[🇧🇩] Energy Security of Bangladesh

[Saif]

Nat'l body formed to review AL govt’s power, energy deals

The interim government has decided to review the deals signed under the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010 by the previous government.

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Nat'l body formed to review AL govt’s power, energy deals

The interim government has decided to review the deals signed under the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010 by the previous government.

Today, the power division formed a five-member national committee to review the contracts signed under the act, said a gazette notification issued by the Ministry of Power, Energy and Mineral Resources.

Justice Md Moinul Islam Chowdhury, a retired judge of the High Court will lead the committee.

The other members of the committee are Prof Abdul Hasib Chowdhury of Buet, chartered accountant Ali Ashfaq, former lead economist of World Bank's Dhaka office Zahid Hussain, and prof Mushtaq Khan at the University of London, the gazette notification added.​

 

[Saif]

Bangladesh keen to work with Nepal in power sector: Adviser Fouzul Kabir

Adviser of the interim government for Power and Energy Muhammad Fouzul Kabir Khan has expressed Bangladesh’s keen interest in working jointly with Nepal in the power sector. He said that Bangladesh is also interested in increasing trade relations with the Himalayan nation. He made remarks w

thefinancialexpress.com.bd

Bangladesh keen to work with Nepal in power sector: Adviser Fouzul Kabir
UNB
Published :
Sep 08, 2024 19:45
Updated :
Sep 08, 2024 19:45

Adviser of the interim government for Power and Energy Muhammad Fouzul Kabir Khan has expressed Bangladesh’s keen interest in working jointly with Nepal in the power sector.

He said that Bangladesh is also interested in increasing trade relations with the Himalayan nation.

He made remarks when a 2-member delegation, led by Ambassador of Nepal to Bangladesh Ghanshyam Bhandari, met him in the conference room of the Ministry of Power, Energy and Mineral Resources on Sunday.

Welcoming the Nepalese Ambassador, the adviser said that Nepal is a long-time neighbor of Bangladesh.

They discussed various aspects of strengthening the relationship between the two countries through SAARC.

Ambassador Ghanshyam Bhandari congratulated Power and Energy Adviser on his new responsibility and said that Nepal recognised the student movement from the beginning and expressed solidarity with the people of Bangladesh.

The Nepalese Envoy said that Nepal has good relations with Bangladesh from the beginning and expressed the hope that it will continue in the future.

They also discussed the purchase of 40 MW of hydroelectric power from Nepal, the setting up of a 683 MW Sunkoshi-3 hydropower plant in a joint venture with Nepal and a Power Sale Agreement (PSA) for the import of 500 MW of power from Nepal’s GMR Upper Karnali Hydropower Limited (GUKHL).

During the meeting, Senior Secretary of Power Division Md. Habibur Rahman and Secretary of Railway Ministry Abdul Baki were present.​

 

[Saif]

Power outages on the rise again

Power cuts are getting more frequent as power generation has failed to keep up with the high demand caused by the rising mercury.

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Power outages on the rise again

Photo: Collected

Power cuts are getting more frequent as power generation has failed to keep up with the high demand caused by the rising mercury.

For instance, the power generation shortfall hit nearly 2,000 megawatts (MW) yesterday -- the highest in recent weeks, according to data from the Bangladesh Power Development Board.

From this month, PDB has started generating up to 13,900 MW of electricity a day against the highest demand of 16,200MW, which is much higher than the previous month's average. Last month, the demand was 14,000MW to 14,500MW.

The temperature in Dhaka is now in the mid-30s during the day.

Rajshahi, Rangpur, Cumilla, Mymensingh and Sylhet areas are mostly affected by power cuts, the PDB data shows.

Frequent power cuts started in the last three to four days, said Rafiul Islam, a resident of the Sambhuganj area of Mymensingh.

"It's unbearable amid the sweltering heat."

The situation stays normal from midnight to 7 in the morning and then the power goes out in one to two-hour intervals throughout the day, Rafiul said.

A businessman, who ran a steel workshop in Biswas Para of Joypurhat, said they need to take a break for at least an hour every couple of hours. "Sometimes, the power is gone for three to four hours," he added.

PDB officials are pinning the blame for frequent power cuts on insufficient electricity generation by the coal-based power plants due to various technical issues. Gas shortage, too, has become a regular scenario.

Power plants with at least 10,000MW unutilised capacity are sitting idle due to fuel shortage or maintenance: 6,300MW due to fuel shortage and 3,600MW for maintenance.

Compared to last month, the unutilised capacity has increased due to fuel shortage this month.

Gas-fired plants of 4,093MW capacity are sitting idle due to a shortage of fuel, according to PDB data.

The country has a total of 11,428MW installed capacity from gas sources.

At least 25 gas-fired power plants have been shut since May 27 when cyclone Remal hit the coastal areas.

The cyclone damaged one of the country's two floating storage and regasification units (FSRUs), which brought down the LNG regasification capacity to 600 million cubic feet per day (mmcfd) from 1,100 mmcfd.

The FSRU tried to resume operations several times but failed.

It is now slated to resume operations from September 15, as per the recent announcement of Muhammad Fouzul Kabir Khan, the adviser to the ministry of power, energy and mineral resources.

Then the PDB's largest single power supplier, the 1,496MW Adani Godda power plant located in India's Jharkhand, is producing around 1,000MW of electricity.

Recently, they have sent letters to the ministry, the Bangladesh Bank and the chief adviser of the interim government to clear their eight months' outstanding bills amounting to $800 million.

"We are forced to inform you that the Godda plant is struggling hard to sustain its operations on account of running expenses towards procurement of coal, debt service obligations, operation and maintenance," said a PDB official quoting the letter as saying.

The Matarbari power plant is also producing less than its capacity due to coal shortage, while one of the two units of Chattogram's SS power plant is under maintenance.

At present, about 2,300MW -- or one-third of the total coal power capacity of 6,604MW -- remains idle, according to data from PDB.

Furnace oil imports also faced a dip due to the dollar crunch, according to PDB officials.

As of September 4, gross foreign exchange reserves stand at about $20.6 billion, enough to service about four months' import bill, according to data from the BB.

The country's total power generation capacity is 27,086MW.​

 

[Saif]

Power supply may not improve anytime soon

The power supply situation has further deteriorated across the country as another power plant has completely shut and there is no sign of increasing generation in the immediate future.

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Power supply may not improve anytime soon

The power supply situation has further deteriorated across the country as another power plant has completely shut and there is no sign of increasing generation in the immediate future.

Load-shedding or gap in power demand and supply hit the highest 2,312MW early yesterday, a record in recent weeks, according to the data of Power Grid Bangladesh PLC.

Rajshahi, Rangpur, Cumilla, Mymensingh and Sylhet areas are mostly affected by power cuts, the data shows.

From Monday evening, Dinajpur's 525-megawatt Barapukuria thermal power plant, the country's first coal-fired power producer, suspended operations after its lone functioning unit shut down for technical glitches, leaving the greater Rangpur area without electricity for a large part of the day.

The unit was supplying around 200MW of electricity.

Md Abu Bakkar Siddique, the chief engineer of the power plant, attributed the shutdown to the failure to conduct timely repairs by the Chinese contractor Harbin International.

Harbin did not adhere to contractual obligations regarding maintenance, he said, adding that the Chinese contractor had requested two weeks to resolve the technical fault.

Until then, small-scale businesses and battery-run autorickshaws will have to suffer.

Abdul Hannan, a rice miller in Bochaganj upazila of Dinajpur, said his mill's output has dropped significantly because of the unusual power cuts.

Sultan Mahmud, who runs a PVC printing business in Nawabganj upazila, said his business was affected by the frequent power cuts for the last couple of days.

"We are getting at least six hours' of power cuts every 24 hours," he said.

Load-shedding has hit Dhaka as well, according to data from the two distribution companies -- Dhaka Power Distribution Company and Dhaka Electric Supply Company. The two companies faced around 500MW of supply shortfall yesterday.

At least 25 gas-fired power plants have been shut since May 27 when cyclone Remal hit the coastal areas.

The cyclone damaged one of the country's two floating storage and regasification units (FSRUs), which brought down the LNG regasification capacity to 600 million cubic feet per day (mmcfd) from 1,100 mmcfd.

