Natural Gas: Interim Fuel & 25 the First Nuclear Power Plant Bangladesh Perspective of the World

Editor Fortnightly Magazine, Vol 18, Issue 1, June 16-30 Mollah M Amzad Hossain Advisory Editor Anwarul Islam Tarek Mortuza Ahmad Faruque Saiful Amin International Editor Dr. Nafis Ahmed Contributing Editors Saleque Sufi Online Editor GSM Shamsuzzoha (Nasim) Managing Editor Afroza Hossain The national budget for FY2020-21 placed by Finance Minister AHM Mustafa Magazine Administrator Kamal in parliament on June 11 was one of the most challenging tasks of AKM Shamsul Hoque economic and financial management of the state since its independence. Kamal Reporters Arunima Hossain had to deal with this tough job amid the Covid-19 pandemic that has slowed Jannatul Ferdushy Sova down the economy. It was not surprising that he would be cautious in spending Assistant Online Editor in the next fiscal year since the economy is under severe pressure. In the energy Aditya Hossain Design & Graphics and power sector he proposed a cut in budgetary allocation by 4.6 percent. Md. Monirul Islam However, experts in the sector expressed mixed reaction to his plan for energy Photography sector. Apparently there was no change in the budgetary measures for the Bulbul Ahmed government’s existing plans though it was suggested by the experts ahead of the Production Mufazzal Hossain Joy budget announcement. The experts earlier suggested that the government Computer Graphics should go slow with the development projects in the sector which were not in Md. Uzzal Hossain the process of implementation. Instead, they recommended, the funds should be Circulation Assistant directed to sectors that deserve emergency response due to the adverse impact Khokan Chandra Das of the pandemic. Editorial, News & Commercial Room 509, Eastern Trade Center 56 Inner Circular Road (VIP Road) Naya Paltan. GPO Box : 677 Dhaka-1000, Bangladesh Tel & Fax : 88-02-58314532 Email: [email protected] [email protected] Website: www.ep-bd.com Price Bangladesh: Tk 50, SAARC: US$ 6, Asia: US$ 8, Europe: US$ 10, North America, Africa & Australia: US$ 14

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Power & Energy supply at afford- The COVID-19 pandemic has The new national budget has proposed to able price is essential for encour- severely affected the energy and cut in spending on power and energy sec- aging new investments from local many other sectors. The global tor by 4.6 percent to Tk 26,758 crore for and foreign entrepreneurs. This oil market crash caused price fall the fiscal year 2020-21. The power division cannot be achieved only through to its historic low. The global received an allocation of Tk 24,853 crore exclusive reliance on imported market is over supplied with while energy and mineral resources divi- primary fuel. For this, harnessing crude oil, petroleum products, sion Tk 1,905 crore. The allocation for the and optimum utilization of do- whole sector was Tk 28,051 crore in the mestic primary fuel needs to be LNG and LPG. Countries having outgoing fiscal year. ensured. greater storage capacity have purchased and filled their Dr. Selim Raihan, Professor of Under the allocation for mega projects, Economics at DU & ED of storage. Some countries have Rooppur Nuclear Power Plant Project got SANEM, said this in an exclusive already entered into future Tk 15,691 crore and Matarbari Ultra Super interview with EP. purchase contracts. Critical Coal-Fired Power Plant .. Encouraged by the readers and patrons, the EP would continue bringing out Green Pages to contribute to the country’s efforts in its journey towards environment-friendly energy.

35 IDCOL Gets Int’l Award for Solar Mini-Grid Project

37 IDCOL Partners Propose Installation of Solar System at Hospitals, Community Clinics

37 ADB Signs $17.7M Financing Package with SSPL

38 COVID-19 Leads to Uncertainties in Renewable Project Financing Space

5 WORLD WATCH 23 Global Energy Investment to Latest Development in Drop by $400b: IEA World 24 Modi Calls for a 6,8 SNAPSHOT Rooftop-Solar-Powered City in Latest Development Every State

9 COVER 24 Utilities Maintain Liquidity to Bungling Budget Deal With Uncertain Market

SPECIAL ARTICLE ARTICLE 15 Natural Gas: Interim Fuel & 25 The First Nuclear Power Plant Bangladesh Perspective of the World

REPORT 31 Architecture After The 19 Russian Firm to Install Covid-19 Pandemic: Security System for RNPP Re-Imagining Our World

19 BPDB Seeks Tk 58b from CLIMATE Govt to Meet Expenses 41 Bangladesh to be Voice of Climate Vulnerable Countries: 20 COVID-19 Fallout: Power FM Transmission Projects Work to 42 be Delayed Reduced Carbon Emissions: Silver Lining on Covid-19 20 Govt Plans to Import 1.2m Cloud Fuel at Low Cost 43 World Can Capture, Store 21 Addl Power Capacity is Enough CO2 to Meet Climate 'Reserve Margin't Targets 21 Santos, ConocoPhillips INTERVIEW Complete Northern Australia 45 Dr. Selim Raihan; Transaction Professor of Economics, 23 Qatar Petroleum Signs Dhaka University & Landmark LNG Deals Executive Director of SANEM Worldwatch

Saudi Arabia made unit of the KSA Makes Biggest Oil some of the biggest First Power Unit of Belarus’ Belarusian Price Hike in 20 Years price increases for NPP May Start Providing NPP (As- crude exports in at travyets Dis- least two decades, doubling down on its strategy to bolster Electricity in Aug trict, the oil market after OPEC+ producers extended historic output Grodno cuts. Oblast) may start generating electricity in August 2020, says Mikhail Pinchuk, CEO of the Rosatom’s Energospetsmontazh The steepest jump will hit July exports to Asia, state producer PJSC. Saudi Aramco’s largest regional market, according to a pricing list seen by Bloomberg. Overall, the increases for Saudi crude The Ministry of Energy of Belarus said earlier that the start-up of erase almost all of the discounts the kingdom made during its the reactor of the 1st power unit was scheduled for July 2020. brief price war with Russia. Energospetsmontazh is involved in construction and installation The sharp price increases show that Saudi Arabia is using all works at various Rosatom facilities, including nuclear power plants outside Russia. the tools at its disposal to turn around the oil market after prices plunged into negative territory in April. As the price set- Belarus’ first nuclear power plant in Ostrovets (a town in the ter in the Middle East, the increases in its official prices may Grodno Region also referred to as Astravyets) will have two units be followed by other producers. with a combined capacity of up to 2,400 megawatts, which are slated to be launched in 2019 and 2020, respectively. Tighter crude supply is helping repair an oil market battered ’ by the coronavirus. Unprecedented output cuts led by the The Belarusian nuclear station s design stems from the AES-2006 Saudis and design devel- Russia boosted oped by the St prices in May, Petersburg- and the based institute OPEC+ group Atomenergopro- ject, which is decided Satur- also the general day to extend contractor of the those limits Belarusian proj- through July. ect. PowerCell Malaysia PowerCell Signs MoU with Sweden AB Siemens Turbines to Power Marine has signed a ABB Power Grids and memoran- Kasawari Gas Field Complex Heavy dum of understanding with ABB Power Grids regarding a col- Engineering (MMHE) has contracted Siemens Gas and Power laboration around fuel cell based zero emissions stationary to supply power equipment for Petronas’ Kasawari gas field power solutions. development in the South China Sea, offshore Sarawak. ’ The aim of the cooperation is to leverage the companies ex- The package comprises three SGT-300 industrial gas turbine isting technologies to jointly develop a complete solution for generators (GTGs), three mechanical-drive SGT-300 gas tur- the market. bines, and three DATUM centrifugal compressors. A final agreement is expected to be reached within approxi- MMHE and TechnipFMC are managing the project under a mately 12 months. joint venture. Kasawari, with estimated recoverable reserves Following the joint development and licensing agreement of 3 tcf, will produce up to 900 MMcf/d of gas for delivery to with Robert Bosch GmbH regarding the PowerCell S3 fuel cell the Petronas LNG complex in Bintulu, Sarawak. stack for the automotive segment last year, PowerCell Sweden The three SGT-300 GTGs will each have dual-fuel capability AB has made and a power capacity of 7.9 MW electric (MWe) at ISO con- a review of dition. They will pro- its strategic vide the power for the prioritiza- platform complex that tions and de- will process and ex- cided to port the gas, includ- increase its ing living quarters focus on the and electrical utilities stationary for all process systems segment. and wellheads.

