[🇧🇩] Energy Security of Bangladesh

[Saif]

Plan ahead for steady power supply

The government must take timely steps to keep the power plants running and the power supply uninterrupted.

www.thedailystar.net

Plan ahead for steady power supply
The government must take timely steps to keep power plants running

VISUAL: STAR

Amid the ongoing gas crisis in the country that has hit us on several fronts, including power generation, it is worrying that the coal-based power plants are also scaling down production, owing to a number of issues. According to a report in this daily, these power plants have been reducing production, and in some cases completely shutting down, due to financial, legal or technical difficulties. This has led to increased power outages in the country, especially in rural areas, affecting not just households but also businesses.

Per the report, Bangladesh gets power from seven coal-fired power plants, which have a combined generation capacity of 7,099MW. But lately they have been producing less than half—around 3,199MW. Production in Matarbari and Barishal power plants are completely off, while Rampal, SS Power, and Barapukuria are operating at a significantly reduced capacity. These power plants have been hit with either coal shortage, mechanical problems or maintenance issues. Only the Payra power plant has been operating at full capacity. Meanwhile, the Adani Godda power plant in India's Jharkhand cut its power supply by half on October 31 and has threatened to stop supply completely if Bangladesh does not clear its outstanding dues by November 7.

As a result, except for Barishal division, which is covered by Payra, the country has been experiencing increased power outages, which are impacting people's lives and livelihoods, especially in the rural areas. One onion trader in Dinajpur said he lost half of his imported produce due to frequent load-shedding. A rice miller in Mymensingh said his mill's output dropped significantly due to four to five hours of power cut daily. This does not bode well for the country.

The press secretary to the chief adviser said the government was working to expedite payment to Adani. This ought to help with the resumption of supply from Godda power plant. But what about the ones that can't operate due to coal shortage? Officials said coal procurement had been delayed by legal issues that were raised due to a change of supplier. They said it's unlikely that the Matarbari plant would resume production before mid-December. Given the time of the year, when power consumption is typically less due to reduced demand, we may not see the situation take a critical turn now. However, if it continues to persist, we are looking at a potentially worse situation from March onwards when the temperature is supposed to rise, and especially if the gas shortage continues. The government needs to figure out—and quickly—how to resolve the current situation. It should plan ahead to keep the power supply across the country stable and ensure that further power shortages are averted.​

 

[Saif]

Power generation halves amid coal crisis

The AL government went for coal powered plants citing cheaper production cost. However, these plants failed to go into production within the stipulated time

en.prothomalo.com

Power generation halves amid coal crisis
Mohiuddin
Dhaka
Published: 05 Nov 2024, 13: 12

Payra coal-fired power plant in Patuakhali File photo

The country has a power generation capacity of more than 7000 MW from coal powered plants. However, power generation from coal powered plants has declined to less than 3000 MW.

Relevant people say the power plants are struggling to maintain a supply as per the demand due to the pending bills, dollar crisis and complications over tender.

As a result, two of the seven coal power plants of the country were forced to shut their operations. Besides, power generation has been greatly hampered in four other coal powered plants.

Despite objections from the environmentalists, the Awami League government opted for coal powered plants citing cheaper production cost.

However, these plants failed to go into production within the stipulated time. The Power Division could not clear the bills regularly after these plants went into production. As a result, these plants are under pressure now with mounting pending bills. The interim government is increasing payments for pending bills in phases.

Sources in the Power Development Board (PDB) say the demand for electricity is comparatively low as the temperature is falling due to season change. The highest demand at night is 13000 MW at the moment.

Efforts is being made to increase production from oil powered plants at a higher cost due to the decline in production at coal powered plants. Despite that, the demand is still higher than the supply. So the PDB is being forced to impose load shedding in many places outside Dhaka. The country witnessed the highest 700 MW load shedding per hour on Sunday.

The three units of the Barapukuria Coal Based Thermal Power Plant, the lone plant in the country which produces coal from its own mine, have a power generation capacity of 525 MW per day together.

However, two of these mostly remain closed due to the coal crisis. At the moment, two of these units are in production. These two units generate 220-230 MW electricity together.

The plant needs 5,000 tonnes of coal per day to become fully operational. This power plant now supplies half the demand. The remaining six power plants are run on imported coal. The PDB is struggling to arrange the money for imports.

Two plants completely shut down

The Matarbari Coal Power Plant in Maheshkhali of Cox’s Bazar has been completely shut down since 31 October. The 1200-MW-power-plant is likely to resume production by next March. One of the two units of this power plant is scheduled to return to production next month.

Speaking to Prothom Alo, Monowar Hossain Majumdar, supervising engineer of the power plant, said this plant would remain closed until coal import resumes.

The Coal Power Generation Company sources say coal import has been delayed as the prevailing tender-related complications have been taken into the cognisance of court to reach a settlement. Already the purchase order to supply 3.5 million tonnes of coal for a year has been issued.

The power plant needs 300,000 tonnes of coal every month. The two units of the power plant went into commercial production on 18 December last year and 28 August this year respectively.

However, the power plant is yet to be granted any bill. It could not pay the bills as it does not have any Power Procurement Agreement with the PDB, which is likely to be signed soon.

Apart from these, production at the 307-MW-power-plant in Amtali of Barguna has been completely shut down since 27 October for maintenance works. It will take two months to resume power generation at this plant.

Adani pressurising for loan repayment

Indian power company Adani and PDB have been exchanging letters concerning the due bills. However, the issue has not been resolved. According to Adani’s claims more than 850 million (85 crore) dollars are due.

The Adani Group is putting in pressure for repayment of the unpaid bills of the power plants. Adani closed down one of the units on last 31 October.

More than 700 megawatts of electricity is being supplied from the remaining unit. If the matter of arrear bills repayment is not resolved, Adani can close this one as well.

The power plant of Adani is located in Godda area in the Indian state of Jharkhand. This coal-based power plant has a capacity of 1,600 megawatt.

There are two units with the capacity of 800 megawatts each in this plant. Bangladesh is supposed to buy the electricity produced there for 25 years. The first unit started producing electricity commercially in April last year while the second unit went into production in June the same year.

Two officials from PDB told Prothom Alo, the amount of bills repayment has been increased than before. Their electricity bills was USD 87 million (8.7 crore) last month.

Meanwhile, USD 97 million (9.7 crore) has been paid including the arrear. Earlier, the bills used to be paid through the Sonali Bank. An initiative has been taken to pay the bills through letter of credit (LC) at the Krishi Bank now. Ten million (1 crore) dollars was to be paid on Monday.

PDB chairman Md Rezaul Karim told Prothom Alo that it’s not possible to pay the total dues at once. Apart from that there’s no steady supply of dollars according to the demand. So, the amount of arrear bills repayment is being increased in phases.

Shortage in supply of coal

Since it went into production, Payra 1320 Megawatt Thermal Power Plant in Patuakhali has been supplying electricity uninterruptedly according to the demand. However, the plant had to keep the production of electricity closed for a month last year as the bills for coal went into dues for the crisis of dollars. Right now, this plant is in production as the only coal-based power plant running on full capacity. This plant is running under Bangladesh and China’s joint initiative.

After ten years of the construction of Rampal 1320 Megawatt Power Plant being started, one of the units has gone into production. Afterwards, this plant has remained closed several times so far. Among the reasons there were technical errors and crisis in coal purchase for lack of dollars as well. Right now, less than 600 megawatts of electricity is being supplied from one unit of this power plant built jointly by Bangladesh and India.

Meanwhile, one of the units of SS Power 1224 Megawatt Power Plant in Banshkhali of Chattogram is running at present. Currently, it’s producing 400 to 460 megawatt of electricity. The other unit is left closed for quite a few days. Since the arrear bills are piling up, the coal supply cannot be retained to normalcy. There’s not enough coal at the plant to run both units.

If the coal-based power plants cannot be kept running, the demand of electricity will soar in next March and the situation might get even worse. In this regard, former professor at BUET Ijaz Hossain told Prothom Alo that the dependency on import has increased. Now arrangements must be made to collect the dollars required for coal import and to repay the bills.

* The report, originally published in the print and online edition of Prothom Alo, has been rewritten in English by Ashish Basu and Nourin Ahmed Monisha​

 

[Saif]

Adani cashing in on a ‘one-sided’ deal

Moreover, within a week of Sheikh Hasina’s resignation last August, Adani established an alternative market for selling electricity by amending the contract in India

en.prothomalo.com

Adani cashing in on a ‘one-sided’ deal
Mohiuddin
Dhaka
Updated: 01 Nov 2024, 18: 54

Adani power plant File photo

The situation with the Indian power company Adani Group remains complicated. Since last July, Adani has been charging electricity bills based on the increased price of coal used in its power plants.

Additionally, the company is putting pressure on Bangladesh to pay outstanding bills, having already reduced electricity production to less than half. Observers have noted that Adani is taking advantage of a “one-sided” deal signed during the government of Bangladesh Awami League.

Adani’s power plant is located in Godda, Jharkhand, India. Last year, before power generation began, there was significant controversy surrounding the price of coal.

The Power Development Board (PDB) refused to pay the high coal prices, prompting Adani to agree to reduce them. The company also promised to supply coal at a lower price than the Payra and Rampal power plants. However, a year later, Adani is now demanding a 22 per cent increase in price.

On 28 October, Adani sent a letter to the PDB amid ongoing disputes over the price hike and demands for payment of dues. The letter stated that the PDB must take measures to pay the dues by 30 October as promised; otherwise, Adani would be forced to stop power supply from 31 October, citing a working capital crisis.

