🇧🇩 Energy Security of Bangladesh

[Bilal9]

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

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

www.thedailystar.net

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

View attachment 7719

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

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

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

 

[Saif]

Much-cherished oil refinery building thru fresh bidding

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

thefinancialexpress.com.bd

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

"Consumers are the ultimate losers," he laments.

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

 

[Saif]

Ministry denies claims of gas export to India

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

thefinancialexpress.com.bd

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

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

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

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

 

[Bilal9]

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

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

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

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

 

[Saif]

Ulterior motive behind faulty energy plan

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

thefinancialexpress.com.bd

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

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

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

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

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

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

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

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

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

 

[Saif]

Adani says it supplies electricity to Bangladesh at cheapest rate

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

thefinancialexpress.com.bd

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

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

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

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

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

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

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

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

 

[Saif]

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

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

thefinancialexpress.com.bd

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

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

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

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

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

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

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

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

 

[Saif]

Offshore oil and gas exploration delayed further

Offshore exploration for oil and gas in the Bay of Bengal is being delayed again as after not receiving satisfactory response, the immediate past government had approved the proposal to extend the deadline to participate in the tender by three months.

en.prothomalo.com

Offshore oil and gas exploration delayed further
Mohiuddin Dhaka
Published: 01 Sep 2024, 10: 47

Offshore oil and gas explorationFile Photo

Offshore exploration for oil and gas in the Bay of Bengal is being delayed again as after not receiving satisfactory response, the immediate past government had approved the proposal to extend the deadline to participate in the tender by three months.

In the meantime the government has changed hands. Once the interim government issues directives, the tender deadline will be extended. This was learnt from sources in the energy and mineral resources division.

With multi-client survey revealing potential of offshore gas, a number of foreign companies last year expressed their interest in carrying out oil and gas exploration. The energy and mineral resources division sources have said 55 companies were invited to take part in the tender. Six companies have bought tender documents. The dead line to participate in the tender is 9 September.

The maritime territory dispute with India was settled in 2012 and with Myanmar in 2014. Though new Production Sharing Contracts (PSC) were drawn up in 2019, no tenders were floated. Then three years were taken to finalise PSC-2023. On 10 March this year Bangladesh Oil, Gas and Mineral Resources Corporation (Petrobangla) floated an international tender. Previously the last tender had been floated in 2016.

Petrobangla chairman Zanendra Nath Sarkar told Prothom Alo on Wednesday, approval has been taken from the energy and mineral resources division to extend the tender deadline by three months. After approval of the power, energy and mineral resources division is taken, a new notice will be issued.

In the meantime, tenders have been called for 15 deep sea blocks and 9 shallow blocks. Petrobangla officials have said, facilities have been considerably increased this time to attract foreign investment. Interests of the investing companies are also being given importance along with the interests of the country.

Due to political instability, foreign companies didn't want to come. Now the situation has improved. If the deadline is extended by three months, perhaps there will be a good response Badrul Imam, geologist.

It has been learnt that among the multinational oil and gas companies, the US companies ExxonMobil and Chevron, Malaysian company Petronas, Norway and France's joint venture TGS and Schlumberger, Japan's Inpex Corporation and JOGMEC, China's CNOOC, Italy's Eni SPA, Singapore's KrisEnergy and India's ONGC have shown interest at various times and have contacted Petrobangla.

According to Petrobangla officials, after completing the tender process, the contract can be signed in the first half of next year. Then it will take a couple of more months for them to being their vessels and equipment. However, some say after finishing all the details, exploration may begin in 2026.

There are 26 blocks in the Bay of Bengal, 15 deep sea and 11 shallow sea. On 2010 ConocoPhillips got the contract to work on two offshore blocks. They carried out 2D survey but left because their demand for an increase in gas price was not met. Similarly, Australia's Santos and South Korea's Posco Daewoo also abandoned work after signing the contract. Now only the Indian company ONGC is carrying out exploration in two blocks in the shallow sea.

A Petrobangla official, on condition of anonymity, said according to contract, ONGC has up till next February. They drilled one well and found no gas. They are supposed to drill another well. Investment has increased more than planned. In inviting tender thrice for drilling well, they got abnormal rates and so they have not applied to extend their term. They are likely to leave in February.

