[🇧🇩] Energy Security of Bangladesh

[Saif]

Payra power plant halts production for tests of new facility

Production cost at new facility to be lower than that of Adani, other plants

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Payra power plant halts production for tests of new facility
Production cost at new facility to be lower than that of Adani, other plants

The Payra thermal power plant in Kalapara upazila of Patuakhali has halted production to conduct maintenance and facilitate the test commissioning of a neighbouring facility, according to officials of the 1,320-megawatt (MW) coal-fired power station.

They informed that the plant's first 660 MW unit was shut down for seven days from December 16 for the test commissioning of the nearby power plant run by RPCL- NORINCO International Power Limited (RNPL).

Meanwhile, the second unit was shuttered earlier on November 9 for three months for conducting major maintenance works, said Shah Abdul Mawla, project officer of the Payra power plant.

He said the newly-built RNPL power plant will begin production on a trial basis in January.

As such, power generation at the Payra power plant was halted to allow testing of the transmission lines of the new facility in Amtoli upazila of Barguna, he said.

The new plant is located on the banks of the Ramnabad river, just two kilometres north of the Payra power plant. Costing about $2.5 billion, its construction began in 2019 on some 950 acres of land.

The RNPL is a joint venture of Bangladesh's state-owned Rural Power Company Limited and China's state-owned Norinco International Cooperation Limited, with each having an equal stake.

To enable the test for commissioning the RNPL-run plant, the authorities of the Payra power plant allowed for their thermal power transmission lines to be kept shut, he added.

Selim Bhuiyan, managing director of the RNPL, said each unit of the two units of the new power station can produce up to 660 MW of electricity.

"But to begin operations, it is now necessary to conduct the test. For this, the Payra-Gopalganj 400 kV power transmission line will have to be shut down. Then, it will take up to 75 days for the commissioning," he added.

Bhuiyan also said they expect the new plant to begin contributing to the national grid on the first week of March and production at its second unit of equal capacity was expected to begin by the end of May.

Sources close to the project said the total installed capacity of the grid-based power plants in the country is about 27,740 MW.

Of this, the capacity of coal-based power plants is 5,683 MW. If the capacity of the RNPL-run plant is added, the total capacity of coal-based power plants would stand at 7,000 MW, they said.

Regarding coal stocks for the new power plant, Bhuiyan said when the plant starts generating electricity, 12,000 tonnes of coal would be required on an average per day for the two units.

An agreement has already been reached with Singaporean company Yantai to supply 1 million tonnes of coal.

Under that agreement, 1.28 lakh tonnes of coal have reached the new power plant. More coal will arrive in January. In this way, coal will be imported in phases according to demand.

He said in an attempt to minimise environmental damage, high-quality coal from Indonesia would be used in this new plant. It is a state-of-the-art power plant, where more electricity will be generated by burning less coal compared to conventional power plants.

Regarding the price of electricity, he said the production cost of this new plant will be lower than that of Adani, Rampal, Banshkhali and other thermal power plants.

Considering the current price of coal ($77), the price of electricity per unit can be around Tk 9.85 on an average.

Md Toufiq Islam, project director and chief engineer of the RNCL-run plant, said if everything goes well, the first unit would be fully operational by early March and the second unit by June.​

 

[Saif]

Govt won’t raise power tariff despite pressure from IMF: energy adviser

The energy adviser explained that while the IMF recommended a tariff hike to ease the subsidy burden in the power sector, the government emphasised the adverse effects such a move would have on citizens already grappling with high inflation

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Govt won’t raise power tariff despite pressure from IMF: energy adviser

The interim government will not increase power tariffs despite a recommendation from the International Monetary Fund (IMF), said Power and Energy Adviser Dr Fouzul Kabir Khan today.

"We will not raise power tariff despite IMF's suggestion," Fouzul told reporters after a meeting with an IMF delegation at the finance ministry.

The delegation, led by IMF Mission Chief to Bangladesh Chris Papageorgiou, held a meeting as part of the IMF's third review under the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF). Finance Adviser Dr Salehuddin Ahmed and Fouzul were present during the discussions.

The energy adviser explained that while the IMF recommended a tariff hike to ease the subsidy burden in the power sector, the government emphasised the adverse effects such a move would have on citizens already grappling with high inflation.

The government is focusing on reducing subsidies by cutting production costs in the energy sector, the adviser said.

He also highlighted several reforms aimed at improving efficiency and transparency in the power sector.

The government has repealed the Speedy Increase of Power and Energy Supply (Special Provision) Act, 2010, and removed bureaucrats from the boards of directors in various power companies, he noted.​

 

[Saif]

Adani pressed by Bangladesh to reopen power deal

Bangladesh’s interim government has accused energy supplier Adani Power of breaching a multi-billion-dollar agreement by withholding tax benefits that a power plant central to the deal received from New Delhi, according to documents seen by Reuters.