According to PDB sources, the letter of credit (LoC) for power imports from Adani was supposed to be opened by 30 October, facilitated by Krishi Bank, but this did not occur. The PDB has requested additional time. As a result, Adani shut down one of its units on Thursday.

Currently, a little over 500 MW is being generated from the operational unit, which has a capacity of 750 MW. Meanwhile, the Matarbari power plant is closed due to a lack of coal, and production has decreased at the Rampal and Banshkhali power plants due to outstanding issues. There was a load shedding of over 1,500 megawatts per hour on Thursday.

According to sources from the Power Development Board (PDB), the 1,320 MW power plant at Payra in Patuakhali is charging USD 75 per tonne of coal. In contrast, the coal prices at Chattogram’s Banshkhali SS Power Plant and Bagerhat’s Rampal Power Plant are both under USD 80 per tonne.

Adani, however, is requesting USD 96 per tonne of coal, which is USD 16-21 more per tonne than the prices at Payra and Rampal.

Adani’s coal-based power plant has a capacity of 1,600 MW, and Bangladesh has committed to purchasing the generated electricity for 25 years.

Commercial power generation from the first unit began in April last year, with the second unit starting in June of the same year.

In February, an Adani delegation held a meeting with the PDB to discuss coal prices, which resulted in billing based on the actual price of coal for one year. Since last July, Adani has been billing in accordance with the agreement.

In a written response to the public relations agency of Adani Group in Dhaka, the company stated that it has been submitting bills based on the coal price index since July, asserting that there has been no change in the pricing structure. Thus, they believe complaints about high coal prices are unfounded.

Sources within the power department and the Adani power plant indicate that Adani’s weekly bills range from USD 22-25 million, while the PDB is only able to pay about USD 18 million. Previous repayments were even lower, and as of October, the PDB owes approximately USD 850 million.

Two PDB officials informed Prothom Alo that the board has deposited Tk 10 billion in a bank to settle outstanding bills for Indian power plants, including Adani.

However, banks are struggling to process regular payments due to a dollar shortage. Despite Adani’s submission of increased coal price bills, these have yet to be considered. There are suggestions to amend the contract if necessary.

Muhammad Fouzul Kabir Khan, an adviser to the Ministry of Power, Energy, and Mineral Resources, told Prothom Alo that Adani’s billing does not alter the situation.

He emphasised that there is no question of paying extra, and the PDB will review the issue of increased coal prices professionally and impartially, in line with international norms. A contract review committee has already begun its work on this matter.

Adani reaps additional benefits

Adani appears to be gaining extra advantages from its contract due to the methods used to determine coal prices. The pricing relies on the Australia (Newcastle Index) and Indonesia Index, which are key indicators since both countries are major coal exporters. These prices are regularly published online.

However, insiders indicate that the announced prices often include special discounts based on the purchase agreements. For instance, the Payra power plant benefits from specific pricing arrangements.

According to two officials from the Power Division and the PDB, costs are calculated based on coal purchase bills from all other power plants. The PDB’s power purchase agreement with Adani specifies that the average price will be derived from the index of Indonesia and Australia, resulting in higher bills for Adani. This means that even if Adani purchases coal at a discounted price, the PDB does not benefit from those savings.

Concerns have been raised regarding the rushed signing of the electricity purchase agreement with Adani in 2017, under the guidance of the Power Division. At that time, no imported coal-based power plants were operational in the country, which limited the PDB’s ability to adequately scrutinise coal pricing.

PDB relied on Adani Group’s experience in operating coal mines and constructing large coal-fired power plants in India, allowing Adani to leverage PDB’s inexperience and its own governmental connections.

Once the Payra and Rampal power plants began operations, the issue of coal pricing became more prominent for the PDB. It notes that the prices for coal of varying quality (calorific value) are published in two international indexes. Adani calculates the average price of high-quality coal from these indices; however, based on the quality of coal used, prices could potentially drop by USD 20-25 per tonne.

In response, Adani representatives claim they are charging according to calorific value and that there is no basis for calculating costs based on higher-quality coal.

However, a PDB officer contested this claim by drawing an analogy: say the market price for one kilogram of hilsa fish, with each fish size is 1kg, is Tk 2,000, and the price of one Kg fish, with each being 700-gram, is Tk 900 to Tk 1,000; the cost of one Kg hilsa of 700-gram size each would be Tk 1,400, if it is calculated considering the price of fish with 1kg size each.

This, the official argued, is similar to how Adani is pricing coal.

Adani takes other advantages

Officials from the Power Division and the PDB indicate that Adani’s dues have been accumulating for long. However, the recent political changes following ouster of Sheikh Hasina’s government have increased pressure to collect these dues.

Adani has even sent a letter to the chief adviser of the interim government requesting payment, to which the adviser responded with a promise to repay the dues.

Moreover, within a week of Sheikh Hasina’s resignation last August, Adani established an alternative market for selling electricity by amending the contract in India.

According to the agreement, all power plants have a capacity charge that must be paid regardless of whether they produce electricity or not. This charge remains high during the initial years and it gradually decreases.

In Adani’s case, the charge remains constant for the first seven years of the contract before tapering off. Cancelling the contract at this stage would result in financial losses for the PDB.

A review of the power purchase agreement signed between the PDB and Adani, alongside insights from an expert at Bangladesh University of Engineering and Technology (BUET), reveals that Adani has secured maximum benefits in the contract by leveraging its experience.

Notably, the contract with Adani stipulates a steep interest rate of 15 per cent per annum for delay in bill payments, which is not the case with the Payra power plant.

Additionally, PDB bears all costs associated with Adani’s power plant, and interest rates on investments will be determined by India rather than Bangladesh.

Furthermore, water consumption charges must be paid, a stipulation not found in the Payra agreement. Adani has also entered into contracts with two other companies within its own group for coal import, port management, and transportation, raising concerns about a lack of transparency in the process. Experts in the power sector have suggested that this agreement should be reviewed in the national interest.

Committee reviews contract

The last Awami League government enacted the Rapid Increase in Supply of Electricity and Fuel (Special Provisions) Act, 2010 (Amended 2021), which allows for contracts to be awarded without a competitive tendering process.

Decisions made under this Act are not subject to legal challenge, leading to its designation as the ‘Impunity Act’. In response, the interim government is establishing a national committee to review agreements made under this legislation.

On 28 September, the National Review Committee convened and decided to collect data from 11 power plants, including those operated by Adani in India.

The Power Division has instructed relevant authorities to supply all necessary data and documents to the committee.

Shamsul Alam, energy advisor for the Consumers Association of Bangladesh (CAB), told Prothom Alo that the contract with Adani includes numerous additional costs that have been gradually introduced, allowing Adani to siphon substantial amounts of dollars out of the country.

He described the agreement as one-sided and argued that Adani is exploiting the situation.

Alam urged the government to withdraw from this agreement immediately, warning that CAB would take legal action if the government fails to cancel it.

* This report, originally published in Prothom Alo print edition, has been rewritten in English by Farjana Liakat​

 

[Saif]

Coal conundrum stages a comeback

The sheer folly of the country's master plan on the power sector that had envisaged generation of thousands of megawatts using coal as primary fuel was evident right from the beginning. It was considered a folly primarily due to the fact that the previous government had decided that it would not ut

thefinancialexpress.com.bd

Coal conundrum stages a comeback
Syed Mansur Hashim
Published :
Nov 05, 2024 21:28
Updated :
Nov 05, 2024 21:28

The sheer folly of the country's master plan on the power sector that had envisaged generation of thousands of megawatts using coal as primary fuel was evident right from the beginning. It was considered a folly primarily due to the fact that the previous government had decided that it would not utilise its own coal reserves and embark on an import-only policy. Well, the year is now 2024, and the country's present government is stuck with the very expensive Matarbari power plant project that has been built with Japanese loans and it is out of production due to shortage of coal.

Experts at the time had stated that this import-dependent policy to source primary energy raw material was fraught with danger. First, it would put Bangladesh at the mercy of foreign coal producers and suppliers. Second, the infrastructure to handle the millions of tonnes of coal that would have to be imported did not exist and would have to be built from scratch. Hence, millions more would have to be borrowed to build that infrastructure. In fact, that is precisely what happened.

The Matarbari coal-fired power plant has been sitting idle since October 25. Implementation of the project has cost the national exchequer Tk 570 billion. The power plant is a state-of-the-art facility and is capable of producing 1,200 megawatts (MW) of power. Yet it sits idle because the Bangladesh Power Development Board (BPDB) is in no position to import coal. While there have been some indications of importing coal before the end of the year, the situation with the country's foreign exchange remains fluid at best.

The problem with this project and with all the other coal-fired power plants is essentially the same. Why did the country's policymakers take the suicidal decision to import its primary energy in the first place? It is now obvious that the idea of embarking on such expensive mega projects was to line the pockets of foreign contractors and those in power at the time.

While these plants remain idle, the country is bereft of the reliable power that could have been produced. Unless the plants go into operation, industrial production will continue to suffer further hampering economic recovery. Without sufficient power, many productive sectors of the country, some of which are exporting in nature, will not stay in operation. What does that mean for foreign exchange earnings? Everything is tied to reliable power supply and the future is looking bleak.

