🇧🇩 Energy Security of Bangladesh (2 Viewers)

[Saif]

Importance of clean energy

Clean energy refers to energy sources and technologies that produce minimal or no harmful emissions and have a lower environmental impact compared to traditional fossil fuels. These energy sources are renewable, abundant, and sustainable, offering significant benefits for mitigating climate change,

thefinancialexpress.com.bd

Importance of clean energy​

MATIUR RAHMAN

Published :​

Feb 21, 2024 23:39

Updated :​

Feb 21, 2024 23:39

Clean energy refers to energy sources and technologies that produce minimal or no harmful emissions and have a lower environmental impact compared to traditional fossil fuels. These energy sources are renewable, abundant, and sustainable, offering significant benefits for mitigating climate change, reducing air pollution, and promoting environmental sustainability.


Renewable energy sources are derived from natural processes that are continuously replenished, such as sunlight, wind, water (hydropower), biomass, and geothermal heat. These sources are considered clean because they produce little to no greenhouse gas emissions or air pollutants during electricity generation.

Solar energy is harnessed from sunlight using photovoltaic (PV) panels or concentrated solar power (CSP) systems. Solar power is abundant, widely available, and emits no greenhouse gases or air pollutants during electricity generation.

Wind energy is generated by harnessing the kinetic energy of wind using wind turbines. Wind power is a clean and abundant energy source that produces no greenhouse gas emissions or air pollutants during electricity generation.

Hydropower, or hydroelectric power, is generated by harnessing the energy of flowing water, such as rivers and streams, using turbines. Hydropower is a clean and renewable energy source that produces no greenhouse gas emissions during electricity generation, although it can have environmental impacts on local ecosystems and communities.

Biomass energy is derived from organic materials, such as wood, agricultural residues, and organic waste, through processes such as combustion, fermentation, or gasification. While biomass is renewable, its environmental impact depends on factors such as the source of biomass and the efficiency of conversion technologies.

Geothermal energy is obtained from the heat stored beneath the Earth's surface, typically through the use of geothermal power plants or geothermal heat pumps. Geothermal power is clean, and reliable, and emits minimal greenhouse gases or air pollutants during electricity generation.

Nuclear energy is generated from nuclear reactions, typically through nuclear fission. While nuclear power plants produce electricity without emitting greenhouse gases, concerns about nuclear waste disposal, accidents, and proliferation make the classification of nuclear energy as "clean" controversial.

Clean energy technologies also include energy efficiency measures and energy storage systems, which help optimize energy use, reduce waste, and enhance the integration of renewable energy sources into the electricity grid. Overall, clean energy plays a crucial role in transitioning to a low-carbon economy, combating climate change, and promoting sustainable development.

Clean energy holds significant importance for Bangladesh due to the country's unique socio-economic and environmental context. Bangladesh is one of the most vulnerable countries to the adverse impacts of climate change, including sea-level rise, increased frequency of natural disasters, and changing weather patterns. Transitioning to clean energy sources, such as solar, wind, and hydroelectric power, can significantly reduce greenhouse gas emissions, contributing to global efforts to mitigate climate change and safeguard Bangladesh's environment and economy.

The use of traditional biomass, such as wood and cow dung, for cooking and heating purposes, contributes to indoor and outdoor air pollution in Bangladesh, leading to respiratory illnesses and premature deaths, particularly among women and children. Clean energy technologies, such as biogas stoves, solar cookers, and improved cookstoves, offer cleaner and healthier alternatives, improving air quality and public health outcomes.

Bangladesh heavily relies on imported fossil fuels, such as oil and natural gas, to meet its growing energy demand. This dependence makes the country vulnerable to price fluctuations and supply disruptions in the global market. Investing in domestic renewable energy sources, such as solar and wind power, enhances energy security by reducing reliance on imported fuels and diversifying the energy mix.

A significant portion of Bangladesh's population, particularly in rural areas, lacks access to reliable electricity. Clean energy solutions, such as decentralised solar microgrids and off-grid solar home systems, offer affordable and sustainable energy options for rural communities, supporting economic development, livelihood opportunities, and poverty alleviation efforts.

Investing in clean energy infrastructure and technologies can stimulate economic growth and create employment opportunities across the value chain, from manufacturing and installation to maintenance and operations. Renewable energy projects attract investments, drive innovation, and promote the development of a green economy, contributing to sustainable development and prosperity in Bangladesh.

Bangladesh is prone to cyclones, floods, and other natural disasters, which can disrupt energy infrastructure and access to electricity, exacerbating vulnerabilities and hindering recovery efforts. Distributed renewable energy systems, such as solar mini-grids and battery storage solutions, enhance the resilience of energy infrastructure, ensuring access to electricity during emergencies and supporting disaster preparedness and response efforts.

Rapid urbanisation in Bangladesh has led to increased energy demand, congestion, and environmental degradation in cities. Clean energy initiatives, such as promoting energy-efficient buildings, sustainable transport systems, and renewable energy-powered public infrastructure, support sustainable urbanisation and enhance the quality of life for urban residents while reducing environmental impacts.

Clean energy is essential for Bangladesh's sustainable development, offering opportunities to mitigate climate change, improve air quality, enhance energy security, alleviate poverty, stimulate economic growth, enhance disaster resilience, and promote sustainable urbanisation. By prioritising investments in renewable energy and adopting policies that facilitate the transition to a low-carbon economy, Bangladesh can build a more resilient, inclusive, and prosperous future for its citizens.

Dr Matiur Rahman is a researcher and development worker.​

 

[Saif]

Is an electricity tariff hike imminent?

Breaking News, International News & Multimedia

thedailynewnation.com

Is an electricity tariff hike imminent?​

21 Feb 2024, 1:16 pm0

File photo
UNB, Dhaka :

In a recent statement, State Minister for Power, Energy, and Mineral Resources, Nasrul Hamid, hinted at a forthcoming increase in electricity tariffs starting from March to counter the widening gap between production costs and sales revenues.
This move aims to alleviate financial pressures on the Bangladesh Power Development Board (BPDB) and the national economy.

“We’ve to adjust power tariff at both the retail and bulk level to cover the production cost. However, gas prices may be adjusted only for the power plants,” Hamid declared, assuring that the impact on retail consumers would be kept to a minimum.