The FSRU tried to resume operations several times but failed.

It is now slated to resume operations on September 15, as per the interim government's recent announcement.

However, a PDB official said even if the FSRU comes into operation then, the situation will not improve immediately as the liquefied natural gas cargo will not arrive.

The government initiated the purchase process only recently and it will take at least two weeks for the cargo to arrive, he said.

Besides the gas shortfall, PDB officials are pinning the blame for frequent power cuts on insufficient electricity generation by the coal-based power plants due to various technical issues.

In the meantime, the Adani Godda power plant, which has outstanding bills of about $800 million, is supplying about 500MW less following instructions from PDB.

PDB has outstanding bills of about Tk 35,000 crore, most of which need to be paid in dollars, The Daily Star has learnt from officials involved with the proceedings.

Due to the dollar crunch, those payments have been put on hold, they said.

As of September 4, gross foreign exchange reserves stood at about $20.6 billion, enough to service about four months' import bill, according to data from the Bangladesh Bank.

The dollar crunch has interrupted the import of primary fuel including coal, gas and furnace oil, which hit the power sector, according to the officials concerned.

Subsequently, PDB has been unable to ramp up production despite higher demand due to the rising mercury.

The country's total power generation capacity is 27,086MW.​

 

[Saif]

Production fully suspended at Barapukuria power plant due to technical glitch

The shutdown has led to further power outages as the plant has the capacity to produce 275-megawatt of electricity.

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Production fully suspended at Barapukuria power plant due to technical glitch

Photo: Star

Power generation at Dinajpur's Barapukuria coal-based thermal power plant was fully suspended yesterday after its third unit was forced to shut down due to a technical glitch.

The unit had stopped operating from 6:00pm, our Dinajpur correspondent reports quoting Md Abu Bakkar Siddique, the power plant's Chief Engineer.

The Barapukuria plant, managed by Bangladesh Power Development Board (BPDB), has the capacity to produce 575-megawatt of electricity from its three units.

The 275-MW third unit is operated by the Chinese contracting firm, Harbin International. The two other units have the capacity of producing 125MW electricity each.

However, it used to generate 200 MW of electricity daily, which was supplied to the national grid.

This latest shutdown has further exacerbated power outages, resulting in frequent power outages in the greater Rangpur area.

Load-shedding or gap in power demand and supply was calculated at around 2,200MW last night, which is the highest in recent weeks, according to data of Power Grid Bangladesh PLC

The unit that shut down yesterday was the last operational unit of the power plant, as its first and second units went out of service long ago due to technical glitches, the chief engineer said. Each of the three units requires two electro-hydraulic oil pumps to function, which supply oil to the units for power generation. Since 2022, one of the pumps in the third unit remained out of service, and the plant was running depending on a single pump, leading to operational risks. Despite repeated notifications to the contractor, the problems remained unresolved.

After a 36-day shutdown, the third unit resumed operation on Friday (September 6), but its last oil pump broke down yesterday evening, halting production completely, the chief engineer said.

He said they had informed the Chinese contractor about the issue, and they requested two weeks to resolve it.

The plant will be able to resume operations once the necessary parts arrive from China.​

 

[Saif]

Govt trying to solve power cuts within 2-3 weeks: Rizwana

The interim government is trying to solve the power outage problem within the next two-three weeks, Adviser for Environment and also Water Resources Syeda Rizwana Hasan said yesterday

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Govt trying to solve power cuts within 2-3 weeks: Rizwana

File photo

The interim government is trying to solve the power outage problem within the next two-three weeks, Adviser for Environment and also Water Resources Syeda Rizwana Hasan said yesterday.

She said the load-shedding issue was discussed in the advisory council meeting held with Chief Adviser Prof Muhammad Yunus in the chair at his office.

"We'll try to reach a solution to this problem within two-three weeks," Rizwana said while replying to a question at a press briefing at the Foreign Service Academy after the meeting.

Election to be held after necessary reforms

The environment adviser said there were two main aspirations behind the mass uprising -- one, to end rampant discrimination, and the other, much-needed reforms.

Referring to the formation of six commissions to reform six key sectors, Rizwana said, "We initially expect that the commissions would place their reports within three months."

She said the implementation of the recommendations to be placed by the six commissions would depend on whether the government can build a political consensus on these. "We'll go for dialogue at one stage."

"We're thinking about elections after taking specific commitments on reforms or bringing specific amendments in some cases by reaching a political consensus through dialogues," she said.

Rizwana said the political parties have already made it clear that they would go for election after reforms.​

 

[Saif]

Reformation to power, energy sector: BWGED places 16-point proposals

Bangladesh Working Group on Ecology and Development today proposed 16-point proposals for reforming the power and energy sector to ensure good governance, transparency and sustainable development to the sector

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Reformation to power, energy sector: BWGED places 16-point proposals
BWGED places 16-point proposal for power sector reform

Bangladesh Working Group on Ecology and Development today proposed 16-point proposals for reforming the power and energy sector to ensure good governance, transparency and sustainable development to the sector.

The organisation made the proposals at a press conference at Dhaka Reporters' Unity.

The working group urged the interim government to adopt "No Coal or Coal Moratorium Policy", cancel any new coal-based plant from the power sector masterplan, move away from dependency on liquefied natural gas, and cancel the earlier-announced third LNG terminal.

They also asked the government to backtrack from the previous government's plan to introduce Japanese technologies including carbon capture and ammonia co-firing, which they termed as "unproven and false technologies".

BWGED also demanded removing 26-56 percent taxes in the renewable energy sector, revoking the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010, initiating a public investigation committee, making Initial Environmental Examination and Environmental Impact Assessment mandatory for all projects, and initiating new masterplan aiming Net Zero carbon emission.

BWGED member secretary Hasan Mehedi said despite the country's commitment to reduce dependence on fossil fuel for power generation, it did not happen.

"Gas-based power plants generate electricity for half of a year and remain ineffective for rest of the time. As such, the previous government had been increasing LNG-based power plants," he added.

Addressing the event, Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue, said it is high time to prioritise knowledge-based policy decisions and break the syndicate that has long been dominating the power and energy sector.

Mentioning that the previous government took decisions to favour certain individuals or groups, he said, "Now, decisions regarding formulation of laws and policies have to be taken in the light of people's welfare and science-based knowledge."

Moazzem also called for ensuring independence of the Bangladesh Energy Regulatory Commission and Sustainable and Renewable Energy Development Authority, and awarding all new plants through a competitive bidding process.

He further demanded the concerned ministry to disclose the Power Purchase Agreements to ensure transparency and accountability, and urged the interim government to prioritise civil society organisations' voices from local to national levels​

 

[Saif]

PDB says Adani dues inflated by 32pc

The Bangladesh Power Development Board estimated that it owed to the Indian Adani Power $547 million, about 32 per cent less than what was claimed by the company, a sister concern of the...

www.newagebd.net

PDB says Adani dues inflated by 32pc
Emran Hossain 12 September, 2024, 23:11

The Bangladesh Power Development Board estimated that it owed to the Indian Adani Power $547 million, about 32 per cent less than what was claimed by the company, a sister concern of the controversial Indian Adani Group conglomerate.

The group’s chairman Gautam Adani sent a letter to chief adviser to the interim government of Bangladesh Muhammad Yunus last month seeking his intervention to clear his outstanding power bill of $800 million, Indian media reported on September 10.

The PDB confirmed that Adani Group asked for payment of $800 million in dues.

Officials at the power development board’s finance division explained that an unequal power purchase agreement that brought Adani into the country’s power scene last year in a deal patronised by Sheikh Hasina and Narendra Modi allowed price manipulation and the overpricing.

Power, energy and mineral resources adviser Muhammad Fouzul Kabir Khan said that a special committee was engaged in evaluating power and energy deals, including the one with Adani, signed during the tenure of the now overthrown Awami League government.

‘We are also writing a reply to the letter sent to the chief adviser explaining our position on the matter,’ he said sharing his knowledge regarding the difference in the estimates of its dues payable to Adani.

The power purchase agreement, better known as PPA, allowed Adani Power to generate electricity in its 1,600MW Godda power plant by burning coal carrying a calorific value of 4,600 kcal/kg, but charge Bangladesh for the use of coal carrying the calorific value of 6,322 kcal/kg.