June 16, 2020 5 Snapshot

Four more power The Volgodonsk PGCB Inks Tk 597cr Deal grid substations Feeding of First RNPP Branch of AEM- with China Firm are going to be set Steam Generator with SG technology in up at different lo- Russia has com- cations in the country while capacity of four more substations Tubes Completed pleted the feed- will be enhanced. ing with SG tubes of the first Steam Generator for the Rooppur Nuclear According to Power Grid Company of Bangladesh (PGCB), Power Plant. the implementing agency of the projects, the new substations, each having 230/132 kV, will be installed in Feni, Birulia The plant will have four such Steam Generators in each of its (Savar), Noagan and East Sadipur (Dinajpur). two units, said a press release recently. The substations, whose capacity will be extended, are It took 22 days for the specialists to perform orderly mounting 400/230 kV Bhulta (Narayanganj), 230/132 kV Bogra, of the elements including Tube Bundle inside the Steam Gener- 230/132 kV Barapukuria and 132/33 kV Niamatpur (Noagan). ator Vessel. The next stage of manufacture involves welding of the bottoms. The PGCB recently signed a bilateral contract with China Na- The equipment will be subjected to hydraulic test and a whole tional Technical Import and Export Corporation (CNTIEC) to range of other tests, including Eddy Current Test of SG tubes. implement the projects in order to facilitate enhanced power supply at batter quality. It is mentionable that AEM-technology is a part of Atomenergo- mash (machine building division of Rosatom) who is the sole As per the contract, the CNTIEC will complete the construc- manufacturer and supplier of all equipment for Reactor Com- tion and extension works of the projects within the next 30 partments months on turnkey basis at a cost of Tk 597.55 crore and hand and major over to PGCB. part of German donor agency KfW, Bangladesh government and equipment PGCB jointly financed the schemes under the Energy Effi- for Turbine ciency in Grid Based Power Supply Project. Islands in Rooppur PGCB company secretary Md Jahangir Azad and CNTIEC Nuclear project manager Pei Ruonan signed the contract on behalf of Power their respective sides at a function at PGCB headquarters in Plant. the city maintaining health guideline. PGCB Executive Director (O&M) Md Masum Alam Bokshi, The Consumers Associ- Chief Engineer (P&D) Abdur Rashid Khan, project director Md CAB Calls for Power, ation of Bangladesh Shafiullah, CNTIEC site manager Zhang Kun were present on Gas Price Cuts (CAB) has proposed a the occasion. reduction in electricity and gas prices — to help Seven people sustained people increase their buying capacity during Covid-19 pan- Seven Hurt in Savar burn injuries in a gas demic, and thus allowing the crumbling economy to revive. Gas Cylinder Blast cylinder blast at a house The non-profit voluntary organization placed its proposal to the at Kathgara in Ashulia of Bangladesh Energy Regulatory Commission (Berc) in an appli- Savar, on the outskirts of the capital recently. cation recently, according to a press release. The incident took place at the two-storey building of one The consumer rights group also made 13 suggestions for price Imon Hossain when the gas cylinder of the house went off, reductions after analyzing the existing tariffs of power and en- leaving seven people injured, said Zihad Mia, acting inspector ergy. In the application, CAB's Energy Advisor Professor Dr M of DEPZ Fire Service. Shamsul Alam said the country' economy has been destroyed by the novel coronavirus pandemic. "To restructure the economy, reductions in the prices of electricity and gas by rationalizing the sector's unreasonable expenditure is urgent," he added. He said the purchasing power of consumers has fallen drasti- cally in the current situation arisen out of the pandemic. There- fore, the government is not getting revenue. "The expenditure of consumers will not increase if the prices of goods and services were not reduced. For that, the prices of power and energy need to be reduced first," said Professor Shamsul Alam.

June 16, 2020 6

Snapshot

Mohammad Alaud- The net Mohammad Alauddin din, Additional Sec- Baraka Power’s Net Proﬁt Up profit of Made Sreda Chairman retary (Policy & by 51pc in Nine Months Baraka Renewable Energy) Power to the Power Division, had Ltd rose been made chairman of Sus- more than 51 per cent year-on-year in the nine months for July, tainable and Renewable Energy 2019 to March, 2020. Development Authority (Sreda). The board of directors of the company in a meeting on Sunday approved the third quarter (Q3) un-audited financial statements The appointment came into ef- of the company for the period that ended on March 31, 2020. fect immediately, said a circular of the Ministry of Public Ad- The power generating company's net profit stood at Tk 126.09 ministration recently. million in three months for January-March, 2020 which was Tk 65.77 million in the same quarter of the previous year, accord- He has replaced Md Helal ing to a recent official disclosure. Uddin, who went on retirement The company's earnings per share (EPS) stood at Tk 0.57 for Jan- after completion of the job as uary-March 2020 as against Tk 0.30 for January-March 2019. Mohammad Alauddin an additional secretary. In nine months, the company's net profit stood at Tk 423.35 million for the period of July, 2019 to March 31, 2020 which was An auto-van driver was elec- Tk 280.24 million in the same period of year before. 5 Electrocuted in trocuted in Tarash Upazila of 3 Districts the district recently. De- Baraka Power wit- ceased Jel Haque, 30, was nessed an impres- the son of Golap Mandol of Kohit Village under Tarash Mu- sive improvement nicipality. in all financial in- dicators riding on Locals said Jel Haque came in contact with live electric wire its subsidiary and while he was charging his auto-van. associate com- Later, his family members rushed him to Tarash Upazila pany's perform- Health Complex, where on-duty doctor Ruman Khan de- ance, officials said. clared him dead. A sub-divisional engineer of In Mymensingh, three persons including two minor children DPDC Engr Dies of the Dhaka Power Distribu- were electrocuted in separate incidents in Tarakanda and tion Company (DPDC) died Dhobaura upazilas. coronavirus from coronavirus at the last day of his office. The sub-divisional engineer was identified as Arun Kanti Dey, 60, hailing from Patya in Chattorgam. Arun Kanti had been working with corona symptoms for last couple of days, a top official said. “Arun Kanti worked at Mugdapara customer services office at the day of his retirement on Wednesday. He got admitted him- self at Kurmitola General Hospital with fever on the day and breathed his last on Thursday,” said Dhaka Power Distribution The deceased were identified as Sajib Mia, 9, a fourth grader Company Managing Director Bikash Dewan. at a primary school, and his friend madrasa-going boy Abdus He left behind a son, a daughter and a host of well-wishers. Samad, 9, of Dharakandi Village in Tarakanda Upazila; and Abdur Rahman, 65, of Uttarpara area in Dhobaura Upazila. A man and his son Man, Son Electrocuted died after being In Bogura, a school-going boy was electrocuted in Chithulia electrocuted in Village under Gosaibari Union in Dhunat Upazila of the dis- Rangpur's Pirgachha upazila recently. trict. The deceased were identified as Azizar Rahman, 60, and his Deceased Abu Hasan, 15, son of Rafiqul Islam of the same son Sujan Mia, 24. area, was a student of class ten at Gosaibari High School. Police said the duo came in contact with a live electric wire Local sources said Abu Hasan came in contact with live elec- while they were setting up a bulb in the middle of their pond tric wire while he was working at home. died on the spot.