Sources within the government reveal plans to implement a 5 percent hike in bulk electricity prices and a 3 percent increase at the retail level through an administrative order, bypassing traditional regulatory hearings.

This decision comes after months of deliberation among top policymakers, torn between raising tariffs or leveraging the banking system to issue more bonds.

The dilemma underscores the challenge of managing the substantial financial deficit incurred by the BPDB, with current electricity production costs nearly double the selling price.

According to the BPDB’s Annual Report 2022-23, the fiscal year saw the production of 87,024 million kilowatt hours of electricity at a total cost of TK 986.46 billion.

Its per unit production cost was Tk 11.33, while it was selling electricity at Tk 6.7 per unit — incurring a loss of about Tk 4.63 per unit.

This imbalance has led to a staggering loss of Tk 47,788 crore for the fiscal year, as the government grapples with purchasing power from private and international sources at significantly higher rates.

With this huge loss, the government has been facing great trouble as it has to purchase electricity worth Tk 82,778 crore from private sector power producers, while it generates electricity worth Tk 13,307 crore from its own generation plants.

The annual report also shows that the BPDB’s average per unit production cost from its own plants is Tk 7.63, while it is Tk 14.62 at the independent power producers or IPPs (private sector), at rental plants Tk 12.53, at public plants Tk 6.85, and imported power from India at Tk 8.77.

The government purchases electricity from the private sector and India in dollars.

The disparity in production costs between government and private sector plants further exacerbates the financial strain, with the government incurring a cumulative outstanding bill of approximately $5 billion in the energy sector alone.

Hamid also addressed the critical foreign exchange challenge, stating, “The crisis is not in local currency… But the main crisis is the dollar. We’re not getting dollars from Bangladesh Bank as per our needs,” highlighting the sector’s urgent requirement for $1 billion monthly to meet payment obligations.

In response, the government has initiated the issuance of bonds valued at Tk 5,000 crore, potentially rising to Tk 12,000 crore to mitigate some of the financial distress. However, officials acknowledge that this measure, coupled with ongoing subsidies, may not suffice, prompting further considerations for tariff adjustments or additional bond issuances.

As Bangladesh navigates this economic quagmire, the impending decision on electricity tariffs looms large, with potential implications for both the national economy and the everyday lives of its citizens.​

 

[Saif]

Bangladesh’s daily gas supply shortage 1,000 million cubic feet, Nasrul tells JS

The state minister for power, energy and mineral resources, Nasrul Hamid, told the parliament on Sunday that the daily gas shortage in Bangladesh was about 1,000 million cubic feet against the country's demand....

www.newagebd.net

Bangladesh’s daily gas supply shortage 1,000 million cubic feet, Nasrul tells JS​

Staff Correspondent | Published: 15:38, Feb 25,2024 | Updated: 16:10, Feb 25,2024

The state minister for power, energy and mineral resources, Nasrul Hamid, told the parliament on Sunday that the daily gas shortage in Bangladesh was about 1,000 million cubic feet against the country's demand.

Responding to ruling Awami League lawmaker M Abdul Latif, the state minister in the question and answer session of the Jatiya Sangsad also said that about 2,050 million cubic feet of gas was being extracted daily in the country.

At present, the daily demand for gas in the country is about 4,000 million cubic feet, he added.

He said that, against the demand, about 800-900 million cubic feet equivalent to imported LNG was being supplied to the national grid along with domestically produced gas.

As a result, there is a gas shortage of about 1,000 million cubic feet against the country's demand, he said.

Pointing out that different types of activities are being implemented to meet the existing shortage and future gas demand, the state minister said that 48 different types of well drilling activities have been undertaken by 2025, the successful implementation of which would enable an average of 618 million cubic feet of gas to be added to the national grid.

Of these, the drilling and workover activities of 10 wells have been completed, through which the production of 118 million cubic feet of gas per day has been ensured and the gas is being fed into the national grid at the rate of 33 million cubic feet per day, he said.

He said that the capacity of one of the two existing floating LNG terminals had recently increased by 100 million cubic feet daily, bringing the total LNG supply capacity to 1100 million cubic feet daily.

He said that long-term gas production projections up to 2040–41 fiscal have been made considering the issues of gas exploration, production of domestic gas fields, extraction of gas from unconventional resources to increase gas production in the future, gas exploration in the sea and LNG imports, and gas import through pipelines.

According to the projection, 4,608 million cubic feet of gas is expected to be supplied daily in the fiscal year 2030–31 and 5,249 million cubic feet of gas per day in the fiscal year 2040-41.

In response to another question from Abdul Latif, the state minister said that Bangladesh Petroleum Corporation imported 50 per cent of the total amount of refined fuel oil through G2G and 50 per cent through international open tenders.

Nasrul Hamid said that BPC was currently importing refined fuel oil on a G2G basis from state-owned companies in six countries.

The countries are— India, China, Indonesia, Thailand, UAE and Malaysia.

In response to the question of independent lawmaker Saiful Islam, the state minister told parliament that there were 141 thermal power plants with a capacity of 23,159 MW in the country.

2,656 MW thermal power is being imported from India, he said and added that 18 thermal power plants with a capacity of producing 11,303 MW were under construction and in various stages of the tender process. In response to the question of AL lawmaker Nurunnabi Chowdhury, he said that, to reduce the import dependency on crude oil, the government had adopted a plan to set up one new refinery with a capacity of 30 lakh metric tons, double the capacity of the current unit of Eastern Refinery Limited.

This project will be implemented by 2028–29FY, he added.​

 

[Saif]

Energy experts, economists oppose govt plan to raise electricity tariff

Breaking News, International News & Multimedia

thedailynewnation.com

Energy experts, economists oppose govt plan to raise electricity tariff​

26 Feb 2024, 7:26 pm

UNB, Dhaka :

Energy experts and economists are voicing strong opposition against the government’s proposal to further increase electricity tariffs in Bangladesh. They are urging a re-evaluation of the power sector’s financial management, specifically pointing out excessive and questionable spending as a more viable solution to the sector’s financial woes.

They observed that currently there is 42 percent surplus electricity that can be attributed to government’s deals to set up costly power plants.

“Rampant, unjust expenses – from state-owned company board remunerations to large-scale power purchase deals – underscore the need for financial rectification over tariff hikes,” eminent energy expert Prof SM Shamsul Alam said.