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Adani pressed by Bangladesh to reopen power deal

A general view of the Adani Corporate House in Khodiyar village near Ahmedabad in India’s state of Gujarat on November 21, 2024. Photo: AFP/file

Bangladesh's interim government has accused energy supplier Adani Power of breaching a multi-billion-dollar agreement by withholding tax benefits that a power plant central to the deal received from New Delhi, according to documents seen by Reuters.

In 2017, the Indian company controlled by billionaire Gautam Adani signed an agreement with Bangladesh to provide power from its coal-fired plant in eastern India. Dhaka has said it hopes to renegotiate the deal, which was awarded by then-Prime Minister Sheikh Hasina without a tender process and costs Bangladesh far more than its other coal power deals, according to Bangladesh power agency documents and letters between the two parties reviewed by Reuters, as well as interviews with six Bangladesh officials.

Dhaka has been behind on payments to Adani Power since supply started in July 2023. It owes several hundred million dollars for energy that has already been supplied, though the two sides dispute the exact size of the bill.

Bangladesh's de facto power minister Muhammad Fouzul Kabir Khan told Reuters the country now had enough domestic capacity to cope without the Adani supply, though not all domestic power generators were operational.

Nobel peace prize laureate Muhammad Yunus took power in August after a student-led revolution ousted Hasina, who critics accuse of stifling democracy and mismanaging the economy. She ran Bangladesh for most of the last two decades and was a close ally of Indian Prime Minister Narendra Modi.

Reuters is reporting for the first time that the contract came with an additional implementation agreement that addressed the transfer of tax benefits. The news agency is also revealing details about Bangladesh's plan to reopen the 25-year deal, and that it hopes to use the fallout from US prosecutors' November indictment of Adani and seven other executives for their alleged role in a $265 million bribery scheme to press for a resolution.

Adani Power has not been accused of wrongdoing in Bangladesh. A company spokesperson said in response to Reuters' questions that it had upheld all contractual obligations and had no indication Dhaka was reviewing the contract. The company did not answer questions about the tax benefits and other issues raised by Bangladesh.

Adani Group has called the US allegations "baseless."

TAX EXEMPTIONS

Adani Power's Godda plant runs off imported coal and was built to serve Bangladesh.

The company said the Bangladesh deal helped further Indian foreign policy objectives and Delhi in 2019 declared the plant part of a special economic zone. It enjoys incentives such as exemptions on income tax and other levies.

The power supplier was required to inform Bangladesh swiftly of changes in the plant's tax status and to pass on the "benefit of a tax exemption" from India's government, according to the contract and implementation agreement signed on November 5, 2017 between Adani Power and the state-run Bangladesh Power Development Board (BPDB).

But Adani Power did not do so, according to letters sent by BPDB on September 17, 2024 and October 22, 2024 that urged it to remit the benefits.

The agreements and letters are not public but were seen by Reuters.

Two BPDB officials, who spoke on condition of anonymity because they were not authorised to talk to the media, said they did not receive responses.

BPDB estimates savings of roughly 0.35 cents per unit of power if the benefit was passed on, the officials said. The Godda plant supplied 8.16 billion units in the year to June 30, 2024, according to an undated Bangladesh government summary of power purchases seen by Reuters, suggesting potential savings of about $28.6 million.

Power minister Khan said the savings would be a key part of future discussions with Adani Power.

'NEGOTIATED HASTILY'

Bangladesh in November scrapped a 2010 law that allowed Hasina to award some energy deals without a competitive bidding process.

The absence of tenders is unusual, said Tim Buckley, director of Australia's Climate Energy Finance think-tank, adding that auctions ensure "the best price possible."

In September, Yunus's government appointed a panel of experts to examine major energy deals signed by Hasina. A Bangladesh court has separately ordered a probe of the Adani deal.

Another panel asked to study the economy said in a white paper submitted to Yunus on December 1 that the US charges against Adani meant Bangladesh should "scrutinise" the power deal, which it described as "negotiated hastily."

Hasina, who has not been seen in public since she fled to India, could not be reached. Her son and adviser Sajeeb Wazed told Reuters he was not aware of the Adani Power deal but that he was "sure there was no corruption."

"I can only assume the Indian government lobbied for this deal so it was made," he said in response to allegations of political interference.

Modi's office and other Indian officials did not respond to requests for comment.

HARDBALL

On October 31, Adani Power halved the power supply from Godda in response to the payment dispute with Bangladesh.

The company in a July 1 letter seen by Reuters also rejected a request from BPDB to extend a discount it had offered until May - resulting in savings of about $13 million for Bangladesh. It said it would not consider further discounts until payment was cleared.

Adani Power contends it is owed $900 million, while BPDB says arrears are about $650 million. Bangladesh suffers from a dollar shortage and BPBD officials told Reuters they haven't been able to obtain sufficient foreign currency for payment.

The halving of supply particularly angered Bangladesh, BPDB Chair Md Rezaul Karim said, because it came after Dhaka in October remitted $97 million to Adani Power - its highest monthly payment this year.

The dispute revolves around how power tariffs are calculated, with the 2017 agreement pricing off an average of two indices.

The unit cost of energy from Godda was 55 percent above the average of all Indian power sold to Dhaka, according to the summary of Bangladesh's power purchases.

