the government's saving instruments provide lucrative returns.

A lack of equity among sponsors often delays renewable energy projects. Private equity firms with a focus on environmental, social and governance (ESG) may invest in renewable energy projects. These firms are still at a nascent stage in Bangladesh.

Bangladesh Bank's Investment Promotion and Financing Facility, supported by the World Bank, helped develop infrastructure projects in the country. While the funding phase has ended, a new phase, if launched, may speed up the energy transition. The scheme will be fit for purpose as the fund is disbursed in dollars with a tenor of 20 years.

Early preparation to identify and access finance while developing the capacity of local financial institutions is key to driving an effective and sustainable energy transition. The situation demands a bold response—defining a path that will not compromise the needs of the country, both on the climate adaptation and energy transition fronts.

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

 

[Saif]

Switching to renewables is easier than we think

Bangladesh’s progress towards switching to renewable energy has remained slow and uncertain.

www.thedailystar.net

Switching to renewables is easier than we think

ILLUSTRATION: REHNUMA PROSHOON

Energy produced from natural resources (that is, renewable energy) regenerates over the span of a human's life without depleting the planet's resources. These resources, which include biomass, tides, waves, sunshine, wind, rain, and thermal energy stored in the earth's crust, have the advantage of being accessible in some capacity from almost everywhere. They are practically inexhaustible. More importantly, they don't harm the climate or the ecosystem as much. Renewable energy is gradually becoming more affordable; it is equitable and secure, and has the potential to create jobs.

In contrast, fossil fuels like oil, coal, and natural gas are only found in finite amounts. They eventually run out as we continue to extract them. Even if they are created through natural processes, they are not replenished quickly enough to make up for what is consumed by humans. More emissions are produced by burning fossil fuels than by producing electricity from renewable sources. The key to solving the climate catastrophe is switching from fossil fuels – which now produce the majority of emissions – to renewable energy.

One of the largest financial obstacles preventing the country's transition to renewable energy is fossil fuel subsidies. The cost of subsidising the fossil fuel industry alone is enormous and includes direct subsidies, tax benefits, and costs for health and the environment that weren't factored into the pricing of fossil fuels. Subsidies for fossil fuels are unfair and inefficient.

The energy sector in Bangladesh is heavily dependent on fossil fuels. Both domestic and imported fossil fuels play a significant role in our energy production. In 2022, more than 98 percent of all energy production originated from natural gas, oil, diesel, and coal. Less than two percent of the energy mix consisted of renewables. Over the years, the reliance on fossil fuels has intensified. However, the Renewable Energy Policy of Bangladesh, which was introduced in 2008, aimed at harnessing the potential of renewable energy resources and technologies in the country. The policy set a target of meeting five percent of total power demand by 2015 and 10 percent by 2020 using renewable sources. These targets were never met. There are, however, conflicting targets in various governments' policies and plans. The Mujib Climate Prosperity Plan (MCPP) was introduced in 2021 to enhance the nation's resilience against climate change. This plan aims to reach 30 percent renewable energy share by 2030 and at least 40 percent by 2041. In contrast, under the draft Integrated Energy and Power Master Plan (IEPMP), Bangladesh has set a clean energy (renewable and nuclear) target of 40 percent by 2041. Also, the government's annual budget documents set different targets. The real picture shows that Bangladesh's progress towards switching to renewable energy has remained slow and uncertain.

There is no denying that the viability of renewable energy in the country will depend on the market price or value of renewable energy, the costs of renewable energy in comparison to those of other energy resources, policies to promote renewable energy, and environmental goals that increase the costs of using fossil fuels and/or subsidise the costs of renewable energy. As such, the wider adoption of renewable energy is hindered by pressure from fossil fuel lobbies, ineffective governmental regulations, outdated infrastructure, expensive initial installation costs, a lack of proper battery storage systems, a lack of knowledge and awareness, and a lack of relevant policies and subsidies.

To transform Bangladesh's energy systems and speed up the shift to renewable energy in the next decade or so, a few critical actions need to be prioritised. In line with the statements of the UN Secretary-General Antonio Guterres, the following actions can be suggested.

Firstly, there is a need to ensure easy access to renewable energy. Renewable energy technology needs to be accessible to everyone and not just for the wealthy. Energy from renewable sources, such as solar and wind, can be stored and released whenever people, communities, and businesses need power thanks to technologies such as battery storage systems. Due to their special ability to quickly absorb, hold, and re-inject electricity, they help increase the flexibility of the energy system. And, when combined with renewable sources, battery storage technologies can offer dependable and less costly electricity in off-grid settlements and isolated networks. Bangladesh also needs to explore the opportunities for importing renewable energy from neighbouring countries like India, Bhutan, and Nepal.

Secondly, a steady supply of raw materials and components for renewable energy is crucial in order to ensure broader access to all the necessary resources. In addition, the management of renewable energy waste is important in order to create supply chains that safeguard ecosystems.

Thirdly, there is a need to create a level playing field for technologies utilising renewable energy. Domestic policy frameworks need to be quickly changed to streamline and accelerate renewable energy projects and spur private sector investments. Policies and procedures must be put in place to lower market risk, enable investment, and provide incentives – including by streamlining the planning, permitting, and regulatory processes and avoiding bottlenecks and red tape. The adoption of solar and wind energy technologies can be accelerated by the availability of modern energy transmission infrastructure, clear and strong policies, transparent processes, and public support.

The country needs to switch energy subsidies from fossil fuels to renewable energy. One of the largest financial obstacles preventing the country's transition to renewable energy is fossil fuel subsidies. The cost of subsidising the fossil fuel industry alone is enormous and includes direct subsidies, tax benefits, and costs for health and the environment that weren't factored into the pricing of fossil fuels. Subsidies for fossil fuels are unfair and inefficient. Subsidising renewable energy instead reduces emissions and has the potential of fostering sustainable economic growth, job creation, improved public health, and greater equality, especially for the poorest and most vulnerable people.

It is also critically important to make considerable investments in renewable energy. There is a need for commitment and accountability, especially from the banks and other public and private financial institutions, which must direct their lending portfolios toward hastening the transition to renewable energy.

Finally, resources must be shifted between competing industrial sectors and political constituencies as part of a sustainable energy transition. As stakeholders in this process hold varying degrees of political and economic power, understanding how political and economic factors influence the transition to renewable energy is crucial in order to formulate effective policies and facilitate the shift to sustainable energy systems.

Dr Selim Raihan is professor at the Department of Economics in the University of Dhaka, and executive director at the South Asian Network on Economic Modeling (Sanem).​

 

[Saif]

Bangladesh faces massive load-shedding as India\'s Adani cuts power supply

Bangladesh, which watched a humid heatwave intensify over almost half of its districts on Tuesday, suffered up to 16 hours of power cuts in places after the power supply from the coal-fired power plant run by Adani Power in India was drastically reduced without a pre-announcement...

www.newagebd.net

Bangladesh faces massive load-shedding as India's Adani cuts power supply
Emran Hossain 25 June, 2024, 23:12

Bangladesh, which watched a humid heatwave intensify over almost half of its districts on Tuesday, suffered up to 16 hours of power cuts in places after the power supply from the coal-fired power plant run by Adani Power in India was drastically reduced without a pre-announcement.

With 27,515MW of installed power generation capacity, Bangladesh fell short of 1,887MW of electricity to meet the demand of 14,800MW at 2:00am on Tuesday, the hour the country recorded its peak load-shedding.

Just 24 hours ago, the power shortage stood at 278MW against the demand of 14,380MW.

Since the ongoing heatwave began three days ago, leading to a rise of about 4,000MW in power demand, load-shedding has undergone an astronomical rise from almost zero.

An ongoing economic crisis has seriously limited Bangladesh's energy use for more than two years now.

The current crisis is unique given that almost all baseload power plants are running at half or one-third of their capacities for one reason or another, with no hope of the situation improving anytime soon, especially after one of Bangladesh's two floating storage and regasification units remains out of order since the cyclonic storm Remal hit on May 28.

'The shutdown of a floating storage and regasification unit put us in a crisis that only worsened after Adani shut down one of its two units beyond schedule,' power secretary Habibur Rahman told New Age.

Bangladesh owes over $3 billion to power producers at home and abroad, according to the power ministry, including $500 million owed to Adani Power in outstanding bills.

The public relations agency that was looking after Adani Power's media relations in Bangladesh, however, claimed that the shutdown of one of the units at the 1,600MW Godda power plant was for maintenance and scheduled.

The explanation lacked consistency because the remaining unit still in operation has the capacity to generate at least 800MW.

On June 24, Bangladesh received only 371MW from Adani's Godda power plant.

On June 19, the day Adani shut down its second unit, as revealed by the daily electricity generation report of the Power Grid Company of Bangladesh, Bangladesh received 1,060MW.

The power supply from Tripura also remained below 100MW, often less than 80MW, due to unpaid electricity bills, according to Indian media reports.

A unit of the 1,320MW coal-based Payra power plant is also currently under maintenance.

The 1,320MW coal-fired Rampal power plant supplied 593MW in the evening peak hour on June 24, saying that it had shut down its second unit, about which there was no explanation from the power ministry.

The newly-built 1,200MW Matarbari coal-based power plant had one of its two units under maintenance, according to the PGCB.

The 586MW Unique Meghnaghat power plant remained completely shut down because of a gas shortage.

The 1,224MW newly-built coal-based SS Power plant supplied only 481MW on June 24.

The 307MW coal-based Barishal power plant generated 200MW on June 24 due to a coal shortage.

An analysis of the daily power generation report released by the PGCB showed that 114 out of 150 power plants were either partially or completely out of operation for one reason or another on June 24.

Only about 25 per cent of Bangladesh's current installed generation capacity could smoothly operate, the PGCB report revealed.

On June 24, a total of 33 power plants faced technical problems, such as engine or machine problems, while a fuel shortage affected operations at 46 gas- and furnace-oil-based power plants.

A dozen power plants were under maintenance, while 18 did not operate because their contracts expired.

On June 24, Bangladesh produced 5,655mw using gas at the peak load-shedding hour at 2:00am. The installed gas capacity is 11,880. Before the FSRU malfunctioned, Bangladesh produced a maximum 7,000MW using gas.

The installed coal capacity, on the other hand, is 5,108MW. But the maximum electricity generated from coal was mostly about 3,000MW, though it dropped to about 1500MW occasionally.

The installed furnace-oil-based capacity is 6,035MW. At the peak load-shedding hour on June 24, furnace oil generated 3,202MW.

An online provider of fuel prices, Trading Economics, showed that coal was sold at $131.91 per tonne on June 25 following an 8 per cent fall in its price this month.

The US natural gas price was around $2.8/MMBtu on June 23. The crude oil price held just below $82 per barrel on June 24.

Indian heatwaves and geopolitical unrest have kept fuel prices somewhat unsteady, but energy experts found them very affordable unless the economic situation was really bad.

The Bangladesh Meteorological Department said that a mild to moderate heatwave was sweeping over Dhaka, Rajshahi and Khulna divisions, covering 31 out of 64 districts.

Bangladesh's highest temperature of 38C was recorded in Rajshahi on Tuesday.

New Age staff correspondent in Rajshahi reported that people in rural areas in the districts have been suffering from around 16 hours of power cuts for the past three days.

Mominul Islam, a college student of Anupampur village under Charghat upazila in Rajshahi, said that he could not sleep at all on Monday night because of power cuts amid a humid heatwave.

'Seven to eight power cuts occurred on Monday night,' he said.

Mehedi Hasan, a resident of Shekherpara village under Godagari upazila in Rajshahi, told New Age that they had also been experiencing power cuts of up to 14 to 16 hours for the past few days.

'There is no need for power for irrigation. Why is there load-shedding now?' he asked.​

 

[Saif]

Load-shedding rises despite heatwave retreating

Despite rain sending the ongoing heatwave on the back foot, load-shedding worsened on Wednesday, further exposing the extent of trouble the economic crisis has put Bangladesh into...

www.newagebd.net

Load-shedding rises despite heatwave retreating
Emran Hossain with Suzon Ali in Rajshahi 27 June, 2024, 00:26

Despite rain sending the ongoing heatwave on the back foot, load-shedding worsened on Wednesday, further exposing the extent of trouble the economic crisis has put Bangladesh into.

With 27,515MW of installed power generation capacity, Bangladesh fell short of 2,285MW of electricity to meet the demand of 15,450MW at midnight on Wednesday, the peak load-shedding hour of the day.

There was 1,154MW of load-shedding even when the power demand dropped to 13,950MW at 11:00am on Wednesday.

The daily electricity generation report released by the Power Grid Company of Bangladesh revealed that all eight divisions witnessed load-shedding throughout Wednesday, with the Dhaka Division recording the highest average load-shedding of 255MW.

New Age correspondent in Rajshahi reported that in some parts of the northern districts, people were supplied power for only four hours on Wednesday.