Yet, one still hears about how Bangladesh must not explore its own proven reserves of its coal because it will destroy the environment. Now that is very funny. It is alright to let thousands of illegal brick kilns operate all over the country - spewing out black smoke and soot into the air, causing all sorts of health and environmental problems. It is alright for industrial waste to enter the water supply untreated wreaking havoc on both marine life and drinking water and even that is acceptable. But should we extract coal using open pit mining? No, we must not. It will destroy Bangladesh; at least that's what people have been duped into thinking. Until the time comes when policymakers decide to get their collective heads out of the mud and start calculating how they are going to pay back those billions of dollars in foreign loans, nothing will change. There is no choice but to start mining coal domestically if the objective is to pull off an economic recovery. All this will take a few years, but that's the price one pays for short-sighted energy policies of the past.​

 

[Saif]

‘Domestic gas exploration is the most economical option’

Dr Badrul Imam, honorary professor at the Department of Geology in the University of Dhaka, talks about the reasons behind the ongoing gas crisis and the possible way out in an exclusive interview with Naznin Tithi of The Daily Star.

www.thedailystar.net

‘Domestic gas exploration is the most economical option’

Dr Badrul Imam, honorary professor at the Department of Geology in the University of Dhaka, talks about the reasons behind the ongoing gas crisis and the possible way out in an exclusive interview with Naznin Tithi of The Daily Star.

Our industrial sector has been suffering due to gas shortage for the past few years, but lately the crisis has become acute. It is also severe in residential areas. What factors contributed to this situation?

The main reason behind the ongoing gas shortage is that we only depend on the available reserves. We have not discovered any new gas reserves for a long time, while our existing gas reserves are depleting quickly due to increased demand. Generally, in countries with significant gas reserves, exploration is done continuously so that if one source is depleted, another source can replace it. In Bangladesh, however, exploration is minimal. So, once the production drops, it's difficult to increase it again. This, in my view, is the main reason for the current crisis.

You have always emphasised the importance of becoming self-reliant in gas resources, for which exploration is urgent. What is stalling exploration in Bangladesh?

There is a serious lack of initiative and urgency among the authorities responsible for gas exploration in Bangladesh. There needs to be a visionary leader in this sector, someone who understands our vast potential for gas reserves. We also need experts who truly understand the technicalities of the energy sector to lead exploration drives. Many countries with similar geological formations like ours—Nigeria, parts of the US, and Indonesia—have successfully tapped into their gas resources. There's no reason to believe that Bangladesh has less potential. However, achieving self-sufficiency in gas resources requires a robust exploration policy, which we are lacking. Our past governments were content with small-scale explorations that yielded enough to meet the immediate demand only. They did not implement any comprehensive long-term plan. To make a significant impact, we need a massive exploration drive. If our local companies can conduct the exploration, the cost will be minimal. Even if we engage foreign companies, it will still be cheaper than importing liquefied natural gas (LNG). So, domestic gas exploration is the most economical option to meet our energy needs.

In the Sylhet region, for instance, surrounding the Surma basin, which includes large gas fields like Habiganj and Bibiyana, there are still enough scopes for exploration. Bibiyana, in particular, is a giant gas field in the global context. Exploration in these areas is still in the primary stage. If we could explore these fields, I believe we could get even larger reserves than we currently have.

Do we have the required technology and resources for gas exploration?

Well, our resources are limited. Our state-run company, Petrobangla, does not have the capacity to conduct such extensive exploration alone. To overcome this limitation, we need to bring in foreign companies with the expertise and equipment for large-scale exploration. Engaging reputable international companies could lead to significant discoveries. But even if we start exploration today, it could take at least five years to see significant results.

What could be the short-term solution to the current crisis?

As I have said, in the short term, we can reactivate the old gas wells that have not been fully utilised. These wells have already been drilled so we can start producing gas from them with minimal work. Ideally, we should not go for LNG import because it is much more expensive. Relying on imports is also not sustainable in the long run, especially given our high dependency on gas. However, to immediately manage the crisis, LNG import may be unavoidable.

Quite a few. Each of our gas fields has at least four to five wells that can be reactivated. That means there are about 20-25 wells in five fields that can be put to use. A substantial amount of gas can be extracted from these wells.

What is the status of our offshore exploration?

Unfortunately, exploration of offshore gas reserves has not progressed much. There were talks of exploration years ago, but it did not happen. So, this area remains largely unexplored. Dividing the Bay of Bengal into exploration blocks and launching competitive bidding for them could yield great results. What we need is a strong push to initiate international bidding and invite foreign companies to explore these offshore blocks.

If we go for both onshore and offshore exploration on an urgent basis, how long do you think it may take for us to achieve self-sufficiency in gas resources?

It's hard to give an exact time frame. If we had started five years ago, we would likely be self-sufficient by now. Even if we had started exploration three years ago, we would have seen some results by now. Gas exploration takes time. For the areas that have already been explored, production can start within one to two years, but for new exploration, it will take more time.​

 

[Saif]

HC to deliver verdict over quick rental law Nov 14

Sections 9 and 6(2) of the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010 protect rental and quick rental power plants from legal challenges

www.thedailystar.net

HC to deliver verdict over quick rental law Nov 14

File photo of Bangladesh High Court

The High Court today fixed November 14 for delivering the verdict on a writ petition that challenged the constitutionality of two sections of the quick rental law.

Sections 9 and 6(2) of the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010 protect rental and quick rental power plants from legal challenges and give the energy minister sole authority to approve electricity purchase plans, according the petition.

Today, the HC bench of Justice Farah Mahbub and Justice Debasish Roy Chowdhury set the date for passing the judgement after concluding the hearing on the petition.

Following the petition, the HC on September 2 this year asked the authorities concerned of the government to explain why sections 9 and 6(2) of the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010 should not be declared unconstitutional.

Section 9 states that no question about any action done or deemed to be done, and any order or direction given under this law, cannot be raised before any court.

Section 6 (2) says that any planning or proposal related to the buying or investment decisions has to be approved by the energy minister and sent to the cabinet committee for approval after communicating and bargaining with one or more institutions following section 7 of the act.

The HC issued the rule following a writ petition filed by Supreme Court lawyers Dr Shahdeen Malik and Md Tayeb-Ul-Islam Showrov challenging the legality of sections 9 and 6(2) of the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010.

Lawyer Shahdeen Malik placed arguments on the petition while Attorney General Md Asaduzzaman and Deputy Attorney General Md Tanim Khan represented the state during the hearing.​

 

[Saif]

Renewable energy push lacks clarity

Bangladesh’s efforts to adopt renewable energy do not have clarity over the goal, and renewable financing has also proved to be largely inadequate, according to a study.

www.thedailystar.net

Renewable energy push lacks clarity
Shows study while revealing huge financing gap

As of June 2023, renewable resources, including solar, wind, hydro and biomass, collectively hold an installed capacity of 1,183MW, constituting a meagre 4.5 percent of the country’s total installed capacity. Photo: Star/file

Bangladesh's efforts to adopt renewable energy do not have clarity over the goal, and renewable financing has also proved to be largely inadequate, according to a study.

"So, it will not be possible to attain the renewable energy goal if the targets are not aligned with reality and adequate investment is not ensured," said Shah Md Ahsan Habib, professor at the Bangladesh Institute of Bank Management (BIBM).

While presenting the findings of the study, titled "Renewable Energy Financing in Bangladesh: Alignment with the National Policies", at a workshop in Dhaka yesterday, he said, "The government should align the target first. Then the plan from where you will get the investment and resources."

The Bangladesh Institute of Bank Management (BIBM) organised the workshop at its auditorium in the capital's Mirpur.

Referring to the findings, Habib said the government has set a target for achieving a 40 percent renewable energy share in total energy production by 2041 in the Mujib Climate Prosperity Plan (MCPP).

Despite initial targets of generating 5 percent of its electricity from renewables by 2015 and 10 percent by 2020, Bangladesh has fallen well short of its goals

On the other hand, in the Integrated Energy and Power Master Plan (IEPMP) 2023, the government has set a lower target of achieving 8.8 percent renewable energy production by the same year 2041, he mentioned.

This means, he said the IEPMP was developed without taking into consideration the energy- mix suggested in the MCPP. It also shows a serious lack of coordination among government agencies, said Habib.

Bangladesh currently incorporates 2.93 percent of renewable energy, amounting to 650.14 MW, within the country's total energy production of 22,215 MW. A substantial portion of about 48 percent, or 10,678 MW, of the total power generation relies on natural gas, according to the study.

As of June 2023, renewable resources, including solar, wind, hydro and biomass, collectively hold an installed capacity of 1,183 MW, constituting a meagre 4.5 percent of the country's total installed capacity.

Here, solar power alone takes the lead, accounting for nearly 80 percent of all renewable sources, showed the study.

Habib said despite initial targets of generating 5 percent of its electricity from renewables by 2015 and 10 percent by 2020, as of June 2023, Bangladesh has fallen well short of its goals.

Citing another study of the local think tank Centre for Policy Dialogue (CPD), Habib said Bangladesh will require an estimated investment of $1.71 billion per year from 2024 to 2041 to achieve the ambitious 40 percent renewable energy target by 2041.

The Institute for Energy Economics and Financial Analysis (IEEFA), which studies energy markets, trends and policies, also estimates the annual investment at $1.53 billion to $1.71 billion.

This investment, however, does not cover the cost of grid modernisation and storage facilities.

INADEQUATE FINANCING

Despite improvement, financing for renewable energy production shows a visible gap, Habib shared.

He said small-scale local green entrepreneurs struggle to secure funding due to difficulties in proving creditworthiness, lack of proper documents and high transaction costs.

"Banks and finance companies often receive applications without proper documentation, eventually making it difficult to provide loans," said the BIBM professor.

Habib said banks and finance companies need to play a crucial role in ensuring adequate investment in the renewable energy sector to attain the nationally determined targets.