Bangladesh is pressing for Adani Power to use other benchmarks that would lower the tariff after one of the indices was revised last year, said three BPDB sources.

Adani Power has rejected that, one of them said, adding the two sides were meeting soon.

The agreements stipulate that arbitration be carried out in Singapore, but Khan said Bangladesh's next move depended on the outcome of the court-ordered investigation.

"If it is proven that bribery or irregularities had happened, then we will have to follow the court order if any cancellation happens," he said.​

 

[Saif]

13 out of 18 Summit Group power plants operational

Of the 18 power plants operated by Summit Group, 13 remain operational while five are currently shut down, the company revealed in a statement. Summit Corporation Limited owns and operates a total of 18 power plants with a total capacity of 2,255 MW and also operates Bangladesh’s second Floa

thefinancialexpress.com.bd

13 out of 18 Summit Group power plants operational
FE ONLINE DESK
Published :
Dec 19, 2024 22:28
Updated :
Dec 19, 2024 22:28

Of the 18 power plants operated by Summit Group, 13 remain operational while five are currently shut down, the company revealed in a statement.

Summit Corporation Limited owns and operates a total of 18 power plants with a total capacity of 2,255 MW and also operates Bangladesh’s second Floating Storage and Regasification Unit (FSRU) with a capacity of 500 million standard cubic feet per day (mmcf/d), reports UNB.

Summit Power Limited (SPL), a publicly listed company, along with Summit Corporation Limited, owns 15 power plants with a total 976 MW installed capacity.

Presently, three Unit I Power Plants in Ashulia, Madhabdi and Chandina (a total of 33 MW) are in shutdown mode due to gas supply limitations, though these power plants have Power Purchase Agreement (PPA) till November 21, 2028 under “No Electricity, No Payment” basis without guaranteed off-take.

Meanwhile, Madanganj Power Plant (102 MW, HFO fired) located in Narayanganj is in shutdown mode as BPDB has not placed any electricity demand since mid-August 2024.

The Jangalia Power Plant (33 MW gas-fired) is in shutdown mode since initial expiry on June 24, 2024 of the Power Purchase Agreement (PPA) with BPDB. Furthermore, BPDB has not informed any step for renewal of PPA or resumption of operation.

The remaining 10 power plants of SPL with installed capacity of 808 MW are in operation.

Separately, three turbine power plants, Summit Meghnaghat Power Company Limited, Summit Meghnaghat II Power Company Limited, and Summit Bibiyana Power Company Limited with a total installed capacity of 1,279 MW are operational as well as the Floating Storage and Regasification Unit (FSRU).

Summit Power Limited (SPL) has requested a time extension till March 31, 2025 for providing year-end (on June 30, 2024) audited financial statements and declaring dividends.

SPL is expecting the Annual General Meeting (AGM) to be held between April and May 2025, said the Summit Group.​

 

[Saif]

Pathways to green energy

BANGLADESH stands at the forefront of the global fight against climate change. As one of the most climate-vulnerable countries in the world, it faces rising sea levels, increasing...

www.newagebd.net

Pathways to green energy
by Musharraf Tansen 22 December, 2024, 00:00

BANGLADESH stands at the forefront of the global fight against climate change. As one of the most climate-vulnerable countries in the world, it faces rising sea levels, increasing temperatures, erratic weather patterns and a higher frequency of natural disasters. These challenges threaten the country’s economy, ecosystems and the livelihoods of millions. To combat these threats, Bangladesh must embrace green energy as a cornerstone of its strategy. Transitioning to renewable energy offers a dual opportunity: mitigating the impacts of climate change and fostering sustainable development.

Climate crisis

BANGLADESH’S geographic and socio-economic conditions make it exceptionally vulnerable to climate change. With about one-third of the population living in coastal areas, rising sea levels pose an existential threat. Saltwater intrusion into arable land is already compromising agriculture, which employs 40 per cent of the labour force. Moreover, extreme weather events like cyclones and floods are increasing in intensity and frequency, displacing millions and exacerbating poverty. According to the Global Climate Risk Index, Bangladesh consistently ranks among the most affected countries by climate-induced disasters.

Bangladesh’s contribution to global greenhouse gas emissions is, however, negligible — less than 0.5 per cent. The paradox of being a victim of emissions largely caused by industrialised nations underscores the importance of developing a resilient and low-carbon energy infrastructure within the country.

Case for green energy

GREEN energy, derived from renewable sources such as solar, wind, hydropower and biomass, represents more than just a mitigation strategy; it is a comprehensive solution aligned with the Sustainable Development Goals. For Bangladesh, adopting green energy offers numerous benefits that span environmental, economic and social dimensions. Transitioning to renewable energy sources is critical for ensuring environmental sustainability. Unlike fossil fuels, renewable energy sources do not emit carbon dioxide or other harmful pollutants, making them a cleaner alternative. This is particularly crucial for Bangladesh, where air pollution poses a growing threat to public health and environmental well-being. By reducing greenhouse gas emissions, the country can make significant strides in combating climate change and protecting its natural resources.