Petrobangla sources say, Germany's Schlumberger was tasked with carrying out a preliminary feasibility study for offshore prospects. Any interested company can buy the information of the survey. Petrobangla also has details of the ConocoPhillips 2D survey. This too indicates the presence of gas in the Bay of Bengal, though extractable gas reserves cannot be determined without drilling exploratory wells. Till now no well has been drilled in the deep sea. But the two neighbouring countries India and Myanmar have both discovered gas in the same sea.

Geologist Badrul Imam, speaking to Prothom Alo, said that it has already very late. But due to political instability, foreign companies didn't want to come. Now the situation has improved. If the deadline is extended by three months, perhaps there will be a good response. After that, it would not be right to extend the time any further.

*This report appeared in the print and online edition of Prothom Alo and has been rewritten for the English edition by Ayesha Kabir​

 

[Saif]

Significant impact of cut on fuel prices unlikely

Under the monthly fuel adjustment introduced by the deposed government in March last, the first such revision to the relief of some has been effected by the interim government. The relief is because of the downward adjustment of fuel oil prices. However, the slashing of oil prices is unlikely to be

thefinancialexpress.com.bd

Significant impact of cut on fuel prices unlikely
Published :
Sep 02, 2024 23:04
Updated :
Sep 02, 2024 23:04

Under the monthly fuel adjustment introduced by the deposed government in March last, the first such revision to the relief of some has been effected by the interim government. The relief is because of the downward adjustment of fuel oil prices. However, the slashing of oil prices is unlikely to benefit all strata of society. With a nominal cut by Tk 1.25 on a litre of kerosene and diesel for the month of September without any such adjustment in August by the previous administration, the more deserving lower segments of society will hardly benefit from the move. These segments are the major consumers of these two types of fuel oil. Petrol and octane are considered luxury fuels for reasons understandable and the two have become significantly less costly by Tk 6.0 a litre from Tk 127 down to Tk121 and from Tk 131 to Tk 125 respectively.

The inescapable fact is that the poorer segments of society reeling from unrelenting inflation and lately from the impact of floods in several areas of the country needed some pragmatic move towards lessening their sufferings. If farmers who need diesel for operation of irrigation pumps or boatmen for trawlers or mechanised boats as well as public buses, trucks and covered vans for running them could enjoy a substantial cut on this particular type of fuel, it would have a beneficial impact on production of crops and transportation of commodities. This would ultimately reflect on the galloping inflation. Petrol used in cars, on the other hand, much as it may become cheaper, will have no or little impact on the economy. Had the price tags for different types of oil been reversed, it would make an immediate impact on transport fair and carrying costs of commodities including the daily essentials. Under the guideline on automatic oil pricing the Bangladesh Petroleum Corporation (BPC) prepared, the prices between diesel and petrol/octane have to vary by at least Tk 10. There is no bar to have a higher price differential between those. In fact, the price gap is of Tk 15.50 between kerosene/diesel and petroleum and of Tk 19.50 between octane and the former cheaper variety now costing Tk105.50 a litre.

Effective from September 1, the new fuel prices are unlikely to give enough cause for celebration by the common people. There is a need for a comprehensive review of the requirements of fuel oils in different areas in order to assess the priority sectors in terms of production and contribution to the economy. Bangladesh's domestic oil production is next to nothing and hence it must prioritise the use of imported fuel for reaping the optimal benefits.

In this context, it is worth noting that oil import in 2023 declined by 20 per cent not because prices went up but because devaluation of Taka and dollar crunch did not allow the import of a little over 10 million tonnes it imported in 2022. With almost similar amount of expenditure, the country ended up importing 8.26 million tonnes in 2023. Since there is no scope for import of oil by private companies other than the BPC, industrial units with reduced availability of fuel had to curtail production. This explains why a contractionary monetary policy was followed and the economy shrank. So there is no alternative to rationalising use of fuel oils.​

 

[Bilal9]

Adani says it supplies electricity to Bangladesh at cheapest rate

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

thefinancialexpress.com.bd

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

View attachment 7977

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

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

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

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

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

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

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

We really do not need Adani's "cheap" electricity. We have plenty of surplus power generation options already.

Scrap the deal I say, good riddance. Stop financing Adani and indirectly, Modi.

Rampal for that matter - can go as well. Meaning the Indian consultants and their operational help as per voidable agreement.

Just use the "escape clause".