June 16, 2020 8 Cover

he new national budget has proposed to cut in Tspending on power and energy sector by 4.6 percent to Tk 26,758 crore for the fiscal year 2020-21. The power division received an allocation of Tk 24,853 crore while energy and mineral resources division Tk 1,905 crore. The allocation for the whole sector was Tk 28,051 crore in the outgoing fiscal year.

June 16, 2020 9

Prime Minister Sheikh Hasina addresses a meeting of the National Parliament of Cabinet Minister on the occasion of the revised budget and specification bill for the fiscal year 2019-20 and 2020 Photo: PID Under the allocation for mega projects, tors those deserve emergency response he said, 48 power plants with a com- Rooppur Nuclear Power Plant Project due to the adverse impact of Covid-19 bined generation capacity of 16,875 got Tk 15,691 crore and Matarbari Ultra pandemic. They argued that the power megawatts are under construction, and Super Critical Coal-Fired Power Plant projects now under plan should not the signing of agreements for construc- Project received Tk 3,670 crore. necessarily be implemented at this motion of 12 power plants with a genera- Finance Minister AHM Mustafa Kamal ment when the demand for electricity is tion capacity of 2,785 megawatts are proposed the allocation while placing very minimum due to the pandemic. under process (LOA and NOA have the budget in parliament on June 11 in The demand for power was much lower been issued). Further, the tendering ’ presence of Prime Minister Sheikh than the country s generation capacity processes for 6 power plants with a gen- Hasina, cabinet members and some well before the spread of coronavirus eration capacity of 650 megawatts is un- members of the parliament, with across the country. The poor demand derway. We have also taken up plans to Speaker Dr Shirin Sharmin Chaudhury continues till now and unlikely to grow construct 16 more power plants with a in the chair. up to the present generation capacity generation capacity of 19,100 anytime soon. megawatts in the near future. He gave a brief description of the present state of the country’s power and en- Much to the surprise of the experts, the The government, with its firm commit- ergy sector and future plan for the finance minister spoke about all the ment to ensure uninterrupted and qual- sector. However, there was no change projects in his budget speech. Currently, ity power supply in the Mujib in the budgetary Centenary, to- measure from the gether with ’ government’s ex- “Sheikh Hasina s isting plans commitment to though suggested extend electricity by the experts to all households”, ahead of the has been relentless budget announce- in facilitating a co- ment. The experts ordinated devel- earlier suggested opment in power that the govern- generation, trans- ment should go mission and distri- slow with the de- bution, said Mr. velopment proj- Kamal. As part of ects in the sector the Mega Plan to which were not generate 60,000 already in the megawatts by process of imple- 2041, “we have mentation. In- already been able stead, they to enhance the recommended, electricity genera- the funds should tion capacity to be directed to sec- 24,000 megawatts

June 16, 2020 11 Finance Minister AFM Mostafa Kamal presents the budget for the fiscal year 2020-21 in the National Parliament in the presence of Prime Minister Sheikh Hasina Photo: PID including captive and renewable en- break, but the subsidy allocations for budget. ergy, extend the electricity facility to 96 power and energy sectors — Tk 9,500 "The government should prioritize on percent of our population, and raise the crore and Tk 9,000 crore respectively — expenditure, cut subsidies, focus on per capita electricity generation to 510 remained unchanged in the proposed transmission and distribu- kilowatt-hours.” tion network, and provide The generation capacity al- some immediate benefit to ready in place is enough to the economy through a cut meet the demand for the en- in the fuel prices," Zahid tire population of the country Hussain, former lead econ- or to bring the population omist at the World Bank in under full coverage. But the Dhaka, told a media. It capacity could not be uti- would help the government lized to its fullest partly due get rid of the capacity to the weak transmission and charges, what he sees no distribution systems. reason to continue as the Before spreading of the virus country had an excess in the country, the govern- power generation in FY ment had to pay capacity 2018-19 by using only 43 charges of around Tk 9,000 percent of its capacity. An- crore to the rental power other way to get rid of the plants that remained idle due rental power plants is not to to the low demand of elec- renew the contracts that tricity, according to a recent would be up for renewal in study by Ohio-based Institute the upcoming fiscal year. for Energy Economics and Fi- "The government should ex- nancial Analysis. The de- plore ways to make savings mand for power has fallen from the subsidies without further following the out- raising electricity prices.

June 16, 2020 12 Any power price increase would hurt "Even before the outbreak of the pan- megawatts Nuclear Power Plant in everybody, from the middle class to demic, we were seeing that electricity Rooppur is progressing well. businesses and industries to house- demand did not increase in a manner Finance Minister AHM Mustafa Kamal, holds." corresponding with our economic however, dropped a broader hint to growth," Prof Tamim said, adding that Energy expert Professor M Tamim, Pro curb further growth of expensive oil- the demand projection in the revised Vice-Chancellor of Brac University pro- fired power plants. He proposed to im- Power System Master Plan-2016 is jected that the demand for electricity pose import duty on furnace oil to halt highly ambitious. "The sector needs a will not increase in the next two to three setting-up or extension of the oil-based short time projection and needs a re- years due to job losses and the eco- plants. “I propose to withdraw the ex- view of the fuel mix policy." As part of nomic fallout of the pandemic. He sug- emption benefit on the import of fur- it, he recommended abandoning the gested abandoning all new coal and nace oil to discourage the installation of coal projects outside of the three ongo- LNG based-power projects in light of furnace oil-based power plants,” he ing ones. "The government should re- the coronavirus pandemic. In a post- said. duce the excess capacity because the budget reaction, he said the three ongo- cost of idle capacity is very high," he fur- The government had encouraged setting ing coal power projects may continue ther said. up of furnace oil-based power plants to and but stressed the need for giving a generate electricity quickly on an emer- hard look at the power sector master "No new investment will come when gency basis after taking the responsibil- plan once again. He said the govern- they [potential investors] see the country ity of government in 2009, the minister ment has accumulated a huge genera- is already overburdened with capacity. said. In this regard, the import duty on tion capacity, expecting that the So, in such a situation, all oil-based furnace oil was waived in 2011 through electricity demand will increase mas- rental and quick rental plants need to be a gazette notification to reduce the gen- sively due to industrialization and ur- shut," he continued. eration cost of electricity. banization. But that did not happen. Having identified Payra, Maheskhali Based on this assumption, he said the and Matarbari as Power Hubs, the fi- Alternative fuel has already been avail- authorities have developed a large ca- nance minister said, the government has able, and power plants have been built pacity which remains idle. been implementing a number of mega based on such fuel to generate electric- projects in the power ity at an affordable price, the finance sector. Implementa- minister said. “As a result, the country is tion of the Rampal now generating more electricity than is 1,320 megawatts required,” he added. Friendship Super Bangladesh Independent Power Pro- Thermal Project, the ducer Association President Imran Matarbari 1,200 Karim said the electricity generation megawatts Ultra cost will be increased significantly due Super Coal Project, to the duty. It would also prompt the au- and the Payra 1,320 thorities to raise the tariff while affecting megawatts Thermal industrialization and pushing up infla- Power Plant Project tion during the era of COVID-19, he have been going on told media after the budget proposal. He in full swing. Steps said the government move will also dis- have been taken to courage the private sector investment. construct coal-based power plants having Prof M Tamim, however, welcomed the 10,000 megawatts government move for imposing duty on generation capacity furnace oil import and said the govern- in Maheskhali in ment is taking right decision in the right joint ventures. To time. “We are expecting a series of large tackle the scarcity of coal-fired low cost power plants into gas as a fuel for generation….so there is no need to run power, plans have oil-fired plants anymore.” He suggested been made to con- running low cost gas-fired plant and struct Liquefied Nat- then coal-fired one. He said most of the ural Gas oil-fired plants stand idle in the COVID- (LNG)-based power 19 period. So, it’s not necessary to run plants. Construction the plant or taking new oil-fired plants. of the 2,400 EP