'Power stayed for 15 to 30 minutes before going out for four to five hours,' said Nayeb Ali, a college student at Pukhuria village under Shibganj upazila in Chapainawabganj district.

The power supply was received only at night, he said.

Rajshahi needed the power supply mostly during the daytime because the air temperature in the area reached 39.6C with a mild to moderate heatwave sweeping over the division.

The heatwave was also sweeping the districts of Jashore, Chuadanga, Kushtia, Magura, Lalmonirhat, Kurigram, and Tangail.

The heatwave felt far more unbearable than the air temperature indicated because of the high moisture's presence. At 6:00pm on Wednesday, the moisture content was 89 per cent.

With such a high level of moisture present in the air, health experts warned that air temperatures exceeding 35C could be fatal for humans and animals as well.

The Bangladesh Meteorological Department does not release data on the real feeling of temperature considering humidity, for there are many variables such as the speed and direction of wind involved in it.

Still, a heat index of ICDDR,B, also known as the apparent temperature, revealed that the real feeling of living at 35C with 85 per cent humidity could be 60C.

This high temperature could result in death within minutes, health experts warned, unless there was enough arrangement to cool off the body.

The optimum temperature at which the body can control its heat is 35C.

'Luckily, there is not much work in the field at the moment. Otherwise, people would have dropped dead in large numbers,' said Ziaur Rahman, a farmer of Balanagar village under Bagmara upazila in Rajshahi.

He said that people in his area were severely sleep-deprived as they could not stay in bed for long in this humid heatwave, often taking breaks and a stroll around, though it helped a little.

The BMD said that the heatwave might continue to abate through today. On Tuesday, the heatwave was sweeping over 31 districts, which were reduced to 15 on Wednesday.

An ongoing economic crisis has seriously limited Bangladesh's energy use for more than two years now.

The current crisis is unique given that almost all baseload power plants are running at half or one-third of their capacities for one reason or another, with no hope of the situation improving anytime soon.

Bangladesh can smoothly run only a fourth of its 150 power plants at the moment.​

 

[Saif]

Need for rational budgetary allocation for energy security

The amount of fund a government allocates in its national budget for primary energy supply reflects its emphasis on ensuring energy security sustainably. But reduction in such allocations as a proportion of the total budget, gives the impression that the policymakers are yet

thefinancialexpress.com.bd

Need for rational budgetary allocation for energy security
Published :
Jun 28, 2024 21:33
Updated :
Jun 28, 2024 21:33

The amount of fund a government allocates in its national budget for primary energy supply reflects its emphasis on ensuring energy security sustainably. But reduction in such allocations as a proportion of the total budget, gives the impression that the policymakers are yet to set their priorities right on the issue. In the fiscal year 2024-25 budget worth Tk7.97 trillion, the energy and power sector is allocated Tk303.17 billion, which is 3.8 per cent of the total budgetary allocation. This is way below the allocation made in proportion to the total budget of the previous fiscal (FY2023-24) at 4.6 per cent. That means the next fiscal (FY25) will see a significant drop by 12.9 per cent compared to FY24's in the sector.

In fact, budgetary allocations for the power and energy sector have witnessed fluctuations over the years reaching a peak in FY 2018-19 followed by a sustained decline in the next two consecutive fiscals FY20 and FY21 by about 11 per cent and 30 per cent respectively. Worse yet, out of these budgetary allocations under the power and energy head, the share of energy is decreasing constantly since FY19. This does not speak well for the government's approach to a policy of sustainable energy security. In this connection, a local economic policy think tank, South Asian Network on Economic Modelling (SANEM), has questioned the government's policy of building the infrastructure of LNG (Liquefied Natural Gas), which is basically an import-based primary energy source. How can an imported fuel like LNG known for price volatility can be a basis for the country's energy security? True, power generation is a top priority as the finance minister in his budget speech informed of the government's plan to increase nation's power generation capacity to 40,000 MW by 2030 and 60,000 MW by 2041.

Now the question arises, what is the point of boosting the power generation capacity further when over 9,000 MW of power in excess of demand for 17,800 MW this summer is being produced currently in the country? This overcapacity has put an additional price burden on the consumers, who have already experienced power tariff hike four times in a year between January 2023 and February 20, 2024. This calls for a transparent energy governance policy. To ensure the nation's energy security on a sustainable basis, the government ought to reduce its dependence on imported fuels and, at the same time, diversify its primary energy source with an emphasis on renewable energy and exploration of domestic gas and coal reserves.

Though in a developing economy with few domestic primary energy reserves, achieving complete energy independence is a tall order, still the country cannot go on importing fuels to generate power. The government renewable energy plans include the Eighth Five Year plan, the Delta Plan 2100, the Mujib Climate Prosperity Plan 2022-41, the Power System Master Plan 2016 and Prospective Plan 2021 and finally, the Integrated Power Master Plan (IEPMP). Though these make an impressive list reflecting the government's seriousness about enhancing energy production from renewable sources, the allocation of only Tk1.0 billion for the proposed FY25 budget makes little sense. It is more so if the paltry sum of Tk119 million (less by 23.61 per cent than that of FY24), allocated for the Sustainable Renewable Energy Development Authority (SREDA) is considered. A rational approach to energy policy calls for addressing the mismatch between the government's ambitious plans and the budgetary allocations for the purpose.​

 

[Saif]

Bangladesh’s power crisis deepens as Adani stops supply

Bangladesh’s power crisis further worsened as the power supply from the 1,600MW Adani power plant in Godda dropped to zero following the shutdown of...

www.newagebd.net

Bangladesh's power crisis deepens as Adani stops supply
Emran Hossain 29 June, 2024, 21:01

| AFP file photo.

Bangladesh's power crisis further worsened as the power supply from the 1,600MW Adani power plant in Godda dropped to zero following the shutdown of both the units of the coal-fired power plant in India.

The Adani Power shut down its first unit on June 19 without any preannouncement. The public relations agency looking after Adani Power's media relations in Bangladesh had claimed that the shutdown of the first unit was due to maintenance.

After the shutdown of the second unit, Adani public relations department reiterated that it was due to a technical difficulty, without explaining its nature.

'As of now, [we] expect to restore electricity supply sometime the day after tomorrow,' said a message of the agency sent through WhatsApp.

Bangladesh Power Development Board member Khandaker Mokammel Hossain, who is in charge of power generation, said that the second shutdown was a forced one because of a malfunctioning of the boiler.

'There was a leak in a valve in the boiler,' said Mokammel, adding that the extent of the problem would be known after the boiler cools down.

A boiler usually takes two days to cool down, he said, adding that he could not ascertain when the second unit would come online.

'The first unit is expected to come online on July 5,' he added.

The complete shutdown of India's Adani power plant has occurred at a rather favourable time for the power demand is expected to remain low over the next several days because of potential heavy rains, PDB officials said.

Mokammel estimated that their current capacity to generate power at the moment was around 12,000MW, considering a host of crises Bangladesh is caught into.

Beside a staggering economic crisis severely limiting Bangladesh's energy import capacity, the import capacity of liquified natural gas was halved after the cyclonic storm Remal hit, rendering one of the floating and storage units out of order.

The affected floating and storage unit is currently in Singapore for maintenance and is weeks away from being repaired.

With 27,515MW of installed power generation capacity, Bangladesh's maximum generation on Saturday was 13,016MW at 1:00am.

The maximum power demand stood at 1:00am at 14,000MW.

The peak load shedding of 940MW was recorded at 2:00am on Saturday when the power demand was 13850MW.

Bangladesh's maximum temperature of 35C was recorded in Ishurdi on Saturday while the day air temperature in Dhaka dropped to 31C, one of the lowest in recent days.

The current crisis is unique given that almost all baseload power plants are running at half or one-third of their capacity for varying reasons, with no hope of the situation improving anytime soon.

Bangladesh owes over $3 billion to power producers at home and abroad, according to the power ministry, including $500 million owed to Adani Power in outstanding bills.

The power supply from Tripura also remained below 100MW, often less than 80MW, due to unpaid electricity bills, according to Indian media reports.

An analysis of the daily power generation report released by the Power Grid Company of Bangladesh showed that about 25 per cent of Bangladesh's installed generation capacity could smoothly operate.

The installed coal capacity, on the other hand, is 5,108MW. The maximum electricity generated from coal was mostly about 3,000MW, though it dropped to about 1500MW occasionally.

The installed furnace-oil-based capacity is 6,035MW. The generation, however, remains about 3000MW.​

 

[Saif]

Who benefits from the power sector's white elephants?

Government officials involved have been allowed legal impunity under the provisions of this law.

www.thedailystar.net

Who benefits from the power sector's white elephants?

VISUAL: STAR

Load shedding or power cuts are escalating across the country. Rural areas are facing more frequent outages than urban centres. Industrial areas are also suffering due to shortage of power supply.

The daily electricity requirement in Bangladesh ranges from 13,000 megawatts (MW) to a maximum of 17,000MW. Generally, the country produces between 13,000MW-15,000MW based on the need. Presently, the total power generation capacity of the country, as per government report, is 27,515MW.

Interestingly, on April 29, the country suffered a power shortage of over 3,000MW when the demand reached 17,000MW. Throughout the last week of April, escalating temperatures led to a gradual increase in demand for electricity. The supply could have been adjusted to meet this demand. But we saw a continuous rise in load shedding due to supply shortage between April 23 to April 29.

To address the electricity and gas crisis, the "Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010" was enacted for an initial period of two years. The tenure was subsequently extended in 2012 by two years, in 2014 by four years, in 2018 by three years, and most recently in 2021 by five years. With four extensions, the validity of the law has been extended up to 2026.

This legislation effectively shields almost all aspects of the energy sector from legal scrutiny. The law allows purchase of rental power plants, importation of Liquefied Natural Gas (LNG), and construction or procurement of all sorts of infrastructure in connection with the operation and distribution of gas-electricity without following the usual procedures. Government officials involved in any sort of activities in connection with enhancement of electricity—purchase, production, transmission, distribution, and electricity related fuel transactions—have been allowed legal impunity under the provisions of this law.

The aim and objective of this law was to ensure uninterrupted electricity supply nationwide at reasonable prices. But what the impunity law has done is empower the authorities with limitless laterality.

Despite the existence of power plants capable of producing at least 10,000MW more than the existing maximum demand, load shedding is being imposed if there is a slight rise in demand from what is normal. This additional production capacity is either not being utilised or is for some reason not usable.

Research shows that a significant portion of such privately-owned plants has never produced electricity or has produced minimal amounts, such as one or two percent of their capacity, in some cases.

During 2018-22, some plants did not produce any electricity, but the government bore all their operational expenses.

Until the fiscal year 2021-22, the country had 151 power plants. Among these, 42 government-owned and 26 private power plants operated at 10 percent or less of their production capacity over the past five fiscal years. Despite this low production, they have charged the government capacity fees based on their full capacity production.

Presently, Bangladesh Power Development Board (BPDB) is incurring huge financial losses as it is selling electricity at a much lower cost than the cost of production.

To cover the deficit, a provision for subsidy is kept in the national budget. An amount of Tk 39,406 crore was earmarked from the public exchequer for the fiscal year 2023-24 on that account.

However, it has been observed that during this period, an estimated Tk 32,000 crore was paid as capacity charges for unused power stations. This amount constitutes approximately 81 percent of the total subsidy.

In other words, a major portion (81 percent) of the amount provided as subsidy to mitigate BPDB's losses goes to pay capacity charges or rentals of private power plants. This indicates that almost the entire amount of BPDB's losses stem from payments made to privately rented power plants against capacity charges.

From 2009 to the fiscal year 2023-24, Tk 1,37,000 crore has been paid for capacity charges or rentals without utilising the production capacity.

Two large gas-powered power plants have recently begun production in Meghnaghat. These plants, operated by Summit and Unique Group, have a combined capacity of 1,167MW. Additionally, a 718MW power plant by Reliance in the same area is ready for production.

With the inclusion of these plants, BPDB's total production capacity will significantly increase. Due to the lack of demand, these plants or some other plants in lieu of them will remain unused, leading to additional capacity charge payments. Consequently, the total expense for capacity charges will rise further.

In short, power generation capacity is being increased despite insufficient demand. As a result, many of these plants remain idle without producing electricity. Since there is no production, there is no opportunity to earn revenue by selling electricity produced by these plants. However, according to the contracts, large amounts of money still need to be paid on account of capacity charges.

Although the burden of subsidies is now being shifted onto the customers through accrued electricity prices, most of the additional revenue is being used to pay rent to these privately-owned power plants.

So, the capacity charge is the main reason for the increase in electricity prices. If such power plants were absent or fewer in number, electricity prices would not have to be increased, or increased so much.

Since 2010, the electricity price has been raised 13 times, rising from an average of Tk 3.73 per unit to Tk 8.70. According to the conditions set by the IMF, this trend of increase is expected to chronically continue. Consequently, it is difficult to assert that electricity is or will be supplied at a reasonable price.