In a recent statement, State Minister for Power, Energy, and Mineral Resources, Nasrul Hamid, hinted at an increase in electricity tariffs, starting from March, to counter the widening gap between production costs and sales revenues.

The move aims to alleviate financial pressures on the Bangladesh Power Development Board (BPDB) and the national economy.

“We have to adjust power tariff at both the retail and bulk level to cover the production cost. However, gas prices may be adjusted only for the power plants,” Hamid declared, assuring that the impact on retail consumers would be kept to a minimum.

Sources within the government revealed plans to implement a 5 percent hike in bulk electricity prices and a 3 percent increase at the retail level through an administrative order, bypassing traditional regulatory hearings.

According to Annual Report 2022-23 of the Bangladesh Power Development Board (BPDB), per unit production cost was Tk 11.33, while electricity was sold at Tk 6.7 per unit — incurring a loss of about Tk 4.63 per unit.

This imbalance has led to a staggering loss of Tk 47,788 crore for the fiscal year, as the government grapples with purchasing electricity from private and international sources at significantly higher rates.

The government has been facing great trouble as it has to purchase electricity worth Tk 82,778 crore from private sector power producers, while it generates electricity worth Tk 13,307 crore from its own plants.

The annual report also shows that BPDB’s average per unit production cost from its own plants is Tk 7.63, while it is Tk 14.62 at the independent power producers or IPPs (private sector). At rental plants, the cost is Tk 12.53, at public plants Tk 6.85, and power imported from India cost Tk 8.77 per unit.

Sources in the BPDB said that in the last decade and a half, electricity prices have been increased on 11 occasions at the wholesale level and on 13 occasions at the consumer level.

In the current fiscal 2023-24, the gap between production cost and selling rate has further widened, and now average production cost of each unit is about Tk 12 while it’s selling at Tk 6.7 per unit.

Prof Shamsul Alam, also senior vice president of the Consumers Association of Bangladesh (CAB), said the unjust expenses in the state-owned power and energy entities have been established in the hearings of the Bangladesh Energy Regulatory Commission (BERC).

“But no steps were taken by the Power and Energy Ministry to address those issues. Rather, the regulatory body’s authority was taken away and it was turned non-functional by amending the relevant law,” the energy expert told UNB.

He said that in every case the government was found reluctant to take action to reduce the unjust expenses in the power and energy sector.

He also observed that the Rapid Increase of Power and Energy Supply (Special) Act has been key in creating the unbearable situation for which the government has to provide a huge capacity charge to the private power plant operators and subsidy to state entities.

“Now, the reality is that despite having 42 percent surplus electricity, the country has to endure significant load shedding, even during winter,” he said.

He said that it’s “ridiculous” that despite such surplus electricity and an obligation of capacity charge putting pressure on the economy, the government has announced a plan to import 9,000 MW of electricity from abroad.

Economist and Research Director at Centre for Policy Dialogue, Khondaker Golam Moazzem, in a recent seminar showed through a study report that all political parties in Bangladesh, except the ruling Awami League, want to get rid of capacity payments in the power sector.

He said that the reduction of over-generated power capacity was missing in the Awami League’s election manifesto announced before the January 7 national election.

He also recommended shutting down the costly rental power plants immediately to reduce the overall cost.

M. Tamim, special assistant to the chief advisor of the former caretaker government, said that without reducing the cost, the onus of the increased production cost is being imposed on the consumer.

“This way, the government subsidies can be reduced by increasing the electricity tariff. But it will neither address the dollar crisis, nor resolve the fuel import problem. So, load shedding cannot be prevented by increasing the power tariff,” he said.​

 

[Saif]

In order to extract gas from Bay of Bengal, Sheikh Hasina has asked for investment from International Islamic Trade Finance Corporation (ITFC). International Islamic Trade Finance Corporation (ITFC) Chief Executive Officer (CEO) Eng. Hani Salem has praised Bangladesh for her excellent track record of loan repayment.

Need investment for offshore gas extraction: PM tells ITFC delegation

Prime Minister Sheikh Hasina today said to mitigate the energy scarcity in the country the government has opted to go for offshore gas extraction

www.thedailystar.net

​

Need investment for offshore gas extraction: PM tells ITFC delegation​

Photo: PID

Prime Minister Sheikh Hasina today said to mitigate the energy scarcity in the country the government has opted to go for offshore gas extraction.

"And we need investment for that purpose," she said.

The prime minister said this when International Islamic Trade Finance Corporation (ITFC) Chief Executive Officer (CEO) Eng. Hani Salem called on her at her Sangsad Bhaban office.

PM's speech writer M Nazrul Islam briefed the reporters after the call on.

Sheikh Hasina said that the government has provided electricity in all areas of the country.

She mentioned that during her first tenure in government in 1996 she opened the private sector for the power sector.

"Investment enabling environment is prevailing in the country as the present government has created that," she said.

She put emphasis on creating job opportunities and for that the country needs investment.

"We have especially given priority to improving the rural economy and food production."

The prime minister said that the government has emphasised containing present war-driven inflation and lessening the hassle for the people.

"For that we have stressed upon increasing all kinds of production," she said.

ITFC CEO Salem said that they will provide all-out support to materialise the Smart Bangladesh vision by Sheikh Hasina through investing in various sectors including infrastructure, ICT, debt management, energy sector and climate change issues.

Eng. Hani Salem appreciated the investment environment of Bangladesh and the financial management of Prime Minister Sheikh Hasina.

He mentioned that Bangladesh has an excellent track record for repayment of loans.

PM's advisor Salman Fazlur Rahman, Principal Secretary Md Tofazzel Hossain Miah and Economic Relations Division Secretary Md Shahriar Kader Siddiky were present.​

 

[Saif]

How can Bangladesh enhance its energy security?

Continuous gas exploration and exploitation of renewable energy should be the two pillars of energy security in the country.

www.thedailystar.net

How can Bangladesh enhance its energy security?​

A developing country cannot import fuels to sustain a growing economy beyond a certain limit. Bangladesh is no exception. VISUAL: STAR

Bangladesh hasn't recovered from the economic shocks caused by the Covid pandemic and the Russia-Ukraine war, as it is still experiencing a slow but continuous draining of its foreign exchange reserves and is unable to stop the devaluation of taka. The power and energy sectors have been badly impacted in this situation because of their overdependence on imported fuels. Policymakers understood that the foreign currency requirement for this increasing dependency on fuel imports would soon become unsustainable. Experts then pointed out that this situation was mainly the result of neglecting two areas: gas exploration and renewable energy. The stark realisation that the country may not be able to pay for its fuel imports led the authorities and policymakers to declare enhanced gas exploration and incentivise rooftop solar panels and solar parks.