June 16, 2020 13

Special Article

in power generation hit an all-time Natural Gas: Interim Fuel & record of 34%. The gas demand in China increased by Bangladesh Perspective almost 42 bcm, the fastest growth since China introduced the 13th Five Year Plan (2018-2020) and its ambitious pro- Saleque Sufi motion of the use of natural gas more than previous years. Natural gas now accounts for 8% of the primary demand he COVID-19 has already deliv- sis. For the second consecutive year of in China. This was the double its share ered knock out blows to the world strong growth (after a 3.7% gain in at the start of the decade. Teconomy. The grounding of most 2017) was three times the average of the airlines, massive restrictions on all growth of 1.5% over the past five years. China became the highest importer of modes of transportation and shutting natural gas in 2018 ahead of Japan. It Two top economies — USA and China — down industries have triggered the also became the second largest contrib- together accounted for 70% of the global oil market crash. The prices of utor in volume to the global demand growth as they strongly started replacing oil-linked fuel have also plunged. The growth after United States. This was the coal with gas. The switch from coal to situation of oversupplied natural gas result from China’s policy framework in gas was nearly about 40 bcm of the in- and LNG is not different. The policy- favor of cleaner energies (known as the crease in gas, more than two fifth of the makers were considering reviewing the “Three Year Action Plan for Winning the total extra demand. The United States energy fuel mix in any case given the Blue Sky war”) and in particular restrict- was the single largest driver of the climate change for GHG and CO ing the use of coal in boilers for indus- 2 higher demand with a gain of 80 bcm, emissions for using dirty fossil fuels trial and residential use. Across the up to 10.5% from the previous year — its mainly oil and coal. Now the COVID- sectors, the switch from coal to gas con- highest increase since the early 1960s. 19 has served one great lessons. Signif- tributed 17 bcm to the demand growth. The higher consumption, the equivalent icant positive impact on environment is In Asia Pacific region, the natural gas of the United Kingdom’s annual con- visible for reduced consumptions of fos- demand was also grew at a consider- sumption, absorbed the majority of the sil fuel. The air is cleaner to breath, able pace by rapid industrialisation and growth of domestic gas production, water quality is much better than it used gas-based power generation in South which reached the record high in 2018. to be. The world must now review seri- Asia. The nuclear reactors shut down in Such historic demand growth was ously about polluting fuel, coal, oil and South Korea also contributed to the mainly driven by increased use in move more expeditiously towards re- growth. power generation and buildings. A newable energy and green energy. colder winter and hotter summer than In the Middle East and North Africa, the Given the present status of technology average were responsible for about half oil and gas producing countries, the for solar, wind and other forms of green of the additional gas demand in both trend of reducing use of oil for power energy and presence of abundant coal sectors. The ongoing switch from coal generation and switching to natural gas and oil resources, it may still take a to gas in power generation also con- using combined cycle power generation while to switchover. In the meantime, tributed strongly to the growth, adding also played a great role in the demand less polluting and environment benign 18 bcm to gas demand. The share of gas growth. Egypt for example in 2018 in- natural gas (pipeline supply and augurated the world’s largest com- LNG) is set to take over as pre- bined cycle gas-fired power plant ferred interim fuel along with hy- (14.4 GW). Iran, the regions largest dropower and nuclear. This write natural gas consumer, started phas- up would attempt discussing the ing out oil based power generation global and regional perspective of and replacing with gas. natural gas and Bangladesh After several years of decline, con- Trend of Growth of Natural sumption rose in Russia for a third Gas Demand consecutive year. The increase in According to International Energy gas sales was driven mainly by Agency (IEA), natural gas con- power generation as the use of coal sumption witnessed a growth by for power decreased slightly. an estimated 4.6% in 2018 or by 170 billion cubic meters (bcm), Europe experienced a decline in the strongest since 2010. Natural natural gas consumption in 2018 gas demand started rebounding after two years of growth. This is from the 2008 global financial cri- partly due to the temperature

June 16, 2020 15 sensitivity of gas demand, with demand and India. Malaysia exports to Singa- for space heating reduced by a mild pore and LNG to regional countries. fourth quarter (in spite of cold snaps Australia exports LNG. over the first quarter). Liquefied Natural Gas Additionally, 2018 saw lower gas use Cryogenic fluid liquefied natural gas for power generation, especially in (LNG) is natural gas (predominantly some of the largest consumers such as methane, CH4, with some mixture of Germany, Italy, Spain, Turkey and the ethane, C2H6) that has been cooled United Kingdom. Despite lower de- down to liquid form for ease and safety mand, the combination of declining do- of non-pressurized storage or transport. mestic production and urge to replenish It takes up about 1/600th the volume of storage after massive withdrawal over natural gas in the gaseous state (at stan- the first months contributed to a record dard conditions for temperature and of over 200 bcm of imports from Russia. pressure). It is odourless, colourless, Bangladesh remained a mono fuel gas- non-toxic and non-corrosive. Hazards based energy generation country till include flammability after vaporization fluenced by global and regional geopol- into a gaseous state, freezing and as- early 2000 when its burgeoning eco- itics. This graph also evidences that nomic growth stressed its limited reserve phyxia. The liquefaction process in- Bangladesh stands at 45th position. This volves removal of certain components, of natural gas. For different reasons it is definitely not at all enough for meet- could not exploit its own alternate fuel such as dust, acid gases, helium, water, ing with huge growing demand for fu- and heavy hydrocarbons, which could — coal. It planned to diverse fuel mix elling the impressive economic growth. turning to liquid fuel for short term, im- cause difficulty downstream. The natu- ported coal and LNG for medium to It can be seen that two super powers ral gas is then condensed into a liquid long term. Several imported coal-based dominate gas production. Russia is ex- at close to atmospheric pressure by − ° power plants it planned. But very soon porting gas to Western Europe and cooling it to approximately 162 C − ° it realised that shallow draft coastal area China. USA converting gas to LNG is ( 260 F); maximum transport pressure of Bangladesh creates huge challenges growing as major exporter of LNG. It is set at around 25 kPa (4 psi). for coal transportation. Import of LNG is also trades gas with Canada (export and Cross-border and even intercontinental also equally challenging for the same Import). pipelines are transporting gas from one reason. But FSRUs being a feasible op- The table includes both five line supply region to the other. But LNG is now tion and small scale LNG, FLNG are and LNG. Russia dominates pipeline gas considered a popular mode of exporting other options — being realistic LNG ap- supply to Eastern and Western Europe natural gas for evacuating huge reserve pears to be the most feasible alternative. and China, Qatar supplies mostly LNG, of stranded natural gas in different coun- Moreover, Bangladesh has excellent Norway supplies pipeline gas to West- tries and region. possibility for discovering new gas re- ern Europe, Canada exports gas to USA How COVID-19 Has Impacted sources in the mostly unexplored off- and also imports from USA. Netherlands Natural Gas and LNG Trading? shore areas in the Bay of Bengal. exports gas to Belgium, France and Ger- Not so spectacular fashion like oil, but Gas Reserve, Production & Export many. Turkmenistan exports gas to at the same time natural gas trade has Gas resource endowment though now China and is waiting for TAPI pipeline also fallen significantly for COVID-19 so diverse like coal, yet it is distributed for exporting to Afghanistan, Pakistan impact. The explanation goes far be- almost evenly around different regions yond low demand related to COVID-19 of the world. Natural gas has advantage pandemic. It relies on a much larger and over coal in that it can be transported more complicated array of factors that through thousands of kilometres by high include supply and demand and oil pressure gas pipelines. It can also be pricing. Disentangling those various converted to Liquid Natural Gas (LNG) considerations can be useful in assess- by compression and cooling. ing the future developments in natural gas trade. It can be seen that Russia and Iran have much higher reserve than most of the Prices of natural gas have been extremely countries. These countries have very low for a while due to a trend of slowing hostile relations with USA-led western global demand that was extraordinarily alliance. On the other hand, Qatar is exacerbated by recent warm winter. The now having not too good relation with pandemic impacted further starting its av- other gulf and Arab countries. Hence, alanche with China and now moving the world trade of gas in very much in- through Europe and North America. Low