It may be mentioned here that renting private power plants, having provision for payment of rent or capacity charge are not the problems. The main problem lies in creating excess production capacity in relation to demand, and then keeping them idle and paying capacity charges or rent. Any money paid to such power plants enriches the deficit unilaterally. In short, these power plants have now become white elephants.

And it is difficult to understand why a power generation capacity exceeding 27,000MW was created at a time when our electricity demand typically ranges from 13,000MW to a maximum of 17,000MW.

Moreover, it appears that this capacity expansion trend persists, incurring significant costs and escalating both domestic and foreign debt. Notably, 19.46 percent of foreign loans are allocated to the power sector. Yet, the anticipated economic growth necessary to justify the increase in electricity usage remains elusive.

Private power plants are domestically owned, but they are being paid in foreign currency. According to our banking law, no bank can lend to any company more than 25 percent of its capital. This limit is not enforced in the power sector for the private power plant owners. It is difficult to find any logic for these extraordinary facilities to be provided to them.

Despite giving various types of benefits across the board in the power sector, uninterrupted electricity supply is not being ensured. Far from getting electricity at a fair price, white elephant-like power plants have been created and the ever-increasing high cost of maintaining them has been thrust upon the shoulders of the people.

Ghulam Muhammed Quader is an MP and leader of the opposition, Bangladesh Parliament.​

 

[Saif]

Bangladesh on the renewable energy race track

A country’s energy mix may even one day override all other issues given the climate crisis we face.

www.thedailystar.net

Bangladesh on the renewable energy race track

Photo: Amran Hossain

When deciding where to source clothing from, an increasingly important factor will be energy use as fashion brands and retailers look to reduce carbon emissions in supply chains.

A country's energy mix may even one day override all other issues given the climate crisis we face. Here I look at progress made by five garment exporting countries—China, Bangladesh, Vietnam, Pakistan, and Turkey—in their transitions to renewable energy sources.

China

China, the world's largest energy consumer, has made significant strides in renewable energy development. The country's energy mix is still dominated by coal, accounting for more than 50 percent of its energy consumption in 2021.

However, China is the global leader in renewable energy capacity, with extensive investments in solar, wind, and hydropower. As of 2023, China has over 500 GW of solar and wind capacity combined, with ambitious plans to reach 1,200 GW by 2030.

Hydropower also plays a significant role, contributing about 20 percent to the national grid. The nation has committed to achieving carbon neutrality by 2060. Government policies, substantial subsidies, and advances in technology have propelled China's rapid growth in renewables.

Bangladesh

Bangladesh's energy mix is heavily reliant on natural gas, which accounted for about 62 percent of its total energy consumption in FY 2021-2022. Bangladesh has made remarkable progress in solar home systems, with over five million installations serving rural households. Despite this, renewables contribute only around three percent to the national grid as of 2023.

This has to improve if we are to remain internationally competitive. Our customers will demand that it does. To this end, the government has set a target to generate 10 percent of its electricity from renewables by 2030, but achieving this goal requires significant investments and policy support. The energy mix also includes imported oil and coal.

Vietnam

Vietnam, the third largest exporter of clothing after China and Bangladesh, has a diverse energy mix, with coal being the predominant source, accounting for more than 40 percent of the total energy consumption in 2023. Hydropower is also significant as well as natural gas and oil.

Vietnam has seen a dramatic increase in its renewable energy capacity, particularly in solar and wind power, thanks to favourable government policies, including feed-in tariffs and tax incentives. The wind energy sector is also growing, with projects like the 99.2 MW Bac Lieu wind farm. Vietnam aims to have 30 percent of its electricity generated from renewables by 2030.

Pakistan

Pakistan's current energy mix is dominated by fossil fuels, with natural gas, oil, and coal making up the majority as of 2023. The renewable energy sector is still in its early stages, but the country has significant potential, particularly in wind and solar power.

As of 2023, renewable energy accounts for about six percent of Pakistan's total energy mix, with plans to increase this share to 30 percent by 2030. Key projects include the Quaid-e-Azam Solar Park and various wind farms in the Sindh province.

Government initiatives and international support have been crucial in advancing these projects. However, Pakistan faces challenges such as bureaucratic hurdles, financial constraints, and a need for more robust policy frameworks to attract private investment.

Turkey

Turkey's energy mix is quite diverse, with natural gas (27 percent), coal (25 percent), and oil (29 percent) being the primary sources of energy in 2022. Renewables including wind, solar power and hydro also makes significant contributions.

The country has implemented various incentives, including feed-in tariffs and purchase guarantees, to encourage investment in renewable energy.

However, the transition is challenged by economic instability and fluctuating policy environments, which can impact investor confidence.

Overall, the renewable energy transition in China, Bangladesh, Vietnam, Pakistan, and Turkey highlights diverse paths and challenges. China's leadership in capacity and investment sets a global benchmark, while Vietnam's rapid adoption showcases the potential of favourable policies and incentives.

Pakistan's journey emphasises the need for policy and financial frameworks, and Turkey's balanced approach reflects a strategy of building energy security through renewables.

But what about Bangladesh? We must improve the supply of renewable energy available to our industrial base. Our government, regional authorities, garment manufacturers and international fashion brands must collaborate on this issue to better understand the current state of our energy mix, decide how it can be shifted heavily in favour of renewable energy and then work out what this will cost—and, most importantly, how it will be funded.

Bangladesh has a chance to lead on this issue, but China, Pakistan, Turkey, Vietnam and other garment producing countries will also be looking to boost their own renewable energy use.

The race is on.

Mostafiz Uddin is the managing director of Denim Expert Limited. He is also the founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).​

 

[Saif]

Persistent rain boosts power production at Kaptai power plant

The Kaptai Hydroelectric Power Plant (KHPP) is generating more power due to rising water levels following persistent rain over the last several days

www.thedailystar.net

Persistent rain boosts power production at Kaptai power plant

Photo: Star

The Kaptai Hydroelectric Power Plant (KHPP) is generating more power due to rising water levels following persistent rain over the last several days.

ATM Abduzzaher, managing director of the KHPP, said four out of five units generated a total of 164 megawatts of electricity from last night up until 11:00am today.

Units 1 and 2 generated 42 megawatts each. Units 4 and 5 each generated 40 megawatts, he added.

Currently, unit 3 is not in operation, he said.

This is the highest production of the power plant this year, he said.

He also mentioned the possibility of further increasing power production if the water level continues to rise.

It is noteworthy that KHPP, the country's only hydroelectric power plant, has a total power generation capacity of 230-240 megawatts from its five units.​

 

[Saif]

Sinopec to explore gas in Sylhet at Tk 444cr

The government on Wednesday appointed the Sinopec International Petroleum Service Corporation of China to drill an exploratory well and a development of a well in Sylhet...

www.newagebd.net

Sinopec to explore gas in Sylhet at Tk 444cr
Staff Correspondent 04 July, 2024, 00:32

The government on Wednesday appointed the Sinopec International Petroleum Service Corporation of China to drill an exploratory well and a development of a well in Sylhet.

Presided over by finance minister Abul Hassan Mahmud Ali, the decision was taken by a cabinet committee on the government purchase at the secretariat under the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, 2010 (with the latest amendment of 2021).

The Chinese company has been appointed at Tk 444.85 crore for developing Well 11 in Sylhet and exploratory work in Rashidpur Well 13 under the state-owned Sylhet Gas Field Limited.

An energy expert, however, said the deal amount looked high.

Badrul Imam said that the local company could execute such work almost half of the amount.

The gas exploration at high cost eventually increases the production cost transferred to consumers, he said.

Referring to country's large neighbour, Badrul Imam said that India always engaged local experts to gas and oil exploration to grow their capacity.

The trend in Bangladesh is opposite as the government often engages foreign companies, mainly from the US, Russia and China, in local gas exploration, he lamented.

He noted that local agents of the foreign companies mainly benefitted from such deals by getting commission.

Cabinet Division secretary (coordination) Mahmudul Hossain Khan at a briefing said that the Chinese company would implement the deal as the turnkey basis.

The Chinese company will sign a deal with the Sylhet Gas Field Limited soon.

Mahmudul Hossain said that the committee also approved a proposal from Petrobangla to import one cargo of liquefied natural gas from spot market.

M/s Excelerate Energy LP of the US will supply the LNG with per unit costing $13.558, higher from the last one cargo LNG purchased at $12.9697 per unit.

By the latest proposal, the government completed importing process of 21st LNG cargo.

The cabinet committee also approved seven other proposals, including import of diammonium phosphate and muriate of potash from Saudi Arabia and Russia on state-level deal, the purchase of two packages under the Greater Dhaka Sustainable Urban Transport Project and building a multi-storied residential building for the cleaners of the Dhaka North City Corporation at Gabtali.​

 

[Saif]

Bangladesh eyes electricity generation from hydrogen by 2035: PM tells parliament

Prime Minister Sheikh Hasina on Wednesday told the parliament that the government is mulling electricity production from hydrogen and ammonia alongside the production of solar and wind power in the country. “It is expected that it would be possible to use hydrogen energy on a pilot basis in

thefinancialexpress.com.bd

Bangladesh eyes electricity generation from hydrogen by 2035: PM tells parliament
BSS
Published :
Jul 03, 2024 21:13
Updated :
Jul 03, 2024 22:00

Prime Minister Sheikh Hasina on Wednesday told the parliament that the government is mulling electricity production from hydrogen and ammonia alongside the production of solar and wind power in the country.

"It is expected that it would be possible to use hydrogen energy on a pilot basis in the country by 2035," she said replying to a question from Awami League lawmaker Habibur Rahman (Sylhet-3).

Speaker Dr Shirin Sharmin Chaudhury tabled the question-answer session in the House.

The prime minister said a cell has been formed at the Rupantarita Prakritik Gas Company Limited (RPGCL) under Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) to collect the results of ongoing research and the data of the activities undertaken in the developed world over sustainable and reliable methods of producing hydrogen as energy.

The cell will design a project proposal after receiving reliable information in this regard, she added.

Besides, the Premier hoped that the 1,200-megawatt first unit of the 2,400-megawatt Rooppur Nuclear Power Plant would go into commercial production by the end of this year.

A target was set to generate 40 per cent of electricity from clean energy (renewable) by 2041 in the country, she added.

Replying to separate questions from ruling party lawmakers, Alauddin Ahmmad Chowdhury (Feni-1) and Farida Yasmin (Woman Seat-35) regarding the Asrayan Project and beneficiaries, the Prime Minister said a total of 8,67,977 landless and homeless families have been rehabilitated under the Ashrayan project.

She said the total number of beneficiaries is more than 43.39 lakh. "So far 58 districts and 464 upazilas have been completely freed from the landless and homeless people. Five divisions -- Dhaka, Mymensingh, Sylhet, Khulna and Rajshahi -- are now completely freed from landless and homeless people. That means, there are no landless homeless people in all these districts, upazilas and divisions," she added.

In response to another query from AL lawmaker Ali Azam (Bhola-2), the Prime Minister said the government is committed to ensuring justice on the basis of equality for all, irrespective of the rich and poor, and establishing justice in the society by making visible improvements in the judiciary system.

She said the present government has been relentlessly working to establish the rule of law in the country by providing assurance of fair trial to alleviate the suffering of the people seeking justice.

A total of 1,429 judges were recruited in lower courts since 2009, she added.

Answering a question from AL lawmaker SM Ataul Haque (Satkhira-4), the prime minister said the allocation for the social safety sector has been increased by 9.12 times from Tk 138.45 billion in the 2008-09 fiscal year to Tk 1262.72 billion in the current fiscal year of 2023-24, which is 16.58 per cent of the total national budget.​

 

[Saif]

Energy price fluctuations and implications for Bangladesh

There is no denying that maintaining Bangladesh's macroeconomic stability and achieving its development goals requires consistent and uninterrupted energy supply. Bangladesh's energy landscape is predominantly shaped by fossil fuels, with natural gas including Liquefied Natural Gas (LNG), coal, and

thefinancialexpress.com.bd

Energy price fluctuations and implications for Bangladesh
ABDUR ZABBAR SAKIL AND MD TUHIN AHMED
Published :
Jul 05, 2024 21:02
Updated :
Jul 05, 2024 21:02

There is no denying that maintaining Bangladesh's macroeconomic stability and achieving its development goals requires consistent and uninterrupted energy supply. Bangladesh's energy landscape is predominantly shaped by fossil fuels, with natural gas including Liquefied Natural Gas (LNG), coal, and oil accounting for over 98 per cent of the nation's electricity generation. Despite efforts to diversify the energy mix, renewable sources such as hydro, solar, and wind contribute only marginally to the overall power generation. However, the high dependency on imported fossil fuels leaves Bangladesh vulnerable to fluctuations in global energy prices, which can have far-reaching implications for the country's macroeconomic stability and developmental aspirations.