In addition to environmental benefits, renewable energy strengthens energy security. Bangladesh currently relies heavily on imported fossil fuels, leaving its economy vulnerable to fluctuating global energy prices. Harnessing the country’s abundant renewable resources can decrease dependency on imports, ensuring a more stable and self-sufficient energy supply. Economic opportunities also abound in the renewable energy sector. Investments in green energy have the potential to create thousands of jobs in areas such as manufacturing, installation, maintenance, and research. Decentralising energy production through solar and wind systems can further empower rural communities, stimulate local economies, and foster inclusive development.

Improved access to energy is another compelling advantage of green energy. Technologies such as solar power are particularly suited to off-grid applications, addressing the needs of rural areas where extending the national grid is often impractical and expensive. Decentralised solar energy systems can provide affordable and reliable electricity, transforming lives by enabling better education, healthcare, and economic activities. By embracing renewable energy, Bangladesh can tackle pressing challenges while advancing toward a greener, more equitable, and prosperous future.

State of renewable energy

BANGLADESH has already made some progress in renewable energy, particularly in solar power. The Infrastructure Development Company Limited has installed over six million solar home systems across rural areas, benefiting more than 20 million people. The country has also launched initiatives to develop solar mini-grids, solar irrigation systems, and rooftop solar solutions.

Despite these successes, renewable energy constitutes only about 3 per cent of Bangladesh’s total energy mix. The government’s Power System Master Plan 2016 originally prioritised fossil fuels, particularly coal and natural gas, to meet growing energy demands. However, recognising the environmental and financial costs, the government needs to revisit its approach to emphasise renewables.

Challenges to scaling green energy

WHILE the potential for green energy in Bangladesh is immense, several challenges must be overcome to fully realise its benefits. Financial constraints are among the most significant barriers, as renewable energy projects demand substantial initial investments. For a developing country like Bangladesh, mobilising the necessary resources can be daunting, particularly in the absence of favourable financing mechanisms. The lack of incentives for private sector investment further compounds the issue, leaving many promising projects underfunded or stalled.

Policy and regulatory barriers also hinder the growth of green energy. Despite progressive measures such as the Renewable Energy Policy of 2008 and the goal to generate 10 per cent of electricity from renewables by 2030, the pace of implementation has been slow. Streamlining regulatory frameworks, reducing bureaucratic hurdles and introducing more robust incentives are essential steps to accelerate renewable energy adoption. Technological limitations pose additional challenges, particularly the intermittent nature of solar and wind energy, which requires advanced storage solutions and modernised grids for effective integration. Unfortunately, Bangladesh’s current energy infrastructure is not yet equipped to handle large-scale renewable energy deployment, necessitating significant upgrades.

Land availability is another critical issue in a densely populated country like Bangladesh, where space for large-scale solar and wind farms is scarce. Innovative solutions, such as installing floating solar panels on water bodies, could help address this constraint, but these technologies require additional research and investment. Public awareness and acceptance further complicate the transition to green energy. Many people remain unaware of the benefits of renewable energy or are sceptical of its feasibility. Comprehensive education campaigns and active stakeholder engagement are crucial to building public support and driving behavioural change. Addressing these challenges through coordinated efforts from the government, private sector, and civil society is essential for scaling up green energy and advancing toward a sustainable energy future in Bangladesh.

Pathways to green energy future

TO OVERCOME the challenges and unlock the potential of renewable energy, Bangladesh must adopt a comprehensive and multi-pronged strategy. Policy reforms and incentives are a crucial starting point. The government should revise its energy policies to place a stronger emphasis on renewables by introducing measures such as feed-in tariffs, tax breaks, and subsidies for renewable energy projects. These steps can create an attractive environment for private investment. Clear and consistent policies are essential to instil confidence among investors and developers, ensuring long-term commitment to the sector.

International collaboration offers another pathway to progress. Bangladesh can leverage support from organisations like the Green Climate Fund and enter bilateral agreements with renewable energy leaders such as Germany and Denmark. These partnerships can provide much-needed technical and financial assistance to finance and implement large-scale projects. At the same time, innovation and technology transfer will be vital in addressing the technological gaps. By investing in research and development and fostering collaborations with global technology leaders, Bangladesh can acquire and adapt advanced renewable energy technologies. Encouraging local innovations, such as solar-powered boats and community-based micro grids, will also play a key role in creating tailored solutions for the country’s unique challenges.

Capacity building is equally important to ensure the sustainability of the renewable energy sector. Developing a skilled workforce through training programmes and academic courses focused on renewable energy technologies and project management will help build local expertise. This will not only strengthen the sector but also create employment opportunities for thousands of Bangladeshis. Alongside this, community-centric approaches should be prioritised to foster local acceptance and ownership. Engaging communities in the planning and implementation of renewable energy projects ensures their sustainability. Community ownership models, such as cooperatives managing solar mini-grids, can enhance social equity and provide direct benefits to those involved.