Over the last 20 years, natural gas production in Bangladesh tripled without the addition of any substantial reserves. Exploration was grossly neglected with the belief that no major discoveries were possible, and the shortfall in supply can be easily met through the import of liquefied natural gas (LNG). The unusually low LNG prices during the last decade emboldened those who propagated the idea that it was cheaper to import LNG than to invest in gas exploration. The strong proponents of LNG import cited Japan and Korea as examples.

Domestic natural gas production reached its highest level of 2,663 mmcfd in 2017. But it started to fall the following year, reaching around 2,250 mmcfd. Thus, there has been a production decline of approximately 400 mmcfd in the last six years. At this rate, by 2030 the production will reach a dangerously low level, and to meet the daily national demand, the LNG import burden will severely stress both the dollar reserves and exchange rate.
More than two years have gone by since the alarm was raised, and all the previously promised activities are yet to bear fruit. Very recently, however, some commitments with respect to gas exploration have been made. Petrobangla has announced an ambitious plan of drilling 46 wells by 2026 and a total of 100 wells by 2028. The plan is backed up by a promise of adequate funding and removal of bottlenecks. Moreover, focus has been renewed on the long neglected Bhola gas field, while offshore blocks are also being tendered. Now we wait and see how seriously and sincerely the drilling plan is executed.

The other long neglected area is renewable energy, especially grid-tied solar power plants and rooftop solar panels. The statuses of the four solar technologies that are directly or indirectly contributing to the total grid electricity are shown in the table below. Solar parks are continuously providing electricity to the grid when there is sunlight. The other on-grid technologies are directly contributing when they are sending electricity to the grid. At other times, like the off-grid technologies, they are indirectly contributing by lowering the load on the consumer. The net effect is the same.

The achievement on this front over the last 15 years—since the passing of Renewable Energy Policy, 2008—is dismal. Only 677 MW power generated by solar energy is being contributed to the grid. The implication of this failure can be understood by analysing the daily energy curve.

Source: BPDB website

The contribution of solar PV electricity can be seen from the Daily Energy Curve figure, which shows how the demand for electricity was met on February 18; the turquoise band from early morning to early evening is the contribution to the grid. To meet demand during these hours, the grid operator dispatched oil-fired (mainly HFO but also some diesel) power plants. What is amazing here is that the full demand could not be met due to a lack of fuel despite having more than enough power plants, and we had to resort to load-shedding. It is inconceivable that when the sun is shining, there is load-shedding. The electricity supplied by HFO and diesel power plants, including load-shedding, could have been supplied by solar PV. If the grid had enough solar PV capacity, they could have saved the fuel used by oil-fired power plants as well as prevented the load-shedding. In the last 15 years, we managed to build fossil-fuelled power plants with the collective generation capacity of more than 20,000 MW, but solar PV power plants with the capacity of less than 500 MW.


If Bangladesh had grid-connected solar power plants with the collective generation capacity of 2,000 MW more, which could have been accommodated in the grid without instability issues, a lot of foreign currency could have been saved and the country would have had greater energy security. However, to accommodate another 2,000 MW of daytime solar, there must be sufficient power plants to manage intermittency (to cover for cloudy days). In the table below, it can be seen that there are gas-fired power plants (gas turbines) with less than 1,500 MW capacity that can perform this task. Of course, there are plenty of oil-fired power plants, but the unit cost of electricity from these power plants is very high. It is ironic that we need more gas-fired power plants despite the fact that nearly 50 percent of the existing plants (with more than 5,000 MW generation capacity) are sitting idle. To keep tariffs low and add more solar PV electricity to the grid, the gas-fired power plants should be simple (single) cycle, not combined cycle, of which we have plenty and which is the principal cause of overcapacity.

Source: BPDB Annual Report 2021-22

The realisation that energy security cannot be ensured by importing fuels and that domestic resources are the only means of strengthening energy security have hopefully dawned upon policymakers in Bangladesh. Continuous gas exploration and exploitation of renewable energy should be the two pillars of energy security in the country. The neglected reserves of high quality coal should also be considered. A developing country cannot import fuels to sustain a growing economy beyond a certain limit.
​

---

Dr Ijaz Hossain is former dean of the Faculty of Engineering at Bangladesh University of Engineering and Technology (Buet).​

 

[Saif]

BD seeks over $300m loan from WB to fund three energy projects

Bangladesh has sought over US$300 million funds from the World Bank (WB) to improve the power and gas distribution and transmission networks of the country, officials said on Saturday. The Economic Relations Division (ERD) requested the WB months ago to finance two investment projects and one tech

thefinancialexpress.com.bd

BD seeks over $300m loan from WB to fund three energy projects​

FHM HUMAYAN KABIR

Published :​

Mar 03, 2024 00:35

Updated :​

Mar 03, 2024 00:35

Bangladesh has sought over US$300 million funds from the World Bank (WB) to improve the power and gas distribution and transmission networks of the country, officials said on Saturday.


The Economic Relations Division (ERD) requested the WB months ago to finance two investment projects and one technical assistance (TA) projects.

Officials said the ERD sought some US$337 million in loans for financing a gas transmission line, a power distribution line and a TA project for energy sector development.
However, the Washington-based lender is yet to reply in this regard, they added.

The state-run Gas Transmission Company Limited (GTCL) needs funds to install the Langalbandh-Mawa-Gopalganj-Khulna gas transmission pipeline through the Padma Bridge aimed at supplying natural gas to the western zone of the country.

The GTCL needs $130.76 million funds from the WB for its transmission line development works, said a company source.

Meanwhile, the West Zone Power Distribution Company Limited (WZPDCL) is going to take up the Distribution System Improvement under WZPDCL Area project that requires fund support.

The WZPDCL needs some $204 million funds for improving the power distribution lines in the country's western zone areas, including Khulna and part of Dhaka divisions, said another official at the Ministry of Power, Energy and Mineral Resources.