It means, Bangladesh is being charged by Adani for a high quality coal use, while in reality the plant is using a lesser quality coal.

The price of coal varies greatly depending on its quality, explained officials at the PDB’s finance division, citing different prices of coal on the Indonesian index on Wednesday.

The price of a tonne of coal on the Indonesian index drops down to $51.18 from $127.72 between the categories of the coal producing 4200 kcal/kg and 6500 kcal/kg. The lowest quality of coal on the Indonesian index costs $31.78.

The PPA also allowed Adani to combine prices of coal on the Indonesian and Australian indexes and average them to claim a price from Bangladesh.

The Australian coal is of very high quality and more expensive than the Indonesian coal. Adani is allowed to use the high price to inflate its profit though importing coal from Indonesia entirely.

The provision of averaging the combined prices is rather unique since other similar power plants were never allowed such privileges. Power plants, such as Rampal and Payra, were allowed to use only one index for pricing.

The Adani power plant initially raised eyebrows as it had planned to use coal from an Australian mine owned by the Adani Group. The international media reported that Adani was allowed to dump its coal on Bangladesh as the fossil fuel was rapidly losing its market. Adani had to abandon the plan following widespread criticism.

The PPA, termed unequal by energy experts, allowed Adani to charge 60 per cent higher prices than the actual market price early last year, causing widespread outrage in Bangladesh.

In February, Adani demanded about $400 for each tonne of coal for running its Godda power plant in Jharkhand though the same coal was available for $250.

After the uproar over the coal price amidst a severe dollar crisis plaguing the past Awami League government, Adani agreed in what PDB calls a side letter that the company would charge price for coal keeping up with other coal-based power plants.

The PPA however remained unchanged.

The PPA, which was never made public, also lacked discount provision provided by the 1200MW Payra power plant in case of a sudden increase in the price of energy. The Payra plant gives up to 40 per cent discount.

Globally, PPAs offer the discount benefit, up to 55 per cent, for large-quantity coal purchases, energy experts said.

The effectiveness of the side letter expired in June this year, the PDB said.

Letters sent to Adani requesting an extension of the side letter after the autocratic Hasina government fell in early August was not replied.

PDB officials said that Adani rather insisted that their dues to be paid based on the PPA conditions.

Bangladesh is currently receiving a $4.7 billion loan from the International Monetary Fund based on agreeing to implement at least four dozen conditions.

In April, 2018, in a report the US-based Institute for Energy Economics and Financial Analysis said that the Godda project would be one of the most expensive sources of electricity for Bangladesh.

The report pointed out that Bangladesh’s Godda electricity deal was clearly designed to benefit Adani.

In December 13, 2022, the institute in another report said that Bangladesh could not afford electricity produced by Adani without frequently increasing power tariff.

Ever since Adani rolled into operation last year, power price was increased several times.

The Washington Post showed the Godda project as the centrepiece of a report published in December 2022 for demonstrating how political influence and abuses enabled the Adani Group to build its coal empire in India and beyond.

‘The coal will probably come on Adani ships to an Adani-owned port in eastern India, then arrive at the plant on a stretch of Adani-built rail. The electricity generated will be sent to the border over an Adani-built high-voltage line. Under the contract, shipping and transmission costs will be passed on to Bangladesh,’ read a paragraph of the Washington Post report.

The Institute for Energy Economics and Financial Analysis estimated that the coal shipping would involve an 8,000-km sea and a 700-km railway journeys.

Adani also built over 100-km power transmission lines and is entitled to charge Tk 0.29 per unit with a yearly increase rate of 1 per cent, according to a report published in June by the Bangladesh Working Group on External Debt.

The working group report estimated that Adani would have its investment returned in maximum six years while the capacity charge stipulated in the deal with Bangladesh would earn Adani over its 25-year lifetime some $12 billion.

Adani’s Godda investment was estimated to be $2 billion.

The power cell director Muhammad Hossain last year blamed lack of experience for the shortcomings in the deal with Adani.

Bangladesh’s current installed capacity is 27,791MW, but the country is struggling to generate even 13,000MW.

A crippling energy crisis is sweeping through the country amidst humid, hot days, prompting up to 20 hours of power cuts in many places.

Adani-appointed public relation agency in Bangladesh in reply to a request for comment said that what the BPDB said was correct as overdue amount. Amount remained not paid within two months due date.

It also said that Adani had not officially told any news media about any amount outstanding.​

 

[Saif]

Govt must move back on Adani power agreement

THE agreement with India’s Adani Power by way of which it supplies Bangladesh with power from a 1.6GW Godda plant built in the Indian state of Jharkhand exclusively for the...

www.newagebd.net

Govt must move back on Adani power agreement
14 September, 2024, 00:00

THE agreement with India’s Adani Power by way of which it supplies Bangladesh with power from a 1.6GW Godda plant built in the Indian state of Jharkhand exclusively for the purpose has aired fresh fears as the Power Development Board has estimated that it owes Adani $547 million, about 32 per cent less than what the Indian entity has claimed. The Adani Group that owns Adani Power, as Indian media reported on September 10 which Bangladesh authorities have also confirmed, has written to the chief adviser to the interim government of Bangladesh in August seeking an intervention in the clearance of $800 in outstanding power bill. The power board says that the agreement, which brought Adani to Bangladesh’s power scene in 2023 under the patronisation of the deposed prime minister Sheikh Hasina, allows price manipulation and overpricing. Whilst the power board is reported to be writing to the chief adviser to the interim government on Bangladesh’s position on the agreement, the adviser on power, energy and mineral resources says that a special committee was evaluating all power and energy agreements, including the one with Adani, that were signed during the 15 years’ tenure of the Awami League government, overthrown on August 5 amidst a student-mass uprising.

The agreement has allowed Adani to generate power from coal carrying a calorific value of 4,600 kcal/kg but charge Bangladesh for the use of coal carrying 6,322 kcal/kg in calorific value. This comes down to the use of low-value coal for the payment of high-value coal. Besides, the agreement has allowed Adani to charge Bangladesh an average of coal prices on the Indonesian Index, in which a tonne of coal in the range of 4,200 kcal/kg–6,500 kcal/kg costs in the range of $51.18–$127.72, and the Australian Index, which is of very high quality and is more expensive, to inflate its profit although Adani sources its coal for the plant entirely from Indonesia. The provision for averaging the combined prices of coal is unique to the Godda project as no other similar plants have been given such privilege. The agreement, thus, allowed Adani to charge Bangladesh 60 per cent higher than the actual market price in 2023. Adani in February demanded about $400 for a tonne of coal although it was available for $250. The agreement also has no provision for discount, which is up to 55 per cent globally, in the case of a sudden increase in coal price as is the case with the 1.2GW Payra plant. Adani, which has invested an estimated $2 billion in the Godda plant, is reported to be getting its investment returns in six years and the capacity charge in the deal would earn Adani some $12 billion more in its 25-year lifetime.

Bangladesh’s installed power generation capacity is about 2.78GW, but it struggles to generate even 1.3GW, with a burdening overcapacity and consequent capacity charge payment. The interim government must, therefore, move back on the Adani power purchase agreement and, rather, improve on the use of generation capacity after a thorough review of the power and energy situation.​

 

[Saif]

Ensuring urgent fuel supply to power plants

Severe load-shedding in the northern and northeastern districts including also Dhaka over the past few days has been causing enormous public suffering. The problems causing the disruptions in smooth power supply are, however, inherited from the immediate past government. The shutting down of

thefinancialexpress.com.bd

Ensuring urgent fuel supply to power plants
Published :
Sep 13, 2024 21:56
Updated :
Sep 13, 2024 21:56

Severe load-shedding in the northern and northeastern districts including also Dhaka over the past few days has been causing enormous public suffering. The problems causing the disruptions in smooth power supply are, however, inherited from the immediate past government. The shutting down of all the operational units of Dinajpur's 525-MW coal-fired power plant, most of the country's gas-fired power plants which share more than 40 per cent of country's total generation capacity remaining out of production due to gas shortage and the huge arrears of unpaid power bills owed to a major power supplier from India, the Adani Group, are some of the issues debilitating the interim government's capacity to resolve the power shortage issue within a short time.