Habib said to achieve the 40 percent target, the country required Tk 20,520 crore investment in 2023, while banks and financial institutions disbursed only Tk 742 crore, leaving an investment gap of Tk 19,778 crore.

Whereas to achieve the 8.8 percent target set by the IEPMP, the country required Tk 4,514 crore investment in 2023, still falling short by Tk 3,772 crore from the amount disbursed in 2023, he mentioned.

Habib, who was among the five-member research team, said the yearly financing or investment gap needs to be covered by other sources like foreign direct investment (FDI) or by additional efforts by banks or finance companies.

Nurun Nahar, deputy governor of Bangladesh Bank, Md Akhtaruzzaman, director general at BIBM, Md Alamgir, associate professor, Md Ali Hossain Prodhania, supernumerary professor, SM Mahbub Alam, joint secretary of the Road Transport and Highways Division, Mohammad Delwar Hossain, joint director at Bangladesh Bank and other top officials also spoke at the event.​

 

[Saif]

Govt needs to up investments in renewable energy

AN OVERWHELMING dependence on imported fossil fuels for power generation and the absence of initiatives to promote cost-competitive renewable energy show a general disinclination...

www.newagebd.net

Govt needs to up investments in renewable energy
09 November, 2024, 00:00

AN OVERWHELMING dependence on imported fossil fuels for power generation and the absence of initiatives to promote cost-competitive renewable energy show a general disinclination towards renewable energy. A report by the United States-based Institute for Energy Economics and Financial Analysis says that Bangladesh had no significant investment in renewable energy in 2023. This suggests that there is a lack of sincerity and initiatives on part of the authorities to switch from fossil fuels to renewables for electricity production. Successive governments, especially the Awami League government toppled on August 5, came up with a number of road maps and promises for transition from fossil fuel to renewable energy in 5–15 years. But when it came to investment and real work, there was a marked disinclination. This is what is problematic and worrying. Talks about a transition to renewable energy appear to be nothing more than rhetorical. The Awami League government set a target to achieve a 40 per cent renewable energy share in the total energy production by 2041 in the Mujib Climate Prosperity Plan while in the Integrated Energy and Power Master Plan 2023, the government set a lower target of achieving 8.8 per cent renewable energy production.

The country as a signatory to the Paris agreement, moreover, is meant to generate 100 per cent electricity from renewable energy by 2050 as it has pledged in the Climate Vulnerable Forum. The government wanted to generate 5 per cent of its electricity from renewables by 2015 and 10 per cent by 2020. It now produces less than 5 per cent of its electricity from renewable sources. Studies show that the investment gap in achieving even the minimum target of producing 10 per cent electricity from renewables is huge. The Institute for Energy Economics and Financial Analysis estimates that Bangladesh needs an annual investment of $1.53–1.71 billion to achieve the ambitious 40 per cent renewable energy target by 2041. The government has, however, not been able to prioritise the issue and open up avenues or direct the banks to invest in this sector. The authorities have also been reluctant to explore vast possibilities of power generation from renewable sources such as solar and wind. The share of solar and wind in power generation in the country, in fact, dropped to 0.77 per cent in 2022 from 0.93 per cent in 2015, keeping to the Berlin-based think tank Agora Energiewende. The lack of promotion and the placement of barriers to rooftop solar systems have also held back the potential of solar power. An earlier report by the Institute for Energy Economics and Financial Analysis published in December 2023 says that Bangladesh lags way behind its neighbours in promoting rooftop solar energy and that 5GW can be produced using only the roofs of existing industries.

The authorities should, therefore, review its renewable energy policy and recommit to renewable energy. The authorities must invest adequately and facilitate private investment in the sector.​

 

[Saif]

Power master plan will strain the economy

Bangladesh will need to invest around $50 billion to implement its Integrated Energy and Power Master Plan, according to a report by Market Forces, an Australia-based global environment advocate.

www.thedailystar.net

Power master plan will strain the economy
Study finds Bangladesh will need $50b for LNG by 2041; researchers say inflated power demand was made for ‘earning’ capacity charge

Bangladesh will need to invest around $50 billion to implement its Integrated Energy and Power Master Plan, according to a report by Market Forces, an Australia-based global environment advocate.

This investment will go toward 41 LNG-based power projects and seven LNG import facilities by 2041.

The proposed 37,400 megawatts (MW) LNG-based power capacity would surpass the country's total existing power generation capacity of 27,086 MW. If the master plan is implemented, the nation's gas power capacity would triple in size, found the study.

The report titled "Expensive LNG Expansion: How Foreign Gas Interests are a Climate Disaster for Bangladesh" was released yesterday at a press conference at the Jatiya Press Club. Three local organisations -- Waterkeepers Bangladesh, Fossil Free Chattogram, and Dhoritri Rokkhay Amra (Dhora) -- co-authored the study.

The master plan for 2024-2050 estimates that the country needto increase its annual LNG import capacity to 30 million tonnes by 2041, which is four times the current capacity.

"By 2041, Bangladesh would face the additional cost burden of importing LNG that would be $7-11 billion per year, two to three times the cost of all fossil fuel imports today," reads the study.

The list of the 41 power projects was compiled by Market Forces based on data which was available up to 2023, from both internal and external sources.

Speakers at the press conference said some vested interest groups had used inflated power demand projections in different public policy documents during the Awami League rule to earn higher capacity charges.

Capacity charge is the bill the government pays to power producers for the time they sit idle.

According to the report, the estimated cost of the 41 power plants in Chattogram, Dhaka and Barisal divisions will be $36 billion, and the LNG import facilities like floating storage and regasification units will cost $14 billion.

It mentions that the 21 proposed plants in Chattogram are projected to release 1.3 billion tonnes of carbon dioxide equivalent (CO2-e) over their lifetimes (15 to 25 years), six times higher than Bangladesh's current annual emissions.

"These threaten at least 26 threatened species which rely on the local forests, including the Asian elephant, Clouded Leopard and a scaly anteater known as the Chinese Pangolin. There are mounting concerns over human rights of women and local community members following violations in similar gas developments," the report said.

"More than one million families rely on traditional livelihoods like tourism, fishing and dry fish, salt production, betel leaf cultivation and agriculture in the Cox's Bazar region in Chattogram. These critical industries, connected to the lifeline and livelihoods of the people in this area, are at threat of highly polluting carbon-intensive projects."

Prof Anu Muhammad, a central leader of the National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports, said the previous governments, including those of the Awami League, always served the interests of some global multilateral energy groups.

"Instead of emphasising exploration of local gas, they went for high-cost LNG imports," he said, adding that it is clear now how the import of fossil fuels and LNG poses a financial burden on the country and is associated with the destruction of life and nature.

He demanded cancellation of the master plan, prepared mainly by Japanese experts.

"We must adopt a plan by local experts who will prepare it in favour of Bangladesh."

Shafiqul Alam, lead analyst for Bangladesh energy at the Institute for Energy Economics and Financial Analysis, said the government should focus on exploring local gas and implementing renewable energy projects.

"We are under an economic burden due to the import of LNG and other fossil fuels. It is not possible to stop the imports, but we must reduce the dependency on it and improve energy efficiency," he said.

Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue, said the power demand projection in the master plan is absurd.

"Only 17 years left before we enter 2041, but we estimated our power demand at 65,000MW, which is more than three times the current demand. The previous Awami League government increased the power generation capacity based on such false demand projections and paid capacity charges to power plants," he said.

He said the existing capacity of around 27,086 MW is enough to meet the power demand till 2030 and the demand will not exceed 27,000MW by 2041. "If we can set up new plants with a total capacity of around 33,000MW, it will be enough."

He demanded conducting energy audits in all government and non-government offices, curbing corruption, and ensuing the use of energy-efficient technologies.

The report, presented by Munira Chowdhury, Asia energy analyst at Market Forces, said the capital expenditure required to realise Bangladesh's LNG power plans could instead fund 62 gigawatts (GW) of new clean, renewable power, enough to replace most of the country's existing gas power fleet, or replace its coal power capacity four times over.

According to the study, Bangladesh has enormous renewable energy potential, with the capacity to install up to 240 GW of solar power and 30 GW of onshore wind.

DU teacher Moshahida Sultana, Megu Fukuzawa, Asia energy finance campaigner at Market Forces, and Amanullah Parag, South Asia mobilisation coordinator at 350.org, also spoke at the event.​

 

[Saif]

17 power plants spend Tk 1,500cr producing no power

Seventeen state-owned power plants that generated no electricity at all during the past fiscal year spent over Tk 1,549 crore and also consumed 56.78 lakh units of electricity from the national grid.

www.newagebd.net

17 power plants spend Tk 1,500cr producing no power
Emran Hossain 10 November, 2024, 00:35

Seventeen state-owned power plants that generated no electricity at all during the past fiscal year spent over Tk 1,549 crore and also consumed 56.78 lakh units of electricity from the national grid.

The 17 out-of-operation plants spent Tk 220 crore on fuel for giving their machines test runs, Tk 67.58 crore for maintenance, and over Tk 1,261 crore in salary and other costs, an account of the Bangladesh Power Development Board for 2023–24 shows.

Some of the plants, built in the 1970s and 1980s, finished their economic lives and their operation became a loss project due to excessive fuel consumption.

But some other power plants sat idle apparently owing to the indifference of the authorities that resulted in failure to do maintenance work in time, or failure to import spare parts, managers of these plants said.

‘Idle power plants did not supply power to the grid, but they needed power to periodically run many machines to keep them operable,’ said Zahurul Islam, chief engineer, Ghorashal power plant.

Three units of the seven-unit Ghorashal power plant did not produce any power, but required a large sum to pay salary to its 300 employees sitting idle.