 

[Saif]

Hydropower import from Nepal: India seeks 'variable' transmission charge

India has prevailed upon negotiators to keep transmission charge "variable" for using its line to transmit electricity from Nepal into Bangladesh which the finance division finds irrational. The Power Division negotiated with India that it will get Tk 0.76 per unit for trans-border transmission of

thefinancialexpress.com.bd

Hydropower import from Nepal: India seeks 'variable' transmission charge
Syful Islam
Published :
Sep 04, 2024 09:45
Updated :
Sep 04, 2024 09:45

India has prevailed upon negotiators to keep transmission charge "variable" for using its line to transmit electricity from Nepal into Bangladesh which the finance division finds irrational.

The Power Division negotiated with India that it will get Tk 0.76 per unit for trans-border transmission of electricity from Nepal into Bheramara of Bangladesh in addition to Tk 0.09 as 'trade-in' margin.

Trade-in margin is a fixed charge and has to be paid in Indian rupee while the transmission charge will remain flexible and be paid in US dollar.

Nepal will get Tk 7.32 as hydropower price in US dollar for selling 40-megawatt electricity from its two power plants.

In June this year, the power division got tariff approval from the cabinet committee on government purchase for importing electricity from the Himalayan country.

Officials concerned told the FE that power adviser M. Fouzul Kabir Khan Monday approved a power-division proposal to go forward making a tripartite deal among Nepal Electricity Authority, NTPC Vidyut Vyapar Nigam Limited, and Bangladesh Power Development Board to begin inflow of electricity.

The five-year agreement is expected to be completed in a few weeks, according to Power Division officials.

Before advancing for the tripartite agreement, the Power Division sought opinion from the Finance Division, Financial Institutions Division, the National Board of Revenue, and the central bank, as payment in foreign currency and duty and taxes are involved with the power trade.

Sources have said the power division has so far received opinion from the finance division where the custodian of the coffer insisted that the transmission charge should be fixed one like the other charges.

Unless the transmission charge is fixed, India can raise it "arbitrarily at any time, causing trouble in cost estimation for the finance division".

The finance division suggested the power division to renegotiate the charge and make it fixed instead of variable.

Power Division Senior Secretary Habibur Rahman could not be reached for a comment in this regard despite repeated attempts.

However, a senior Power Division official told the FE that the transmission charge has been kept flexible in line with the rules of the Central Electricity Regulatory Commission of India that was enacted in 2018.

"We have to follow Indian rules if we want to use its transmission line,' said the official, seeking anonymity.

The official thinks the tripartite deal will open a new avenue for Bangladesh for cross-border power trade, creating scope to import more low-cost electricity from Nepal and Bhutan.

However, a finance official has said so far India has no deal for cross- border electricity transmission and Bangladesh had enough scope to negotiate and fix the transmission charge instead of keeping it changeable.

"If we sign the deal keeping the transmission charge flexible, India will take the advantage and raise the charge as and when it wants," he says.

According to purchase committee's approval, Bangladesh will have to spend Tk 1.30 billion annually to import power from Nepal. Of the total sum, India will get Tk 120 million as transmission charge and Tk 14 million as trade-in charge.

If the transmission charge is increased any time during the deal tenure, the cost will go up further, a Finance Division official says.​

 

[Saif]

Energy sector graft to be identified in White Paper

The White Paper Preparation Committee is expected to find out the irregularities and corruption committed in the energy and power sector during the tenure of the immediate-past government, committee chief Dr Debapriya Bhattacharya said on Tuesday. "If necessary, we would review the agreements with

thefinancialexpress.com.bd

Energy sector graft to be identified in White Paper
Committee chief says as areas of work selected in its second meeting
FE REPORT
Published :
Sep 04, 2024 00:31
Updated :
Sep 04, 2024 00:31

The White Paper Preparation Committee is expected to find out the irregularities and corruption committed in the energy and power sector during the tenure of the immediate-past government, committee chief Dr Debapriya Bhattacharya said on Tuesday.

"If necessary, we would review the agreements with foreign companies and parties in the sector," he told journalists, following the second meeting of the committee in the capital. The first meeting was held on August 29.

Dr Debapriya, also a distinguished fellow of the Centre for Policy Dialogue (CPD), said that the reasons and extent of the capital flight from Bangladesh would also be reflected in the paper.

"We have selected some areas and sectors to prepare the paper," he said. These are: macro economy, energy sector, health and education, and some institutional issues like banking sector, tax administration, capital flight, mega projects, poverty, inequality, and regional disparity will be reflected there.

