[🇧🇩] Energy Security of Bangladesh

[Saif]

Govt must fish renewable energy sector out of ills

PROGRESS in the renewable energy sector, which has even failed to take off in 16 years since the adoption of the renewable energy policy in 2008, has been mired...

www.newagebd.net

Govt must fish renewable energy sector out of ills
03 April, 2024, 00:00

PROGRESS in the renewable energy sector, which has even failed to take off in 16 years since the adoption of the renewable energy policy in 2008, has been mired in inexperience and mismanagement, which has over the years let in a group of entities largely composed of owners of poultry business, feed mill, real estate trade, infrastructure development and construction, apparel factories, a medical college hospital and a human resources export agency. Experts, who blame the situation for a slow expansion of the renewable energy market and costs far higher than the global average, say that this has happened because of lucrative tariffs that promise high profits, mostly effected in an intransparent manner, holding off well-meaning companies that could meaningfully take the sector forward. Experts say that a solar power project should ideally take 13 months for completion, but because of what the sector is mired in, it takes years to begin the construction after the signing of the power purchase agreement with the Power Development Board. The whole process, as experts say, often involve hidden costs and much of lobbying which stops reputed entities from investing in renewable energy. There are only 10 solar power plants with a combined capacity of 459.3MW in operation while the government had plans for a 10 per cent of its power from renewable sources by 2020.

The renewable energy sector in Bangladesh, as experts say, is too lucrative and it could attract investors of all kinds. This is why some investors in renewable energy are local giants that are also involved in the business of fossil fuel, which accounts for about 97 per cent of the installed power generation capacity of about 26.85GW. They are said to have earned millions of dollars in capacity payment, for the power not produced, and in other costs since 2008, as fossil fuel-based generation capacity has jumped more than five times since then. In such a situation, energy experts fear that the inordinate delay in the implementation of renewable energy projects, which spans up to eight years as is observed in Bangladesh projects, is deliberate as delayed renewable projects mean more use of fossil fuel and more profits. Renewable power tariff is also high keeping to global standards. The International Renewable Energy Agency in 2022 estimated the global average cost of solar power at Tk 5.42 a unit while tariff in Bangladesh ranges from Tk 7.68 to Tk 20.87, averaging more than Tk 10 a unit. An Institute for Energy Economics and Financial Analysis expert says that reasonable solar power tariff in Bangladesh should be Tk 8.5 a unit, which can be reduced to Tk 6.5 with some government initiatives. Because of all such problems, not a single quality renewable power project has been implemented in more than a decade and a half.

The renewable energy sector, thus, appears to be another handle of the government to transfer public money to private pockets riding on ill designs and mismanagement. The government must, therefore, purge the energy sector of all ills without delay.​

 

[Saif]

Problem of gas shortage that govt should look into

INDUSTRIES, mainly export-oriented textile, ceramic, knitting and apparel, are reported to be in a difficult situation so much so that insiders say that production in most of the factories has almost...

www.newagebd.net

Problem of gas shortage that govt should look into
08 February, 2025, 00:18

INDUSTRIES, mainly export-oriented textile, ceramic, knitting and apparel, are reported to be in a difficult situation so much so that insiders say that production in most of the factories has almost halved because of continued gas shortage. About 4,000mmcfd of gas is required, but the current supply remains below 3,000mmcfd, leaving both government and industry authorities struggling. Factories located in industrial hubs of Dhaka, Narayanganj, Gazipur, Narsingdi, Manikganj and Mymensingh do not receive uninterrupted gas supply. Many of the industries, especially ceramic industries, which require a supply with the pressure of 15 pounds per square inch, usually receive supply with the pressure of two to three pounds per square inch. Industry owners allege that the pressure sometimes declines to zero. The Textile Mills’ Association says that persistent gas shortage has already forced the closure of a half of the textile mills, noting that with no early action on part of the government, the situation would worsen in no time that could prompt the workers to take to the streets. Most of the industries say that they have been forced to run to half their capacity because of the gas shortage.

Owners further say that gas prices increased by about 345 per cent in nine years since 2015, with promises for an adequate supply, but it has not happened. Apparel factories which run on captive power plants say that the gas shortage has caused a 25 per cent decline in the sectoral production. Ceramic product manufacturers and exporters say that they count Tk 3 billion in losses every month because of the problem. The situation does not only affect production, harming product export, but also puts owners in distress in repaying bank loans, running the risk of becoming non-performing, damages machines and reduces their useful economic life, and increases maintenance costs. Four industry associations in January wrote to the government, seeking a resolution of the problem and describing the uncertainty and problems that the gas shortage has caused to the industries. Industry owners say that the government is diverting gas to fertiliser factories as it did not import fertiliser on time. This remains an issue for the government to look into. Petrobangla is reported to have envisaged no early improvement without adequate import of liquefied natural gas or gas extraction from new fields. The energy adviser has recently said that the situation at hand is unlikely to improve until new gas fields are developed.

A reserve crunch is holding back an adequate import of gas and no hydrocarbon exploration for long has only compounded the matter. The government should, therefore, tie loose ends here and there to improve the supply situation in the short run and earnestly get down to hydrocarbon exploration in the long run.​