The 65MW Unit-7 of the Ghorashal power plant remained out of operation since September 2022 for maintenance work which could not be completed over delay in importing spare parts.

The Ministry of Power, Energy and Mineral Resources took months to give the permission for the import, leaving the plant, commissioned on January 23, 2018 with 150 employees, out of operation for months.

The Unit-7consumed 26.48 lakh units of power from the national grid in the past fiscal for conducting test runs to keep the machines operable.

It also spent over Tk 21 lakh to buy fuel to run some of its machines, over Tk 7 crore for maintenance, and more than Tk 340 crore as fixed cost to cover staff salaries and other expenses, including hospitality expenditure.

The Ghorashal power plant’s 260MW Unit-3, commissioned on January 22, 2019, has remained out of operation since July 2021 due to a broken turbine blade.

The gas-fired plant ordered the import of the blade, but the process got stuck over a legal wrangle between the importer Smith Cogeneration and the government.

The Unit-3 required more than Tk 3.34 crore in maintenance cost and over Tk 277 crore as fixed cost in 2023–24.

The 110MW Unit-1 of the Ghorashal power plant, set up in 1974, was declared completely shut down on December 31, 2020.

But the BPDB account showed that the gas-based Unit-1 spent more than Tk 33 crore in maintenance, and over Tk 141 crore in fixed cost in 2023–24.

‘The expenses are actually for grid network. The Unit-1 does not exist but its premises accommodate a huge grid control room that is still functional,’ said Zahurul.

Energy experts have long questioned the economic viability of the Unit-1 and also some other aged power plants.

They said that Bangladesh could not afford spending such large amounts of money every year, especially in the current sorry state of its economy.

Bangladesh has drained its foreign reserve, particularly over the last decade, in power and energy sector, eventually seeking $4.7 billion in loan from the International Monetary Fund.

Mainly six gas-based power plants, including the three Ghorashal units that generated no electricity at all, caused large expenses. The 66MW Shahjibazar power plant, 115MW Shiddhirganj, and 330MW Shahjibazar are the three other plants.

The Unit-4 and 5 of Ghorashal are also sitting idle, though they are available for power generation, because of gas shortage.

The most striking case of wastage of resources, however, was presented by one of the eight diesel-based power plants that did not generate any electricity.

The 2MW Sandwip power plant spent over Tk 19 lakh in maintenance work and Tk 28.56 crore in fixed cost.

‘The fixed cost is unbelievable. The power plant is no more than a power generator,’ said Hasan Mehedi, member secretary, Bangladesh Working Group on Ecology and Development, commenting over the high fixed cost.

The 2MW Hatiya power plant spent over Tk 15.74 crore as fixed cost.

The 2MW Kutubdia power plant spent Tk 2.30 crore for fuel and Tk 22.53 crore in maintenance.

The diesel-based Bheramara, Saidpur and Barishal power plants, each with an installed generation capacity of 20MW, consumed substantial amount of electricity from the national grid.

Three wind-based power plants also did not produce any power during the past fiscal.

BPDB chairman Rezaul Karim did not respond to phone calls.

Bangladesh is struggling with a huge imbalance in its power generation system. With a currently installed capacity of 27,791MW, the country cannot steadily generate 12000MW.

Scores of power plants are sitting idle over fuel shortages and technical glitches.​

 

[Saif]

Bangladesh needs smart grid system to keep power supply stable: Energy adviser

Energy Adviser Dr Muhammad Fouzul Kabir Khan has said the power transmission system has been facing new kinds of challenges as electricity consumption has radically changed over the years. “To address the challenges, we need to go for a smart grid system which will help keep stability in pow

thefinancialexpress.com.bd

Bangladesh needs smart grid system to keep power supply stable: Energy adviser
Published :
Nov 09, 2024 18:11
Updated :
Nov 09, 2024 18:11

Energy Adviser Dr Muhammad Fouzul Kabir Khan has said the power transmission system has been facing new kinds of challenges as electricity consumption has radically changed over the years.

“To address the challenges, we need to go for a smart grid system which will help keep stability in power supply,” he said while addressing a seminar titled ‘The Role of Smart Grid in the Future Power System’ at the United International University (UIU) in the city on Saturday, UNB reports.

Chinese technology giant Huawei and the Centre for Energy Research (CER) of UIU jointly organised the seminar on the occasion of the inauguration of the first Solar Energy Lab with ESS facilities in Bangladesh on the UIU premises.

This pioneering solar lab will offer top-notch training and research opportunities in the renewable and sustainable energy sector.

Fouzul Kabir said that the government is introducing renewable sources like solar and wind. “Now we need to move towards the smart grid, which we are working on. We are also giving priority to battery storage systems.”

With UIU Vice Chancellor Prof Dr Md Abul Kashem Mia in the chair, the event was also addressed, among others by Chinese Ambassador to Bangladesh Yao Wen, Chairman of Power Grid Bangladesh PLC Prof M Rezwan Khan, and CEO of Huawei Technologies (Bangladesh) Ltd Pan Junfeng.

The Huawei-CER, UIU solar lab is funded by Huawei. One of the aims of the facilities will be to conduct capacity building and human resource development activities.

Huawei and CER, UIU will together develop different course contents for organising training that meet the purposes of the Bangladesh market.

The course contents will also include the latest research and technological development in the field of renewable energy technology, digital power, and smart energy solutions.

Yao Wen said, “With the inauguration of the first solar lab with ESS systems at United International University, we are taking a significant step towards empowering our youth in the renewable energy sector”.

He said the initiative marks a significant milestone in the China-Bangladesh partnership as we inaugurate the first solar lab with ESS systems at United International University.

Yao Wen noted that the collaboration not only reflects our commitment to enhancing local talent development through Chinese investment but also highlights the long-standing contributions to the Centre for Energy Research of UIU in advancing the solar energy sector.

Pan Junfeng said, “We see that Bangladesh is initiating extensive plans to transition away from fossil fuels by establishing solar power plants in the near future.”

In that light, it is mentionable that till December 31, 2023, Huawei Digital Power has helped Bangladesh customers build 600 MW+ Digital Power plants, generating 437.5 million kWh of green power, reducing carbon emissions by 207,867 tons, which is equivalent to planting 284,450 trees, he added.

He said as a leader in ICT and digital power, Huawei and the country's prominent energy research centre, the Centre for Energy Research at UIU, can jointly provide invaluable opportunities for students and professionals to learn, grow and contribute to the renewable energy landscape through this Solar Lab.

Shahriar Ahmed Chowdhury, Director, Centre for Energy Research (CER), UIU said, “The renewable energy sector in Bangladesh is rapidly evolving, with projections suggesting the creation of 3,000 to 4,000 new green jobs in the coming years as solar power becomes increasingly cost-effective.”

He said the country has seen significant growth, adding a record 42 megawatts (MW) of new rooftop solar capacity in 2023 alone.

Shahriar, however, said there remains a pressing need for hands-on training facilities to equip professionals and students with the necessary skills. This lab can play a crucial role in equipping our students and professionals with practical knowledge in this sector.

Centre for Energy Research (CER) was established in 2010 at United International University with the aim to enhance research in the fields of renewable and sustainable energy, its utilisation and efficient management, and policy formulation through research and development.

CER, UIU has designed almost all the solar diesel hybrid mini-grids for rural electrification in Bangladesh.

CER is also one of the testing institutions of Solar Home System (SHS) equipment in Bangladesh for certification of solar PV equipment according to the IDCOL standard.​

 

[Saif]

Now Payra to cut down power production by half

Amid the backdrop of all other coal-based power plants in the country, including India’s Adani, the production of a unit of Payra Thermal Power Plant went into maintenance today

www.thedailystar.net

Now Payra to cut down power production by half

Photo: Star

Amid the backdrop of all other coal-based power plants in the country, including India's Adani, the production of a unit of Payra Thermal Power Plant went into maintenance today.

The only full-phased coal-based plant will available at half of its 1,320 megawatts (MW) capacity for the next two months, according to the plant authorities.

They said, a 660MW unit of Payra Thermal Power Plant suspended production from 12:00am today.

With the new update, the power production with coal fired power plants dropped below 2,000MW, which was more than 3,000MW last week. The country's capacity to produce from coal plants is 7,099MW.

Manager of the plant Shah Abdul Mawla told The Daily Star that the production of the second unit of the Payra plant went into major maintenance which will take two months at least.

Once after the maintenance is completed, the full production might delay for another 20-25 days as another unit will require a regular maintenance then, he said.

The superintending engineer of this power plant Zobayer Ahmed said it is a scheduled maintenance which was delayed twice earlier considering the power demand of the country.

"But we got the clearance now," he said, adding that as winter started, power demand dropped.

Contacted, deputy assistant engineer of Patuakhali Power Grid Abdullah Al Naeem said they will not be facing any trouble in Patuakhali as power demand dropped at 45MW from 108MW for the last couple of days.

Currently, Bangladesh has been producing between 11,000MW to 12,000MW electricity, having around 500MW shortage during peak hours.​

 

[Saif]

HC declares 2 provisions of quick rental law 'illegal'

The High Court (HC) on Thursday declared two provisions - one giving quick rental power plants immunity from legal bindings and another giving energy minister the sole authority to approve electricity purchase plans, of the quick rental law illegal.

en.prothomalo.com

HC declares 2 provisions of quick rental law 'illegal'
BSS
Updated: 14 Nov 2024, 19: 44

High Court File photo

The High Court (HC) on Thursday declared two provisions - one giving quick rental power plants immunity from legal bindings and another giving energy minister the sole authority to approve electricity purchase plans, of the quick rental law illegal.