According to the Power Development Board (PDB), its total unpaid bills amount to Tk 350 billion. Even so, the adviser to the ministry of power, energy and mineral resources is learnt to have informed the media on September 11 last that the power situation would improve within three weeks. The steps to be taken for urgent addressing of the issues, he further informed, include urgent fixing of the technical glitches at the Barapukuria thermal power plant, the communication made with the Adani Group to enhance power supply and arrangements made to import LNG (Liquefied Natural Gas). The interim government's sincerity and urgency to respond to the emerging issues will make a difference. Any short-term answer to the problems involving production, supply and distribution of power should be part of a long-term strategy to rid the sector of its deeply ingrained ills. The long-term approach, as often stressed by well-meaning people and experts, should be to exploit the country's own potential reserves of gas and other fossil fuels.

The present problem of the power sector arises out of a lack of fuels to run power plants and the shortage of foreign currency to import those. But these problems could be avoided if the country's power sector was not fully made dependent on fuel import that eats up the lion's share of the hard currency that the country earns from remittances and exports. The main beneficiaries of this policy adopted by the past government have been the private power companies, contractors enjoying the government's patronage, the corrupt bureaucrats and ministers. Sadly, the nation's forex reserve was thus depleted to import LNG, coal and oils to feed the power plants that have the capacity to produce about double the power the country needs at the moment. But those remain idle for a lack of fuel. Now the nation is being forced to bear this unnecessary burden.

Under the circumstances, it would be incumbent upon the interim government to meet the emergencies through holding negotiations with major sources of fuels including the gulf countries, Indonesia and elsewhere so that fuel supplies to the power plants remain uninterrupted. At this point, the steps taken, as told by the energy adviser, to scrap the indemnity act "Quick Enhancement of Electricity and Energy Supply (Special Provision) Act in 2010" to protect the government from any judicial proceedings drawn against it, cancellation of the ministry's authority to fix energy tariffs, holding open bids for contractors and so on should be implemented as soon as possible.​

 

[Saif]

600MW power outage can be cured overnight

Bangladesh currently reels from load shedding to the tune of around 2,000-3,000 megawatts of electricity daily as the demand far outstrips production, market-insiders say, although much of it can be healed readily. Despite having the shortfall in electricity generation, state-run Bangladesh Power

thefinancialexpress.com.bd

600MW power outage can be cured overnight
Operating six idle HSFO-based power plants under 'No-Electricity, No-Payment' arrangement holds the key
M Azizur Rahman
Published :
Sep 14, 2024 23:56
Updated :
Sep 14, 2024 23:56

Bangladesh currently reels from load shedding to the tune of around 2,000-3,000 megawatts of electricity daily as the demand far outstrips production, market-insiders say, although much of it can be healed readily.

Despite having the shortfall in electricity generation, state-run Bangladesh Power Development Board (BPDB) has kept six furnace-oil-run power plants, having the generation capacity of around 600 MWs, idle as the interim government has yet to decide on continuation of their operation under 'no-electricity, no-payment (NENP)' mechanism, they have said.

Officials think if such six furnace-oil plants got approval for continuing electricity generation under NENP, they would be able to contribute to reducing at least one-third of the load shedding without any immediate investment from the government.

"Of the peak-load power plants, these are most economical because they are the only plants among the 150 new ones that do not entail capacity payments," says a senior BPDB official.

"Operating these plants poses no financial burden on the government either," he adds.

Typically, load shedding occurs for only 2-3 hours per day, equating to 30 to 40 per cent of the time when additional power is needed. At this plant-load factor, the NENP plants are 8-15-percent cheaper than other high sulfur-fuel oil (HSFO)-based plants that require capacity payments, the official explains.

Load shedding primarily occurs during peak periods, and these HSFO-based plants are particularly suited to such scenarios.

Unlike coal- or liquefied natural gas (LNG)-based plants, which require longer startup times and have slower load- adjustment capabilities, HSFO-fired plants can be activated instantly, ramped up or down quickly, and shut down when demand decreases.

Continuation of such power plants is also needed to meet the mounting power demand, he suggests.

"Over the past several years, Bangladesh got almost all sorts of power plants as part of its energy diversification, resulting in overcapacity," says research director of the Centre for Policy Dialogue (CPD) Dr Khondaker Golam Moazzem.

To ensure the country's future energy security at affordable costs, he opines, the government now requires to streamline the energy sources.

The policy researcher suggests that the provision of capacity payment should be withdrawn from all the rentals and quick rentals and 'no-electricity, no -payment (NENP)' clause should be applicable to all of them.

Speaking in the same vein as CPD's Dr Moazzem, president of Bangladesh Independent Power Producers' Association (BIPPA) Faisal Khan also opines for continuation of NENP mechanism to buy electricity from the HSFO-based power plants.

"The BPDB only pays for the electricity actually produced. Since the project capital costs and loans are paid off during the initial power -purchase agreement (PPA), there is no requirement for capacity payment," he told the FE in support of the NENP method.

Power producers are motivated to maintain high operational efficiency to get optimal dispatch.

"This model can promote a more dynamic and competitive energy market. It will be good for Bangladesh to run expired plants in this model as the infrastructure is already available and no further capital expense is required," says the BIPPA top brass about the merit of kick-starting the laid-off units as an immediate cure for nagging outages reported from different corners of the country.

Sources have said despite having excess electricity-generation capacity, Bangladesh has been struggling to cope with an ever-growing demand, resulting in acute load shedding across the country amid sweltering heat, the rural areas being the worst sufferers.

Improper energy-mix and inefficient infrastructure, coupled with volatile foreign currency and global energy markets, pushed the situation in dire straits, market-insiders have said. They said riding on installations of around 150 new power plants, the previous 'authoritarian' government had declared 100-percent electricity coverage in March 2022 as the first country in South Asia.

But, unfortunately, after achieving such pride, the country started suffering from electricity load shedding again due to newer sort of challenges -primary energy crisis and the piling up of overdue payments against energy purchases by state-run entities.

Load shedding meddled on the very first year of achieving the feat as state-run Petrobangla had to stop purchasing liquefied natural gas from international spot market due to skyrocketing of its price as high as a record US$70 per million British Thermal unit (MMBTu).

The Power Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) then relied more on privately owned high-sulfur fuel oil (HSFO)-run power plants to augment generation along with coal-fired power plants amid continuation of imports from neighbouring India, a senior BPDB official told the FE Saturday.

Again, during June 2023, when the countrywide load shedding intensified amid the shutdown of a number of coal-fired power plants, including the Payra 1,244MW coal-fired plant, due to coal scarcity caused from mounting overdue payments, the gas-fired power plants and HSFO-based power plants augmented generation to overcome the crisis, the official added.

Electricity generation from coal-fired power plants and HSFO-fired power plants and importation also ramped up over the past several months when gas-fired power plants were struggling to generate electricity due to short supply of the fuel caused from the shutting of operation of Summit LNG Terminal until September 11.

Market-insiders say continuation of such power plants is also needed to meet the mounting power demand.

According to latest official data of the BPDB, the country's annual electricity consumption soared by around 25 per cent over the past four years from around 70,534 million kilowatt-hour (MkWh) during fiscal year (FY) 2018-29 to 88,450MkWh during FY 2022-23 amid energy diversification.

Although the power-consumption figure of FY 2023-24 was not available, the BPDB official said it grew by around 8.0 to 10 per cent.

Despite increase in power consumption, contribution of natural gas in overall power generation declined to around 52 per cent during FY 2022-23 from 72 per cent during FY 2019-20. Contribution of HSFO-based power plants slumped to 21 per cent during FY 2022-23 from 27 per cent during FY 2022-23.

Use of expensive diesel-fired power plant continued to grow over the past several years as it reached 2.8 per cent of the country's overall power generation during FY 2022-23 from only 0.8 per cent during FY 2020-21.

Power import from India, including that of Adani's Jharkhand power plant, increased to 12 per cent during FY 2022-23 from 9.0 per cent during FY 2021-22.

