[🇧🇩] Energy Security of Bangladesh

[Saif]

13-hr gas outage to hit parts of Dhaka on Thursday

A 13-hour gas outage is set to hit several parts of Dhaka from Thursday afternoon to Friday morning, according to the Titas Gas authorities. The outage will affect the Kurmitola Hospital, Hotel Radisson, RPGCL, Dhaka Regency, Khilkhet, Concord City (until the river side), the Le Meridien Dhaka hot

thefinancialexpress.com.bd

13-hr gas outage to hit parts of Dhaka on Thursday
Published :
Feb 12, 2025 12:03
Updated :
Feb 12, 2025 12:03

A 13-hour gas outage is set to hit several parts of Dhaka from Thursday afternoon to Friday morning, according to the Titas Gas authorities.

The outage will affect the Kurmitola Hospital, Hotel Radisson, RPGCL, Dhaka Regency, Khilkhet, Concord City (until the river side), the Le Meridien Dhaka hotel, Balaka Bhaban, Haji Camp, Kawla's Airport Catering House, Civil Aviation Quarters, and surrounding areas from 1:00 pm on Thursday to 2:00 am on Friday, according to a statement on Wednesday, reports bdnews24.com.

The Titas Gas authorities say that the gas supply will be suspended due to the transfer and readjustment of a gas pipeline for the underground sections of the Dhaka Mass Transit Company Limited metro rail MRT Line-1’s Airport and Khilkhet stations.

“In addition, the gas pressure may remain low near Joar Sahara, Nikunja and nearby areas,” the statement said.

Titas Gas has apologised to its customers for the temporary inconvenience caused by the outage.​

 

[Saif]

Rampal power plant shuts down

The 1320-MW Rampal power plant, a joint venture between state-owned power companies of India and Bangladesh, shut down early Friday, drawing on the force majeure clause of the power purchase agreement between the parties.

www.newagebd.net

Rampal power plant shuts down
Staff Correspondent 16 February, 2025, 00:35

Rampal power plant | File photo

The 1320-MW Rampal power plant, a joint venture between state-owned power companies of India and Bangladesh, shut down early Friday, drawing on the force majeure clause of the power purchase agreement between the parties.

Ziaur Rahman, the chief procurement officer of the Bangladesh India Friendship Company Limited which owns the power plant, confirmed the closure due to the coal shortage linked to the ongoing dollar crisis.

‘We are trying an alternate way to bring in fresh supply of coal as soon as possible,’ said Zia.

The full operation of each of the two units – 660MW – of the power plant requires around 6,000 tonnes of coal daily. The power plant exhausted its coal supply completely.

A new coal import deal might take over a month to complete, raising the ominous prospect of the power plant remaining out of operation through the second half of March when days would start getting hotter.

The power plant officials, however, are confident about bringing the power plant back to operation in about a week.

The state-owned Janata Bank, responsible for transactions on behalf of the BIFCL, was failing to release enough dollar for coal purchase, officials at the power plant claimed.

The exchange rate of the dollar fixed by the Bangladesh Bank is lower than the rate at which the JB can buy it from the market, they said.

The closure of the plant occurred amid another base-load 1,496-MW coal power plant, owned by India’s Adani group,

operating at half the capacity, reporting machine problems.

The Godda-based Adani power plant has been supplying around 700MW since September 2024, threatening to stop supplying power unless its due worth $800 million was paid.

Frequent closures have accompanied the Rampal power plant ever since it rolled into operation with its first unit in December 2022. By September 2023, the plant was shut down eight times, including five times for technical problems.

Electrical engineers highlighted the plant’s inability to burn the minimum amount of fuel that a base-load power plant must keep for running smoothly as one of the causes leading to the closures.

They also called for testing the plant’s machinery and the quality of coal burnt there.

Restarting a base-load power plant frequently means burning additional fuel, which is particularly harmful to countries such as Bangladesh, particularly when in the midst of the dollar crisis.

Bharat Heavy Electricals Ltd, India’s largest government-owned power generation equipment manufacturer, built the power plant at a cost of $2 billion, including $1.6 billion provided as loans by the Exim Bank of India.

This is, however, the first time the Rampal power plant is closed drawing on the force majeure clause, which relieves parties in the deal of the requirement of compensating each other because of a disruption in daily business activity.

‘The clause generally refers to a situation beyond the control of any of the parties in the deal disrupting daily business,’ said Bangladesh Working Group on Ecology and Development member secretary Hasan Mehedi.

The previous closures were always attributed to fuel shortages or technical problems, implying the power plant’s eligibility to receive capacity charge.

With the force majeure clause in effect, the Rampal power plant will not get capacity charge. The clause, theoretically, can remain in effect for six months.

