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[🇧🇩] Energy Security of Bangladesh

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Coal imported for Matarbari power plant sent back due to heavy soil mix

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Matarbari plant in Moheshkhali, Cox's Bazar. File Photo: Nupa Alam/TBS

The Coal Power Generation Company Limited (CPGCL) has rejected a shipment of 63,000 tonnes of coal after detecting a significant presence of soil in the consignment meant for the Matarbari Power Plant in Cox's Bazar.

The cargo has been sent back to the outer anchorage of Chattogram port following the decision.

The Ultra Super Critical Coal-Fired Power Plant at Matarbari, built on 1,600 acres along the Bay of Bengal, has a capacity of 1,200MW. The first unit began commercial production in December 2022, followed by the second unit in August 2023.

According to CPGCL sources, the coal, supplied by an India-based company that won the tender to source the material from Indonesia, was found to be heavily contaminated with soil, rendering it unusable for power generation.

"We declined to receive the shipment and issued an official letter to the supplier on Friday," Nazmul Huq, executive director at Matarbari coal-fired plant project, told The Business Standard.

Chittagong Port Authority (CPA) sources confirmed that the coal-laden vessel was sent back to the outer anchorage following instructions from CPGCL and the shipping company handling the cargo.

The coal was transported aboard the Singapore-flagged MV Orient Orchid, which entered the Matarbari Channel on 17 March. The ship was operated by Meghna Group of Companies.

Ujjal Kanti Barua, deputy general manager (shipping operation) at Meghna Group, declined to comment, stating, "We are in discussions with the CPA, and the port authority is handling the matter."

Meanwhile, port officials said the conveyor belt used to unload the coal frequently broke down due to the excessive soil mixed with the shipment. "During unloading, we found mostly soil rather than coal," said a CPA official, speaking on condition of anonymity.

Captain Abu Sufian, dock master of CPA, confirmed that the vessel was directed to the outer anchorage in compliance with instructions from the shipping company.​
 

One unit at Adani Power Plant resumes production with 45.79 MW
Published :
Apr 12, 2025 23:05
Updated :
Apr 12, 2025 23:05

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After a 17-hour forced shutdown, one unit of the Adani Power Plant in Jharkhand resumed generation at 7 pm on Saturday.

According to both Adani and Power Grid Bangladesh PLC, Unit 1 of the plant has come back into operation with 45.79 MW, against its actual capacity of 800 MW.

Officials mentioned that the generation will gradually increase from this unit.

The Adani Power Plant has two units, each with a capacity of 800 MW.

Earlier on Saturday, electricity generation from this unit had come to a halt, and another unit ceased production on April 1.

Following this, Bangladesh experienced increasing load-shedding due to the shutdown of the generation unit caused by technical faults.

Data from Power Grid Bangladesh PLC, which tracks hourly power generation and transmission statistics, reveals that the country faced its highest load-shedding of 428 MW at 3 pm on Saturday, a weekly holiday when electricity demand is typically lower than on working days.

"This has been the highest amount of load-shedding in recent days, when power shortages typically remained between 50 and 150 MW," said a Power Grid official.

Officials at Power Grid Bangladesh PLC and the Bangladesh Power Development Board (BPDB) are concerned that the shutdown of one of the largest sources of power supply may lead to further increases in load-shedding on working days.

"The extent of load-shedding may further increase on Sunday with the start of the working week," a top official at the BPDB told UNB.

HC orders formation of committee to review power deals with Adani Group

It is assumed that, typically, the country's rural areas in the northern districts are preferred for power cuts because several power plants there run on costly fuels like liquid petroleum, diesel, and furnace oil.

"If diesel is used, each unit of electricity costs over Tk 40, and it's Tk 20 if furnace oil is used," said a senior BPDB official.

Energy Adviser Dr. Fouzul Kabir Khan, however, recently assured that there would be no discrimination in load-shedding allocation. "We'll prefer to resort to power cuts first in Dhaka city and then in other areas," he told reporters in Chattogram.

Meanwhile, the BPDB has requested the Oil, Gas, and Mineral Resources Corporation (Petrobangla) to provide additional gas supply to power plants to boost electricity generation from local power stations.

Official data show that the country's demand was forecasted to be 12,600 MW during daytime peak hours and 13,800 MW during evening peak hours.