Finally, private sector participation is indispensable for scaling renewable energy efforts. Public-private partnerships can mobilise the resources and expertise required for large-scale projects. The private sector’s ability to drive innovation, streamline processes, and manage risks makes it a valuable partner in achieving Bangladesh’s renewable energy goals. By combining these strategies, Bangladesh can chart a sustainable energy future, addressing its environmental challenges while promoting economic and social development.

Vision for future

IMAGINE a Bangladesh where solar panels glisten on rooftops, wind turbines spin along coastal areas, and rural communities thrive with access to clean and reliable energy. Renewable energy can power industries, schools, and hospitals, reducing carbon footprints while driving economic growth. The vision is not just aspirational; it is achievable with concerted efforts.

The energy transition in Bangladesh is shaped by political ambition and economic necessity but faces significant obstacles, including fossil fuel dependency, financial barriers and governance challenges. A balanced approach that integrates renewable energy development with equity and affordability considerations is essential for a successful transition. Green energy represents a transformative opportunity for Bangladesh to address the dual challenges of climate vulnerability and energy demand. By prioritising renewable energy, Bangladesh can reduce greenhouse gas emissions, enhance energy security and foster sustainable development. However, achieving this vision requires bold leadership, robust policies and collaboration across sectors. As a climate-vulnerable nation, Bangladesh has a moral imperative and a practical necessity to lead the transition to green energy. The time to act is now — for the sake of the environment, the economy and future generations.

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

 

[Saif]

The current gas crisis needs governmental focus

How does the government plan to tackle the looming gas shortfall in the upcoming summer?

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The current gas crisis needs governmental focus

VISUAL: ANWAR SOHEL

Why and how did we arrive at the current precarious state of the gas crisis? The answer lies in how the last government managed the sector. To achieve rapid economic growth, industries were allowed to be built without adequate assurance of energy. Additionally, all gas-consuming sectors were allowed to grow, while the relevant authorities knew full well that a severe gas shortfall was looming. Bangladesh Oil, Gas and Mineral Corporation, also known as Petrobangla, started to produce more and more gas at the behest of the government; gas production per day went up from approximately 1,400 MMcf to 2,800 MMcf—doubling in less than eight years. This was only possible because the international oil companies (IOCs) were managing several gas fields, including the large Bibiyana field. During this rapid production growth period, there was practically no addition to gas reserves; the remaining reserves are less than 10 Tcf, projected to be nearly exhausted by 2030. Continuing production from the existing reserves with no exploration activities meant that we would hit a peak, after which the production would start to decline. That is exactly what has happened: the annual production has fallen from the high 2,800 MMcfd to just above 1,900 MMcfd.

As can be seen from Petrobangla's gas demand projection, prepared several years back, the demand for gas would be 3,777 MMcfd in 2024-25. However, Petrobangla now estimates that it is actually closer to 4,000 MMcfd. The supply of gas on December 8 was 2,740 MMcfd, of which domestic production was 1,919 MMcfd and imported LNG was 821 MMcfd. Therefore, even compared to the conservative demand projection, there is a shortfall of more than 1,000 MMcfd—the actual shortfall is more than 1,200 MMcfd. Demand in all sectors except fertiliser is increasing. Therefore, the situation in the middle of next year, when power demand is expected to surge, may be alarming, especially for industrial customers.

It is interesting to study Petrobangla's natural gas demand forecast. According to this, the share of the power sector is projected to decrease from 38.5 percent in FY2024-25 to 37.4 percent in FY2030-31. However, the industry's share including captive generation is projected to increase from 41.3 percent to 46 percent during the same period. This increase will mainly come from a reduced share of the domestic and CNG sectors. Therefore, it is already in Petrobangla's plans to decrease the share of gas to the domestic and CNG sectors. Needless to say, this plan was chalked out to protect industries and the economy. The question is: will the government adhere to Petrobangla's plan for gas supply?

Then again, how does the government plan to tackle the looming gas shortfall in the upcoming summer? Whenever this issue was raised, the previous administration mentioned the drilling of 50 wells by this year and 100 more in the coming years. These kinds of reassurances seem encouraging, but will the required actions follow these promises? Are enough rigs active to accomplish this task, and are the requisite funds being provided on time? Most experts and those knowledgeable with how the government works doubt whether the full implementation of the drilling of 100 wells within the stipulated time is possible. Even if the drilling of 100 wells is accomplished, what is the certainty of finding enough gas? The other question that arises is, even if we find significant quantities of gas, how long will it take to add that to the grid? It would appear that the authorities are trying to weather out the next year without firm plans to tackle the situation.

Since the liquefied natural gas (LNG) supply will be limited by the capacities of the two regasification units now being managed by Excelerate Energy, it is imperative to import the maximum possible quantity of gas so that a constant supply of 1,100 MMcfd can be maintained throughout the year. Moreover, all efforts should be made to import coal so that all the coal-fired power plants are running at full capacity. Additionally, import from the Adani power plant as well as the previously contracted electricity import from the Indian grid have to be kept fully active. These sources of electricity will lessen the power sector's gas demand and allow more gas to be supplied to the industry sector, which is vital for our export earnings. To prevent further increases in the price of electricity and/or to keep subsidies to a minimum level, oil-fired power plants must be limited to the peak hours. Of course, some load-shedding will become inevitable when the demand becomes very high, but that can be kept at a tolerable level with planning.