Besides, the ministry has sent another TA project funding request to the WB for getting $2.3 million in foreign aid.

"All the three funding requests have been sent to the WB during October-November period of 2023. However, we are yet to get any response. We will give them another reminder shortly," said a senior ERD official. "We hope the World Bank will bankroll the important projects."

Bangladesh's gas transmission lines have already been expanded to the country's southern, eastern, and north-eastern regions, but the westerns and north-western regions are still deprived of adequate supply of gas.

The proposed Langalbandh-Mawa-Gopalganj-Khulna gas transmission pipeline of the GTCL is expected to ensure the gas supply to the western Bangladesh and facilitate industrialisation.
The power distribution line improvement and expansion at the west zones will ensure uninterrupted electricity supply to the consumers.​

 

[Saif]

'High dependence on imported fossil fuels bringing trouble'

"The high dependence on imported fossil fuels has significantly impacted our energy system."

www.thedailystar.net

'High dependence on imported fossil fuels bringing trouble'​

Shafiqul Alam, lead energy analyst at the Institute For Energy Economics and Financial Analysis, discusses the state of our energy sector and implications of a possible price hike in an interview with Eresh Omar of The Daily Star.

Reportedly, the authorities forecast that they will need to increase power supply by 75 percent in April, while the government is already struggling to ensure the current supply. Realistically, can the government boost generation by that much, or will load-shedding be the norm come this summer?

​

It has been estimated that during summer nights in April, when the demand peaks, 17,500MW will need to be generated. If we look at recent power demands, only a few days ago, it was 11,600MW. Maximum generation, according to Bangladesh Power Development Board (BPDB) data, was 11,426MW. So, there was some load-shedding. Given our current power system capacity of around 26,500MW—without considering captive and off-grid systems—meeting that target should not be a problem. But due to the dollar crisis and because private power producers still owe payments, load-shedding will take place again.

Coal and LNG prices have significantly come down in the international market compared to last year. So, ideally, this year's load-shedding should not be as catastrophic as last year's. But a lot of it depends on how the government manages the total system. While the government took temporary measures, the economic pressure will likely remain. For example, the bonds that were issued to make payments to our private power producers have a cost—that is, the interest payments. These payments only helped oil-fired plants meet their obligation against bank loans. These power-generating units will need additional money to import fuel to produce electricity during this summer. The local gas supply situation has not improved and hence, sufficient fuel supply to gas-fired plants will be a huge challenge. This portrays a scenario where meeting summer peak demands will be difficult.

Although the government will receive international funds to import oil and LNG, this loan will have to be paid back. Given these challenges, the government has to exercise caution and be prudent in its management.

While focusing on increasing generation capacity, why did the government ignore primary energy supply over the years? And how costly is that proving?

When this government came to power in 2009, there were no other alternatives to ramping up generation capacity, because there was such a huge power supply deficit compared to demand. The initial focus on increasing generation capacity had some positive impacts, as industries grew and people's living standards improved. But in recent years, the increase in power demand could not match the trend of power system capacity expansion. Despite having enough generation capacity, we have not been able to cater to the needs of our industries; they still rely significantly on captive systems. If we could have supplied them with consistent and quality electricity, then perhaps this gap between demand and supply would not exist.

Perhaps the concern that we might not be able to find sufficient local natural gas reserves eventually tempted the government to resort to imported LNG to partially meet the demand for gas. Efforts in local gas exploration were not enough to meet the growing demand. Meanwhile, our success in exploiting renewable energy has been very limited. Once renewable energy was very expensive. But even when costs came down, we could not increase its capacity substantially. All these have increased our exposure to imported fossil fuels and their volatility in the international market. Our primary energy costs have gone up mainly due to import dependence.

The high dependence on imported fossil fuels has significantly impacted our energy system, leading to the need for upward price adjustments of energy and power in quick succession, especially in recent years. In fact, a significant amount of dollars is spent on energy imports, which also negatively affects the foreign currency reserves of the country. Besides, the government couldn't supply enough gas to industries which in turn operated at lower capacities last year. Although the industrial contribution to our GDP is on an increasing trajectory as per the Bangladesh Bureau of Statistics data, this contribution would have been even more with sufficient energy supply.
Read more

​

Why are industries using captive systems? Is it because our distribution systems aren't up to the mark?

Yes, there is still a lot to be done there. And the government is working on that, but it needs to be expedited. Also, we need to supply electricity to industries consistently.

Energy security is an integral part of any country's national security. From that perspective, how secure are we, and how can the government address the ongoing crisis in the energy sector?

As our dependency on imported energy increased drastically, our energy security concerns have increased too. To become more economically efficient, we cannot rely so much on external sources for our energy; we have to look into our internal resources. Right now, there are no immediate solutions. We have to focus on long-term solutions and mainly on improving planning, coordination, proper management and good governance.

As our dependency on imported energy increased drastically, our energy security concerns have increased too. To become more economically efficient, we cannot rely so much on external sources for our energy; we have to look into our internal resources.

Still, we can take some measures for short-term relief. For example, since we struggle a lot to meet the evening peak demand for electricity, and since we are now going through a crisis moment, we could perhaps take the initiative to close shopping malls a little earlier on weekdays. The government took a similar measure when the Russia-Ukraine war started. The government can also implement a time-of-use tariff to flatten the evening peak demand slightly.

In the long term, we have to seriously explore local gas both onshore and offshore. Different studies and reports have revealed that Bangladesh has the potential for gas reserves. The Schlumberger 2011 report, for example, talked about 49 wells that should be reworked on. Aside from that, we have to expand our renewable energy capacity. Here, also, we should avoid any sudden expansion. Instead, we should increase capacity gradually. Last April, we released a study which said that Bangladesh could incorporate around 3,000MW of solar energy, and thus reduce the operation of expensive plants during the day's peak hours (when sun is available) and cut down on associated fossil-fuel imports.

While solar can help us with day peak-time energy consumption, wind can help with nighttime consumption. Wind can also help during the daytime. Ultimately, we have to focus more on renewables and improve our energy efficiency, which is something all developed countries around the world are pursuing. Our industries have already improved energy efficiency to a certain level. Many households are using efficient appliances like LED lights and air conditioners with inverter technology. Still, there is a lot of room for energy efficiency improvement on the demand side for which we must spearhead consistent measures.