Bangladesh has been importing electricity from Adani's Jharkhand Power Plant since April 2023 under a 25-year power purchase agreement (PPA).​
 

RENEWABLE ENERGY POLICY: Revision in order
by Musharraf Tansen 13 April, 2025, 00:00

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Bangladesh Sangbad Sangstha

BANGLADESH adopted the Renewable Energy Policy in December 2008 with the ambitious goal of increasing the share of renewable energy in the country’s total electricity generation. At the time, this policy was a significant step forward in aligning the nation with global trends toward sustainable energy. However, fifteen years later, the global energy landscape has shifted dramatically, and Bangladesh’s renewable energy progress has remained stagnant. The targets set in 2008 remain largely unmet, and new technological advancements and climate commitments demand an urgent revision of the policy. As the country grapples with energy security challenges, growing carbon emissions, and international commitments to sustainable development, a revised renewable energy policy must address gaps in the existing framework and introduce innovative strategies to accelerate clean energy adoption. This article outlines the key areas where revisions are necessary to make the policy more effective and aligned with contemporary global best practices.

More realistic targets

THE 2008 policy set a target of achieving 10 per cent of electricity generation from renewable energy sources by 2020. However, as of 2023, renewable energy accounts for only around 3 per cent of Bangladesh’s total electricity generation. The revised policy must set more realistic yet ambitious targets with clear milestones for 2030 and 2050, aligning with international climate commitments under the Paris Agreement. The revised policy should include a clear roadmap to achieving at least 20-25 per cent of total electricity generation from renewables by 2030, a commitment to net-zero carbon emissions in the energy sector by 2050, and sector-wise renewable energy targets, including solar, wind, and biomass.

One of the biggest challenges in implementing the 2008 policy has been the lack of coordination among different government agencies. The Sustainable and Renewable Energy Development Authority, the Power Division, and the Bangladesh Energy Regulatory Commission often work in silos, causing delays in policy execution. To ensure better coordination, the revised policy should establish a dedicated Renewable Energy Council with representation from all relevant stakeholders. SREDA should be empowered with more regulatory and financial authority to drive the implementation of renewable projects, and clear accountability measures should be introduced to monitor the progress of renewable energy initiatives.

Diversification of renewable energy sources

THE 2008 policy primarily focused on solar and biomass energy, with little attention to wind and offshore renewable energy potential. Given the advancements in wind- and hydro-based power generation, the revised policy should promote offshore and onshore wind energy projects, particularly in coastal areas like Cox’s Bazar and the Sundarbans region. It should encourage research and development in ocean energy, hydrogen fuel, and waste-to-energy technologies, and develop a framework for hybrid renewable energy projects that integrate solar, wind, and storage solutions.

Private-sector investment in renewable energy has remained limited due to bureaucratic hurdles, policy uncertainty, and a lack of incentives. The revised policy should simplify the approval process for private sector investments in renewable energy, introduce tax incentives and subsidies for independent power producers developing renewable projects, and strengthen public-private partnerships in the renewable energy sector.

The introduction of the Net Metering Guideline in 2018 was a positive step, but its implementation has been slow due to technical and financial barriers. A revised renewable energy policy should expand the net metering framework to encourage more residential and commercial rooftop solar adoption. It should offer financial incentives to households and businesses that invest in solar power generation and promote decentralised mini-grid solutions in off-grid rural areas to enhance energy access.

Land constraints for solar projects

ONE of the major bottlenecks in solar energy expansion is the scarcity of land. To overcome this issue, the revised policy should encourage floating solar farms on reservoirs and water bodies. It should promote the use of industrial rooftops, railway stations, and other underutilised spaces for solar installations and introduce agrivoltaics projects, where solar panels and agricultural activities coexist.

Financing remains a major barrier to renewable energy expansion. The revised policy should introduce a Green Energy Fund to support renewable projects with low-interest loans. It should establish special renewable energy bonds to attract domestic and international investors and develop a mechanism for carbon trading to encourage businesses to invest in clean energy.

Bangladesh has committed to the Paris Agreement and has updated its Nationally Determined Contributions with a focus on reducing carbon emissions. The revised renewable energy policy should align with Bangladesh’s Long-Term Strategy for Low Carbon Development. It should include carbon pricing mechanisms to disincentivise fossil fuel dependency and establish clear guidelines for phasing out coal and reducing dependence on imported LNG.

Technological innovation, local manufacturing

BANGLADESH relies heavily on imported solar panels, wind turbines, and other renewable technologies. To enhance energy security and create jobs, the revised policy should promote local manufacturing of solar PV panels, batteries, and wind turbines. It should provide research and development incentives for universities and research institutions working on renewable energy technologies and encourage technology transfer partnerships with international renewable energy firms.

Given Bangladesh’s vulnerability to climate change, energy infrastructure must be resilient. The revised policy should ensure that renewable energy projects consider climate adaptation measures. It should integrate energy storage solutions to address the intermittency of solar and wind power and establish disaster-resilient energy infrastructure in cyclone-prone areas.