There are several things that the government can do to improve the situation and prepare for long-term stability, such as: i) reduce system loss of gas; ii) encourage more rooftop solar PV panel installations; iii) help build more solar power plants; iv) encourage more use of liquefied petroleum gas (LPG); and v) promote energy conservation and energy efficiency.

System loss has become a cancer in the gas supply system. System loss, which Petrobangla calls "unaccounted for gas" (UFG), has been an average of 9.8 percent for the years 2020, 2021 and 2022. In a situation where the country cannot find enough dollars to meet all its obligations, this loss must be accounted for in LNG cost terms and needs to be given utmost importance. Of course, not all of it can be attributed to theft or pilferage, because there is a technical system loss of four to five percent due to leaks in pipes and valves. UFG is acknowledged by Petrobangla, but there is another gas pilferage hidden in the domestic sector consumption. The domestic sector is shown to consume 11-13 percent of the total gas; since there is no metering, this consumption figure is the result of a theoretical calculation based on hypothetical gas consumption per household. Sector experts believe the actual domestic sector consumption is no more than six to seven percent. Therefore, nearly five percent is unauthorised usage. If this is added to the theft/pilferage portion of UFG, the total gas loss is nearly 10 percent. The magnitude of the problem can be appreciated from the following calculation: assuming the daily supply of 2,800 MMcfd and regasified LNG price of $12 per MMBtu, this loss amounts to $1.2 billion annually.

The role of solar PV in alleviating the energy crisis in Bangladesh can hardly be overemphasised. Neglecting gas exploration and promoting renewable energy in the last decade have been two actions that are at the root of the primary energy crisis and are completely against the national interest. Even after years of efforts, the contribution of solar PV electricity to the national grid is less than one percent. Setting up rooftop solar panels is as simple as buying a refrigerator or TV these days. Achieving 500MW of rooftop solar PV in a matter of months is possible if willingness is there. Grid-tied solar parks have been a bane for Bangladesh. Successive governments have failed to achieve the acceptable level of penetration. Land availability, high tax on solar panels, inverters and accessories, transmission infrastructure requirements, and bureaucratic bottlenecks are some of the issues that have hindered progress. The new government has cancelled the ongoing 40 solar park projects as they were initially awarded without bidding. If these projects are quickly revived, then another 500MW can be easily set up within a short time. Rooftop solar PV and solar parks can substantially lower the need for oil-fired power plants, thus lessening some of the burden of purchasing heavy fuel oil (HFO).

LPG is an excellent fuel that can readily replace gas for cooking and transport, thus lessening the demand for gas. If promoted properly, LPG can be the fuel of choice for both cooking and transport. Even though LPG is more expensive than LNG, its use is being advocated because there is no pilferage or other system loss associated with its supply and distribution. Moreover, because it is more expensive than gas, the consumers use it frugally. The main reason for advocating its use for cooking, however, is that Petrobangla and the distribution companies are unable to control misuse, pilferage and leaks in the distribution system.

Energy conservation and energy efficiency are important measures that can save energy, thus assisting in managing the primary energy crisis. In the future, as the Paris Agreement comes into force for all countries, energy transition will be essential to meet commitments to tackle climate change. Therefore, a solid programme in energy conservation/efficiency must be developed. In the short term, it will help in managing the gas and electricity shortfalls, and in the long term, it will deliver the desired goals of achieving net zero emission. Energy conservation measures are behavioural things—such as switching off light bulbs and fixing dripping taps—while energy efficiency involves technical measures, many of these are no/low-cost actions that can easily be driven through awareness campaigns.

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

 

[Saif]

Chinese cos keen to invest in renewable energy

A high-level business delegation from China visited the Bangladesh Investment Development Authority and the Bangladesh Economic Zones Authority to explore investment opportunities in Bangladesh’s growing renewable energy sector.

www.newagebd.net

Chinese cos keen to invest in renewable energy
Bangladesh Sangbad Sangstha . Dhaka 23 December, 2024, 22:20

A high-level business delegation from China visited the Bangladesh Investment Development Authority and the Bangladesh Economic Zones Authority to explore investment opportunities in Bangladesh’s growing renewable energy sector.

The meeting, held at the BIDA conference room, was chaired by Chowdhury Ashik Mahmud Bin Harun, executive chairman of the BIDA and BEZA on Sunday, said a press release on Monday.

During the session, the Chinese delegation, comprising representatives from major renewable energy companies such as LONGi Green Energy Technology Co Limited, Tongwei Co Limited and Yunnan Show, presented their advanced technologies and successful international projects.

These companies expressed strong interest in investing in Bangladesh to support the country’s renewable energy goals, particularly in solar energy.

The delegation was welcomed by Ashik Mahmud, who also highlighted Bangladesh’s enormous potential for foreign investments in renewable energy.