In the fiscal year (FY) 2020-21, Bangladesh consumed 45,080 kilotonnes of oil equivalent (ktoe) of energy, primarily in the residential (51 per cent), industrial (33.4 per cent), and transport (10.7 per cent) sectors. A significant portion of residential energy consumption is met by biofuel, accounting for 66.1 per cent of its total usage. The industrial sector relies heavily on natural gas and coal, with 43 per cent of its energy needs met by natural gas and 30.3 per cent by coal. Notably, the industry sector is the sole consumer of coal, predominantly used by the brick industry. In the transport sector, energy demand is entirely fulfilled by oil and natural gas, with oil making up 77.9 per cent and natural gas 22.1 per cent of its total energy use (SREDA, 2021).

To meet its overall energy demand, Bangladesh relies on both domestic production and imports. Specifically, the country depends on imports of coal, oil, and petroleum products, with over 90 per cent of the coal and oil supply and 100 per cent of the petroleum product supply being imported. However, Bangladesh can find some relief in the natural gas sector, as 78.6 per cent of natural gas is produced domestically, while only 21.4 per cent is imported. Despite the relatively low volume of natural gas imports, the amount has rapidly increased since its introduction in FY 2018-19 (SREDA, 2021).

On the other hand, fossil fuel energy prices on the international market are highly volatile. According to the IMF's primary commodity price data, the average price of crude oil surged from USD 44.20 per barrel in Q4 2020 to USD 85.20 per barrel in Q4 2022. Similarly, the average price of natural gas skyrocketed from USD 5.36 per thousand cubic feet (tcf) in Q4 2020 to USD 20.99 per tcf in Q4 2022. Average coal prices increased significantly, from USD 70.10 per metric ton in Q4 2020 to USD 310.01 in Q4 2022. LNG prices jumped from USD 8.18 per million metric British thermal units (mmbtu) in Q4 2020 to USD 28.56 per mmbtu in Q4 2022. This rapid increase in energy prices can be largely attributed to the COVID-19 pandemic and the Russia-Ukraine war.

The question now is how energy price fluctuations affect the macro economy. Energy, along with labour and capital, is a critical factor of production. On the demand side, when energy prices increase, consumption of these resources tends to decrease. This reduction in consumption leads to a decline in the aggregate demand or output.The magnitude of this impact depends on the economy's ability to substitute energy with other factors such as labour or capital, including substitution among various energy sources (coal, gas, or crude oil). The short-term impact of rising energy prices is typically stronger than the long-term impact. While the economy can adjust its production process in response to factor prices, its ability to substitute input factors is limited.

An increase in energy prices has a more pronounced impact on the supply side than on the demand side. Higher energy prices compel producers to reduce energy usage in production, lowering output levels. Consequently, the productivity of other input factors decreases due to the reduced availability of energy sources. At this stage, nominal wages/interest rates may remain unchanged due to rigidity, resulting in a higher overall price level and lower real wages/interest rates. The higher overall price level prompts consumers to curtail their consumption, thereby affecting overall demand. The impact of energy prices on the supply side is greater because energy prices directly influence the production system. As a result, the economy experiences lower output and a higher overall price level.

Increase in energy prices deteriorates the balance of payment, especially for a country like Bangladesh which depends fully on oil importation. First, the direct increases in oil price increase the cost of oil importation, as a result, reduced imported raw materials cause production crunch. Second, an increase in oil prices in the international market reduces demand in developed countries that are major export destinations for Bangladesh, which results in reduced export income. So, increase in oil prices eats up national income since the rise in the cost of importing oil is greater than the rise in national income.

Bangladesh has been experiencing consistently high inflation since August 2022, with rates mostly exceeding 9 per cent. Despite efforts, the central bank has been unable to contain it. The root cause of this inflation surge can be traced back to a combination of post-COVID-19 supply shortages and the Russia-Ukraine war. The COVID-19 pandemic had a twofold impact on the global economy that significantly contributed to the inflation scenario. Firstly, during the pandemic, trade restrictions, factory closures, and the China-USA trade war caused disruptions in the global supply chain, leading to supply shortages. Secondly, as economies began recovering from COVID-19 and businesses reopened, there was a surge in global demand. To meet this increased demand, factories required more energy, which in turn drove up energy prices. Compounding this situation, the Russia-Ukraine war introduced another significant shock. Following Russia's invasion of Ukraine in late February 2022, prices of oil, natural gas, and coal surged, peaking around June and July of that year. Given that Russia is a major exporter of oil and gas, and that 45 per cent of the EU's gas supply was sourced from Russia, the sanctions imposed by the USA and its allies on Russia led to a rapid increase in energy prices. Consequently, the production and transportation costs of goods escalated sharply, directly impacting Bangladesh's inflation.

Higher energy prices significantly impact a country's foreign currency reserves, particularly for a net energy-importing country like Bangladesh. The effect is predominantly negative. Since the lifting of COVID-19 restrictions and the reopening of businesses, Bangladesh's reserves of US dollars have been steadily decreasing. As of April 2024, Bangladesh's foreign reserves stood at 19.98 billion dollars.

In addition to policy failures by the central bank, the lack of remittance inflows through formal channels, and low foreign direct investment (FDI), the rise in energy prices contributes to the depletion of foreign reserves. Since mid-2022, Bangladesh has been meeting its energy demands by purchasing oil, coal, and natural gas at elevated prices. However, the country's productivity has remained relatively unchanged. As a result, Bangladesh is producing the same amount of export goods but at higher import costs, which deteriorates its balance of payments. In other words, Bangladesh is purchasing more dollars from the international market, increasing the supply of taka and the demand for dollars. This phenomenon also causes the taka to depreciate against the dollar. A depreciating domestic currency influences trade balances with other countries, as the dollar is the standard currency for international trade. Depleting foreign reserves and a depreciating domestic currency further exacerbate inflation by raising the cost of intermediate goods and raw materials. This, in turn, increases overall production costs, leading to higher prices for consumers and additional economic challenges for the country.

The constant threat of a volatile energy market and its impact on the domestic economy can be mitigated by diversifying the domestic energy mix towards renewable energy. While renewable energy has high installation costs, these costs are offset by the absence of ongoing fuel purchases, leaving only operational and maintenance expenses. Additionally, the high installation cost positively impacts the domestic economy by creating more jobs. Permanent employment opportunities will also arise for maintaining the facilities and providing jobs for thousands of unemployed graduates. This shift towards renewable energy can yield benefits in two significant ways. First, the country will need to import fewer fossil fuels, thereby spending fewer dollars. This will reduce the pressure on foreign reserves and potentially increase them significantly. Second, Bangladesh will no longer face uncertainty regarding its essential energy supplies, leading to a more stable domestic market with stable prices. Although these changes will not entirely eliminate inflationary pressure, they will certainly lessen a portion of it.

Abdul Zabbar Sakil is Research Analyst at International Food Policy Research Institute (IFPRI). Md. Tuhin Ahmed is Lecturer of Economics at Mawlana Bhashani Science and Technology University and Senior Research Associate at SANEM.​

 

[Bilal9]

Bangladesh faces massive load-shedding as India\'s Adani cuts power supply

Bangladesh, which watched a humid heatwave intensify over almost half of its districts on Tuesday, suffered up to 16 hours of power cuts in places after the power supply from the coal-fired power plant run by Adani Power in India was drastically reduced without a pre-announcement...

www.newagebd.net

Bangladesh faces massive load-shedding as India's Adani cuts power supply
Emran Hossain 25 June, 2024, 23:12

View attachment 6615

Bangladesh, which watched a humid heatwave intensify over almost half of its districts on Tuesday, suffered up to 16 hours of power cuts in places after the power supply from the coal-fired power plant run by Adani Power in India was drastically reduced without a pre-announcement.

With 27,515MW of installed power generation capacity, Bangladesh fell short of 1,887MW of electricity to meet the demand of 14,800MW at 2:00am on Tuesday, the hour the country recorded its peak load-shedding.

Just 24 hours ago, the power shortage stood at 278MW against the demand of 14,380MW.

Since the ongoing heatwave began three days ago, leading to a rise of about 4,000MW in power demand, load-shedding has undergone an astronomical rise from almost zero.

An ongoing economic crisis has seriously limited Bangladesh's energy use for more than two years now.

The current crisis is unique given that almost all baseload power plants are running at half or one-third of their capacities for one reason or another, with no hope of the situation improving anytime soon, especially after one of Bangladesh's two floating storage and regasification units remains out of order since the cyclonic storm Remal hit on May 28.

'The shutdown of a floating storage and regasification unit put us in a crisis that only worsened after Adani shut down one of its two units beyond schedule,' power secretary Habibur Rahman told New Age.

Bangladesh owes over $3 billion to power producers at home and abroad, according to the power ministry, including $500 million owed to Adani Power in outstanding bills.

The public relations agency that was looking after Adani Power's media relations in Bangladesh, however, claimed that the shutdown of one of the units at the 1,600MW Godda power plant was for maintenance and scheduled.

The explanation lacked consistency because the remaining unit still in operation has the capacity to generate at least 800MW.

On June 24, Bangladesh received only 371MW from Adani's Godda power plant.

On June 19, the day Adani shut down its second unit, as revealed by the daily electricity generation report of the Power Grid Company of Bangladesh, Bangladesh received 1,060MW.

The power supply from Tripura also remained below 100MW, often less than 80MW, due to unpaid electricity bills, according to Indian media reports.

A unit of the 1,320MW coal-based Payra power plant is also currently under maintenance.

The 1,320MW coal-fired Rampal power plant supplied 593MW in the evening peak hour on June 24, saying that it had shut down its second unit, about which there was no explanation from the power ministry.

The newly-built 1,200MW Matarbari coal-based power plant had one of its two units under maintenance, according to the PGCB.

The 586MW Unique Meghnaghat power plant remained completely shut down because of a gas shortage.

The 1,224MW newly-built coal-based SS Power plant supplied only 481MW on June 24.

The 307MW coal-based Barishal power plant generated 200MW on June 24 due to a coal shortage.

An analysis of the daily power generation report released by the PGCB showed that 114 out of 150 power plants were either partially or completely out of operation for one reason or another on June 24.

Only about 25 per cent of Bangladesh's current installed generation capacity could smoothly operate, the PGCB report revealed.

On June 24, a total of 33 power plants faced technical problems, such as engine or machine problems, while a fuel shortage affected operations at 46 gas- and furnace-oil-based power plants.

A dozen power plants were under maintenance, while 18 did not operate because their contracts expired.

On June 24, Bangladesh produced 5,655mw using gas at the peak load-shedding hour at 2:00am. The installed gas capacity is 11,880. Before the FSRU malfunctioned, Bangladesh produced a maximum 7,000MW using gas.

The installed coal capacity, on the other hand, is 5,108MW. But the maximum electricity generated from coal was mostly about 3,000MW, though it dropped to about 1500MW occasionally.

The installed furnace-oil-based capacity is 6,035MW. At the peak load-shedding hour on June 24, furnace oil generated 3,202MW.

An online provider of fuel prices, Trading Economics, showed that coal was sold at $131.91 per tonne on June 25 following an 8 per cent fall in its price this month.

The US natural gas price was around $2.8/MMBtu on June 23. The crude oil price held just below $82 per barrel on June 24.

Indian heatwaves and geopolitical unrest have kept fuel prices somewhat unsteady, but energy experts found them very affordable unless the economic situation was really bad.

The Bangladesh Meteorological Department said that a mild to moderate heatwave was sweeping over Dhaka, Rajshahi and Khulna divisions, covering 31 out of 64 districts.

Bangladesh's highest temperature of 38C was recorded in Rajshahi on Tuesday.

New Age staff correspondent in Rajshahi reported that people in rural areas in the districts have been suffering from around 16 hours of power cuts for the past three days.

Mominul Islam, a college student of Anupampur village under Charghat upazila in Rajshahi, said that he could not sleep at all on Monday night because of power cuts amid a humid heatwave.

'Seven to eight power cuts occurred on Monday night,' he said.

Mehedi Hasan, a resident of Shekherpara village under Godagari upazila in Rajshahi, told New Age that they had also been experiencing power cuts of up to 14 to 16 hours for the past few days.

'There is no need for power for irrigation. Why is there load-shedding now?' he asked.​

This is what happens when you rely on Indians to supply something crucial as electricity.

Bad decisions buying Indian goods and services, one after another - by this woman.

 

[Saif]

This is what happens when you rely on Indians to supply something crucial as electricity.

Bad decisions buying Indian goods and services, one after another - by this woman.

Is she a woman? Everybody addresses her as 'Sir'.

 

[Bilal9]

Is she a woman? Everybody addresses her as 'Sir'.

When you surround yourself with uneducated and semi-educated people, that is what happens. Everyone with half a brain will not work for her.

Former peons and ardalees are now MP level people....