June 16, 2020 16 industrial activities the deeper horizon of have been major driver, some large under oper- while residential de- ation gas fields. mand (much lower At the present rate of than industrial can use, the left over 11.92 probably be sustained Tcf proven reserve may or even marginally in- completely deplete by creased wherever 2031. Bangladesh now households are sup- can produce about plied with gas-based 2,700 MMCFD from power generation and its own gas field. From gas heating. The global gas market was crude (mostly in Asia and Europe) we also October 2018, it has started imported experiencing over supply even well be- should see natural gas prices fall. How- LNG from Qatar and using FSRU oper- fore the avalanche of COVID-19 pan- ever, the fall will experience a lag (per ated by foreign company started receiv- demic with many new supply entering the contract formula–up to 12 months). It ing RLNG. Another FSRU owned and market. These included US companies will also be based on prices of crude oil operated by local company Summit such as Chemiere, Freeport LNG and Do- and not on supply and demand conditions Group is also delivering RLNG. It is pos- minion Energy. New pipeline routes have for natural gas. Given the precipitous fall sible to receive 1,000 MMCFD now opened, including Power of Siberia from in prices the world is experiencing today, produces. Bangladesh would require Russia to China, Nord Stream 1 from Rus- there is a good chance that prices under expanding capacity significantly as soon sia to Germany Russian LNG production oil-indexed contracts will be even lower as possible through expediting own gas is growing too as Novatek expands its than spot and hub-indexed prices. It exploration and development and set- Arctic operations. And Australia has been makes one wonder whether buyers will try ting up land-based LNG terminal for im- ramping up its LNG production with the to go back to oil-indexed contracts, which porting LNG. recently commissioned floating LNG would be opposite of the current trend to- units (FLNG). Qatar–the world’s largest ward market driven hub-based pricing. What Can Bangladesh Do? LNG producer–is not falling behind ei- Bangladesh Scenario of Natural Gas Bangladesh has rightly decided to delay ther as it plans to develop new supplies in Bangladesh remained predominantly going for fresh round of PSC bidding its North Field and expand its production own natural gas depended economy till sensing that bids now in all likelihood by 64 percent by 2027. In addition, new it observed rapid decline of discovered would fail to receive encouraging re- significant LNG projects are scheduled in natural gas from early 2000. Apart from sponse from oil majors. Given the Canada, Mozambique, or Nigeria, to finite discovered gas reserve, very lim- COVID-19 pandemic is over by June name just a few. ited exploration initiative and continua- 2020, end of the year may be right time tion of using gas in less utility sectors giving oil major enough time to reassess Absent a reduction in supply (which and inefficient use also contributed to priorities. In the meantime, Petrobangla could happen, see below on associated the situation. The exploration and de- and EMRD must review LNG supply gas), lower global demand means lower velopment of gas resources mostly con- contracts with Qatar and Oman and prices in the competitive hub pricing centrated in the onshore areas more FSRU operation contracts with two op- and, as such, we see an immediate im- specifically in the eastern and north erators. The COVID-19 is definitely a pact on spot prices. For example, future eastern parts of Bangladesh. Vast off- Force Majeure situation. The gas de- LNG prices as recorded in the Platts shore areas mainly deep water of the mand is now all time low. There is no Japan-Korea Marker (JKM) are almost Bay of Bengal mostly remained unex- point accounting for minimum thresh- $1/MMBtu lower for March 2024 than plored. Many even think that there are old payments. Side by side, Petrobangla they were just a month ago. possibilities of finding additional gas in can seriously consider constructing That being said, if the COVID-19 eco- LNG storage facility for taking advan- nomic slowdown edges off, we can en- tage of low price of LNG. The govern- vision demand recovering and even ment may also consider future purchase increasing–with the support of low provisions through amending the pro- prices. The latter would be related to a curement law. Natural gas (pipeline gas higher rate of coal to gas switching in and LNG) would remain preferred in- power generation (including in China) terim fuel during the transition from fos- and, as some argue, a more significant sil fuels to renewable. turn toward hydrogen generation where EP gas is used as feedstock.

Oil Prices: Oil-Indexing Saleque Sufi; Where contract prices are indexed to Contributing Editor, EP