He emphasised the government’s commitment to creating a favourable investment climate, offering significant benefits such as tax holidays, duty-free imports and a skilled workforce.

Ashik Mahmud further assured the Chinese investors that the BIDA and BEZA were fully prepared to provide comprehensive support, making Bangladesh a prime destination for investment.

Nahian Rahman Rochi, head of business development at the BIDA, elaborated on Bangladesh’s unique value proposition as an investment destination during his presentation, particularly for renewable energy.

He emphasised the surging local demand for renewable energy, advantages of manufacturing in Bangladesh and potential for high returns on investment.

Nahian noted the several government initiatives were underway to promote the use of solar energy by industries, with a special focus on rooftop solar systems.

During his presentation, Nahian also highlighted the several reform initiatives taken by the BIDA to improve the investment climate.

With Bangladesh’s ambitious goal to achieve 40 per cent renewable energy by 2040, Nahian emphasised the importance of the local market, which is driven by the country’s 170 million population.

He urged investors to focus on this growing market and submit investment proposals, noting that the BIDA, BEZA, and other government agencies would continue to provide support to ensure the success of such ventures.

Wang Feng from the Chinese delegation mentioned, ‘We are willing to fully understand Bangladesh’s market demand, investment policies, cooperation methods and other aspects in the field of power and energy, and are willing to discuss the fields, prospects and potential of future cooperation between Yunnan and Bangladesh, even China and Bangladesh.’

The meeting ended with a multi-stakeholder networking session, where representatives from local solar energy players, commercial banks, law firms and international industries gathered to explore potential collaborations.

The discussions were expected to further strengthen economic ties between Bangladesh and China, particularly in the renewable energy sector.​

 

[Saif]

Gas supply falls to near zero at places

The supply of piped gas to households has reduced to almost zero in many areas of the capital Dhaka and adjacent localities while many industries in the areas have also made similar complaints.

www.newagebd.net

Gas supply falls to near zero at places
Emran Hossain 24 December, 2024, 23:59

File photo

The supply of piped gas to households has reduced to almost zero in many areas of the capital Dhaka and adjacent localities while many industries in the areas have also made similar complaints.

Authorities, however, say that they are providing the best gas supply in years this December, almost at their optimum capacity, suggesting no improvement in the situation anytime soon.

In less than three months, when the brief winter will be over with the onset of the hottest time of year, the energy situation may worsen with the demand set to increase by at least 70 per cent.

Bangladesh grapples with a prolonged economic crisis partly caused by energy imports that deplete its foreign currency reserve.

The acute gas crisis disrupted daily lives, complained household and commercial consumers, by making them spend more on food and essential items.

‘We are running at 30 per cent capacity,’ Mahmud Group general manager Sudhangshu Kumar Dutta told New Age.

His factory at Shafipur in Gazipur has a pipeline with a receiving capacity of 150 pounds per square inch.

‘The actual supply now stands at 1 or 2 PSI,’ he said.

Mahmud Group let go of a garment factory with more than 4,000 employees due to continued production loss owed to inadequate supply of energy.

Bangladesh has been largely dependent on gas for energy for decades amidst poor exploratory works in the world’s largest delta, believed to be a decent gas reserve.

The discovered fields have run dry and are close to stopping production.

Starting in 2018, Bangladesh saw its foreign currency reserve to deplete fast after beginning to import liquefied natural gas.

‘This is the best we could do. We are operating at our maximum capacity,’ said Petrobangla chairman Zanendra Nath Sarker, adding that the supply situation would remain the same until February.

The state-owned Petrobangla supplied 2,755.7mmcfd in the 24 hours until Tuesday morning. The demand is officially estimated to be 4,000mmcfd.

On Tuesday, the Petrobangla supplied 851.5mmcfd to power production, meeting only 34 per cent of the demand, and 204.8mmcfd to fertilizer against the demand of 329mmcfd.

Winter is the time the government tries to feed gas to fertilizer production as the energy demand in the power sector falls because of cold weather. The supply to the fertilizer sector was increased by about 80mmcfd compared with the summer-time supply to the sector.

‘The crisis defeated our worst imagination,’ said Hamida Banu, a resident of Uttar Badda.

For the past several days, Uttar Badda residents received almost no gas throughout the day and a good part of the night. In the wee hours of day, some areas received a weak flow not enough to boil an egg regardless of the time cooked.

‘All residents of 40 flats in my apartment building could not cook over the past several days,’ said Nur Hossain, a caretaker of an eight-storied building in Uttar Badda.

Similar complaints poured in from Mohammadpur, Kathalbagan, Mirpur, Central Road, Gendaria, and Rampura.

These areas used to get piped gas supply from dusk to dawn, but nowadays they are denied supply for even longer hours.

The worst outcome of the energy crisis is that the consumers of piped gas are paying despite no supply. Piped gas prices are fixed based on an assumed monthly consumption.

The consumers even continue paying the same as they do during normal gas supply, they alleged.

The speculation that the government wants households to switch to liquefied petroleum gas turned into a reality with many piped gas consumers using LPG as an alternative energy source.