 

[Saif]

Industries reeling from persistent gas crisis

The country that was once thought to be floating on gas is unable to make available sufficient volume of this fossil fuel to domestic consumers of various categories. The industrial consumers are worst-hit. The textile mills that need a large volume of gas in recent days have aired their grievances

thefinancialexpress.com.bd

Industries reeling from persistent gas crisis
Published :
Jul 08, 2024 22:07
Updated :
Jul 08, 2024 22:07

The country that was once thought to be floating on gas is unable to make available sufficient volume of this fossil fuel to domestic consumers of various categories. The industrial consumers are worst-hit. The textile mills that need a large volume of gas in recent days have aired their grievances on a number of occasions through their associations. The domestic consumers don't have a voice for they are not organised under the umbrella of any such entity. The last fiscal year was a disappointing one for the industrial sector, as it recorded only 6.66 per cent growth, the lowest in last four years. The rate of growth was 8.37 per cent in the preceding year. Non-availability of sufficient volume of gas was one of the main reasons for such a poor performance. The gas crisis is still hurting the industries and the situation is unlikely to change for the better anytime soon. Quite a big number of factories in the key industrial belts like Narayanganj, Savar and Gazipur are dependent on gas for their operations. The gas crisis has been pushing up their cost of production, making it more challenging for manufacturers and exporters to ensure the supply of products in time. Industry leaders have already expressed their concern and written to the relevant ministries seeking an early resumption of gas supply to run their factories at an optimal capacity.

The main reason behind the gas crunch is the flawed energy policy that the government has been pursuing over the years, demonstrating an inexcusable indifference to experts' suggestion to go for extensive domestic exploration for hydrocarbon. The government has been more interested in importing LNG since 2015 to produce power and feed domestic industries partially than putting in its best efforts for offshore exploration. The cost of LNG import, however, has increased sharply since 2022 as the global energy market became volatile amidst geo-political tensions like the Russia-Ukraine war and the Middle-East conflicts. At home, foreign exchange reserves started depleting at a fast pace for both external and domestic reasons. The local currency also depreciated sharply, making the payments for the import of LNG in US dollar expensive. The crisis of greenback coupled with dwindling value of Taka forced the government to slow down the import of LNG. The net outcome has been a cut in the supply of gas to industry and power units. The government after a prolonged foot-dragging announced new oil and gas exploration move early this year. The results of the exploration work could go either way --- positive or negative. But the country would surely need uninterrupted supply of gas to help the wheels of industrial units running. And the government will have to ensure it, by any means.

The immediate reason behind the current crisis is the damage caused to one of the two floating terminals at Maheshkhali in Cox's Bazar used for regasification of imported LNG. Cyclone Remal caused damage to a terminal on May 27, which was then sent to Singapore for repair. The Petrobangla authority is hopeful of terminal's return by the middle of this month, which it feels, will resolve the gas crunch problem. This particular development also underscores the risks and limitations of over-reliance on energy imports instead of exploring multiple options efficiently. It is expected that the authorities will revisit the energy policy and redesign it keeping in view the long-term needs of the country. The gas crisis is not only affecting the country's export market but it is also significantly pushing up the cost of living of the common consumers.​

 

[Saif]

Gas crunch leaves BD in frequent power cuts

A nationwide gas shortage is causing frequent power cuts as around three dozen gas-fired power plants are currently out of operation for a lack of input. Power outages are worst in rural areas, while urban areas are experiencing increased load shedding. Officials say the situation is unlikely to

thefinancialexpress.com.bd

Gas crunch leaves BD in frequent power cuts
Situation unlikely to improve until mid-July
Published :
Jul 09, 2024 10:22
Updated :
Jul 09, 2024 10:22

A nationwide gas shortage is causing frequent power cuts as around three dozen gas-fired power plants are currently out of operation for a lack of input.

Power outages are worst in rural areas, while urban areas are experiencing increased load shedding.

Officials say the situation is unlikely to improve until July 15, when the Summit Group's liquefied natural gas (LNG) terminal is expected to resume operations.

A 500 million cubic feet per day (mmcfd) shortfall in gas supply to the national grid has resulted from the shutdown of Summit's floating storage and regasification unit (FSRU).

This gas shortage has forced nearly all major gas-fired power plants to shut down, including the recently commissioned and efficient Unique Meghnaghat 584 megawatt and Summit Meghnaghat 583 megawatt electricity plants.

Cyclone Remal, which struck the southern parts of the country in late May, damaged Summit's FSRU. After the cyclone, authorities discovered the damage on May 29 and reduced LNG regasification to zero by the morning of May 30.

Due to the reduced LNG re-gasification capacity -- down to around 600 mmcfd from 1,100 mmcfd before the cyclone damage, state-run Petrobangla was forced to cancel four spot LNG cargoes scheduled for June deliveries.

The country's overall natural gas output dipped to around 2,600 mmcfd, including around 606 mmcfd of re-gasified LNG, on July 7. This is down from around 3,100 mmcfd before Cyclone Remal, according to Petrobangla data.

To cope with the power shortfall, state-run electricity marketing and distribution companies have been enforcing load shedding for periods ranging from one to several hours, according to a senior official at the Bangladesh Power Development Board (BPDB).

The overall electricity generation on July 7 was around 12,608 MW during peak day hours and 14,521 MW during peak evening hours against the total generation capacity of 26,815 MW, according to BPDB data.

The senior BPDB official acknowledged that rural areas are currently experiencing the worst of the power outages.

The gas crisis is having a wider impact, jeopardising industrial output, slowing down the filling of compressed natural gas (CNG) vehicles and causing increased hardship for household consumers.

Household consumers in Dhaka and surrounding areas allege that gas pressure drops in the morning and remains low throughout the day until evening. This limited gas pressure forces them to restrict their cooking to nighttime hours.​

 

[Saif]

Load-shedding rises as gas supply declines

a pipeline was leaked in an accident Tuesday night further lessening the supply of LNG

en.prothomalo.com

Load-shedding rises as gas supply declines
Staff CorrespondentDhaka
Published: 11 Jul 2024, 11: 14

A man working in candlelight during load-shedding in Siddik Bazar area of DhakaProthom Alo file photo

The supply of liquefied natural gas has been low for over one and a half months due to the closure of one of the two terminals. Amid this, a pipeline leaked in an accident Tuesday night further lessening the supply of LNG.

Meanwhile, the industries, domestic and power sector is suffering due to the gas crisis. Power generation has stopped in several power plants resulting in a rise of load-shedding across the country on Wednesday.

The daily demand of gas in the country now stands at 3.8 billion cubic feet. However, only 3 billion cubic feet of gas is provided to tackle the pressure. The two floating terminals in Cox's Bazar's Maheshkhali provide 1.1 billion cubic feet of LNG daily, which dwindled to only 250 million cubic feet. The daily supply has dwindled to some 2.25 billion cubic feet as a result of this.

Petrobangla sources say the terminal operated by the Summit Group was closed down due to the damages it sustained during cyclone Remal on 27 May. The overall daily supply of LNG declined by 500 million cubic feet after the incident.

The terminal is likely to resume operations by the middle of this month. Meanwhile, the Anwara-Fouzdarhat pipeline was leaked by the workers of a contracting agency while digging up the soil for examination in the Anwara area of Chattogram. It stopped LNG supply through pipelines. The engineers of the Gas Transmission and Distribution Company Limited (GTCL) are trying to repair it.

Petrobangla director (operations and mines) Md Kamruzzaman Khan told Prothom Alo, "Gas supply has declined due to a flaw in the pipeline. Although we are not sure, it could take two to three days to repair the pipeline."

Meanwhile, the residents of Dhaka and other cities of the country are suffering due to the gas crisis. Already there was a decline in production at several industries due to the gas crisis. Now it has become even more difficult to run the factories. A total of 6,000 MW power was being generated using gas, which dwindled to below 4000 MW yesterday. As a result, the people outside Dhaka had to suffer a few hours of load shedding.

Sources in the Power Division, PDB and PGCB say the country has a power generation capacity of 26,000 MW daily. The maximum demand of power at 3:00 pm Wednesday was 14,300 MW. However, a little more than 12,000 MW was generated.

As a result, the authorities have to enforce more than 2000 MW of power outages. Load shedding has become more frequent from Tuesday night. It became more frequent after 12:00 pm yesterday.

PDB member (generation) Khandaker Mokammel Hossain told Prothom Alo, "There is no lack from PDB's end. Several power plants had to be closed down due to technical complications. The deficit due to this is being compensated through load-shedding. However, power generation has been the highest from oil-fired power plants."​

 

[Saif]

Normalcy expected as gas supply resumes after pipeline fixed

The authorities repaired a damaged gas- transmission pipeline 62 hours after an accident and resumed the flow of re-gasified liquefied natural gas (LNG) through it on Friday morning. Md Rafiqul Islam, managing director of state-owned Rupantarita Prakritik Gas Company Limited (RPGCL), which handl

thefinancialexpress.com.bd

Normalcy expected as gas supply resumes after pipeline fixed
M AZIZUR RAHMAN
Published :
Jul 13, 2024 00:10
Updated :
Jul 13, 2024 00:10

The authorities repaired a damaged gas- transmission pipeline 62 hours after an accident and resumed the flow of re-gasified liquefied natural gas (LNG) through it on Friday morning.

Md Rafiqul Islam, managing director of state-owned Rupantarita Prakritik Gas Company Limited (RPGCL), which handles LNG trading in Bangladesh, confirmed the development to The Financial Express on Friday.

"We have carried out repair works around the clock despite adverse weather conditions to restore the damaged Anwara-Fouzderhat pipeline in Chattogram," he said.

The 30km, 42-inch Anwara-Fouzderhat pipeline, which had been offline since an accident on the afternoon of 9 July, resumed supplying re-gasified LNG at around 7:20 on Friday after repairs, he said.

By 10:30 on Friday, the pipeline was carrying about 150 million cubic feet per day (mmcfd) of re-gasified LNG -- bringing the country's total supply to about 400 mmcfd, Mr Islam said.

Another pipeline, the 91km, 30-inch Moheshkhali-Anwara line, which remained operational after the accident, was carrying about 250 mmcfd on Friday morning, he added.

The RPGCL managing director hoped the country's overall re-gasified LNG supply would reach the full capacity of its current infrastructure to 600 mmcfd by Friday evening.

RPGCL, a wholly-owned subsidiary of state-owned Petrobangla, looks after the LNG trading in Bangladesh.

Shafiuddin M Farhad Omar, deputy general manager of state-owned Gas Transmission Company Limited (GTCL), said a 3.0-metre section of the damaged pipeline had been replaced with a fresh patch and welded to restore gas supplies.

Mr Omar, who oversees GTCL's operations in Chattogram region, could not specify the repair cost but said Petrobangla's senior management would settle all relevant issues, including compensation, after discussions with the Chinese company involved in the pipeline accident.

He said the pipeline was damaged when struck by a soil testing rig operated by First Harbor Consultant Ltd in the Majherchar area on the bank of Karnaphuli river in southern Bangladesh.

The rig was deployed by China Road Bridge Construction Ltd to conduct soil testing for a jetty on Karnaphuli river, which would be used for a China Economic Zone, Mr Omar said.

Punctures were identified in the Anwara-Fouzderhat pipeline on the afternoon of 9 July, subsequently affecting LNG re-gasification from the operational floating, storage and regasification unit on Moheshkhali island, he said.

GTCL, a subsidiary of Petrobangla, builds, owns, operates and maintains the national gas grid and gas transmission pipelines.

The country's gas-guzzling consumers got a sigh of relief with the resumption of operation of the damaged gas transmission pipeline. Overall power supply improved and gas supply to consumers increased from Friday morning, sources said.

However, consumers will be able to get increased volumes of re-gasified LNG once the Summit LNG Terminal comes online next week. The Summit's 500 mmcfd capacity FSRU arrived at the Moheshkhali mooring facility on Thursday night and is preparing to start operations next week.

In an official statement on 12 July, the Ministry of Power, Energy and Mineral Resources also confirmed that the damaged pipeline was restored at 07:20 on Friday morning.

Acknowledging the inconvenience to consumers, State Minister for Power, Energy and Mineral Resources Nasrul Hamid has ordered authorities to map gas transmission pipeline routes before any physical or infrastructure work nearby.

Such accidents could be avoided with pipeline mapping, Mr Hamid said in a statement, issued by Deputy Chief Information Officer of the ministry Mir Mohammad Aslam Uddin.​

 

[Saif]

New 42MW wind plant at Matarbari soon

Another wind-power plant is being established at Matarbari coast while several others are in the process for advancing Bangladesh's green-energy goal by utilising huge air-to-electricity potential the country holds. A search for foreign funds for setting up the 42-megawatt-capacity plant has bee

thefinancialexpress.com.bd

New 42MW wind plant at Matarbari soon
FHM HUMAYAN KABIR
Published :
Jul 16, 2024 00:50
Updated :
Jul 16, 2024 00:50

Another wind-power plant is being established at Matarbari coast while several others are in the process for advancing Bangladesh's green-energy goal by utilising huge air-to-electricity potential the country holds.

A search for foreign funds for setting up the 42-megawatt-capacity plant has been launched, officials said Monday.