June 16, 2020 17

Report Consumers May Face Diﬃculty in Russian Firm to Install Security Paying Power Bills Without Fine System for RNPP onsumers may face diffi- stead of mobile financial ussian nuclear security tional standards. culty in paying their services (MFS). C company Eleron will de- electricity bills for May with- R Land acquisition, develop- “Despite some financial diffi- velop physical security sys- out surcharge as the regulator ment of land, the procure- culties during the Covid-19 tem of Rooppur nuclear is yet to issue any order to ment of technical equipment, outbreak, the government power plant at a cost of Tk 24 allow power consumers to and construction for the move will help avoid further billion, or US$282 million. collect their utility bills. physical protection system spread of the virus,” said an Eleron inked an agreement will also include in the phys- Bangladesh Energy Regula- official. recently with the Bangladesh ical security system. tory Commission (BERC) is- He said they are facing diffi- Army and the Nuclear Secu- sued an order on March 24 to The security system will have culties due to poor collection rity and Physical Protection allow the residential con- to be verified by the Interna- of bills as the regulator al- Cell, or NSPPC, to develop sumers to pay their electricity tional Atomic Energy lowed late payment of bills the security system. bills in the month of Febru- Agency, or IAEA, before the during the Covid-19 crisis. ary, March and April without The deal was signed through arrival of nuclear fuel from any late payment surcharge The ministry of power and video conferencing to avoid Russia and one year ahead of amid the Covid-19 crisis. energy has decided to extend gathering amid the coron- the commissioning of 1200- the late payment surcharge avirus pandemic. MW Rooppur-1 scheduled Managing directors of several facilities for another one now for 2023. distribution companies in- The Russian firm will provide month till May and allowed formed that many consumers technical and technological The system will have to be people to pay their bills with- have paid their utilities bills support, including necessary built in such a way that it can out fine within June 30. through banking services in- EP documentation to the Army ensure security system of the in accordance with interna- plant at Ishwardi in northern BPDB Seeks Tk 58b from Govt Bangladesh for at least a century. to Meet Expenses It must have to be he state-run Bangladesh tive power purchase agree- well in place until TPower Development ments (PPAs), he said. the decommission- Board (BPDB) has sought Tk ing of the nuclear The state-run power distribu- 58 billion from the govern- power plant pro- tion companies, including ment to manage regular ex- jection, he said. the BPDB, did not impose penses, as a huge amount of any surcharge on electricity EP its electricity bills remains bill payment of household due. consumers for Govt Takes Tk 113b from State-Run "We sought the the months of fiscal support February, Power, Gas Entities from the gov- March and he government has taken public exchequer, the ernment, and April due to Taround Tk 113 billion Bangladesh Petroleum Cor- will pay the the ongoing (11,300 crore) from different poration (BPC) paid around fund back once coronavirus state-run power and gas enti- Tk 50 billion, Petrobangla the due elec- pandemic. ties over the past several around Tk 48 billion, and tricity bills are months during the coron- Bangladesh Power Develop- collected," said The household consumers avirus pandemic. ment Board (BPDB) around an official at Tk 15 billion. the BPDB. have been The Ministry of Finance asked to pay electricity bills (MoF) has taken the money "We took the money in line The BPDB is the lone buyer for all these months along in several installments since with a new regulation to uti- of electricity from the coun- with that of May by June 30, March, when Covid-19 out- lize surplus money of the try's all power plants, includ- according to a decision of the break started spreading state entities for bankrolling ing oil-fired, gas-fired, hydro Power Division under the across the country. the current ongoing develop- and coal-fired ones, and the Ministry of Power, Energy ment programs," a senior of- entity has to pay the plant Of the total amount, paid by and Mineral Resources. ficial of the MoF said. owners according to respec- EP the state-run entities to the EP

June 16, 2020 19 Report

lowing Govt Plans to Import 1.2m the in- COVID-19 Fallout: Power Fuel at Low Cost struc- Transmission Projects Work to tion of angladesh is likely to get the Ministry of Energy. be Delayed Ba 20-year lower ever international petroleum fuel State minister for Power and ncertainty looms large According to official sources, product benefit as it allows Energy Nasrul Hamid said Uover resuming the field most of these projects were ei- two fuel suppliers – Unipec the ministry has instructed level works in the power ther awarded to Chinese con- Singapore and Indian Oil the concerned authorities to transmission projects across tractors or their equipment Company Ltd (IOCL) – to import the fuel. the country due to upcoming were supposed to come import 1.20 million tonnes of The Unipec Singapore and monsoon. largely from China. diesel, jet fuel and octane im- Indian Oil Company Ltd “Now most of the ongoing “Neither the Chinese workers, mediately under a competi- (IOCL) have offered best pro- projects will be delayed by at nor the equipment are coming tive bidding. posals to supply 1.20 million least a year as monsoon will from China since the pandemic started in Wuhan,” said The government is also ex- tonnes of refined fuel oil start from July and field level an official. pected to get a 50-percent products to Bangladesh Pe- works are not possible before lower price of procuring troleum Corporation (BPC) the next winter,” said a top of- He said many Chinese com- these petroleum products during July-December period ficial of the Power Grid Com- panies are working as subcon- compared to last year despite 2020. pany of Bangladesh (PGCB). tractors as well in ’ the freight fare being so high. Despite the companies’ offer Field-level work on 25 ongo- Bangladesh s power transmission sector. “We have already selected a of comparatively higher pre- ing power transmission proj- Singaporean firm and an In- mium rates, the government ects remained suspended The top PGCB official said al- dian firm to purchase the is expected to get a 40 to 50- since the coronavirus out- though coronavirus situation products once the ministry percent lower tariff of petro- break in China in December in China has improved, Chi- last year, hitting hard the approves,” a top official said. leum fuel in fiscal year 2020 nese officials and workers, es- in comparison with that in power sector development. pecially the technicians, are The Bangladesh Petroleum the previous year, a top offi- not coming Corporation (BPC) has cial said. back as the EP moved to import the fuel fol- virus situation in Morgan Stanley Flags Risk Oil Bangladesh is worsen- Price Rally Will Lead to a Fall ing. EP il prices have quickly expectation remained that oil Oclimbed to levels that markets will be progressively Massive Thermal Plant Fuel Leak raise the risk of price falls as under-supplied in the second demand is fragile, Morgan half of this year and invento- Pollutes Siberian River Stanley said recently, as ries will shrink in the fourth benchmark crude hit its high- quarter and first quarter next ussian authorities have barnaya river and local resi- est in three months. year. Rdeclared a state of emer- dents posted videos on social gency after more than 20,000 media showing polluted Oil climbed recently after But it said in a note the rally tonnes of diesel fuel seeped water. major producers agreed to "appears mostly supply- into a Siberian river sparking extend a deal on record out- rather than demand-driven, The spill was caused last concerns from environmen- put cuts to the end of July and and it is questionable how week by a leaking diesel fuel talists. as China's crude imports hit strong refinery runs can in- tank at a thermal power plant an all-time high in May. crease against this backdrop". The World Wildlife Fund en- several kilometers west of Norilsk. The bank said its base case Refining margins are histori- vironmental group recently cally low and invento- praised local efforts to con- Russian mining conglomer- ries of oil products tain the spill with a floating ate Norilsk Nickel, which remain elevated rela- dam, blocking dangerous owns the facility, said the tive to crude oil inven- pollutants from flowing into a tank was damaged when tories, suggesting the lake near the Arctic city of supporting pillars that had demand recovery is rel- Norilsk. Satellite images pub- “held it in place for 30 years atively fragile. lished by the WWF showed without difficulty” began to EP large red spillages in the Am- sink. EP