A HC Division Bench of Justice Farah Mahbub and Justice Debasish Roy Chowdhury passed the judgment, declaring absolute a rule it issued on 2 September. The court in the rule had asked authorities concerned to explain as to why those two provisions shall not be declared illegal.

Earlier on 7 November, the HC set today, Thursday to pronounce the judgment in the case.

The court had issued the rule after holding primary hearing on a writ filed by Dr Shahdeen Malik and Tayeb-Ul-Islam Showrov. The two Supreme Court lawyers filed the writ, challenging the legality of sections 9 and 6(2) of the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010.

Secretary of the legislative drafting wing of the law ministry, finance division secretary, secretary of power, energy and mineral resources ministry and chairmen of Power Development Board and Petrobangla were asked to reply the rule.​

 

[Saif]

Bangladesh lags behind in rooftop solar race

Despite significant potential for rooftop solar energy, Bangladesh has lagged behind in development, while Vietnam has emerged as a regional leader in the sector

www.thedailystar.net

Bangladesh lags behind in rooftop solar race

File photo

Despite significant potential for rooftop solar energy, Bangladesh has lagged behind in development, while Vietnam has emerged as a regional leader in the sector.

As of 2024, Bangladesh's total solar energy output stands at 1,084.55 MW, according to the Sustainable and Renewable Energy Development Authority. This includes 258 non-net-metered rooftop solar systems with a capacity of 88.451 MW, and 2,476 net-metered rooftop solar systems generating 111.732 MW.

In contrast, Vietnam produces 9,300 MW of rooftop solar energy out of a total solar capacity of 16,500 MW, making it the top solar energy producer in Southeast Asia, according to Vietnam Electricity.

Vietnam's total solar energy production is nearly equivalent to Bangladesh's entire power generation capacity.

A FAILED POLICY

Bangladesh introduced a policy in 2012 mandating new buildings to install solar panels for utility connections. However, experts have called it a failed initiative.

Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue, criticised the policy as flawed and politically motivated, claiming it primarily served a specific political group.

"Many people installed low-quality solar panels just to obtain utility connections. As a result, most of these systems are now non-operational," said Moazzem, also an adviser to the Just Energy Transition Network Bangladesh.

BARRIERS
​

• Lack of political will​
• Inadequate policy support​
• Unclear guidelines​
• Limited financial returns​
• Complex approval processes​

This sentiment was echoed by users who admitted they installed rooftop solar systems solely to fulfil the utility connection requirement.

"The rooftop solar I installed is now non-operational. I only installed it to get a utility connection. For outages, we rely on the building's generator," said Arif Mollah, a resident of Bailey Road.

Consequently, many rooftop solar systems across Dhaka have fallen into disuse.

LACK OF COMMITMENT, SUPPORT

Experts attribute Bangladesh's stagnation to a lack of political will and inadequate policy support.

"We've never seen strong political commitment from previous governments, whereas Vietnam has shown remarkable dedication to renewable energy," said Moazzem. He said Vietnam boasts a well-established renewable energy supply chain, heavily supported by private sector investments, which Bangladesh lacks.

Bangladesh's net metering policies have also failed to gain traction.

Md Abul Kalam Azad, manager of the Just Energy Transition (JET) team at ActionAid Bangladesh, criticised the 70 percent capacity cap on renewable energy converters, which limits installations.

"This capacity limit needs revision to allow larger solar installations, making investments more attractive for residential and commercial users," said Azad, also the member secretary of JETnet-BD.

Shafiqul Alam, lead energy analyst for Bangladesh at the Institute for Energy Economics and Financial Analysis (IEEFA), highlighted the contrast between Bangladesh and Vietnam's policy environments.

RECOMMENDATIONS
​

• Proper standards​
• Financial incentives​
• Private sector engagement​
• Robust policy framework​
• Shift in mindset​

"The Vietnamese government offered an attractive tariff for rooftop solar projects-- $0.838 per unit of rooftop solar production. This rate was announced with a planned reduction after 2020, which triggered a significant surge in rooftop solar installations," he said.

He said high import duties on solar equipment in Bangladesh further hinder growth.

However, he expressed hope for a positive outcome from the government's recent decision to provide a full tax exemption for 10 years to promote renewable energy development in Bangladesh.

BARRIERS TO PROGRESS

Experts identified unclear guidelines, limited financial returns, and complex approval processes as key barriers to expanding rooftop solar in Bangladesh.

"The net metering policy is underdeveloped, with no clear compensation mechanism and capacity limitations on individual systems, making the investment less profitable," said M Zakir Hossain Khan, chief executive of Change Initiative and an adviser to JETnet-BD.

Zakir advocated for expanding Bangladesh's net metering system and streamlining approval processes to encourage urban households and businesses to adopt rooftop solar.

SREDA Chairperson Munira Sultana pointed out that a lack of awareness among users is a major reason behind the poor maintenance of rooftop solar systems.

"These systems are easy to maintain and can meet electricity demands. However, many remain unused due to a lack of awareness," she said.

Experts believe that with proper standards, financial incentives, and private sector engagement, Bangladesh could still harness its rooftop solar potential. However, this requires a shift in mindset and a robust policy framework.​

 

[Saif]

Govt should revisit quick rental power, hold actors to account

THE High Court verdict that has struck down two provisions in the Quick Enhancement of Electricity and Energy Supply Act 2010 — initially meant to provide for early relief from the shortage of power...

www.newagebd.net

Govt should revisit quick rental power, hold actors to account
16 November, 2024, 00:00

THE High Court verdict that has struck down two provisions in the Quick Enhancement of Electricity and Energy Supply Act 2010 — initially meant to provide for early relief from the shortage of power, hovering around 5GW in 2009, which later became a permanent arrangement that has bled the national exchequer for a decade and a half — related to special procurement and indemnity clauses has now created the scope for action against irregularities and corruption in the process. The law — first extended by two years in 2012, then by four years in 2014, then again by three years in 2018 and finally by five years in 2021 — authorised the power and energy ministry to submit procurement proposals directly to the purchase committee only on the minister’s approval. The law also safeguarded actors and their action in the sector by keeping them above the customary law. But what happened under the protection of the law had two major phenomena — a situation to increase power bills and more subsidy in the sector. The writ petition which rolled down to the verdict of November 14 in its argument said that the indemnity provision has caused the exchequer a staggering Tk 1,000 billion in losses of public money over these years.

The verdict, which condoned past action carried out under the two provisions in the law, however, says that the government authorities are now free to review or reconsider any contracts made under the provisions, allowing the government to take action against irregularities, illegality and corruption, if any. The government authorities, who supported the High Court’s ruling of September 2 that asked the government to justify the legality of the two provisions, also say that they have no instruction to file an appeal against the verdict. The High Court says that the two provisions stand in contradiction with the constitutional mandate, which allows indemnity legislation only for action related to national liberation or the restoration of public order. The mandate does not extend to indemnify the action that is related to the procurement of quick rental power and energy. The provisions also stand to breach the constitutional provision that lays out that all contracts executed by the executive authority of the republic must be issued in the name of the president and conducted by an authorised representative. Whilst the provision shields the president and officials acting on behalf of the president against personal liability, the protection does not stop citizens from initiating legal proceedings against the government. The government would, moreover, continue to incur losses if the contracts were not cancelled or renegotiated.

Besides, Bangladesh’s installed power generation capacity is about 27.8GW, but it struggles to generate even 13GW, with a burdening overcapacity and consequent capacity charge payment. Time has now, therefore, been ripe for the government to act to reduce losses and unburden consumers with the high cost of power that results from the losses. The government should now renegotiate the rental power plans, cancel the ones that are not required and hold the actors responsible for such a constraining situation to account.​

 

[Saif]

The days of fossil fuel not over yet

President Aliyev has described the country's rich deposits of natural resources including oil and gas as the "Gift from God". Azerbaijan is rich in both of these fossil fuels. Under his presidency, the country has been roaring ahead with development, driven largely by fossil fuel utilisation. One c

thefinancialexpress.com.bd

The days of fossil fuel not over yet
Syed Mansur Hashim
Published :
Nov 15, 2024 21:21
Updated :
Nov 15, 2024 21:21

President Aliyev has described the country's rich deposits of natural resources including oil and gas as the "Gift from God". Azerbaijan is rich in both of these fossil fuels. Under his presidency, the country has been roaring ahead with development, driven largely by fossil fuel utilisation. One can understand the discontent of climate activists as to why on earth the COP29 summit is being hosted by an unapologetic regime that has no problems utilising fossil fuels.

President Aliyev isn't totally off the mark when he talks about the hypocrisy that exists in the West. On the one hand, the country he leads has been dubbed a 'Petrostate' and on the other many of the developed nations are also engaged in buying Azerbaijan's oil and gas reserves. Indeed, half of the country's exports comprises these two natural fuels. Hence, it hardly comes as a surprise when this leader is perfectly at home taking a jab at this UN summit against Western media that have apparently subjected him to a "campaign of slander and blackmail".

President Aliyev's sentiments are echoed by many other fossil-fuel rich countries in other parts of the world, including places like Guyana. The alternative argument to the mantra of climate summits is that natural resources like oil, gas, coal ought to be developed to drive forward national development plans in under-developed nations. The counter narrative is based on the fact that it is not these countries that have been responsible for the major global pollution. Now that the advanced economies have reached a development decades ahead of the rest of the world, these nations are putting caps on developing countries by attempting to limit the use of fossil fuels.