Cross-border energy trade with Bhutan, India and Nepal is also something we should explore. Reportedly, we have finalised an agreement for hydropower import from Nepal. But we should also explore the potential of energy export. This region has a significant variation in energy demand patterns. For instance, Nepal and Bhutan have low energy production and energy shortages in winter—since they are hydro-dependent. But we have a significant surplus electricity capacity during the winter. This provides an excellent case to export electricity to Nepal and Bhutan during the winter. We should continue our efforts for a regional energy trade that will help both the import and export of energy.

Reportedly, the government will soon raise energy prices. How fair is it to raise prices for consumers while paying capacity charges to idle power plant owners?

Last year's data substantiates that the power sector experienced quite a hefty revenue shortfall. The difference between selling and buying prices is very high. From that angle, the government has no alternative but to raise the power tariff. But increasing tariffs alone will not solve our problems. We need to reduce the cost. Identifying the costly and inefficient power plants and phasing them gradually out will help reduce costs. We also need to forecast future power demand more accurately to minimise overcapacity, reduce capacity payments and thus contain our fiscal burden.

There are a number of plants that are currently in the pipeline—aside from those that are already under construction. We should decelerate the projects that are at the contracting and planning phases, so that our overcapacity problem does not increase further and increase the burden on the economy.

Renewable energy, particularly solar, already has an economic case here. While the cost of solar energy is much higher in Bangladesh than in many other countries, the price will further come down in the foreseeable future, making it even more economically compelling. We need to enter the competitive renewable energy procurement process, which has the potential to reduce costs.

Sustainability is another important dimension that we must not forget. We need to use our resources prudently. For example, Solar Home Systems (SHS) contributed to transformational changes in the lives of rural and far-flung people. But reportedly, many of the SHS are no longer operational after 100 percent electricity coverage was achieved. So, ultimately, it is an inefficient utilisation of resources.

Moreover, as per the requirement to obtain new grid connections, different building owners have installed rooftop solar panels. But due to lack of monitoring, many of these installations do not work and deliver little or no energy. We have to cut down on such wastes.

As the power tariff adjustment is on the card, it should be done gradually. The distributional impacts of a price hike on lower income groups, who are often disproportionately affected, should also be kept in mind. Additionally, higher energy prices will affect industrial production.​

 

[Saif]

State Minister hints at cutting fuel oil prices in days

State Minister for Power, Energy, and Mineral Resources Nasrul Hamid has indicated reductions in fuel oil prices this week. “Regular monthly adjustments to fuel oil prices may start in a few days. The energy division is now awaiting the prime minister’s approval about this,” he s

thefinancialexpress.com.bd

State Minister hints at cutting fuel oil prices in days​

Published :​

Mar 03, 2024 19:58

Updated :​

Mar 03, 2024 19:58

State Minister for Power, Energy, and Mineral Resources Nasrul Hamid has indicated reductions in fuel oil prices this week.


“Regular monthly adjustments to fuel oil prices may start in a few days. The energy division is now awaiting the prime minister’s approval about this,” he said while speaking to reporters at the Secretariat on Sunday afternoon, according to local media.

“As there is somewhat affordable availability of fuel oil in the global market, there could be reductions in fuel oil prices this month,” the state minister added.

Earlier on February 29, the government issued “Fuel Pricing Guidelines” through a gazette notification to set an automated price for petroleum fuels across the country.​

 

[Saif]

Bangladesh wants to import 9,000MW electricity from neighbours: Nasrul

State Minister for Power, Energy, and Mineral Resources Nasrul Hamid today said Bangladesh and India have a huge opportunity to work together for the development of the power and energy sector

www.thedailystar.net

Bangladesh wants to import 9,000MW electricity from neighbours: Nasrul​

Photo: Collected

State Minister for Power, Energy, and Mineral Resources Nasrul Hamid today said Bangladesh and India have a huge opportunity to work together for the development of the power and energy sector.

"We want to import 9,000MW of electricity from neighbouring countries. The process to import hydro-electricity from Nepal and Bhutan has advanced," Hamid said when the Indian High Commissioner to Bangladesh Pranay Verma called on him at his office in the ministry.

He also informed the Indian envoy a deal is likely to be signed next month to import 40MW of hydropower from Nepal.

He said that the import of 500 MW of electricity from Nepal through Indian company GMR is almost final while the import of renewable energy is also in progress. The import and export from Meghalaya, Tripura, or Assam can be discussed.

He said the process of importing LNG and gas through H-Energy is almost final.

"We want to increase the connectivity with neighbouring countries including India. We need Indian cooperation in this regard," the minister said.

Nasrul Hamid said power trade will get momentum if there is a dedicated line from Nepal to Bangladesh. This will also benefit India.

He also said it is essential to have a stakeholders' meeting of both sides every month to increase the area of cooperation. "We can also work together on bio-fuel," he added

He observed that the demand for LPG is increasing. It should be considered actively as to how Bangladeshi private investors can work in India in these sectors.

The high commissioner said India's cooperation with Bangladesh in the power and energy sector is growing.

Import of hydropower from Nepal to Bangladesh is ongoing, he said, adding India is also importing about 600 MW of electricity from Nepal.

The issues on high voltage transmission lines, renewable energy, import-export of electricity, R-LNG, fuel capacity enhancement, energy efficiency, and future regional connectivity was discussed at the meeting.​

 

[Saif]

Power sector in deep crisis: Rizvi

BNP Senior Joint Secretary General Ruhul Kabir Rizvi today said the country’s power sector has plunged into a deep crisis

www.thedailystar.net

Power sector in deep crisis: Rizvi​

Ruhul Kabir Rizvi. File photo

BNP Senior Joint Secretary General Ruhul Kabir Rizvi today said the country's power sector has plunged into a deep crisis.

Talking to reporters at BNP's Nayapaltan office, Rizvi said Awami League General Secretary Obaidul Quader's recent remarks on the power situation contradict what Prime Minister Sheikh Hasina has said on the issue.​

​

The BNP leader said Quader claimed that hundred percent of the country's people are getting electricity supply, but the PM a few days ago stated that load-shedding on a small scale should remain in the country.