June 16, 2020 20 Report Addl Power Capacity is jected to run Petronas Appoints New CEO considering 'Reserve Margin' fuel issues and ecutive vice president and decline in elec- group chief financial officer ower division under power, tricity genera- of Petronas, will take up the energy and mineral re- tion capacity of old power position on July 1. Ariffin, P sources ministry said recently plants, it said in a statement. who will become chairman the country's additional elec- of Malaysia Airlines With this end in view, coun- tricity generation capacity is Berhad, is due to retire from tries like Germany have more 'reserve margin,' necessary to Petronas on June 30 after than 100-per cent reserve mar- meet unwanted needs. working for the company gin and the neighboring India for 37 years. This extra capacity is required, has more than 70 per cent, it like any other countries in the maintained. Aziz has 20 years of expe- world, as power plants have to rience in financial report- Power division made the clar- go for regular overhauling and ing, feasibility reviews, ification protesting a statement maintenance, and sometimes project analysis, capital of Transparency International Tengku Muhammad Taufik plants can be shut acciden- projects restructuring and Bangladesh (TIB) issued on tally. etronas has revealed that risk management with a pri- May 20. Pit has appointed Tengku mary focus on the oil and gas Besides, power plants are sub- The TIB criticized continuous Muhammad Taufik Tengku industry, according to addition of new Aziz as its new president and Petronas. Ariffin was ap- power-generation group chief executive officer pointed as the president and outpacing de- (CEO) following the retire- group CEO of Petronas on mand, citing it a ment of Tan Sri Wan Zulkiflee April 1, 2015. He first started burden on con- Wan Ariffin from the com- his career at the company in sumers and pres- pany. 1983. sure on EP Aziz, who is currently the ex- government subsidy. Santos, ConocoPhillips Complete EP Northern Australia Transaction India’s Petrol, Diesel Sales proaches while manu- antos has completed the $800 million, comprising the facturing ac- acquisition of Cono- revised firm purchase price of Improve in May S tivities remain coPhillips’ northern Australia $1.265 billion less cash in ’ low and trans- and Timor-Leste assets for a the acquired business from ndia s gasoline and gasoil sales jumped sharply in May portation demand takes a hit reduced purchase price and the effective date of Jan. 1, I in some parts of the country. an increased contingent pay- 2019 to completion with cus- compared with April, in a recovery from historic lows after ’ ment subject to a final invest- tomary adjustments. State-retailers gasoline sales a partial easing of the lock- ment decision (FID) on in May rose by about 83% The net settlement amount is down imposed to curb the Barossa. from April to about 1.6 million before any sell-downs of in- coronavirus pandemic, provi- tonnes. Sales of gasoil, which Due to recent market volatil- terests owned by Santos in sional sales data showed re- accounts for about two-fifths ity and the deferral of Barossa the acquired assets. cently. of the country’s overall fuel FID, Santos and Cono- sales, rose by about 69% in The acquisition delivers op- But industry analysts expect a coPhillips agreed to decrease May compared with April to full-scale recovery to pre- the $1.39 billion upfront pay- eratorship and control of a 4.8 million tonnes, provisional COVID-19 consumption lev- ment at completion to portfolio of low-cost, long- sales data from state fuel re- els in India to be months away $1.265 billion and increase life natural gas assets and tailers showed. as the monsoon season ap- the contingent payment on strategic LNG infrastructure. ’ However, gasoline and gasoil Barossa FID from $75 million Santos interest in Bayu- Undan and Darwin LNG in- sales in May are still down by to $200 million. about 36% and 31% respec- creases to 68.4% at tively from a year earlier, after At completion, the net settle- completion and will provide contracting more than 50% ment amount was $655 mil- a boost to 2020 production in April year on year. lion, lower than the and cash flows. previously forecast amount of EP EP

June 16, 2020 21

Report Qatar Petroleum Signs 70 billion COVID-19 Hurts Solar Projects’ Qatari riyals Landmark LNG Deals (approximately Development in Japan: GlobalData USD 19.2 bil- atar Petroleum (QP) re- lion). Qported recently that it has signed a trio of liquefied The state-owned firm pointed natural gas (LNG) shipbuild- out the new LNG carriers will ing agreements whose scale help it to satisfy fleet require- is unprecedented. ments for ongoing expansion projects in Qatar’s North The deals with Daewoo Ship- Field and in the United building and Marine Engi- States. neering (DSME), Hyundai ’ Heavy Industries (HHI) and “The signing of today s agree- Samsung Heavy Industries ments with the three es- (SHI) will reserve a major teemed Korean companies portion of the “Big Three” reflects our commitment to n the wake of the COVID- were likely to slow down de- South Korean shipyards’ LNG the North Field expansion I19, electricity demand in ployment. ship construction capacity for projects, even during these Japan has dropped and the Amid these times, the country QP through 2027, QP noted extraordinary times,” re- power prices have declined. witnessed a halt in construc- in a written statement. marked Saad Sherida Al- The drop in demand and the tion activity, which is ex- ’ Kaabi, Qatar s minister of increase in solar power gen- pected to further delay the QP added the agreements state for energy affairs and eration are eventually driving installation of fresh capaci- will secure more than 100 ’ QP s president and CEO. down the wholesale electric- ties. ships with a value exceeding EP ity prices. With hiccups in the solar The ongoing economic confront, coal is expected to con- traction, delays in the ship- tinue to play an integral role ’ ment of photovoltaic (PV) in the country s power sector. modules from China, and low Despite the low power de- nuclear availability are likely mand, the abnormal weather to facilitate the use of coal conditions and low availabil- and gas to support the base- ity of nuclear facilities are ex- load power requirement in pected to support the high the country, says GlobalData, consumption of coal for elec- a leading data and analytics tricity generation. company. In the first three months of 2020, Japan imported 44.8 Solar is the major driving Saad Sherida Al-Kaabi, Qatar's minister of state for energy affairs and QP's million tons of coal, which president and CEO, has signed three LNG ship construction agreements. force for renewable deploy- increased by 3.4% in com- ment in the country. Before parison to 43.3 million tons the COVID-19 outbreak, revi- Global Energy Investment to imported in the first quarter of sions in the tariff structure and 2019. Drop by $400b: IEA grid interconnection issues EP he COVID-19 pandemic have been the largest annual ’ has set in motion the rise in spending in six years. said Dr Fatih Birol, IEA s exec- The World Energy Investment T ’ largest drop in global energy But after the COVID-19 crisis utive director. “It means lost 2020 report s assessment of investment in history, with brought large swathes of the jobs and economic opportuni- trends so far this year is based spending expected to plunge world economy to a standstill ties today, as well as lost en- on the latest available invest- in every major sector this year, in a matter of months, global ergy supply that we might well ment data and announce- the International Energy investment is now expected to need tomorrow once the ments by governments and Agency (IEA) said in a report. plummet by 20%, or almost economy recovers. The slow- companies as of mid-May, $400 billion, compared with down in spending on key tracking of progress on indi- According to World Energy In- last year. clean energy technologies vidual projects, interviews vestment 2020, at the start of also risks undermining the with leading industry figures 2020, global energy invest- “The historic plunge in global much-needed transition to and investors, and the most re- ment was on track for growth energy investment is deeply more resilient and sustainable cent analysis from across IEA. of around 2%, which would troubling for many reasons,” energy systems.” EP

June 16, 2020 23 Report Gazprom to Restart 2021 Gas Utilities Maintain Liquidity to Deal Price Talks with Minsk With Uncertain Market