Contribution of coal-fired power plants almost doubled to 11 per cent during FY 2022-23 from 6.0 per cent during FY 2021-22.​

 

[Saif]

Energy Adviser seeks Swiss cooperation in renewable energy, advanced technology

Adviser of the interim government for Power, Energy and Mineral Resources, Road Transport and Bridges and Railways Muhammad Fouzul Kabir Khan has sought the cooperation of the Swiss government in the fields of renewable energy and advanced technology. He also invited Swiss businessmen to participa

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Energy Adviser seeks Swiss cooperation in renewable energy, advanced technology
UNB
Published :
Sep 15, 2024 21:43
Updated :
Sep 15, 2024 21:43

Adviser of the interim government for Power, Energy and Mineral Resources, Road Transport and Bridges and Railways Muhammad Fouzul Kabir Khan has sought the cooperation of the Swiss government in the fields of renewable energy and advanced technology.

He also invited Swiss businessmen to participate in the development of Bangladesh and invest in business.

He made the call when Ambassador of Switzerland to Bangladesh Reto Renggli met him on Sunday.

The Swiss envoy was leading a delegation in the meeting in the adviser’s room in the Ministry of Power, Energy and Mineral Resources at the Secretariat.

The Advisor discussed the activities he has undertaken in a short time after taking charge to ensure transparency and accountability in the power and energy sector. He welcomed Swiss companies to participate in various development activities of Bangladesh.

Fouzul Kabir said that he recently visited the Matabari power plant project. The project also includes deep sea ports, economic zones, railways and road projects. But it is not possible to get real benefits from just setting up power plants, until other projects are implemented.

He observed that a huge number of unplanned development projects in the power and energy sector had been taken up and implemented during the previous government’s tenure.

“In most cases projects have been implemented at a cost much higher than the reasonable one which has not been value for money”.

He said that from now on, he will give importance to implementation of big projects with small projects at low cost.

He also noted that emphasis will also be laid on renewable energy generation and use of environment-friendly energy.

Swiss envoy Reto Renggli welcomed the adviser for assuming offices of three important ministries and said it is a very challenging task. The ambassador appreciated the steps taken by the current government in a short period of time.

He expressed hope that the measures taken including the suspension of the controversial law in the power and energy sector and the cancellation of Section 34A of the BERC Act, introducing the open tender process in government procurement, removal of the secretaries from the post of chairman of the companies under their control will play a significant role in ensuring transparency and accountability.

The Ambassador assured that the offer of investment and technology assistance to Bangladesh will be seriously considered.​

 

[Saif]

S Alam takes Tk 3,287cr in power capacity charge

The coal-based 1,224MW Banshkhali power station, owned by the controversial S Alam group, realised up to more than double the amount received by its peers in capacity charge payment in the 2023–24 financial year, revealed data obtained from the Bangladesh Power Development Board...

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S Alam takes Tk 3,287cr in power capacity charge
Emran Hossain 18 September, 2024, 23:35

The coal-based 1,224MW Banshkhali power station, owned by the controversial S Alam group, realised up to more than double the amount received by its peers in capacity charge payment in the 2023–24 financial year, revealed data obtained from the Bangladesh Power Development Board.

The coal-fired power plants compared here include the 1,600MW Adani power station, 1,320MW Rampal power station, 1,320MW Payra power plant, and 370MW Barishal power station.

The capacity charge received by the Banshkhali power plant, energy experts pointed out, shines the spotlight on the typical Bangladesh power scenario— power deals coupled with mismanagement earning private investors predatory profits.

Capacity charge represents the amount of money payable under power deals by the government irrespective of electricity generated, ensuring private investors maximum return on their investment.

The Banshkhali power station generated 240.29 crore units of electricity last year and received Tk 3,287.86 crore in capacity charge, receiving Tk 13.68 while producing a unit of electricity.

The Payra and Barishal power plants, on the other hand, received Tk 5.69 and Tk 5.99 respectively for producing a unit of electricity during the same time, revealed BPDB data.

The Payra power plant received Tk 4,292 crore in capacity charge and generated 754.87 crore units of power.

The Barishal power plant was paid Tk 477.52 crore in capacity charge and produced 79.74 crore units of electricity.

The Rampal power plant received Tk 7.96 in capacity charge per unit of electricity. It was paid Tk 2,236.92 crore in capacity charge and produced 281.15 crore units of electricity.

The controversial Indian business group Adani received Tk 6.6 in capacity charge per unit of electricity produced. The power plant set up in Jharkhand received Tk 5,392.3 crore in capacity charge and produced 816.66 crore units of electricity.

The large amount of capacity charges indicates that significant parts of the power plants’ capacity remained unused last year.

The time the power plants remained out of operation, however, was not always due to the country’s inability to take power from them.

There were times when the power plants remained out of operations because of technical glitches and the failure to manage fuel.

Except for the Payra power plant, the other power stations manage their own coal. The Bangladesh government has a long-term supply deal with Indonesia for procuring coal for the Payra power plant.

‘It is apparent the power plants were paid capacity charge anyway, indicating loopholes in the power deals,’ said Hasan Mehedi, member secretary, Bangladesh Working Group on Ecology and Development.

Bangladesh’s power deals did not follow a pattern and varied case-to-case as they were achieved through one-to-one negotiation bypassing the standard bidding procedure.

The past Awami League government, toppled now by a student-led mass movement, carried out power projects under an indemnity law over the last one and a half decade.

The Banshkhali power plant was used less than 21 per cent of its capacity, according to the BPDB. The Adani power plant was used 60 per cent of its capacity.

‘One of the reasons behind the poor use of Banshkhali power plant was the delay in installing the transmission network needed to evacuate power from the plant,’ said a BPDB official seeking anonymity.

Delays in building transmission networks turning power plants to economic burden are nothing new. A unit of the 660MW power plant remained unused for over a year in the absence of adequate transmission network.

Last year, Banshkhali produced the costliest coal power spending Tk 20.53 for generating a unit of power, followed by Tk 16.11 spent by Rampal power station, Tk 15.14 spent by Adani, Tk 13.16 spent by Barishal power plant and Tk 11.87 spent by Payra power station.

The Banshkhali power plant, which came into operation with its both units between September and October last year, frequently grabbed headlines when the past government intervened in its favour sending police to use lethal force, killing at least 11 people.

Located in Chattogram district, the power plant faced strong opposition from the local people since the very beginning as it affected thousands of families and many villages.

The plant was set up without having a proper environmental impact assessment.

The government also waived the stamp duty of about Tk 3,170 crore on land lease agreement and financing documents for the SS Power 1 Limited under the Private Sector Power Generation Policy.

The interim government has employed a committee of experts for evaluating power deals signed under the indemnity law during the autocratic regime of Sheikh Hasina.

Bangladesh’s current installed power capacity is 27,791MW but the country struggles to constantly generate 13,000MW.

Only six coal-based power plants realised Tk 15,686.6 crore in capacity charge in the last fiscal.

In September last year, the past Awami League government revealed that Tk 1.04 lakh crore was spent in paying capacity charge in the 14 years since the government assumed power in 2009.​

 

[Saif]

Bangladesh to sign deal to import power from Nepal soon: adviser

Bangladesh is poised to sign the tripartite agreement with Nepal and India soon to import hydropower from Nepal via Indian transmission lines, according to Power, Energy and Mineral Resources Adviser Md Fouzul Kabir Khan

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Bangladesh to sign deal to import power from Nepal soon: adviser

Bangladesh is poised to sign the tripartite agreement with Nepal and India soon to import hydropower from Nepal via Indian transmission lines, according to Power, Energy and Mineral Resources Adviser Md Fouzul Kabir Khan.

"A delegation of the interim government will visit Nepal soon to sign the agreement for import and export of power," he said while speaking as chief guest at a reception programme marking Nepal's National and Constitution Day at a city hotel last evening.

Bangladesh, Nepal and India recently agreed to sign an agreement to import 40MW of electricity from Nepal via India six years after they reached an understanding on energy cooperation, according to the official source.

At the reception, hosted by Nepal Embassy in Dhaka, the adviser expressed satisfaction over the growing engagements between the two countries.

Commending the friendship and cooperation of Nepal and Nepali people, he underscored the need to accelerate bilateral cooperation in areas of trade, energy, connectivity, and people-to-people contacts, among others.

In his welcome remarks, Ambassador Ghanshyam Bhandari highlighted that the day marked the historic promulgation of a democratic and inclusive Constitution in 2015.

