[🇧🇩] Energy Security of Bangladesh

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[🇧🇩] Energy Security of Bangladesh
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Bangladesh needs smart grid system to keep power supply stable: Energy adviser
Published :
Nov 09, 2024 18:11
Updated :
Nov 09, 2024 18:11


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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.​
 

Now Payra to cut down power production by half

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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.​
 

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

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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.​
 

Bangladesh lags behind in rooftop solar race

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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.​
 

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.​
 

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