Widespread violations of environmental regulation recently steered the media spotlight on the Rampal power plant, especially for the power plant for months not using effluent treatment plant and releasing used water directly into nearby rivers.

Bangladesh’s current installed power generation capacity is 27884.7MW. But the inability to generate about 11,500MW resulted in frequent power cuts even during winter.

The power demand is expected to exceed 17,500MW in summer.​

 

[Saif]

Govt urged to follow SL to get rid of Adani power

The South Asia Just Transition Alliance, a platform of green activists in South Asia, called on the Bangladesh government to be inspired by Sri Lanka to exit from the discriminatory power purchase deal with the Adani Power.

www.newagebd.net

Govt urged to follow SL to get rid of Adani power
Staff Correspondent 16 February, 2025, 01:35

The South Asia Just Transition Alliance, a platform of green activists in South Asia, called on the Bangladesh government to be inspired by Sri Lanka to exit from the discriminatory power purchase deal with the Adani Power.

They made the call in a press release issued on February 14, expressing their satisfaction and thanking the Sri Lankan government for taking strict measures leading the Adani Group to cancel its 482MW controversial wind power project in the Northern Province of Sri Lanka.

Adani Green Energy Limited, a subsidiary of Adani Group, had signed a Power Purchase Agreement in May 2024 to build and operate the wind power project for 20 years.

The project was approved opposing vehement opposition from local people and environmental activists due to its potential adverse environmental and social impacts.

The Centre for Environmental Justice and the Wildlife and Nature Protection Society, and two other groups of environmental experts filed separate cases with the Supreme Court of Sri Lanka challenging the Environmental Impact Assessment and expressing concerns about the energy sovereignty and its severe impact on migratory birds.

According to a study, ‘Neither Clean Nor Green’, jointly conducted by the South Asia Just Transition Alliance and CEJ, 15 million migratory birds take refuge in Sri Lanka’s coastal zones.

The study also found that faulty power plant design might increase floods and affect the 72,000 inhabitants of Mannar Island.

The project might also affect the economy of Sri Lanka.

According to the PPA, Adani was to supply electricity at $0.0826 per kWh, 192 per cent higher than the tariff for Indian wind power ($0.043).

The Sri Lankan government started reviewing the project in response to criticism, protests and a court case.

Finally, the Ministry of Energy revoked the agreement and formed a committee to review the entire project again.

On February 12, 2025, the AGEL informed the Sri Lankan Board of Investment that it would withdraw the project.

Hemantha Withanage, Chairperson of the Centre for Environmental Justice, stated that this was a significant achievement for environmentally concerned citizens of the country.

Hasan Mehedi, member secretary of SAJTA, said, ‘The Bangladesh Government should take similar actions on Adani’s Godda coal power plant as the unsolicited agreement signed by the previous government contained many flaws.’

He mentioned that Adani had already violated the agreement by hiding the tax exemption information in India.​

 

[Saif]

Diesel transfer underway via Dhaka-Ctg fuel pipeline

Godnail depot to receive diesel by Tuesday; project expected to save around Tk 250 crores annually

www.thedailystar.net

Diesel transfer underway via Dhaka-Ctg fuel pipeline
Godnail depot to receive diesel by Tuesday; project expected to save around Tk 250 crores annually

The initial process of supplying fuel oil through a pipeline from Chattogram to the Dhaka region has begun.

Already, 20 million litres of diesel have been pumped from the Eastern Refinery in Chattogram. Experts refer to this process as "line packing."

The diesel is expected to reach Godnail on Tuesday. Later, it will be transported to the Fatullah depot.

Project director of the pipeline project, Md Aminul Haque, told The Daily Star, "The transfer of diesel from the Chattogram end started on February 11. It has already crossed Cumilla. A total of 31.7 million litres of diesel will be required to fill the entire pipeline."

He further stated that after the line packing is completed, fuel oil will be officially supplied to the Godnail and Fatullah depots via the pipeline in March.

He remarked that with this project, the Bangladesh Petroleum Corporation has entered a new era of fuel oil supply.

BPC officials said in addition to preventing fuel wastage and theft, the pipeline, which has a capacity of supplying 27 million litres of fuel oil, will save BPC around Tk 250 crores annually.

The BPC undertook this project in 2018.