This planned one will be the second-biggest wind-power station after the recently launched 60MW wind-based plant at the coast of the Bay of Bengal in Cox's Bazar, they said.

Coal Power Generation Company Bangladesh Limited (CPGCBL) has decided to build the power station and sent a preliminary development project proposal (PDPP) to the Planning Commission (PC) for approval, a senior Power Division official said.

The 42MW plant is planned to be set up beside the 1200MW coal-fired power station at Matarbari hub on the Maheshkhali Island, he said.

The state-run CPGCBL is now searching foreign loans for installing the power station estimated to cost of Tk 1.21 billion, the official added.

Meanwhile, with the financial support of a Chinese company-SPIC Wuiling Power Corporation-US-DK Green Energy BD Ltd, a private company, set up the first biggest commercially operated 60MW wind-power plant in Cox's Bazar which started full-scale operation in March last, supplying power into the national grid.

The firm is selling the electricity generated from the plant to Bangladesh government at 12 US cents per unit (1 kWh) under an 18-year management contract.

A total of 22 wind turbines in Khurushkul, PM Khali, Chowfaldandi, and Pokkhali unions of Cox's Bazar near the seashore have already been generating the electricity.

A report of energytrackerasia, a global renewable-energy advocacy group, says the 724-km- long coast of Bangladesh is suitable for wind-power generation as there is "significant wind- power-generation potential. Bangladesh has vast potential to exploit this renewable energy source, which still remains untapped".

Each of the 22 turbines of the existing plant has a capacity of 3.0MW power, altogether generating 60 megawatts of electricity from wind blowing along the bay coast free of cost.

Meanwhile, Bangladesh's first wind-power project was a 0.9MW plant near the dam along the River Muhuri in Feni, constructed by Bangladesh Power Development Board (BPDB) in 2005. Three years later, a 1.0MW wind plant was set up in Kutubdia, Cox's Bazar.

"Both plants are now out of operation for a lack of supervision and interest from the board," said one source.

The government has set a target to generate 10 per cent of electricity requirements from renewable energy by 2025.

Asked about the latest venture, a senior PC official said they had got the PDPP from CPGCBL that has sought approval for the 42MW wind-power project.

"The proposed cost of the project is comparatively higher. We have asked the company to rationalize the cost estimation and then send it again to the PC. Then we will consider approval," said a senior official.

Meanwhile, the government has also planned to construct three more wind projects with a cumulative power-generation capacity of 102 megawatts in Sirajganj, Bagerhat and Chuadanga.

Besides, contractor selection for a 50MW wind-power project in Chandpur and a 30MW plant in Feni is in the process.

In September 2022, the BPDB signed a contract with Mongla Green Power Limited firm for building a 55MW wind plant in Mongla, Bagerhat, where Bangladesh's second-largest seaport is situated.

Official data show Bangladesh's total power-generation capacity is around 22,000 MWs. Around 51 per cent of the capacity is natural gas-fired, while 27 per cent is from furnace oil, 6.0 per cent from gasoil or diesel and only 2.0 per cent from hydropower and solar, with another 5.0 per cent imported from India. The share of wind energy is almost zero.​

 

[Saif]

Gas short supply hurting industries

Poor gas supply and frequent electricity cuts have been taking a heavy toll on the country's industrial production, thus leading to rise in the cost of doing business, affecting productivity and eroding competitive edge, industry people said. Textile and garment industry's growth, according to ins

thefinancialexpress.com.bd

Gas short supply hurting industries
MONIRA MUNNI
Published :
Jul 16, 2024 00:47
Updated :
Jul 16, 2024 00:47

Poor gas supply and frequent electricity cuts have been taking a heavy toll on the country's industrial production, thus leading to rise in the cost of doing business, affecting productivity and eroding competitive edge, industry people said.
Textile and garment industry's growth, according to insiders, which is important for macroeconomic stability and sound financial sector, needs government's priority attention to resolve the energy crisis.

Textile millers said up to 50 per cent of their production capacity remained unused due to gas supply shortage, forcing many garment exporters to source raw materials from outside the country.

Frequent load shedding is also causing damage to expensive and sophisticated machinery and electrical equipment.

The whole supply chain of textile and garment exports from spinning to weaving - dying -- printing have been affected.

"We are passing a challenging time. The overall supply chain has been disrupted due to energy crisis," Shams Mahmud managing director of Shasha Denims said.

Spinning mills can't produce in full capacity while price hike has raised the cost. And these factors are forcing exporters to go for imported raw materials like yarn and fabric which are cheaper than the local ones.

Besides, electricity cut or gas supply disruption is also cause damage to goods amidst production process, he said.

Explaining the situation, he said an average-sized textile mill has to pay about Tk 40 million a month following the price hike of gas. The amount was Tk 20 million before the hike.

"I need to pay additional Tk 240 million annually for all energy costs. And it is ultimately affecting cash flow," he noted.

There is liquidity crisis in banks while interest rate has gone up, he said adding that as a result working capital has become costly for private sector.

Even high-performing factories are now facing financial crunch. This will also have a massive impact on financial sector, giving rise to macroeconomic instability, he noted.

Buyers are also shifting to Pakistan, Vietnam, India and Turkey due to long leadtime, rise in cost of production, Mr Mahmud said.

"Industry is suffering and we are losing competitive edges," Mr Mahmud, who is also a director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said.

Talking to the FE on Monday, Khorshed Alam chairman of standing committee on local spinning, weaving, dying and printing mills listed with Bangladesh Textile Mills Association (BTMA) said they held a meeting on 13 July with all members.

Almost all mills located at industrial areas, including Narsingdi, Madhabdi, Baburhat, Pabna and Sirajganj, are not getting electricity for eight to nine hours a day.

And factories mostly spinning, dying and printing are in dire situation because of energy crisis.

"Sudden electricity cut cause damage of 40-60 per cent of the yarn producing from cotton that are in the process ," he said, explaining that weaving mills suspended production and exporters are not buying fabrics from them.

Textile Mills require uninterrupted energy supply to run operation as they operate 24 hours, he said adding the mills need more than two hours to restart.

Similarly printing and dying segments are also facing severe problems due to gas and electricity problems, Mr Alam, who is also chairman of Little Star Spinning Mills Ltd, said.

When asked, BTMA president Mohammad Ali Khokon said government increased gas price with assurance that industry would get uninterrupted gas supply.

"But we are not getting uninterrupted gas. Rather the situation has worsened further," he said adding that power outage for at least 10 to 11 occasions causes 40-50 per cent production fall and rise in cost.

"What buyers are now doing is that they are sourcing goods from other countries," he added.

It takes three years to be nominated by buyers, he said expressing his deep frustration.

The leaders suggested a long-term government policy to help industry to plan better

Like textile and garment, other industries like ceramic and plastic are also suffering.

Talking to the FE, Irfan Uddin general secretary of Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) said ceramic making is largely dependent on gas-fired kilns.

They are also suffering severely not only crisis of gas but the hike in gas prices as they are not uninterrupted gas supply despite significant rise in prices.

The government increased the gas price per cubic meter to Tk 30 from Tk 13.

"At the end of the day, we are paying for air, not gas" he noted

About 25 factories in Dhaka, Gazipur and Narsingdi have been suffering a production loss of estimated Tk 200 million every day for around the last one month due to the supply crunch of natural gas, the BCMEA on June 26 said in a letter to energy state minister.

Ceramic goods-manufacturing units require gas supply pressure at 15 psi (pounds per square inch), whereas the pressure in those areas fluctuate between three and zero only, it noted.

Ceramic is a gas dependent manufacturing industry and natural gas constitutes 10 to 12 per cent of its total production cost, the association said explaining that kilns in the ceramic industry need 24-hour uninterrupted gas supply to burn the products at 1200 centigrade at the desired PSI.

"Whenever the required pressure of gas goes down, the half-done products inside a kiln become wastage, even a kiln needs 48 to 72 hours to resume production in full swing after a halt," the BCMEA said, adding that sometimes an industry owner has to encounter severe trouble due to inoperative machinery.

According to Mr Uddin, there are around 70 ceramic factories across the country while 20-25 are engaged in exports.

Shamim Ahmed president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BGAPMEA) also echoed the same adding that many factories located in Ashulia, Gazipur and Narayanganj could not operate properly for 20 days a month for gas crisis.​

 

[Saif]

BD struggling to get LNG cargoes for regasification

Bangladesh has been grappling to receive LNG (liquefied natural gas) cargoes for regasification after purchases due to a halt in the operation of Summit LNG Terminal at Moheshkhali following accidents. One spot cargo vessel carrying around 3.36 million British thermal unit (MMBTu) of LNG has remai

thefinancialexpress.com.bd

BD struggling to get LNG cargoes for regasification
M AZIZUR RAHMAN
Published :
Jul 26, 2024 00:49
Updated :
Jul 26, 2024 00:49

Bangladesh has been grappling to receive LNG (liquefied natural gas) cargoes for regasification after purchases due to a halt in the operation of Summit LNG Terminal at Moheshkhali following accidents.

One spot cargo vessel carrying around 3.36 million British thermal unit (MMBTu) of LNG has remained stranded in deep sea over the past 10 days and another has been deferred for this prolonged operational delay.

A senior Petrobangla official disclosed this to the FE.

He said the spot LNG cargo of Excelerate Energy LP has been waiting in deep sea since July 15 to deliver the fuel to one of the country's two floating, storage and regasification units (FSRUs).

The state-run Rupantarita Prakritik Gas Company Ltd (RPGCL) purchased it from the US energy giant at $13.55 per MMBTu totalling Tk 6.09 billion.

The government has been counting fiscal penalty to be paid to Excelerate Energy as demurrage for not receiving the LNG cargo in time, the official said without figuring out the amount of the penalty.

Meanwhile, the RPGCL deferred the cargo of Total Energies Gas and Power Ltd, which was scheduled for release during the July 24-25 delivery window, according to an RPGCL official.

The government has purchased the spot LNG cargo at $12.58 per MMBTu totalling the cost of Tk 5.83 billion.

Had Summit's FSRU not encountered the latest accident of tearing down its messenger rope on July 11, both cargoes would have been delivered to the FSRUs for regasification, the RPGCL official said.

Earlier, the government had to cancel four cargoes for June delivery following the initial technical issue of Summit's FSRU due to the Remal mayhem. The terminal shut operations on May 30 after spotting damage to its FSRU.

The RPGCL cancelled three spot cargoes of Gunvor Singapore Pte Ltd and one of QatarEnergy Trading LLC for June delivery windows.

Gunvor was awarded contracts to deliver these spot cargoes for June 07-09 and June 09-11 and June 28-29 delivery windows at $10.4622 per MMBtu, $10.4622 per MMBtu and $12.9697 per MMBtu respectively. QatarEnergy was supposed to deliver the cargo at $10.30 per MMBtu for June 19-21 delivery window.

According to market insiders, Remal's savagery to Summit's FSRU turned out as a boon for the government as it could save around $150 million due to cancellation of the four cargoes, said.

"As cyclone Remal hit the coast, a broken stray steel structure weighing hundreds of tons banged the Summit LNG Terminal, causing significant damage," said a Summit statement earlier.

Summit LNG Terminal returned from Singapore on July 10 after repair, but it suffered a fresh blow the next day of reaching Moheshkhali mooring facility.​

 

[Saif]

1,320MW coal power plant in Patuakhali to fire up in October

A 1,320-megawatt (MW) coal-based thermal power plant located in Kalapara upazila of Patuakhali is ready to begin commercial operations by the end of this year, officials said..The first of the plant’s two units, which can generate 660 MWs daily, will commence production in October while th

www.thedailystar.net

1,320MW coal power plant in Patuakhali to fire up in October

The second 1,320-megawatt coal-based thermal power plant in Kalapara upazila of Patuakhali is all set to begin commercial operations from October this year. In this aerial view, it is seen that much of the plant's main infrastructure is now complete. The picture was taken recently. PHOTO: Sohrab Hossain

A 1,320-megawatt (MW) coal-based thermal power plant located in Kalapara upazila of Patuakhali is ready to begin commercial operations by the end of this year, officials said.

The first of the plant's two units, which can generate 660 MWs daily, will commence production in October while the second will start in December.

This is the second 1,320 MW coal-based power plant in Kalapara upazila, with the Payra Thermal Power Plant situated nearby.

Norinco Intl Cooperation Ltd, a Chinese heavy construction company, and the state-owned Rural Power Company Limited built the plant under a joint venture called RPCL-Norinco Intl Power Limited (RNPL).

Costing Tk 27,000 crore, construction of the 950-acre plant began in August of 2019.

It is located on the banks of Ramnabad river, just two kilometres north of the Payra plant.

Project Director Taufiq Islam said all the ancillary work, including physical structure, is complete.

He also said a 20-kilometre double circuit transmission line has been established to connect the plant with the national grid using Payra plant's existing transmission line. Also, a switching station has been constructed in Amtali upazila of Barguna.

Ashraf Uddin, the plant's supervising engineer, said the plant can produce enough electricity for catering to 10 percent of the country's annual demand.