"The day reminds us of the Nepali spirit of patriotism, democracy, and diversity, and is a testimony to the Nepali people's ability to resolve their political issues and differences on their own," he said.

He said as Bangladesh is passing through a transition period, Nepal is committed to stand by the interim government and its people with solidarity to provide all support and cooperation.

The envoy also mentioned that a tripartite deal on the export of 40MW electricity from Nepal to Bangladesh through the Indian transmission line is expected to be concluded sometime soon.

Shedding light on the relationship between Nepal and Bangladesh, he emphasised the need to leverage the transformative power of solidarity and cooperation to boost connectivity and propel economic development and prosperity for the mutual benefit of the peoples of both countries.

A cultural programme showcasing Nepali folk-dance performances was held in the second half of the event.

The event was attended by political leaders of Bangladesh, high-level government officials, ambassadors, heads of missions and diplomats, representatives of international organisations, business leaders, media personnel, and members of the Nepali community living in Bangladesh.​

 

[Saif]

Three dozen renewable energy projects await govt approval
Proper scrutiny of projects a must
M Azizur Rahman
Published :
Sep 23, 2024 00:28
Updated :
Sep 23, 2024 00:28

Nearly three dozen renewable-energy projects with around 3,287-megawatt generation capacity are now stalled at the final stage of inking power purchase agreements (PPAs) with a state power agency.

Sources say with initial government consent before the August changeover, the private entrepreneurs were about to enter into PPAs with state-run Bangladesh Power Development Board (BPDB). But now the process faces delays.

Bangladesh's overreliance on imports of fossil fuels will escalate further if these projects do not get approval for quick start, relevant sponsors fear.

Once implemented, these projects will help the country to ease ever-escalating capacity-payment burdens as all these renewable-power projects will be implemented under 'no electricity, no payment' mechanism with no capacity -payment provisions, they point out.

The circles concerned, however, suggested proper probe into the status of the solar power projects---whether they got approvals bypassing competition under the much talked-about indemnity law.

These projects are aimed at checking Bangladesh's growing over-dependence on the imports of 'expensive' fossil fuels like liquefied natural gas (LNG), petroleum products and coal, to ensure the country's future energy security, a senior Power Division official told the FE Saturday, preferring anonymity.

"The initial works of these renewable projects got momentum a couple of years back against the backdrop of scarcity of conventional fuels like petroleum products, natural gas, and LNG and their soaring prices on the international market after the outbreak of Russia-Ukraine war," he says.

The ongoing Russia-Ukraine war exposed a new dimension of primary-energy situation across the globe, which had prompted Bangladesh to expedite the move to increase the share of renewable energy in the overall electricity- output basket, he adds.

Bangladesh had to stop purchasing LNG from spot market and reduce imports of diesel, furnace oil and coal under an austerity measure, resulting in enforcement of load-shedding.

The country is already struggling to foot mounting energy-import bills worth around US$2.20 billion and sought budgetary support from the multilateral donor agencies, including the World Bank, to get fiscal support.

"Foreign direct investments (FDIs) worth around US$4.5 billion will be at risk and initial investments worth around US$200 million will go down the drain with further delaying of these project works," general secretary of Bangladesh Sustainable and Renewable Energy Association (BSREA) Tofael Ahmed told the FE Saturday.

He said these renewable -energy projects were initiated during the previous government and most of the project sponsors obtained letter of intent (LOI) from the Power Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) several months back and were waiting to ink PPAs with the BPDB and implementation agreements with the government.

But the fall of the deposed Sheikh Hasina regime on August 5 pushed these projects into 'uncertainty' as the interim government has decided to halt further negotiations over the projects that were in the process of final approval under the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010.

"We are yet to get any formal letter from the government over the halting of the renewable-energy projects that are in the pipeline of implementation," said senior vice president of Bangladesh Sustainable and Renewable Energy Association (BSREA) Mostafa Al Mahmud. "But if the government decides to scrap these LOIs, it will be suicidal," he said.

The issuance of LOIs by the Power Division to these renewable power plants meant the government intended and agreed to ink final deals with the project sponsors to move forward with these projects, he said. In the process of obtaining LOIs, the private-sector entrepreneurs have invested around US$200 million from foreign lenders through banking channels, he mentioned.

For full implementation of these projects foreign direct investments (FDIs) worth around US$4.5 billion from different countries, including China, France, Malaysia, Singapore, South Korea, Germany, Japan, the USA, the UAE and Saudi Arabia, are in the pipeline, he said.

The renewable-energy sponsors also purchased and acquired necessary lands, constituted respective special purpose vehicles (SPVs), carried out feasibility studies and were at the final stage of financial closures, said Mr Mahmud.

Although these renewable -energy projects attained approval during the previous government, due diligence was followed during the process of selecting sponsors, he said.

"The interim government can scrutinize further the selection process to ensure transparency and accountability," said the BSREA leader, adding that the tariff rates of all the solar-power plants is very competitive and below 10 US cents per kilowatt-hour.

Besides, half a dozen project sponsors have already completed 100-percent purchase of required lands as they achieved the 'go ahead' from the previous government. Mr Mahmud said all sorts of renewable-energy projects are among the projects that obtained LOIs, he said, adding that 2,942 MWs are of solar plants, 320 MWs wind-based power plants and the remaining 25 MWs are of waste-to-energy projects.

Foreign investors have already invested a portion of their committed investments to carry out initial works. They will pour in further funds after the inking of the PPAs and IAs, he said.

He notes that if the interim government goes for scrapping LOIs, a negative message will go to the foreign investors.

"If new tenders are floated, the foreign investors might not come up again due to erosion of confidence and loss of their invested money," the BSREA top brass fears. And it will be time-consuming, too.

Most of the project sponsors are genuine businessmen, said Mr Mahmud.

"To avoid controversy the government can cancel some projects that were awarded on political grounds, including those of former foreign minister Hasan Mahmud, former state minister for shipping Khalid Mahmud Chowdhury and former religion minister Faridul Haque Khan Dulal," he suggests.

Sources said there could be some more projects that took recourse to dubious means to get approval and those need to be dentified.​

 

[Saif]

The roadmap for energy sector must be changed

Govt must move away from import-loan-foreign company-dependent projects and adopt a cheaper, environment-friendly, and sustainable roadmap

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The roadmap for energy sector must be changed

VISUAL: ALIZA RAHMAN

The problems in the energy and power sector have not accumulated over just 15 years. It began in the early 1980s. At the root of the problem lies the neo-liberal ideological approach that since then turned the power sector into a profit-making enterprise for a handful of local and foreign businesses. The alternative approach is fundamentally different—where access to energy and power should be a public right, and resources kept in public ownership and not privatised or turned into private businesses. Under the alternative approach, essential services such as affordable electricity, gas, and water become available for all without discrimination.

In the early 1980s, the World Bank, in the name of development, recommended the neo-liberal reform of the energy sector, suggesting that foreign investment should be brought in. Their logic was that foreign investment would lower electricity and gas prices, reduce financial loss and waste, and increase efficiency through technology transfer. Reform started in the 80s along with structural adjustment programmes in the economy, and the signing of production-sharing contracts with multinationals began according to this roadmap—the first round in 1993, and the second round in 1997. Although the governments during those periods were different, the nature of the policy remained the same and the trend continued even during the regimes that came to power after 2000.

However, after a while, the World Bank's argument about the benefits of privatisation and foreign investment in the energy sector proved to be wrong. We saw gas prices rising, loss/subsidies/wastage increasing, power tariffs increasing, and the prices of other essentials escalating on a regular basis. Furthermore, we did not see technology transfer and capacity development. Rather, the opposite happened. Foreign companies' negligence—the US company in Magurchhara and the Canadian company in Tengratila—caused big explosions in our gas fields. They destroyed natural gas that could have generated power for almost 18 months, and we still haven't received appropriate compensation for that.

During the last regime, foreign investment and privatisation in the energy sector increased further. In 2010, a new law was passed that essentially made the contracts and the contract processes free from any accountability, meaning these contracts and the companies involved could not be questioned or taken to court. This legal indemnity made them untouchable. It became clear that the intentions behind these policies were not in the public interest. When we were told that the reason for this indemnity law was to tackle huge load shedding by establishing "quick rentals," we proposed alternative solutions that would not require "quick rentals." But the government did not show any interest in accepting the cheaper, sustainable solution that would use public-sector plants. They opted for the costly, unsustainable option only to give business to well-connected groups.

