[🇧🇩] 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.

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[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.​