Currently, Bangladesh has a power generation capacity of around 27,000 MW and the peak-hour demand is around 17,000 MW, according to data of Bangladesh Power Development Board.

Of the total demand, coal-based power sources account for about 25 percent or 6,600 MW.

Shawkat Osman, the plant's executive engineer (mechanical), said instead of using solid coal, they will use powdered coal as it is more efficient and reduces the emission of harmful substances, such as carbon dioxide.

Against this backdrop, Shahriar Hasan, assistant engineer, said it is an ultra-modern power plant, where more electricity will be produced by burning less coal, thereby causing less environmental pollution.

According to sources at RPCL-Norinco, the plant features a fly ash silo, fuel-well pump, rain water reservoir, fire station service and fire-fighting water tank aside from usual elements such as a boiler, power house, turbine, generator, chimney and so on.

Construction of waste water storage basins, administrative building, engineering building, multipurpose hall, workshop and other infrastructures are complete, they said.

Also, the construction of a modern jetty with a conveyor belt for unloading imported coal to be used by the plant alongside the workers' dormitory, canteen and mosque are also complete.

Besides, the plant's main transformer has been installed, they added while informing that there are currently 5,979 people working on the project, comprising 972 foreigners and 5,007 Bangladeshis.​

 

[Saif]

https://thefinancialexpress.com.bd/views/columns/promises-made-on-energy-turn-hollow

Promises made on energy turn hollow
Syed Mansur Hashim
Published :
Aug 02, 2024 21:59
Updated :
Aug 02, 2024 21:59

Sadly, the power situation in the country has gone from bad to worse since Covid-19. While the pandemic has come and gone, the energy crisis refuses to go away. While policymakers keep raising tariffs on the promise of steady supply of requisite energy to industry and retail consumers, the assurances have turned hollow and the economy as a whole continues to suffer. Loss of production has led to factory closure causing ultimately unemployment and lower economic growth. A bleak future thus stares in the face of Bangladesh because the supply of energy, i.e. the bulk of fossil fuels that power our industry and power plants have become import-dependent.

Is it not ironic that the country has become overwhelmingly dependent on the whims of foreign energy markets, while significant reserves of natural gas remain unexplored in the country? What has compelled the government to turn a blind eye to several surveys done by international companies about potential gas reserves that are available onshore and which can be made available with acceptable levels of investments? Why is there no enthusiasm on exploring and extracting own reserves of energy? Frankly, it is easier to fleece consumers ---industrial or otherwise---by importing coal, oil and liquefied natural gas (LNG) because the country is a captive market. The government is the sole provider of energy and there are no competitors, unlike the situation in some other countries in the region where state-owned enterprises compete with private ones to sell energy to industry.

Getting back to the crisis in hand, there simply isn't enough energy to go round. Domestic gas is depleting at a fast rate and the import of all types of fossil fuels is hamstrung by a shortage of foreign exchange. There is no way that economic development can continue in a situation where there is a dearth of both energy and power for industry. While the readymade apparel sector (RMG) contributes about 80-85 per cent of the export earning, other important industrial sectors have developed too and also require energy. Though there have been arguments that fertiliser can always be imported and there is no need to keep supplying gas to old, gas-guzzling fertiliser factories, the situation has changed over time with the retirement of old factories and introduction of new ones that are more energy-efficient. Besides, fertiliser is an essential agricultural input that cannot be left to the whims of foreign market fluctuations - both pricewise and availability. Moving on from fertiliser, hundreds of billions of Taka have been poured into the ceramic industry and the country boasts a vibrant sector that practically serves the entire demand of the country. The Achilles heel is that it is entirely gas-run. So, this sector with massive export potential is also facing mothballs in the near future.

What the government isn't telling bulk and retail consumers is that the situation is not going to improve before 2030. Let's look at some facts on the ground. While it is difficult to measure exact demand, the general consensus is that it is hovering around 4,000 MMCFD (million cubic feet per day) and as per published data, supply of the gas on July 13-14 was 2,600 MMCFD. According to media reports, "Of this, the contribution of imported LNG was 604 MMCFD. The production from local gas fields was 1,996 MMCFD. Of these 1,209 MMCFD gas came from gas fields operated by international oil companies. Bibiyana Gas field operated by Chevron alone supplied 996 MMCFD. The current recoverable reserve of the field has depleted below 1.0 TCF" (trillion cubic feet). Again, according to a recent report published in Energy & Power Magazine, "installed generation capacity of grid connected power is 27,504MW (megawatt). Breakdown of this capacity is as follows: Gas-based: 11,180MW (43%), furnace oil: 6,035MW (22.30%), coal: 5,108MW (18.80%), hydroelectricity: 230MW (0.85%), grid-connected solar: 519MW (1.90%), and import: 2,656MW (9.80%)". The net result of all this "foreign" energy dependence is that Dhaka and other major urban centres suffered 2-3 hours of load shedding (while rest of the country suffered between 6 to 8 hours) during the hottest summer days of July.

Import-dependent energy supply is a recipe for disaster. This has long been brought to the notice by Bangladeshi energy experts and for long policymakers have ignored it. Simply because there is much opacity built in certain energy policies and hefty commissions can be paid to fatten the pockets of certain groups of people, the nation's energy security has been thrown out the window. This is the reality we live in today and the suffering has just begun.​

 

[Saif]

Power supply to Bangladesh to be unaffected, Adani says

The recent amendment to India’s Power Export Guidelines will not affect the existing power purchase agreement (PPA) between Adani Power and Bangladesh Power Development Board (BPDB), said Adani Group yesterday.

www.thedailystar.net

Power supply to Bangladesh to be unaffected, Adani says

The recent amendment to India's Power Export Guidelines will not affect the existing power purchase agreement (PPA) between Adani Power and Bangladesh Power Development Board (BPDB), said Adani Group yesterday.

A PR agency appointed by Adani Group in Bangladesh, in a statement, said the amendment aims to connect all Indian power stations, which export electricity to neighbouring countries, to the Indian national grid.

"We have been providing uninterrupted power to Bangladesh from our Godda plant. Adani Power is committed to fulfilling contractual obligations as per BPDB's demand schedule and provisions of PPA and would look forward to continuing reciprocal fulfilment by BPDB," the statement reads.

An internal federal power ministry memo, dated August 12 and seen by Reuters, amends 2018 guidelines governing generators supplying electricity "exclusively to a neighbouring country".

Currently only one plant in India -- Adani Power's 1,600 megawatt (MW) Godda plant in eastern Jharkhand state -- is under contract to export 100 percent of its power to Bangladesh.

The memo states that "the government of India may permit connection of such generating station to the Indian grid to facilitate the sale of power within India in case of sustained non-scheduling of full or part capacity".

The sale of power to the local grid might also be allowed if there is a delay in payments, it said.

The move, which comes nearly a week after longtime Prime Minister Sheikh Hasina fled Bangladesh after deadly protests, could also benefit future projects where all output is locked into export contracts.​

 

[Saif]

It’s time to form an energy audit commission

Despite having built up an over-capacity of power generation in the energy sector), the past government did little to ensure a cheap and reliable supply chain of primary energy, over which it would have total control. That is the irony of the $460 billion dollar economy in Bangladesh. Opinions diff

thefinancialexpress.com.bd

It’s time to form an energy audit commission
Syed Mansur Hashim
Published :
Aug 16, 2024 22:01
Updated :
Aug 16, 2024 22:01

Despite having built up an over-capacity of power generation in the energy sector), the past government did little to ensure a cheap and reliable supply chain of primary energy, over which it would have total control. That is the irony of the $460 billion dollar economy in Bangladesh. Opinions differ about actual demand for power in the country, but it is around 16,000 MW (megawatts). Despite this, power plants were built and commissioned and today, the grid connected power generation capacity stands at slightly above 27,000 MW. Over the course of the last one year or so, the past government has had to take expensive high-interest, short-term loans from international lending institutions simply to defray payments for energy purchases. A ridiculous situation and one that threatened macro-economic stability in the mid to long term!

According to an article published in Energy & Power magazine: "The highest-ever generation was 16,477MW on 30 April 2024. In the peak hours on that day, the deficit was 1,000MW. The unit cost of generation in FY 2022-23 was Tk 12.13. The average power tariff was Tk 7.04 per unit" On top of that, the erstwhile government had decided that subsidy on power sector would be removed in phases within the next two years. It is the bulk and retail consumer who would bear the burden of subsidy withdrawal. While consumers could curtail energy consumption by reducing usage, energy-efficiency transformation of industry cannot happen overnight and there is also a cost factor involved.

The arrogance with which the ministry of power & energy and policymakers had ramrodded the entire process was sad to see. The explanation, if any, was that utility companies were running into billions of Taka worth of losses and these had to be covered with ever-increasing rise of tariff. During the golden days of economic development, subsidies on power increased by leaps and bounds in the name of "capacity payment". According to a study by the Centre for Policy Dialogue (CPD), over the last seven years, capacity charge jumped from Tk50 billion to Tk320 billion.

One would have thought that with so much financial outlay, generation cost would be managed. The Bangladesh Power Development Board (BPDB) "forecasted that the generation cost would be reduced to Tk10.50/unit." Why so? Because one major element in all these calculation was not shared publicly. Yes, the power generation capacity (on paper) increased dramatically over the last 14 years, but as experience had shown that little thought had gone into awarding of contracts. There was no audit to calculate whether contracted power companies were actually delivering stated power outputs as per contract. The only thing that mattered was awarding of contracts with zero oversight and this is what has landed the nation in the mess it is in today!

As pointed out by a member of the Bangladesh Energy Society, the capacity charge clause necessitated the unnecessary payment on huge reserve margins that shot up the generation costs. This is supported by the fact that the former state minister of energy had informed the last parliament that the government had to pay beyond Tk 1,000 billion as capacity charge for the past 13 years. Perhaps it was a pipedream that policymakers believed in that international markets for three primary energy sources: liquid fuel, coal and LNG would remain stable for eons to come. It simply goes to show that greed overtook common sense and the economy had become dependent on an energy plan that could be undermined at any time.

Every nation strives for energy self-dependence, regardless of the source of energy. In the case of Bangladesh, it was fortunate to have gas and coal reserves - but these are finite resources, regardless of the reserve size. Yet, we have witnessed the obtuseness of policymakers in making energy plans that was focused on making the country import-dependent while disregarding the very basics of energy-efficiency, curbing wastage and unbridled corruption that would overwhelm the state of finances within a short period of time.

The current government has landed on this mess and it must tackle the severe energy crisis. Much has already been written on the formation of a banking commission to deal with the runaway corruption in the financial sector. It is time to form a proper energy audit commission comprising renowned energy experts of the country and people who understand the energy affair. The task of this commission would be to sift through the evidence of how and where subsidies went, who got what under "capacity charge" and precisely, what is the actual power generation capacity of the various power plants commissioned. Only with such data in hand, can a proper energy policy be formulated and the road to recovery may begin. Recovery will be both painful and time-consuming but this can no longer wait.​

 

[Saif]

Scrap, amend key energy laws, demand energy experts

The reform that Bangladesh now seeks to establish the rule of law following the ouster of Sheikh Hasina ending her autocratic rule should begin with scrapping and changing the...

www.newagebd.net

Scrap, amend key energy laws, demand energy experts
Emran Hossain 18 August, 2024, 00:23

The reform that Bangladesh now seeks to establish the rule of law following the ouster of Sheikh Hasina ending her autocratic rule should begin with scrapping and changing the key energy laws, energy experts said.

In the last 14 years, they said, until Hasina’s fall on August 5, the Awami League government made almost all power and energy deals behind the scene under the protection of an indemnity law named ‘Quick enhancement of electricity and energy supply act, 2010’.

The law handed unprecedented power to the minister for power and energy, which was Hasina herself, enabling her to award power and energy deals without any tender while ensuring that her decisions could not be challenged in any court of law.

The law came to be known as the indemnity law which was enacted in 2010 for two years. Its tenure was later extended four times, giving it a lifetime of 16 years until 2026, ignoring widespread demands from energy and legal experts for throwing it out.

The law oversaw unabated fossil fuel expansion at exorbitant prices further facilitating corruption and inefficiency, channeling a huge amount of public money into private pockets by creating a power system suffering from 50 per cent overcapacity.

‘The cancellation of the indemnity law should be the first step in the reform of the state,’ said Hasan Mehedi, member secretary, Bangladesh Working Group on Ecology and Development.

The call for reform emerged with the uprising that toppled the Hasina regime.

The ‘Quick enhancement of electricity and energy supply act, 2010’ was passed on October 12 in 2010 for two years as an emergency measure to tackle an acute energy crisis after the past Awami League government had assumed power in 2009.

In 2012, the law was given two years’ extension, followed by four year’s extension awarded in 2014, three years extension in 2018 and five years extension in 2021.