The pushback was bound to come sooner or later. The Azeri president has taken a jab at more than Western nations, Western media but turned his wrath against NGOs stating that "fake news media of the country which is (the) number one oil and gas producer in the world and produces 30 times more oil than Azerbaijan, call us 'petrostate'." If one takes a look at the European theatre for instance, EU nations have actually increased their utilisation of fossil-fuels as they weaned their economies away from cheap Russian natural gas after the Russo-Ukraine war started. That created a lot of demand and countries like Azerbaijan helped fill the gap with its fossil fuel exports.

While the UN chief agrees that the G20 countries ought to take leadership in the process of stepping away from fossil fuels, exactly the opposite is happening. Hence, there is one set of rules for rich nations, and another set of rules for countries that have no choice but to tap into natural fuels to bring their economies into the 21st century.

With regards to the climate summit being held in Azerbaijan, climate activists do have a point. Azerbaijan is undoubtedly one of the oil capitals of the world. If the central point of the summit is to limit use of fossil fuels, then it could have been hosted elsewhere. If it was the intention of the organisers to showcase that the host country would have a change of heart about fossil fuels, then that goal has backfired spectacularly.

Regardless of the process by which Azerbaijan ended up hosting the summit, the fact of the matter is that it has opened up a can of worms that will have far reaching consequences. As pointed out by CBC News "It is a conflict of interest to allow a major producer of oil and gas to be custodian of climate talks that are designed to reduce emissions in order to achieve a livable future for everyone." Another major development appears to have eluded the summit organizers altogether and that is the re-election of President Trump who has his doubts about claims being made on climate change, and is a big proponent of fossil fuels. Hence, how G20 leadership will recalibrate its position after this development is anyone's guess. It remains to be seen as to what sort of commitments will be made at this summit, how much watering down of agreements there will be and whether participating nations will be able to find a common ground on fossil-fuel exploration.

Regardless of what climate activists state, pragmatic nations will utilise their natural fossil fuels to propel their economies forward because as has been the experience of countries like Bangladesh, an import-dependent fossil fuel energy plan is akin to driving the economy to near bankruptcy. Notwithstanding claims that renewable energy (RE) is becoming cheaper, even advanced economies like Germany have stepped back from RE solutions because it is both too expensive to produce and cannot replace cheap sources of fuel like coal and natural gas.​

 

[Saif]

The renewable energy sector needs a push

Reduce dependence on fossil fuels, transition to clean energy

www.thedailystar.net

The renewable energy sector needs a push
Reduce dependence on fossil fuels, transition to clean energy

VISUAL: STAR

As the world accelerates its shift to renewable energy to cut fossil fuel use, it's disheartening to see the limited growth of Bangladesh's renewable energy sector. Reportedly, despite our significant solar potential, a lack of political will and inadequate policy support have stalled its development. According to the Sustainable and Renewable Energy Development Authority (SREDA), as of 2024, Bangladesh's total solar energy output stands at only 1,084.55 MW, which is very insignificant. Bangladesh also ranks lowest in renewable energy generation relative to total power capacity among South Asian countries, as per a 2023 study. Insufficient investment and flawed policies of the previous Awami League regime further hindered the sector's progress.

In 2012, the Awami League government introduced a policy requiring new buildings to install solar panels to obtain utility connections. However, this initiative fell short as many people opted for low-quality solar installations just to meet the requirement, leaving numerous rooftop systems in Dhaka unused. Experts point to policy limitations like the 70 percent capacity cap on renewable energy converters and an underdeveloped net metering policy that discouraged effective solar panel use. Moreover, high import duties on solar equipment further deterred rooftop installations. Consequently, Bangladesh missed its previous targets to generate five percent of its electricity from renewables by 2015 and 10 percent by 2020.

There were also serious inconsistencies in the previous government's energy policies. For example, while the Mujib Climate Prosperity Plan (MCPP) set an ambitious goal of 40 percent renewable energy in our total energy production by 2041, the Integrated Energy and Power Master Plan (IEPMP) 2023 reduced this goal to just 8.8 percent—revealing a lack of alignment in energy planning.

Clearly, Bangladesh lags significantly in solar energy development and has much to learn from other comparable countries. Vietnam, for example, provides an inspiring example, as it produces 9,300 MW of rooftop solar energy out of a total 16,500 MW solar capacity. The country's solar production rivals Bangladesh's entire power generation capacity. Therefore, going ahead, Bangladesh can take cues from the experiences of countries like Vietnam and prioritise the growth of the renewable energy sector.

Our power sector is already in a very challenging state. Consistent gas shortages have left many power plants idle, and the dollar crisis has made importing expensive LNG harder for the government. With few viable alternatives, we must look to renewable sources to meet our future energy needs. We hope the interim government gives urgent attention to this sector, and moves away from the flawed and ineffective energy policies of the past.​

 

[Saif]

Transmission loss keeps rising

Transmission loss increased for the second consecutive year in the past financial year with a forecast suggesting further increase over next several years due to mismatched expansions in power and industrial sectors in Bangladesh...

www.newagebd.net

Transmission loss keeps rising
Emran Hossain 20 November, 2024, 23:53

Representational image. | File photo

Transmission loss increased for the second consecutive year in the past financial year with a forecast suggesting further increase over next several years due to mismatched expansions in power and industrial sectors in Bangladesh.

The transmission loss in the past financial year meant the loss of electricity worth more than Tk 3,200 crore, the cost that was passed on to the consumers.

In the past 14 years, major power plants were built far away from Dhaka, where most of the electricity is consumed, requiring the transmission of electricity over long distances up to 500km.

The industrial activities largely remain concentrated around Dhaka where electricity is transmitted from as far as Adani power plant in India’s Jharkhand or Matarbari power plant in Cox’s Bazar or Payra power plant in Patuakhali or Rampal power plant in Mongla.

‘The transmission loss is unlikely to go down. Rather, it might increase in future,’ said Power Grid Company of Bangladesh executive director Abdul Monayem Chowdhury.

The number of power substations doubled due to the ‘100 per cent electrification’ cursing increase in system loss, he explained, adding that the number of 132kv substations was set to exceed 300 from the existing 200.

‘The distribution loss, however, is decreasing,’ he said.

The annual report of the PGCB, which was partially released on October 15, showed that the transmission loss in 2023-24 increased to 3.13 per cent from 3.07 per cent in 2022-23 and 2.89 per cent in 2021-22.

The World Bank data showed that Bangladesh’s electricity transmission loss in 2014 was 11 per cent, which was equal to Sri Lanka. In Vietnam, the loss was 9 per cent while Japan recorded 4 per cent loss the same year, followed by Korea recording 3 per cent and Singapore 2 per cent.

A WB report released on August 31, 2023 showed that the transmission loss in Vietnam was reduced to 2.29 percent in 2021.

Transmission loss combined with distribution loss comprises power system loss. The global average of power system loss is about 8 per cent.

In India the system loss is about 20 per cent while in Pakistan the loss ranged between 10 per cent and 35 per cent.

Bangladesh’s system loss stood at 10.06 per cent in FY 24, said the Power Cell, as the distribution loss stood at 7.25 per cent, down from 7.65 per cent in FY 23.

Back in 2002, Bangladesh’s distribution loss was 23.92 per cent while the transmission loss was 4.05 per cent.

Bangladesh’s transmission loss was rather low because of its power generation remaining centred around Dhaka until the latest spell of power sector expansion took off in 2009. Areas far away from Dhaka remained largely out of power supply for there was no transmission coverage.

‘Transmission loss represents the amount of electricity lost during the supply of power from its generation points to consumers,’ said Md Shahjahan, who teaches electrical and electronic engineering at Khulna University of Engineering and Technology.

The loss is caused in the form of heat, he explained, as electricity flowed through wire resisting the current.

The greater the length of the transmission line, the more the loss, he said.

In the past year, the PGCB received 92,900 million units of power from generation points and sold 89,996 million units.

Energy experts said that the use of substandard machinery leading to sudden shutdown of power plants could be another reason for the increase in transmission loss.

Some newly built power plants such as the Rampal power plant already raised eyebrows by its frequent unscheduled and forced shutdowns.

Japan recently announced the development of a technology ensuring zero transmission loss. The technology is basically keeping the wire super cold by using liquid nitrogen.

According to Japan, the technological cost outweighs the profit from the reduction of the transmission loss.

The distribution loss, however, is not always mechanical, explained Shahjahan, adding that the loss was very high in many countries because of stealing.

The Consumers Association of Bangladesh has long complained about widespread power theft in the country, often taking place with direct help of power sector employees.

The stealing of power is so rampant that households, the largest power consumer, developed their own ways of stealing power such as by sticking hooks to the live distribution lines to get connected rather than having an electricity meter.

Such arbitrary handling of power led to accidents and the loss of many lives over the decades. Hundreds got maimed.

The overall power system loss remaining 2 per cent above the global average and the rising transmission loss is bad news for Bangladesh’s fragile economy, experts said.

Major power projects create $2b debt obligations every year. The Bangladesh Power Development Board owed Tk 44,338 crore to power producers at the end of FY 24, as the national power company could clear only half of its dues to power generators in the year.

Bangladesh is also lending $4.97 billion from the International Monetary Fund.

Any more system loss is far more costly than ever before, the experts said, adding that the arbitrary power sector expansion by the past Awami League government, mainly based on imported fossil fuels, greatly increased the energy bills.

In the 14 years ending in 2023, per unit energy cost increased by 269 per cent. In the 12 years until 2009, the year the AL government assumed power, energy cost had increased by 42 per cent.

Bangladesh’s current installed capacity is 27,791MW, including 2,660MW imported from India through Kushtia, Cumilla and Chapainawabganj.