He said people of the country are suffering from load-shedding from morning to evening even though the temperature remains at a tolerable level.​

 

[Saif]

Price of 12kg LPG cylinder hiked by Tk 8

The Bangladesh Energy Regulatory Commission (BERC) today raised the price of liquefied petroleum gas (LPG) by Tk 0.66, setting the new rate at Tk 123.52 per kg, up from the previous Tk 122.86

www.thedailystar.net

Price of 12kg LPG cylinder hiked by Tk 8​

File photo: Collected

The Bangladesh Energy Regulatory Commission (BERC) today raised the price of liquefied petroleum gas (LPG) by Tk 0.66, setting the new rate at Tk 123.52 per kg, up from the previous Tk 122.86.

This price change will be effective from 6:00pm today, indicating a slight increase in household and commercial expenses.

BERC at a press briefing today said that the price for a standard 12kg LPG cylinder will now be Tk 1,482, up from the previous Tk 1,474. This adjustment follows a rational scale across various LPG cylinder sizes, ranging from 5.5kg to 45kg, addressing the need for a proportional price revision across different consumer segments.

Furthermore, the price for "auto gas", the LPG variant used in motor vehicles, has also seen a revision, now priced at Tk 68.05 per litre, a slight increase from Tk 67.68.

Notably, LPG prices marketed by the state-owned LP Gas Company will remain unchanged. This exception is attributed to its local production and the company's minimal market share, which is less than five percent.

The decision to adjust LPG prices comes in the wake of rising costs in the international market, specifically tied to the increase in the Saudi CP (contract price), which serves as a benchmark for local operators importing LPG primarily from the Middle East.​

 

[Saif]

Congestion on the Dhaka-Ctg highway as locals protest gas supply cut

Heavy traffic jam was reported on the Dhaka-Chattogram highway as residents of Munshiganj’s Gazaria protested the suspension of gas supply in the area by blocking it

www.thedailystar.net

Congestion on the Dhaka-Ctg highway as locals protest gas supply cut​

Photo: Collected

Heavy traffic jam was reported on the Dhaka-Chattogram highway as residents of Munshiganj's Gazaria protested the suspension of gas supply in the area by blocking it.

According to locals, they occupied the busy road for 2 hours starting around noon creating heavy traffic jam on the highway. Around 2:00pm, after receiving assurance from administration, they moved from the highway easing the traffic congestion.

However, later, around 4:00pm, they again took position on the highway. The responsible officials are trying to convince them to move from the highway, reports our local correspondent.

According to locals, the Titas Gas Authority stopped gas supply to most areas of Gazaria Upazila from February 25th. They said the decision came without any notice or prior announcement.

They said the protest started when, around 11:30am, the Titas Gas Authority came to disconnect the "illegal transmission lines" in the Dori Bausia area of Bausia Union.

Gazaria Upazila Nirbahi Officer Kohinur Akhtar said, "Traffic became normal when we persuaded them and removed them from the road."

However, as of 5:00pm, thousands of men and women from several nearby villages again gathered on the highway creating heavy traffic jams.

Gazaria Bhaberchar Highway Police Officer-in-Charge, Md Humayun Kabir said, "Most of the agitators are women. They have been suffering due to a lack of gas. They want a quick solution. They were removed from the highway. But they are back again. It is causing traffic jam on the highway. We're trying to convince them to move away from the highway."​

 

[Saif]

Bangladesh to invite bids for offshore oil and gas exploration

Bngladesh will invite international bidding for oil and gas exploration in 24 blocks in the Bay of Bengal on March 10 in an effort to boost domestic energy production, the chairman of state-owned Petrobangla told Reuters on Tuesday. Bangladesh has been battling with energy shortages, with its gas

thefinancialexpress.com.bd

Bangladesh to invite bids for offshore oil and gas exploration​

REUTERS

Published :​

Mar 06, 2024 00:01

Updated :​

Mar 06, 2024 00:01

​

Representational image

Bngladesh will invite international bidding for oil and gas exploration in 24 blocks in the Bay of Bengal on March 10 in an effort to boost domestic energy production, the chairman of state-owned Petrobangla told Reuters on Tuesday.

Bangladesh has been battling with energy shortages, with its gas reserves fast depleting and a spike in fuel prices following the Ukraine war.

"The deadline for submission of offers for the 24 offshore blocks will be the first week of September and after evaluations, we are hoping to finalise the deals by the end of this year," said Zanendra Nath Sarker.

"We're making plans to reduce supply shortages to keep gas-fired power plants and industries running," he said in an interview with Reuters in his office.

Petrobangla also plans to import 48 liquefied natural gas (LNG) cargoes from the spot market this year, upon approval from the government, up from 23 cargoes last year, other than cargoes from long-term deals, Sarker said.

Five cargoes from spot market will be imported in April while seven cargoes had been imported over the last two months, he added.

"We have also taken initiatives to drill 100 new gas wells in the country between 2025 and 2028 to boost local production," he said.

The move comes at a time when the South Asian country's gas reserves are set to completely deplete by 2033 if no new major discoveries are found.

Bangladesh has struggled to pay for imported oil and gas because of dwindling local reserves since the Russian invasion of Ukraine, forcing the country to turn last year to the International Monetary Fund for a $4.7 billion bailout.

"The dollar crisis in recent times is a global problem. But the government is giving priority to the energy and power sectors. So it will not be a barrier," Sarker said.

Bangladesh's offshore remains largely unexplored despite the settlement of a dispute in favour of Dhaka with neighbouring Myanmar and India over the maritime boundary.​

Two shallow water blocks are under contract for exploration with a joint venture of ONGC Overseas Limited and Oil India Limited where drilling has recently begun, officials said.

 

[Saif]

Bangladesh's Energy Backtrack

Through advanced coal-intensive technologies, the government is trying to keep coal alive and further expand the domestic use of imported LNG.

www.thedailystar.net

Bangladesh's Energy Backtrack​

Decoding the Integrated Energy and Power Master Plan 2023

The freshly approved IEPMP seems to chalk out the coal transition from imported to domestic coal rather than transitioning from fossil fuel to renewable or clean energy. FILE PHOTO: RAJIB RAIHAN

The Ministry of Power, Energy, and Mineral Resources (MPEMR) published the Integrated Energy and Power Master Plan (IEPMP) 2023 on November 27 last year. The IEPMP was passed after revising the draft seven times.