Although the project was initially scheduled for completion by June 30, 2020, delays caused by the Covid-19 pandemic and other complexities postponed the work until 2022.​

 

[Saif]

Weak-kneed power deal

It could be learnt from the media that the Adani Power Limited (APL), an Indian private power company, with which the ousted previous government of Sheikh Hasina signed a 25-year deal in November 2017 to purchase power on behalf of Bangladesh Power Development Board (BPDB) from the company's Gadda

thefinancialexpress.com.bd

Weak-kneed power deal
SYED FATTAHUL ALIM
Published :
Feb 16, 2025 22:52
Updated :
Feb 16, 2025 22:52

It could be learnt from the media that the Adani Power Limited (APL), an Indian private power company, with which the ousted previous government of Sheikh Hasina signed a 25-year deal in November 2017 to purchase power on behalf of Bangladesh Power Development Board (BPDB) from the company's Gadda power plant situated in that country's Jharkhand state, has agreed to resume full supply of 1,600 MW electricity within a short time. Notably, APL unilaterally cut supply of power by half by shutting down one of the two units of the Gadda power plants from October 31 last year on the pretext of Bangladesh's delay in repaying its dues. It may be recalled that at that time the interim government was in office for only about 11 weeks since assuming power on August 8 of last year following ouster of the former regime and was yet to settle down. The arrear of power bills in question did not evidently build up during the time the interim government had been in office.

Clearly, it was an unfriendly move when the country was facing acute shortage of foreign currency, a legacy of the past authoritarian regime. Still, APL took undue advantage of the sticky situation the interim government was in. Meanwhile, as the winter set in, the BPDB requested Adani power to continue with the ongoing truncated power supply from one unit of the Gadda power plants citing the reduced demand for power in Bangladesh during the winter season. Now, with the advent of summer, after three months of the curtailed supply, reports say, APL, upon request from BPDB, has agreed to restore full supply of electricity. But under what conditions has APL agreed to resume power supply to Bangladesh? As reported, though APL has agreed to resume power supply, it rejected all other requests of BPDB including power price discounts, tax benefits, etc.

In this connection, the BPDB is reported to have informed that though Bangladesh side wanted to settle contentious issues regarding the power deal, the other side, APL, was only sticking to the original conditions of the power purchase agreement. Adani power's strong stance was not surprising, if only because Bangladesh side proved to be too docile before the party supplying power. It is worthwhile to note that from the very beginning the power deal was controversial and unequal on various grounds. For example, the APL is charging Bangladesh for power at a rate that is 55 per cent higher than the current rate of power tariff in India. Also, for the coal that fires the Gadda power plants, APL is charging higher than its existing price in Bangladesh. Due to Bangladesh side's failure to realise the concessions it asked from APL, the loss the BPDB is going to incur will amount to millions of US dollars.

Even so, going by the BPDB chairman's assurance, it appears, everything is hunky dory with the APL. He assures, there is a committee on either side to resolve any issues that might arise between them. All this only reminds one of the policy of capitulation that former regime pursued regarding any agreement with India and the power purchase contract with Adani is one such deal of acquiescence. Ironically, the Adani side was not ready to spare even US$1.0 million against the asked for discounts, sources in the power body admitted to the media. Despite all these, those in charge of the said government agency for power development in Bangladesh want to increase the monthly repayment of dues to APL. It is worth mentioning that at the moment Bangladesh is paying APL at the rate of US$85 million per month. Last December, an APL spokesperson reportedly told BPDB that the latter owed it (APL) to the tune of US$900 million. On the contrary, the BPD said the amount (in dues) was US$650 million. In that case, one wonders why earlier the head of BPDB did tell a foreign news agency that there were no issues remaining with APL.

It is incomprehensible that the Bangladesh side is kowtowing to APL, when the latter's parent company, Adani Group, is facing charges of bribery and fraudulence in the USA. Kenya's president in November last year scrapped the US$736 million 30-year energy deal with Adani Group. Adani Green Energy is learnt to have withdrawn from the proposed US$4442 million green power projects on the issue of the new Sri Lanka government's decision to renegotiate tariff.

When all other countries have put their foot down regarding their power deals with Adani group, Bangladesh, to all intents and purposes, has chosen to bow down before the Indian power company no matter how insensitive that company is to Bangladesh's genuine demands. It is exactly against this backdrop that the adviser to the Ministry of power, energy and mineral resources, Muhammad Fouzul Kabir Khan of the interim government reportedly visited Delhi to attend the 'India Energy Week-2025', a global energy platform. No wonder the nation will be waiting anxiously to know what was the energy adviser's achievement from his India tour, the first of such visit by any member of the incumbent interim government since it came to power last year. That too when there is still no credible sign of any breakthrough in thawing of relations between the two next-door neighbours following the ouster of the erstwhile regime of Bangladesh. But if it was purely a foreign tour to attend an international conference, then the question of its usefulness vis-à-vis addressing the acute power crisis the country at the moment is going through would naturally arise.

As could be gathered, there was no prospect of any renegotiation with APL during this tour by the energy adviser. The interim government cannot simply afford to be weak-kneed in dealing with any entity, local or foreign, when it comes to a subject as sensitive as power. Compromising national interest on such issues is the last thing the government can allow.​