The increasing transmission loss raises reliability issues plaguing the power sector for long. Many industries rely on captive power since power cuts are frequent in the national grid. The impacts of an unreliable power supply system on small and medium entrepreneurs are huge.

‘Bangladesh wasted billions over the past 15 years. A far better power system could have been developed had the country invested in renewable energy,’ said Hasan Mehedi, member secretary of the Bangladesh Working Group on Ecology and Development.

The Power Development Board said that the 14 years’ investment in the power sector was $33 billion.​

 

[Saif]

Payra port: Poor navigability jacks up coal import cost

Just six months after Tk 6,500 crore was spent on capital dredging, Payra Port’s Rabnabad channel has lost much of its navigability, pushing up coal transport costs for the power plants in the area.

www.thedailystar.net

Payra port: Poor navigability jacks up coal import cost
Large vessels can’t reach port after dredging stopped

Goods are unloaded to lighter vessels at the outer anchorage of Payra port in Patuakhali as reduced navigability bars ships with a 10.5m draft from reaching the main jetty. Photo was taken recently. Photo: Sohrab Hossain

Just six months after Tk 6,500 crore was spent on capital dredging, Payra Port's Rabnabad channel has lost much of its navigability, pushing up coal transport costs for the power plants in the area.

Mother vessels carrying coal from abroad for two power stations are unable to dock at the port jetty, forcing the plants to bear the extra cost of lightering.

Patuakhali's Kalapara upazila along the Rabnabad river houses the 1,320MW Payra Thermal Power Plant. Boasting ultra-supercritical technology, the plant began its operations in 2020.

The Rural Power Company Limited's plant in the area is nearing completion, while the Ashuganj power plant is under construction. Both the stations will have a capacity to generate 1,320MW each.

The coal for these plants is brought from Indonesia through the Rabnabad channel, officials of the power plants said.

Many other companies rely on this channel and port to import nine other commodities, from limestone to LPG.

The Belgian contractor Jan de Nul completed the capital dredging of the 75km long channel with 100-125m or higher width by April 26. The dredging allowed vessels with a draft of 10.5m to enter the port.

But the triumph was short-lived. With a glaring lack of maintenance dredging, the channel's depth plummeted to dangerous levels — below 6.5m at high tide and 5.9m at low tide, according to officials of the power stations and the Payra Port Authority (PPA).

No mother vessel, that requires a minimum depth of 10m, can reach the jetty now. Port users face skyrocketing costs as coal must be lightered at the outer anchorage.

Shah Abdul Mawla, project manager of the Payra Thermal Power Plant, paints a dismal picture. "We're incurring an additional $10 to $12 per tonne in lightering costs. This additional expense is a burden on power generation."

Without immediate dredging, transportation costs will soar, and user dissatisfaction will grow, the power station officials said.

Zobair Ahmed, supervising engineer of the Payra Thermal Power Plant, highlighted an alarming reality. "The plant meets 10 percent of the nation's electricity demand. Each month, we burn over 300,000 tonnes of coal. Direct jetty access would have cut costs, but the channel's depth is already dwindling. This winter could see it drop below 5m, hiking costs even further."

Salim Bhuiyan, managing director of Rural Power Company Limited, echoed the concerns of the Payra plant officials. He said they alerted the PPA about the depth crisis and the PPA promised to raise the issue in high-level meetings with the shipping ministry and the Power Division.

Abu Saeed, a top official of Radiant Shipping, warned of dire consequences if maintenance dredging did not start soon.

"The Rabnabad channel was silting up even before the dredging was completed. Reduced navigability means higher costs and longer delays. If this persists, we'll have to seek alternatives to using the port. Maintaining navigability is crucial."

Captain SM Sharifur Rahman, harbour master of Payra port, shares disheartening statistics. Post-dredging, only 200 mother vessels with a 10.5m draft could reach the jetty. But as navigability waned gradually, lightering became necessary again.

On May 1, the channel's depth was 9.3m, shrinking to 7.7m by June 1, and a mere 7m by September 11. As of November 20, it stands at a precarious 6m, officials said.

Rear Admiral Abdullah Al Mamun Chowdhury, chairman of PPA, acknowledged the struggle, saying year-round dredging is vital.

After the maintenance dredging contract expired on April 30, emergency dredging was conducted until August 14, but the channel is silting up constantly.

"While there was initial consent for two more years of dredging, circumstances have stalled a decision. We're also procuring hopper dredgers to boost our dredging capacity. The next steps depend on the shipping ministry," Mamun said.

Despite the navigability crisis, Payra Port's activity is on the rise. Formal operations, starting on August 13, 2016, have seen a boost.

Just 10 ships docked at the port in the 2016-17 fiscal year, and the number rose to 1,040 in 2023-24. By October 28 this year, the port managed 3,160 ships, including 484 foreign commercial vessels, according to PPA data.

This boom generated around Tk 1,576 crore in revenue for the government, the data showed.​

 

[Saif]

Energy transition can address global energy inequality

2024 is the warmest year on record, surpassing the Paris Agreement's 1.5°C threshold.

www.thedailystar.net

Energy transition can address global energy inequality

FILE ILLUSTRATION: BIPLOB CHAKROBORTY

It is well-established that the world is deep into the climate crisis, posing multi-dimensional hazards, risks, vulnerabilities, and loss and damage. Multiple studies indicate that climate-related damages have increased by five to seven percent in the last 10 years, resulting in an economic loss amounting to around $270 billion in 2023 alone, while in 2022, the loss and damage costs reached $1.5 trillion. This, unfortunately, is just the beginning. The Intergovernmental Panel on Climate Change (IPCC) introduced the concept of climate system tipping point more than two decades ago, and various studies now confirm that many of those tipping points could be exceeded much sooner than anticipated.

We are currently at 1.2 degrees Celsius above the pre-industrial period, and the Paris Agreement benchmark is 1.5 degrees Celsius. The year 2023 is the warmest year on record, but what has gone less noticed is that the average temperature between February 2023 and January 2024 was 1.52 degrees Celsius above the pre-industrial period, exceeding the Paris Agreement threshold by 0.02 degrees Celsius, according to the Copernicus Climate Change Service. Whether this shift is temporary or lasting, it is clear that our mitigation strategies and actions have proven inadequate. Bangladesh alone faced five major climatic shocks only in 2024, with a month yet to go.

Since 1750, humankind has doubled atmospheric carbon, adding 210 parts per million (ppm) of CO2. In just the last 22 years, an additional one quarter of that doubled carbon has been added, leaving us with 422 ppm of carbon in the atmosphere today. Development and energy consumption are strongly correlated, and developed countries grew rich by emitting 92 percent of excess carbon by burning fossil fuels. On a national scale, the US alone, through its 22 mega fossil fuel projects, emits a fifth of the global carbon emission.

On an individual level, the richest 10 percent of people globally emit as much as 50 percent of carbon, while the wealthiest one percent emits double the carbon that the poorest 50 percent of the world's population emits combined. Moreover, the emissions of a single billionaire (three million tonnes) are a million times higher than the emissions of an individual (2.76 tonnes) in the bottom 90 percent of humanity. In stark contrast, the entire African continent emits less than four percent, and developing countries like Bangladesh emit less than 0.5 percent.

As the Global North and the wealthiest continue these egregious practices, global leaders like the COP28 president dismiss the science behind the 1.5-degree-Celsius threshold with calls for a fossil fuel phaseout. The world is edging closer to what UN Secretary-General António Guterres has termed "global boiling." Yet, emissions continue to rise, and an additional 16 percent increase by 2030 will push us to 2.7 degrees Celsius by 2100. To limit global warming to 1.5 degrees Celsius, we must halve the emission by 2030, and reach net zero by 2050, which eventually might prevent us from irreversible climate emergency. Ironically, despite having already surpassed 1.5 degrees Celsius and reached multiple tipping points, 82 percent of the world's energy still comes from fossil fuels, while only 6.5 percent comes from renewable sources.

There is, however, immense potential for renewables as the Earth receives about 1.52 million TWh of energy annually only from solar, which is 8,700 times more than the annual global energy demands (170,000 TWh). Additionally, there are other renewable sources feasible enough based on the geographic locations.

Energy transition is considered one of the most plausible solutions to save humanity from the brunt of climate change. If we consider the fair share of carbon, the Global North has already exceeded its limit. And yet, if they continue using fossil fuels while prescribing transitions for developing nations, it becomes an unjust, colonial approach. More importantly, we must assess the entire life cycle of the energy transition and ensure it does not place an additional burden on developing nations in terms of finance, environmental degradation through resource extraction, loss of natural resource rights for marginalised communities, job loss, etc.

The ideal recommendation is Just Energy Transition (JET). Least developed countries (LDCs) can phase out coal, then developing nations should immediately phase out fossil fuels. The Global North and wealthy nations should finance the energy transition for LDCs, and developing countries should transfer renewable energy technologies to them. Moreover, the JET must be rooted in four pillars of justice: a) historical injustices, rights, and concerns of marginalised and impacted communities must be recognised; b) affected people, associations, and civil society voices must be reflected in policies and all energy transition processes; c) responsibilities and benefits of the transition must be equitably distributed; and d) affected people must be fairly compensated for energy transition-related harm and loss and damage as part of the remedy.

The world is a shared space, and as we tackle the common climate crisis, we must do so with equity at the forefront, not vested interests. This is the way to introduce JET—the key to an equal and sustainable future.

Dr Mohammad Emran Hasan is head of climate justice and natural resources rights at Oxfam in Bangladesh.​