The past government took an irrational and aggressive path with regard to the "Power System Master Plan" (PSMP) prepared by the Japan International Cooperation Agency (JICA), which prescribed coal, nuclear energy, and imported LNG—all heavily import-oriented, requiring loan and reliance on foreign companies, including Japanese ones, which benefited from this plan. Since 2011, the construction of coal-fired power plants by companies from India, China, and Japan began all along our coast from the Sundarbans to Cox's Bazar. The coastal area is extremely vital for the country's defence against natural disasters; it is also one of the most vulnerable regions to natural disasters, environmental damage, and climate change. However, the government and the investors totally ignored this fact and began weakening the defence system of the coastal region including the Sundarbans, the largest mangrove forest in the world.

For instance, the $12 billion megaproject for Rooppur nuclear power plant was started in early 2010 by taking a huge loan from Russia and awarding the project to Russia's state-run atomic agency Rosatom. However, people were not informed about the extreme consequences and risks associated with such a plant. There are layers of protection needed against the dangers of a nuclear power plant, considering that this could put the lives of almost 10 million people at risk.

All these megaprojects, especially the coal and nuclear power plants, suffer from irregularities, high corruption, and a lack of transparency. Plus, they initiated surveillance against dissenting opinions. It is easy to see that these plants were not built to generate electricity. There were much better alternatives. Nevertheless, these projects were pursued by the authoritarian government to bag huge commissions for policymakers and profits for a select few. Moreover, the past government sought to stay in power without people's mandate, so they relied on, among other things, international support from some foreign countries. To sustain that support, the government allowed these countries to launch those costly and environmentally harmful megaprojects. As a result, the energy and power sector has now become a huge financial burden for the whole economy and a significant source of environmental damage.

In contrast to the government's approach, we, as part of the people's movement, had developed a real solution for the sector taking the help of independent experts at home and abroad. We prepared an alternative master plan in 2017, where it was explained that there was no need for expensive LNG, dirty coal, or dangerous nuclear power. Our findings showed that our needs could be sufficiently met by focusing on gas exploration onshore and offshore and making real efforts to develop renewable energy. The steps would not require much time and resources to empower BAPEX and build public institutions for renewable energy. We recommended clear plans to utilise a large number of university students graduating every year for this purpose. We need to increase our own capabilities to bring down import costs, reduce pressure on foreign reserves, and boost our confidence and pride as a nation.

To steer toward the right direction, we must put an end to the destructive journey we have had thus far. The interim government should start scrapping projects like Rampal, Rooppur, and Banshkhali. Some may argue about the financial loss if these projects are scrapped. However, my estimates show that the costs of discarding these projects are lower than the costs of keeping these projects active. These projects will endanger Bangladesh's existence. Thus, continuing them will not only be a financial burden but also jeopardise the safety and security of the country.

Finally, this sector as well as the economy require a fundamental shift in policy framework to ensure public ownership, increase the capability of public institutions, and create the space for active public roles to build a better future in the public interest. The government must move away from import-loan-foreign company-dependent projects and adopt a cheaper, environment-friendly, and sustainable roadmap with public interest—not corporate profit—as the decisive force.

Anu Muhammad is former professor of economics of Jahangirnagar University.​

 

[Saif]

Increased role of non-carbon energy-based power supply

The 68 MW Shirajgonj solar park has been supplying power to the national grid since July, 2024. Developed on 214 acres of land located on the flood plains of the river Jamuna (near the Jamuna Multi Purpose Bridge). the solar park has so far installed 156,576 units of interconnected solar panels wit

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Increased role of non-carbon energy-based power supply
Mushfiqur Rahman
Published :
Sep 27, 2024 21:32
Updated :
Sep 27, 2024 21:32
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The 68 MW Shirajgonj solar park has been supplying power to the national grid since July, 2024. Developed on 214 acres of land located on the flood plains of the river Jamuna (near the Jamuna Multi Purpose Bridge). the solar park has so far installed 156,576 units of interconnected solar panels with the capacity of 545 watt each. The plant is being operated by the Bangladesh-China Renewable Energy Company Limited (BCRECL)-- a joint venture of North-West Power Generation Company of Bangladesh and China National Machinery Import and Export Corporation. BCRECL invested approximately US$ 90 million for implementing the plant and signed a contract with BPDB to supply power to BPDB grid for 20 years at a tariff of US 10.20 cents per unit.

At this stage BPDB has only 3 per cent (1 per cent from hydro and 2 per cent from the grid connected solar and wind power plants) power generation capacity from 15 plants using renewable energy sources. There are a number of renewable energy (mainly solar parks) based power plants under implementation at different locations of the country to generate and supply power to the national grid.

The solar parks have been encouraged to install plants in places that are generally recognised as 'non agricultural lands'. Despite technological advancements, approximately 3 acres of land are required in Bangladesh to generate one megawatt of electric power using solar energy. Power producers are hopeful that the solar panels (photovoltaic cells) have improved their efficiency and there will be a requirement for approximately 2 acres of land for generating one megawatt of power using solar energy in the near future.

Bangladesh has installed electricity generation capacity of 27,791 MW (BPDB, 31 August 2024) as against the demand for 11,370 MW (BPDB, 15 September 2024). BPDB calculated power distribution system loss (for 2023-2024) at 7.25 per cent. Media reports say, the required amount of stable power supply can not be ensured at the consumer end for various reasons. The BPDB and its power generation units have been suffering from systematic primary fuel (natural gas, liquid fuel, coal) supply shortages. Additionally, there are technical and management limitations in the power transmission and distribution systems.

A close review of the power plants' installed capacity shows that the 43 per cent of the total power generation capacity depend on natural gas as primary fuel. Petrobangla sources suggest that the total daily demand for natural gas (including the converted gas from imported LNG) in the country is approximately 330 MMCFD to 350 MMCFD. Fifty per cent of the demand for gas supply in the country comes from the power generation plants. But Petrobangla can supply approximately 250 MMCFD. As a result, the gas-based power generation units has to sit idle for fuel shortages. Published reports suggest that Petrobangla owes approximately US$ 607 million to Chevron (company under PSC contracts with Petrobangla) and the LNG suppliers in Qatar, Oman and other Spot LNG suppliers as on September 10, 2024.

Also, the power generation plants that use coal as primary fuel in the country (21 per cent of the total installed capacity) suffer from coal supply shortages and generate significantly less amount of power than the plants' capacity. Furnace oil (21 per cent plants use FO as primary fuel) and diesel (2 per cent plants use diesel as primary fuel) are costly fuels and the plants are generally discouraged to generate power for maintaining the government's subsidy (for generated power) limits for consuming the liquid fuel-based power. BPDB has currently valid contracts for importing 2,656 MW (approximately 9 per cent of the total capacity) of power from India. But the pending import bills are huge at this stage. As a result, the power export companies in India have been supplying less than their capacities and asking for settling their dues.

In the backdrop of the increased pressures for supplying uninterrupted electricity and in line with the global commitment to 'go green', Bangladesh has been trying to generate more power from renewable energy sources. Geographical limitations restrict Bangladesh to generate hydroelectricity. Wind capacity has its own limitations to expand in the country, as there are limited spots suitable for generating wind power on commercial basis. Hence, solar energy has become the main renewable source for generating commercially attractive power at an affordable price.

As the solar radiation availability and intensity varies during the day-time and at night, large-scale solar generation plants have been considering to develop storage capacity (with the help of installing batteries) along with the grid connected solar panels. Experts believe 20-30 per cent storage capacity support may enhance average solar power generation cost up to US 12-12.5 cents per unit. Despite the cost hike, such an arrangement may help stabilise the grid frequency and offset the need for using costly liquid fuel during the peak hours.

Over all, increased use of renewable and non-carbon energy-based power generation will contribute to the country's commitment for reduction in Green House gas emission, and also substantially raise the renewable energy capacity.

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

 

[Saif]

Thriving in business through energy transition

With climate change quickly becoming a global emergency, businesses need to contribute in both cooperative and coordinated way to address it.