"In today's meeting, we have assigned our members specific areas of coverage. The method of writing reports has also been determined," he added.

The committee members will hold discussion with different expert groups, including researchers and professors in Dhaka and outside Dhaka and even outside Bangladesh for preparing the reports, said the committee chief.

"We will collect information from different sources. Then we will verify the sources critically. We will also compare the available information with the best global practices to ensure a standard form. We will also find our better research on the areas being touched," he added.

He said the committee is expected to complete its preliminary work within the next two months before finalising the white paper.​

 

[Bilal9]

Hydropower import from Nepal: India seeks 'variable' transmission charge

India has prevailed upon negotiators to keep transmission charge "variable" for using its line to transmit electricity from Nepal into Bangladesh which the finance division finds irrational. The Power Division negotiated with India that it will get Tk 0.76 per unit for trans-border transmission of

thefinancialexpress.com.bd

Hydropower import from Nepal: India seeks 'variable' transmission charge
Syful Islam
Published :
Sep 04, 2024 09:45
Updated :
Sep 04, 2024 09:45

View attachment 8056

India has prevailed upon negotiators to keep transmission charge "variable" for using its line to transmit electricity from Nepal into Bangladesh which the finance division finds irrational.

The Power Division negotiated with India that it will get Tk 0.76 per unit for trans-border transmission of electricity from Nepal into Bheramara of Bangladesh in addition to Tk 0.09 as 'trade-in' margin.

Trade-in margin is a fixed charge and has to be paid in Indian rupee while the transmission charge will remain flexible and be paid in US dollar.

Nepal will get Tk 7.32 as hydropower price in US dollar for selling 40-megawatt electricity from its two power plants.

In June this year, the power division got tariff approval from the cabinet committee on government purchase for importing electricity from the Himalayan country.

Officials concerned told the FE that power adviser M. Fouzul Kabir Khan Monday approved a power-division proposal to go forward making a tripartite deal among Nepal Electricity Authority, NTPC Vidyut Vyapar Nigam Limited, and Bangladesh Power Development Board to begin inflow of electricity.

The five-year agreement is expected to be completed in a few weeks, according to Power Division officials.

Before advancing for the tripartite agreement, the Power Division sought opinion from the Finance Division, Financial Institutions Division, the National Board of Revenue, and the central bank, as payment in foreign currency and duty and taxes are involved with the power trade.

Sources have said the power division has so far received opinion from the finance division where the custodian of the coffer insisted that the transmission charge should be fixed one like the other charges.

Unless the transmission charge is fixed, India can raise it "arbitrarily at any time, causing trouble in cost estimation for the finance division".

The finance division suggested the power division to renegotiate the charge and make it fixed instead of variable.

Power Division Senior Secretary Habibur Rahman could not be reached for a comment in this regard despite repeated attempts.

However, a senior Power Division official told the FE that the transmission charge has been kept flexible in line with the rules of the Central Electricity Regulatory Commission of India that was enacted in 2018.

"We have to follow Indian rules if we want to use its transmission line,' said the official, seeking anonymity.

The official thinks the tripartite deal will open a new avenue for Bangladesh for cross-border power trade, creating scope to import more low-cost electricity from Nepal and Bhutan.

However, a finance official has said so far India has no deal for cross- border electricity transmission and Bangladesh had enough scope to negotiate and fix the transmission charge instead of keeping it changeable.

"If we sign the deal keeping the transmission charge flexible, India will take the advantage and raise the charge as and when it wants," he says.

According to purchase committee's approval, Bangladesh will have to spend Tk 1.30 billion annually to import power from Nepal. Of the total sum, India will get Tk 120 million as transmission charge and Tk 14 million as trade-in charge.

If the transmission charge is increased any time during the deal tenure, the cost will go up further, a Finance Division official says.​

IMHO - depending on power transmission via or through India from a third country (Nepal or Bhutan) or power generated from within India (like Adani) is a strategic security risk for Bangladesh.

Any leverage given to India which they have control of - they will end up using to their full advantage.

Indian whims will mean Bangladesh will run short of power which is sometimes critical for industrial production, especially for exports.

We should invest more in power generation within our borders, and that should (increasingly) be renewables like Solar energy.

One or two deals with Nepal can exist where they supply token power, Nepal as a friendly nation are in need of revenue as well of course.