The law allows awarding any companies without tender any power and energy projects, including the import of natural gas, coal, liquefied natural gas and petroleum products, as well as the extraction of mineral resources. The law also covers electricity generation, transmission and distribution projects.

In the section 9, the law states that the legality of any activity or measure or order taken or given under it cannot be challenged in any court of law.

No legal action can be taken against any employees and officials who have operated under the law or its subordinate rules or any general or special orders given under it, states section 10 of the law, considering all actions done under it performed in good faith.​

After taking permission from the minister, the subsection 2 of the section 6 states, a special committee can contact and negotiate with a limited number of parties or a single party to process any procurement or investment proposals in the power and energy sector.

The special committee comprising top officials of the energy ministry and the state-owned power end energy entities.

Under the law, the government indiscriminately approved projects, increasing the installed power generation capacity to over 28,000MW in June this year from less than 5,000MW in 2009.

Energy experts frequently said that the rapid expansion of the power generation capacity was unnecessary and harmful and based on flawed growth projection.

The power projects offered riskless investment, guaranteeing huge profits, with capacity charge entitlement, which is a provision to pay investors regardless of power produced by their power plants.

‘The law should not have existed in the first place. It violates standard practices of public procurement around the world,’ said energy expert Ijaz Hossain.

He said that the government has a tough choice to make about holding the past Awami League government accountable for projects implemented under the indemnity law as it implies dealing with international power purchase agreements.

‘The move might bear financial consequences for some parties might choose to go to international courts,’ he said.

The mass uprising, however, has offered an opportunity as well exposing the past government’s acts against the interest of the state and people, giving the interim government the opportunity to renegotiate terms and conditions in existing power and energy deals, said Ijaz.

The past government under the law set up 151 power plants, including dozens of furnace oil, diesel, coal and gas-fired power plants, and two floating, storage and re-gasification units. Drilling of a dozen of onshore gas-wells by local and international oil companies were also conducted under the law. Oil-carrying pipelines were also installed, among other initiatives.

Not a single power and energy agreement was ever made public. The Awami League government also kept all environmental impact assessment a secret.

An analysis of the power projects passed by the Awami League showed that only one power project went through bidding since 2010. The bid, however, carried no significance for its winner was paid higher price through negotiation anyway.

Another result of having such a law is evident in the establishment of the Bosila 108MW power plant, owned by CLC power company, a sister concern of Maisha Group, owned by former Awami League lawmaker Aslamul Haque, who died in 2021. The furnace oil-based Bosila power plant began commercial operation on February 22, 2017, years after it was supposed to be operational. The power plant was set up encroaching river for which it was never made accountable. And the power plant was out of operation for the last four years but its permission was never cancelled.

Consumers Association of Bangladesh energy adviser Shamsul Alam said that the new government should suspend the indemnity law and amend the Bangladesh Energy Regulatory Commission act to ensure people’s right to public hearing before energy price hikes.

The past Awami League government turned the regulatory commission a lame duck in 2022 since when electricity and gas prices were frequently increased under executive orders.

Shamsul Alam demanded that the commission should work to reduce inefficiency and corruption to ensure uninterrupted energy supply without increasing prices.

‘The interim government should first announce that energy prices will not be increased during its tenure and then ensure it through reforms or providing subsidy,’ he said.

 

[Saif]

Power sector’s indemnity act suspended

All the activities under the much-criticised Quick Enhancement of Electricity and Energy Supply Act 2010, commonly known as the Indemnity Act, in the power and energy sector will remain suspended, said the newly-appointed energy adviser to the interim government.

www.thedailystar.net

Power sector’s indemnity act suspended

The government believes the country's power coverage would be 100 percent by 2021. Star/File

All the activities under the much-criticised Quick Enhancement of Electricity and Energy Supply Act 2010, commonly known as the Indemnity Act, in the power and energy sector will remain suspended, said the newly-appointed energy adviser to the interim government.

Initiated in 2010 when the power sector was struggling to meet the country's demand, the act stipulates there is no need to float any tender to award any power plant construction activities.

Procurement under this act does not need to go through the standard Public Procurement Rules that are followed by other ministries.

Though the process was meant to be for a short time, the Awami League government never abolished it. In 2021, it was extended for another five years.

Thanks to this act, hefty amounts were paid as capacity charges to the power plants.

All previous activities under this act will be reviewed by the interim government, said M Fouzul Kabir Khan, the adviser to the ministry of power, energy and mineral resources, at a media briefing in the secretariat yesterday.

"It will be decided by the advisory council whether the act will be abolished or not. But from now on, the pending works under this act will remain suspended," Khan added.

Different media outlets published articles about the anomalies of the sector, especially under this act, which may raise questions among people, said a press release from the ministry.

Under this circumstance, all the negotiations, projects and purchase activities will remain temporarily closed.

However, the contracts that were done under this act will continue.

The interim government will not take any decision regarding hiking the power or energy tariffs by bypassing the Bangladesh Energy Regulatory Commission (BERC).

Last year, the Awami League government amended the BERC Act and incorporated a clause to set the energy prices by themselves without any public hearing.

They have increased the power price several times since this clause was rolled out.​

 

[Saif]

CPD suggests 3 steps to fix energy sector

The Centre for Policy Dialogue yesterday proposed a three-step pathway for energy transition under the interim government that would holistically reform Bangladesh’s energy sector.

www.thedailystar.net

CPD suggests 3 steps to fix energy sector

The Centre for Policy Dialogue yesterday proposed a three-step pathway for energy transition under the interim government that would holistically reform Bangladesh's energy sector.

The think-tank proposed an initial 100-day plan where the interim government would announce key priorities, followed by significant reforms over the next six months.

The reforms would include abolishing certain acts, implementing new policies such as energy audits, renewable energy laboratory and centralising databases on pricing and investment.

The CPD identified four critical acts and policies that need to be revised immediately to ensure competition, efficiency, transparency and accountability in the power and energy sector.

These are the Quick Enhancement of Electricity and Energy Supply Act, the Bangladesh Energy Regulatory Commission Act, the Renewable Energy Policy and the Integrated Energy and Power Master Plan (IEPMP).

"These acts and policies were initiated to benefit vested interest groups in the sector," said Khondaker Golam Moazzem, research director of CPD, while presenting the keynote paper at a media briefing titled "Power and Energy Sector Reform Agenda for the Interim Government".

Under the Quick Enhancement Act, the government awarded public works to conglomerates without issuing any tender notices.

"No public procurement rules were followed under this act. The faulty procurement and bidding process of the major power projects such as the Adani deal, Payra and Rampal power plants cost us an additional Tk 35,000 crore."

Moazzem also called for an international audit of all companies under the ministry of power, energy, and mineral resources to uncover anomalies and corruption from the past government.

"There was no transparency in the information available in this sector. Companies provided different information to different authorities, and all details were kept top secret during the Awami League-led government. All deal documents should be made public."

The data on power generation cost, power purchase tariff, efficiency level, plant factor, fuel cost, capacity payment, date of contract expiration, and oil and LNG import costs must be updated regularly on the respective websites.

CPD emphasised the need for all government activities to be conducted under the Public Procurement Act 2006 and Public Procurement Rules 2008.

They urged the government to review all procurement and bidding processes of power plants, phase out inefficient and quick rental power plants and prioritise the identification and assessment of renewable energy resources.

Additionally, CPD recommended forming a probe body to identify anomalies in pre-paid meters and restructuring the power, energy and mineral resources ministry to empower the Sustainable and Renewable Energy Development Authority (SREDA) as the sole authority for implementing upcoming energy transition issues.

In the final phase, spanning 12 to 36 months, CPD suggested the government prioritise investment in advanced grid technologies, modernise grid infrastructure and shift focus from LNG imports to domestic gas exploration.

"The past government has made Bangladesh Energy Regulatory Commission a toothless authority," Moazzem said.

The laws were amended to adjust gas and electricity prices without holding a public hearing multiple times a year.

Without the process, there are two types of problems: it creates a non-transparent market and frequent tariff changes discourage investors.

In the IEPMP, the government had projected faulty energy and power demand, the keynote paper said.

Besides, the policy paper incorporated hydrogen and ammonia co-firing with carbon capture and storage systems, which is a 'false solution' of energy transition.

CPD demanded the review of the market-based pricing formula saying the formula has anomalies. "We need to get rid of subsidy-based power and energy but under a transparent process."​

 

[Saif]

CPD calls for phasing out inefficient power plants

The Centre for Policy Dialogue yesterday urged the interim government to phase out all inefficient power plants as early as possible.

www.thedailystar.net

CPD calls for phasing out inefficient power plants

The Centre for Policy Dialogue yesterday urged the interim government to phase out all inefficient power plants as early as possible.

During a media briefing, titled "Power and Energy Sector Reform Agenda for the Interim Government", at its office, the CPD outlined a comprehensive operational reform strategy for the power sector.

The think-tank asked the government to revise power purchase contracts and incorporate the "no electricity no pay" clause to lessen the burden of capacity payments.

"The government paid a total of around Tk 105,000 crore in the last 14 years as capacity payments to power plant owners up to August 2023," said Khondaker Golam Moazzem, research director at the CPD.

He provided a list of 28 inefficient power plants -- which have a total capacity of 3,655 MW -- based on net electricity generation, generation cost and carbon dioxide emissions, which can be phased out after their contracts end by 2030.

Most of them are quick rental power plants that the previous government promised to phase out. But it failed to do so.

All 16 quick rental power plants were supposed to be phased out by 2023, but as many as 13 are still operational. Of them, two have been getting capacity payment facilities and 11 are operating under the 'no electricity no pay' provision, Moazzem said.

According to the CPD, there is an over-generation capacity of 41 percent at present, significantly higher than the maximum required reserve margin of 30 percent.

"There is a scope to reduce the capacity of 6,677MW without having any major adverse effect on the electricity supply in the country," Moazzem said, adding the previous government did not maintain the retirement schedule of power plants.

Despite providing high subsidies and upward tariff revision, the Bangladesh Power Development Board has still been unable to come out of losses.

He added that no further power tariff revision should be made in the name of subsidy adjustments.

"The previous government had drawn up a plan to increase the price of electricity four times a year for the next three years to withdraw all subsidies in the power sector. They raised the price in February, but through such an adjustment, the burden is fully passed to the consumers -- households, agriculture, industry, businesses, services and other economic activities."

The CPD termed the automated fuel pricing formula, launched in March this year, as unclear. "The price calculation mechanism of petroleum is unclear and there are a few hidden charges without any proper justification."

As the procurement process was non-competitive and confidential, fairness could not be ensured regarding issues such as the determination of power purchase rate and capacity payment. It also led to extensions of contracts with inefficient power plants, it said.

So, the CPD asked the government to review the procurement and bidding process of the power plants.​

 

[Saif]

Energy reforms are long overdue

CPD’s three-step proposal deserves consideration

www.thedailystar.net

Energy reforms are long overdue
CPD’s three-step proposal deserves consideration

VISUAL: STAR

The Awami League government's questionable policies in the power and energy sector badly affected the economy over the last 15 years, prompting experts to frequently call for reforms but to no avail. Now that the interim government has taken charge, we hope to see the initiation of some much-needed actions in that regard. The three-step proposal given by the Centre for Policy Dialogue (CPD) shows where the focus should be. It has put forth a 100-day plan highlighting the key priorities, followed by significant reforms stretching over the next six months.

In particular, four acts and policies highlighted by the CPD need immediate revisions since those were made primarily to benefit vested interest groups. For instance, through the enactment of the Quick Enhancement of Electricity and Energy Supply Act, also known as the Indemnity Act, the erstwhile government awarded public works to conglomerates without issuing any tender notices, while no public procurement rules were followed either. This act should be repealed immediately. The other acts that need revisions are the Bangladesh Energy Regulatory Commission (BERC) Act, the Renewable Energy Policy, and the Integrated Energy and Power Master Plan (IEPMP).

The need for the BERC to operate independently cannot be stressed enough. The amendment to the relevant act, done in 2022 to empower the government to set power and energy tariffs on its own under "special circumstances," without holding any public hearing, was a shady decision that frequently shot up energy prices. This needs to change. In addition, the IEPMP needs to be revised because the government allegedly projected faulty energy and power demand in it. Moreover, the suggestion to link the Sustainable and Renewable Energy Development Authority with the chief adviser's office also deserves consideration, as it will hopefully speed up phasing out of the fossil fuel-based power plants.

Phasing out the inefficient power plants should be another goal for the interim government. According to the CPD, the Awami League government paid a total of around Tk 105,000 crore as capacity payments to power plant owners in the 14 years up to August 2023, which is outrageous. So much money was squandered while citizens were either deprived of power or forced to pay exorbitantly for it. Revising the power purchase contracts and incorporating a "no electricity, no pay" clause will lessen the burden of capacity payments.

These are just a few key areas that need immediate attention from the interim government. There are many other short- and long-term suggestions given by the CPD which are quite well-thought-out, and can, if properly implemented, ensure competition, efficiency, transparency and accountability in the power and energy sector.​