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Thriving in business through energy transition

With climate change quickly becoming a global emergency, businesses need to contribute in both cooperative and coordinated way to address it. The historic Paris Agreement, in which Bangladesh is one of the signatory countries, aims to reduce greenhouse gas emissions and limit the global average temperature rise to 1.5º C above pre-industrial levels. Businesses can contribute to this goal by not only reducing their direct emissions, but also by focusing on how they use energy to produce and distribute their goods and services.

However, business leaders must assess their energy transition activities with respect to the business value they can create for their stakeholders – including customers, employees, investors and regulators. They should analyse their energy usage by considering two aspects -- sources of energy and efficient consumption of energy. While the sources of energy should get switched out by greener options, the optimised use of energy to produce goods and services is also crucial. These steps would help businesses to be resilient against the shocks pertaining to rapid rise in energy prices.

Transformation of the energy supply from greener sources for businesses will require more energy from wind and solar farms. At the same time, businesses need to explore the possibility of using alternative sources of energy, such as green hydrogen and biofuels. These alternative energy sources have been in use in specialised applications – e.g. hydrogen has been used as rocket fuel for several decades now. Moreover, their commercial viability to produce and supply energy for business processes has improved significantly in the recent years. For example, hydrogen can now be used in the cooling and heating systems of homes and commercial premises.

Businesses have an important role in catalysing the transformation of energy production and supply. By seeking to transition to the electricity produced from greener sources, businesses can influence energy suppliers to transform their production processes. Similarly, by adopting alternative fuels to run their business processes, businesses can catalyse the development of the alternative fuel market. In either scenario, businesses must conduct a cost-benefit analysis to understand how such energy transition is going to help their businesses commercially and deliver value to the stakeholders. A scientific assessment of the cost-benefit analysis – by estimating the energy supply mix and its cost – will help businesses to make prudent business decisions as well as make their business more resilient.

While the supply side of energy has been an area of focus from the beginning, it should also be noted that the effective management of demand is another important parameter of energy transition for businesses. From simple changes like changing the lighting within the entire factory or office from incandescent lamps to LED lamps, to a complete redesign of the business processes, there are ample opportunities to improve energy efficiency in most business operations.

According to a recent report published by the World Economic Forum in collaboration with PwC, improving energy efficiency at the demand side across buildings, factories and transportation can reduce the global energy intensity by up to 31 percent. Furthermore, the consequent monetary savings globally would be up to US$2 trillion. Evidently, businesses will be able to reap this benefit quickly by improving on their demand-side energy efficiency.

Apart from business leaders' collective focus, the policymakers and regulators also need to step in and catalyse the change. Promoting entrepreneurship for creating innovative sources of energy, incentivising the initiatives towards sustainable and transparent changes, and enabling the intersecting industries to collaborate and co-create innovative solutions for themselves and their stakeholders remain a few key focus areas where policymakers and regulators can help the businesses in their energy transition.

The need for rethinking business strategies in order to thrive post energy transition and stay relevant in the future is quickly becoming imperative. Therefore, the business leaders who are proactively embracing greener supply and pursuing efficient consumption of energy are going to set compelling examples for others to follow.

The writer is a partner with PwC. The views expressed here are his own​

 

[Saif]

Revisiting solar power

When the need for exploiting all sources of renewable energy including that of the tropical sun is being felt more than ever, the number of existing Solar Home Systems (SHSs) that converts solar energy into electricity through a photovoltaic (PV) module in use is declining. A survey by the Banglade

thefinancialexpress.com.bd

Revisiting solar power
SYED FATTAHUL ALIM
Published :
Sep 30, 2024 23:02
Updated :
Sep 30, 2024 23:02

When the need for exploiting all sources of renewable energy including that of the tropical sun is being felt more than ever, the number of existing Solar Home Systems (SHSs) that converts solar energy into electricity through a photovoltaic (PV) module in use is declining. A survey by the Bangladesh Bureau of Statistics (BBS) showed that in 2021, 2.25 per cent of the population used SHSs. But by the next two years, the number fell to 1.81 per cent in 2023.

Clearly, the SHS which saw its rapid expansion among the population between 2003 and 2013, has halted after grid power became available in the areas where solar power was earlier the only option. That could well be good news because it showed the then-government's ability to bring larger and larger sections of the population under the national power grid. But the approach at the same time was short-sighted, unsustainable and irresponsible. Short-sighted because being a net importer of fossil fuel, Bangladesh cannot continue the practise for long as it does not have enough hard currency to buy fossil fuels like Liquefied Natural Gas (LNG), furnace oil, coal etc., to fire its power plants. Neither was the government exploring and exploiting existing reserves for gas and coal. Unsustainable because in an era when globally there is a shift from fossil-based energy to renewable one for the dual reason of falling fossil energy reserves everywhere as well as deleterious effect of fossil fuel on the environment, the government chose an opposite path. Irresponsible because knowing full well that such path of national electrification was ill-conceived, the government went ahead with the plan to produce more power than the country needed through setting up new state-owned gas and oil-based power plants, privately-owned rental and quick rental power plants including even import of electricity from India, just to satisfy the tall ego of the head of the government as well as line the pockets of all those involved at the expense of the public exchequer. Notably, according to former state minister for power, energy and mineral resources Nasrul Hamid, during the past fifteen years of the previous government, capacity payments for the rental power stations alone cost the public exchequer Tk.105 billion. Among the highest recipients of the capacity charges were the Summit Group, United Group, Bangla Cat, RPCAL among others. These crony capitalists got the money without supplying any power to the public.

The unsustainable success story of covering the country's entire population by the fossil-fuel-based national grid did one thing: it put an early end to the prospect of supplying clean electricity to the people through SHSs and other renewable energy options.

According to an estimate, there are some 6 million homes in the country connected to SHSs.

The adviser to the ministry of power, energy and mineral resources of the interim government has stated that all projects and agreements implemented under special laws during the previous government will continue. That's understandable. But at the same time, the government should make serious efforts to wean the nation off the dirty habit of using electricity from fossil-fuel-run power plants.

To this end, the government should renew its focus on renewable energy including PV modules for households, solar rooftops, solar irrigation, floating solar power projects etc.

It may be recalled that providing power through SHSs started by the end of 1990s when most remote areas of the country were not connected to the national grid. People of those areas used kerosene lamps to light their homes in the evening. In 2003, started the World Bank (WB)-financed SHS projects by the Infrastructure Development Company Ltd (IDCOL). The installation of SHSs continued for a decade with ever increasing number of homes getting service. But as noted before, expansion of the national grid stopped the progress of SHS installations. Interim government's energy adviser should have a rethink.​

 

[Saif]

Bangladesh delegation in Nepal to sign contract to import 40 MW electricity​

S

[🇧🇩] Thread 'Nepal---A bosom Friend of Bangladesh'

Sep 29, 2024

Bangladesh, Nepal discuss cooperation in trade, commerce, hydropower sectors
UNB
Published :
Sep 30, 2024 00:10
Updated :
Sep 30, 2024 00:10

Bangladesh and Nepal have discussed cooperation in different areas including trade, commerce, hydropower and people-to-people level collaboration in particular in the area of education.

The two sides agreed to work together to address challenges as both the countries are slated to graduate to developing country status.

Ambassador of Nepal to Bangladesh Ghanshyam Bhandari met Foreign Secretary Md Jashim Uddin on Sunday at...​

• Saif

 

[Saif]

Reforms, policies that can mend the power and energy sectors

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

www.thedailystar.net

Reforms, policies that can mend the power and energy sectors

VISUAL: ANWAR SOHEL

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

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

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

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

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

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

Power plant building policy

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

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

* Least-cost planning must be followed.

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

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

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

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


Gas exploration policy

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

Gas utilisation policy

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

Renewable energy policy reform

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

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

 

[Saif]

Coal power plants charge astronomical costs for fuel

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

www.newagebd.net

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Coal prices greatly differ depending on their quality.

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

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

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

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

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

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

 

[Saif]

Govt should address prickly coal issues of power plants

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

www.newagebd.net

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

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

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

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

 

[Saif]

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

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

thefinancialexpress.com.bd

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

Gas discovery in Bhola could be a game changer

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

thefinancialexpress.com.bd

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

A gas field in Bhola Photo : Agency

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

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

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

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

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

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

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

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

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

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

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

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

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