 

[Saif]

Restoring power to the people: A step towards a fair energy pricing system

For nearly two years, Bangladeshi consumers have suffered under an executive system that gave the government unchecked power to set energy prices without their input.

www.thedailystar.net

Restoring power to the people: A step towards a fair energy pricing system

A major issue is the inefficiency within companies like BPC, where operational problems, such as fuel leakages, are passed on to consumers through higher prices. FILE PHOTO: REUTERS

Exactly 10 days after taking office, the interim government of Bangladesh made a significant shift in the power and energy sector by announcing the discontinuation of the Quick Enhancement of Energy and Power Supply Act, 2010 and the cancellation of its executive authority to raise power and gas prices without a public hearing by the Bangladesh Energy Regulatory Commission (BERC). This much-needed shift towards transparency and accountability repeals the controversial clause, which allowed the Ministry of Power, Energy and Mineral Resources to unilaterally set energy prices, and will help restore BERC's authority. This reinstatement of public hearings marks a return to democratic principles in energy governance and reflects a broader commitment to safeguarding consumer interests.

For nearly two years, Bangladeshi consumers have suffered under an executive system that gave the government unchecked power to set energy prices without their input. The 2022 amendment to the BERC Act was intended to stabilise energy supply and address economic needs quickly. Instead, it led to repeated price hikes, straining household budgets and causing widespread dissatisfaction. In 2024 alone, the former government raised electricity tariffs four times without offering any public justification.

The now-repealed Section 34 (A) of the BERC Act bypassed the regulatory oversight intended to check government power, undermining transparency and public participation. By sidelining BERC, the government weakened the commission's role as a regulatory authority and eroded public trust. Without public hearings, consumers felt powerless and excluded, leading to a sense of injustice and disenfranchisement.

Repealing the ministry's price-setting powers and reinstating BERC's role is more than just restoring procedure—it represents a commitment to public involvement in crucial decisions. This move underscores the government's dedication to transparency and good governance, particularly in the energy sector. However, while reintroducing public hearings is a positive step, it alone cannot ensure fair or rational energy pricing. The existing challenges, along with BERC's diminished authority since the 2020 amendments, raise doubts about the effectiveness of this approach in truly serving the public interest.

In addition to electricity and gas prices, BERC should also take responsibility for setting fuel oil prices, a role currently held by the Bangladesh Petroleum Corporation (BPC). BPC's dual role as both the sole importer and regulatory authority raises concerns about the credibility of its price determinations, especially for petrol, diesel, octane, and kerosene. Since BERC already regulates the price of imported LPG, extending this responsibility to other fuels would be a logical and necessary step.

Public hearings enhance transparency by involving stakeholders in the price-setting process, but transparency alone does not guarantee rational tariff outcomes. Anomalies in the financial accounts of public authorities raise questions about financial transparency and credibility. The data provided, especially by the BPC, must be rigorously scrutinised to ensure it reflects the true financial state of the energy sector. Concerns are growing that information from BPC and the Bangladesh Power Development Board (BPDB) may not be accurate, with discrepancies in financial reports potentially leading to misguided decisions.

A major issue is the inefficiency within companies like BPC, where operational problems, such as fuel leakages, are passed on to consumers through higher prices. These inefficiencies should not become a public burden. Instead, they must be measured, reported, and resolved at the source to ensure that price adjustments reflect actual costs, not the inefficiencies of the providers.

To achieve true fairness and effectiveness in energy pricing, BERC's original powers from the 2003 act must be reinstated. Before the 2023 amendments, BERC had the authority to conduct energy audits, enforce standardisation, introduce competitive bidding, and hold both government and private entities accountable. The legislative weakening of BERC has significantly undermined its role as an independent regulator. To ensure an effective energy transition, these crucial powers must be restored.

Additionally, competitive pricing should align with international market standards to ensure that Bangladesh's energy prices reflect global trends. Pricing mechanisms must also account for the broader impact on the transport and power sectors, which are heavily reliant on energy costs. Any new pricing structure should be implemented with careful consideration of its ripple effects across these critical sectors to avoid unintended economic disruptions.

Helen Mashiyat Preoty is senior research associate at the Centre for Policy Dialogue (CPD).​

 

[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.

www.thedailystar.net

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.

www.thedailystar.net

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.

www.thedailystar.net

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.

www.thedailystar.net

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.​