After the government stopped giving new piped gas connections to households in 2010, the import of LPG topped 10 lakh tonnes in 2020 from 60,000 tonnes 10 years ago.

Household consumers consume 15 per cent of piped gas supplied through the same transmission network shared by industrial and commercial consumers.

Households get weak flow round the year competing with big industrial consumers. Less supply often prompts household consumers to undertake unethical means to get their fair share of gas, many consumers alleged.

The affluent segment of the society may dine out when gas supply falls but low-income people cannot afford such luxury and they either fast or stay half-fed, they said.

‘We have meals once a day,’ said Dulna Rani, a housemaid in Mirpur, who shares a kitchen with about a dozen families and cannot afford to cook twice in a weak flame after working 10 hours outside home.

The deposed government increased the gas price several times between 2019 and 2023. In one of the occasions, the gas price for industries was increased by about 180 per cent.

The cost increased but the supply did not improve, many consumers said.

On Tuesday, the LNG supply was 830.9mmcfd against the capacity of 1,000mmcfd.

Titas, which supplies piped gas to 70 per cent of about 4 million household consumers, said that the gas supply suddenly dropped by 150mmcfd, particularly over the past several days.

Titas needs a minimum 2,000mmcfd to meet the demand in Dhaka, Titas officials said, adding that over the past several days, the supply remained below 1500mmcfd.​

 

[Saif]

https://thefinancialexpress.com.bd/national/titas-snaps-400-illegal-gas-connections-in-savar

Titas snaps 400 illegal gas connections in Savar
FE ONLINE DESK
Published :
Dec 24, 2024 23:05
Updated :
Dec 24, 2024 23:05

Titas Gas Transmission and Distribution Limited has disconnected 400 illegal gas connections including one commercial establishment and removed 1.5 kilometer illegal pipeline in Savar area on the outskirts of Dhaka.

The drive against illegal gas connections was conducted at Hemayetpur area of Savar yesterday.

Through the drive in three separate areas, Titas Gas Transmission and Distribution Limited disconnected 400 burners, which will save 67,200 cubic feet gas daily worth around Tk 44,670, reports BSS.

The mobile court of Titas led by a magistrate seized 1500 metre GI pipe and 15 regulators. The mobile court also realized Tk 100,000 as fine from KS Fashion and Washing Factory.​

 

[Saif]

Govt should overhaul energy policy to increase gas supply

THE supply of gas has reduced to almost zero, as residents complain, in many areas of the capital city. Industries in neighbouring areas also make similar complaints. Whilst households...

www.newagebd.net

Govt should overhaul energy policy to increase gas supply
26 December, 2024, 00:00

THE supply of gas has reduced to almost zero, as residents complain, in many areas of the capital city. Industries in neighbouring areas also make similar complaints. Whilst households in areas such as Badda, Central Road, Gendaria, Kanthal Bagan, Mirpur, Mohammadpur and Rampura complain that they receive almost no gas during the day time and for a good part of the night, forcing many to eat out or buy food at restaurants, industries complain of having been forced to run to less than capacity. Households get weak flow round the year which many believe prompts consumers to resort to unethical means for their share of gas. The owner of a factory in Gazipur says that it has a pipeline to receive gas at 150 pounds per square inch, but it receives gas at 1 or 2 pounds per square inch. The poor situation of gas supply also constitutes injustice to consumers in that people who use supply gas continue to pay a fixed price based on an assumed monthly consumption irrespective of whether they received the volume of gas that they are meant to receive and regardless of the pressure of gas in the supply line.

The state-owned Petrobangla says that that it is running to its maximum capacity, the best supply in years this December, noting that there would be no improvement in the situation until February. The situation may worsen once the winter is over, with the demand likely to increase by at least 70 per cent. Petrobangla supplied 851.5mmcfd of gas — 851.5mmcfd for power production, meeting only 34 per cent of the demand, and 204.8mmcfd for fertiliser production against the demand for 329mmcfd — in 24 hours ending in the morning on December 24. The demand was, however, officially estimated to be 4,000mmcfd. Winter is the time when the government feed gas into fertiliser production as the demand for power declines because of cold weather, with the supply for fertiliser having increased by about 80mmcfd compared with the summer-time supply for the sector. There have also been speculations that the government wants households to switch to liquefied petroleum gas. Many households having used supply gas switching to liquefied petroleum gas as an alternative energy source lends credence to the proposition. After the government stopped giving gas connections to households in 2010, liquefied petroleum gas import increased to a million tonnes in 2020 from only 60,000 tonnes a decade ago. Yet, the government has largely been dependent on gas for energy for decades amidst poor exploration. The gas fields discovered have run dry and are close to stopping production. The government of the Awami League, overthrown on August 5, has increased gas prices several times between 2019 and 2023, with the price on one occasion having been increased by about 180 per cent for industries. But the supply has not improved.

All this hints at flaws in the energy policy that has held back the gas production and management. The government should overhaul the energy policy to improve gas supply whilst it gets down to hydrocarbon exploration.​