Learning from regional leaders

India and Vietnam offer valuable lessons for Bangladesh in renewable energy policy implementation. India has successfully promoted performance-linked incentives, feed-in tariffs, and large hydropower projects while also setting up mini-grids and renewable energy management centres. Vietnam, on the other hand, has embraced ambitious renewable energy targets, implementing net metering, green energy certificates, and incentives for domestic renewable manufacturing. Both countries have successfully attracted foreign investment through clear policy guidelines and stable regulatory environments. Bangladesh should adopt similar approaches to enhance its renewable energy sector.

The Renewable Energy Policy of 2008 was a visionary step at the time, but it is now outdated and insufficient to meet the challenges of today’s energy landscape. A revised policy must incorporate lessons from the past 15 years, leverage global technological advancements, and align with Bangladesh’s socio-economic and environmental goals. With a strong and modernised renewable energy policy, Bangladesh can not only reduce its reliance on fossil fuels but also position itself as a regional leader in sustainable energy. The time for policy revision is now — failure to act will only deepen the energy crisis and hinder Bangladesh’s journey toward a greener future.

Musharraf Tansen is a development analyst and former country representative of the Malala Fund.​
 

Businesses, rights groups' outcry goes unheard
Gas prices jacked up 33pc for industrial usages

New industries to pay Tk40, captive power plants Tk42 per unit
FE REPORT
Published :
Apr 14, 2025 00:32
Updated :
Apr 14, 2025 00:32

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New industries are now to pay Tk 40 and captive power plants Tk 42 per cubic meter of gas as the government jacked up tariffs of the basic fuel by 33 per cent on average, overriding objections.

The hike takes "immediate effect from today," it was officially announced as Bangladesh Energy Regulatory Commission (BERC) Sunday pushed the decision through protests and opposition from businesses and rights groups.

Heretofore, the tariff rate for new industries had been Tk 30 and for captive power plants Tk 31.50 a unit.

The commission chairman, Jalal Ahmed, announced the new tariffs at a press briefing at the BERC auditorium in Dhaka's Karwan Bazar business heartland.

New industries and captive plants, which already attained commitments or demand notes for raising gas loads, must pay 50 per cent, or half the new gas commitments, at current rates.

On the other hand, the remaining half would have to be paid in accordance with the new tariff rates.

Besides, the owners of existing industries and plants must pay tariffs as per new rates for utilising additional gas above their existing approved loads, according to the BERC announcement.

Gas tariffs for all the existing consumers, including power plants, industries, fertiliser factories, CNG filling stations and tea estates are, however, kept unchanged.

The hike in the natural-gas tariffs came after a public hearing against the demand for a rise up to 152.40 per cent or to Tk 75.72 per cubic metre placed by state-run Petrobangla and gas-marketing and-distribution companies.

The Consumers Association of Bangladesh (CAB) had boycotted the public hearing while business leaders and associations opposed the tariff-hike move, but to no avail.

"We have raised the gas tariff at a tolerable level for new industries and captive power plants although the demands from the state-run entities were for raising further by over 150 per cent," said the BERC chairman at the press conference.

Mr Ahmed could not say whether the tariff hike would impact future investment, but said that it would create an opportunity to look for alternative energy sources like liquefied petroleum gas (LPG) and solar power for future industries.

If the tariffs had been hiked as per the demands of state-run gas entities, Petrobangla could earn around Tk 32.40 billion but with the 33-percent hike the corporation would be able to get around Tk 11 billion additionally, he expected.

The BERC chairman could not also say about the amount of subsidy Petrobangla would require due to the new gas tariffs, which are less than their expectations.

But, the BERC chairman expects. the subsidy requirement would decrease.

"Having different gas tariffs for same type of consumers is discriminatory and a violation of the basic rights as mentioned in the constitution," CAB energy adviser Prof M Shamsul Alam told The Financial Express in an instant reaction over the tariff hike.

Petrobangla could save around Tk 35 billion if double taxation against imports of expensive liquefied natural gas (LNG) could be removed, he said.

The tariffs have been hiked by the BERC arbitrarily bypassing the opposition raised during the public hearing, he said.

It went against the spirit of July-August uprising and was a continuation of the 'previous BERC,' which was dominated by the previous government, Professor Alam alleged.

Bangladesh's gas-guzzling export-oriented sectors might face slump in export earnings due to uneven competition after the gas-tariff hike for new industries, President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem said.

"No new industries would be established fearing uneven completion with the existing ones," he feared.

Mr Hatem urges the interim government to take necessary steps for checking gas pilferage.​
 

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