The final draft has been widely disseminated among stakeholders. But despite multiple revisions, the IEPMP fails to demonstrate a coherent plan to attain renewable energy transition while ensuring energy security. Instead, an overwhelming presence of different advanced technologies (such as nuclear, carbon capture and storage units, hydrogen, and ammonia) have been observed. The majority of these technologies commit to clean coal and are yet to be tested for their effectiveness in reducing carbon emissions. Such a shift in narratives creates confusion among the masses regarding the government's renewable energy stance. This type of jargonal change hints at the government's willingness to keep fossil fuel use, especially of coal, alive.
​

Renewable energy targets in IEPMP​

The progress in renewable energy deployment in Bangladesh has been sluggish for quite some time. According to SREDA, the renewable energy generated power in Bangladesh is 1,202 MW, and the total share stands at 4.1 percent. The lion's share of current renewable energy is from solar (both off-grid and on-grid), as 968 MW is generated from solar energy in Bangladesh. However, aligning with the prime minister's announcement, the newly launched IEPMP sets the clean energy target at 40 percent of the total installed generation capacity (23,500 MW) by 2041. Unfortunately, the new IEPMP faultily revised renewable energy to clean energy, where targets are set as 18 percent by 2030 and 40 percent by 2041. The share of renewable energy within the clean energy mentioned in the IEPMP is not even half. By 2030, of the 18 percent clean energy, 5.7 percent (1,726 MW) will be renewable, and by 2041 of the 40 percent clean energy, only 8.8 percent (5,157 MW) will be from renewable energy sources. Now, the billion-dollar question is: what makes up the remaining 12.3 percent by 2030 and 31 percent by 2041?
​

Emphasis on technology for clean energy goals​

The IEPMP mentions the use of advanced technology and fuel cells to achieve clean energy targets. It includes coal-fired power plants with Carbon Capture and Storage (CCS) technology, nuclear, coal co-fired with ammonia, and hydrogen co-fired with gas (LNG) as clean energy sources. The plan explicitly mentions that to achieve the goal of 40 percent of electricity generated from clean energy sources, it will be necessary to introduce hydrogen (H2) at six percent and ammonia (NH3) at two percent.

The rationale of the MPEMR behind introducing these technologies is that Bangladesh will not be able to achieve the clean energy goals via traditional renewable energy sources. This itself seems to contradict the estimation of renewable energy potential in Bangladesh presented in the final IEPMP. According to the renewable energy generation deployment plan under the Advanced Technology Scenario (ATS), 9,500 MW can be generated from solar and 7,575 MW can be generated from wind. Biomass can generate 165 MW, with 230 MW of hydropower. Hence, a total of 17,470 MW can be generated from traditional renewable energy sources by 2041, which is almost 30 percent of the total power demand.
​

Timeline of hydrogen and ammonia introduction​

The freshly approved IEPMP lays out the plan to introduce ammonia co-firing as early as 2035 and coal co-firing as early as 2037. Gas-fired power plants with 20 percent hydrogen co-firing will be starting in 2037. Later, it will be upgraded to 50 percent in 2045 and 100 percent hydrogen firing starting in 2040. The plan will introduce blue hydrogen first, but it has not yet confirmed whether green hydrogen will be introduced or not. In the case of ammonia, coal-fired power plants with 20 percent NH3 co-firing will be starting in 2035 and will be upgraded to 50 percent in 2040. After 2037, the introduction of CCS into ammonia co-firing should also be considered to further reduce CO2 emissions.
​

Environmental and financial feasibility of hydrogen and ammonia​

Hydrogen and ammonia co-firing with gas and coal are not 100 percent clean and do emit carbon. Fuel cells such as hydrogen and ammonia are only environment-friendly and emit zero carbon if they are green; that is, constructed from renewable sources. Hence, only if green hydrogen and ammonia are used for power generation will Bangladesh be able to keep up with the energy transition commitment. Even if the MPEMR ends up using green hydrogen and ammonia for electricity generation, it will not be financially viable. Several pieces of literature have already demonstrated that the levelised cost of electricity (LCOE) from these sources is much higher than in traditional renewable energy sources. The IEPMP itself demonstrates that the LCOE from ammonia is USC 17/kWh and USC 14/kWh for hydrogen. In contrast, the LCOE for solar will be USC 2.7/kWh in 2030 and USC 2.1/kWh in 2050. The required investment amount of the generation capacity installations till 2050 in the IEPMP is estimated at $157 billion. The total investment for power generation from clean energy is $64.4 billion, of which it's $29.7 billion for wind (46 percent), $20.1 billion for nuclear (31 percent), $7.2 billion for solar (12 percent), and $6.9 billion for hydrogen and ammonia (11 percent).
​

Lack of renewable energy planning​

CCS, ammonia, and hydrogen technologies are costly and will require hefty investment to be introduced in Bangladesh. There is no detailed plan of the necessary financial estimates for investment and maintenance of renewable or clean technologies that could be used to attain the goal of low carbon emissions. Additionally, there is no accurate policy framework for renewable energy subsidies yet. Several government decisions on renewable energy, such as the decision to phase out diesel-based power plants, as well as medium-term plans for installing solar PVs in agriculture, irrigation, and primary schools are not mentioned or reflected in the IEPMP. No feasibility study is proposed for renewable energy-related implementation in various spheres of the economy.

On the other hand, in the section that highlights power policies, renewable or clean energy policies are completely absent. Instead, a plan for the hydrogen/ammonia fuel supply system is highly emphasised. The government is planning a demonstration test essential for evaluation in Bangladesh for ammonia co-firing and studies on plant locations, transmission, and fuel supply for hydrogen. The schedule for CCS implementation for gas-fired plants and the need for preliminary studies on suitable sites and CCS technologies are already in the works.
​

De facto coal transition​

Through advanced coal-intensive technologies, the government is trying to keep coal alive and further expand the domestic use of imported LNG. The new IEPMP unreasonably assumes that domestic coal production will continue to increase by 2050. This is mainly for ammonia co-fired with coal and CCS technologies to clean coal. Overall, the freshly approved IEPMP seems to chalk out the coal transition from imported to domestic coal rather than transitioning from fossil fuel to renewable or clean energy. This indicates that the government is willing to start walking in the opposite direction of renewable energy targets.

Dr Khondaker Golam Moazzem is research director at Centre for Policy Dialogue (CPD).

Helen Mashiyat Preoty is research associate at CPD.​