ussia’s gas monopolist gas supplies from January 1, RGazprom will be ready to 2021,” Miller said. negotiate gas supplies to Be- The official said that larus after 2021 as soon as Gazprom had sent a letter to Minsk has settled a $165.6 the energy minister of Be- million debt, CEO Alexei larus, stating this position. Miller told reporters recently. A similar situation already “The total amount of Belarus’ happened in 2017, when in debt for supplies of Russian April, Gazprom and the Be- gas stands at $165.570 mil- larusian government signed a lion. As soon as the debt is protocol on the formation of o cater to reduced demand bonds as they are safer instru- fully settled, the Russian side gas prices for Belarus in and uncertain market con- ments as they offer less volatil- will be ready to schedule ne- T 2018-2019 only after the Be- ditions caused by COVID-19, ity compared to stocks and at gotiations on conditions of larusian au- utilities need to ensure that times offer higher interest pay- thorities they have enough liquidity to ments compared to dividends. safeguard their performance had paid Somik Das, Power Analyst at and smooth operations, says the debt of GlobalData, comments: “Long GlobalData, a leading data $726.2 mil- and medium-term bonds and analytics company. lion for gas might just be the best option supplied in Utilities face liquidity issues as for struggling utilities, as it will 2016-2017. their receivables are delayed allow them to maintain liquid- or defered and revenues have ity in the current volatile envi- EP declined due to reduced de- ronment. mand. “If the virus outbreak persists Modi Calls for a Rooftop-Solar Many utilities in these difficult and government-mandated re- Powered City in Every State times are lending a helping strictions are extended, then hand to customers by provid- utilities can pursue other enewable power is increas- renewable power generation ing electricity to even those measures to protect their liq- Ringly cheaper than any projects now increasingly un- who are failing to pay their uidity. Utilities might first new electricity capacity based dercut existing coal-fired electricity bills. delay certain investments on fossil fuels, a new report by plants. On average, new solar keeping capital expenditures In order to maintain cash- the International Renewable photovoltaic (PV) and onshore plans at the same levels and flows, tackle supply chain dis- Energy Agency (IRENA) pub- wind power cost less than later on reduce operational ruptions, handle repairs and lished recently finds. keeping many existing coal and maintenance costs. If the replacement of components, plants in operation, and auc- economy deteriorates further, Renewable Power Generation utilities should ensure they tion results show this trend ac- then utilities might consider Costs in 2019 shows that more have proper liquidity. than half of the renewable ca- celerating — reinforcing the cutting down the capital ex- pacity added in 2019 achieved case to phase-out coal entirely. Many utilities are opting for penditure budgets.” EP lower power costs than the Next year, up to 1 200 gi- cheapest new coal plants. gawatts (GW) of existing coal est 500 GW of coal with solar lion, which is equal to around PV and onshore wind next 1% of global GDP. The report highlights that new capacity could cost more to operate year would cut power system “We have reached an impor- than the costs by up to USD 23 billion tant turning point in the energy cost of every year and reduce annual transition. The case for new new util- emissions by around 1.8 giga- and much of the existing coal ity-scale tons (Gt) of carbon dioxide power generation, is both en- solar PV, (CO2), equivalent to 5% of vironmentally and economi- the report total global CO2 emissions in cally unjustifiable,” said shows. 2019. Francesco La Camera, Direc- Replacing It would also yield an invest- tor-General of IRENA. the costli- ment stimulus of USD 940 bil- EP

June 16, 2020 24 Article The First Nuclear Power Plant of the World

Dr. M A Rashid Sarker & Sheikh Ahmad Sakib

uclear technology uses the energy released by splitting the Natoms of certain elements. Dur- ing the 1940s the concept was introduced and focused on building bombs as it was the time of the Second World War. In the 1950s, attention turned to the peaceful use of nuclear fission, controlling it for power generation. Ac- cording to the “World Nuclear Associ- ation”, nuclear energy now provides about 11% of the world's electricity from about 450 power reactors [1]. There are many other applications of this technology. For example, nuclear medicine uses radiation to provide diagnostic information about the functioning of a person's specific organs, or to treat them. Diagnostic procedures sources, ensure food safety and authen- electricity and creating research facili- using radioisotopes are now routine. ticity, and increase livestock production ties. That is how the first nuclear power Sterilization of medical equipment is [2]. plant in the world started its journey in also an important use of radioisotopes. Background of Obninsk Obninsk. It was located at a little more Nuclear technology is showing its After the disaster of World War 2, the than 100 miles northwest of Moscow it magic in agriculture too. Some of the world was looking for a new sustainable was very convenient for research and most innovative ways being used to im- source of energy. And also people experimental works because the Insti- prove agricultural practices involve nu- tute of Physics and Power Engineering clear technology. Nuclear applications needed to believe that nuclear energy was located nearby. It was commis- in agriculture rely on the use of isotopes can bring something good towards hu- sioned on June 27, 1954. It went on and and radiation techniques to combat manity, the USSR government decided operated for almost five decades with- pests and diseases, increase crop pro- to build a nuclear power plant with a duction, protect land and water re- soul purpose of serving as a provider of out any significant mishaps.

Obninsk Nuclear Power Plant Source: Essence of time Europe, www.bashny.net

June 16, 2020 25 In the Soviet Union’s time, nuclear energy was something more than just a source of energy; it was a sign of the Soviet Union’s success.[3] Utiliza- tion of nuclear fuels for energy production started to burgeon in early 1954 when Russia was a part of the Soviet Union. Since then, the interest in nuclear energy continued to rise and the share of nuclear energy to the The control room of the Obninsk power plant Source: www.energybangla.com total energy production continued tic Republic (USSR) became the first plant without considering military pur- to grow accordingly. In post-revolution country in the world to adapt the energy poses even being in the heat of the cold (1917-1922) and Stalin’s periods (1922- of atom to produce electricity for civil war. This small nuclear plant has be- 1953), the fundamental base of Russia’s use [5]. come a symbol of the peaceful and ef- industrial sector was created, while in fective use of atomic energy, and the It was closed on April 29, 2002. An in- the so called Khrushchev era (1953- date of its start-up has been marked as credible fact about the Obninsk power 1964), successes in nuclear power and the birth of nuclear power. plant is it was the world’s very first nu- space technologies were achieved [4]. clear power plant feed into an existing Commercial Emphasis With the birth of Obninsk Nuclear commercial grid [6]. It was very aston- The plant had a reactor capacity of 5 Power Plant, the United Soviet Socialis- ishing how they planned this power mWt only. This was not able to solve soviet power crisis, not that it was meant to. And it was certainly not meant to give the Soviet Union a leg up in the cold war [7]. The authority rather had inten- tions to build the plant as an experi- ment for commercial electricity. The big question was “could a reactor be used to supply the commercial grid with energy?” Obninsk proved that it could, and did so success- fully. I V Kur- Igor Kurchatov, the man who led the “Peaceful Atom or Atom Myrnyi project” Source: www.russkiymir.ru chatov, a soviet

June 16, 2020 26 nuclear physicist who was widely known as the director of the soviet atomic bomb project, guided the development of the design proposal. It was planned to construct a ‘trinity’ — a nuclear power plant with three reactors producing steam for one turbine, at V Labora- tory. It was proposed first to construct the AM reactor (Atom Mirny — peaceful atom). The primary task was to 65 years anniversary celebration ceremony of world’s first nuclear power plant Source: www.rosatom.ru choose the general concept and the main characteristics of Although utilization of generated heat the first unit of the Beloyarsk Nuclear the plant, which took six months of in- was going on, and production of iso- Power Plant (BNPP) with nuclear super- tensive work. The concept of a channel- topes was even enhanced, the main task heating of high-pressure steam began. type reactor with a graphite moderator was to carry out experimental studies on At that time, neither the USSR nor other and reflector was chosen. The reactor’s the test loops installed in the reactor. countries had any experience in devel- thermal power was 30MWt and the opment of a reactor of this type. Cre- electric power of the turbine generator To conduct scientific and engineering ation of such an installation required the equal to 5MWe. [8] research in the reactor of the first NPP, solution of a whole complex of scien- all in all, 17 loops were built for various tific and technical problems: physics, One of many achievements of this de- purposes.[6] In particular, they were the thermal physics, materials science, sign was to give birth to the modern following: A two-circuit steam super- chemistry, and many others related to powerful RBMK reactors.[9] The suc- heater loop, with nine evaporation and boiling and super-heating of water cess of Obninsk encouraged further three superheating channels; high-pres- coolant in the fuel channels of the reac- building of many other commercial sure water loop to study fuel elements tor. Thus, they came over the idea of di- plants all over the world. of water-cooled reactors, with two rect generation and superheating of channels: Two loops of natural circula- steam in a nuclear reactor, the idea of Progress tion with boiling and without boiling of creating a nuclear power plant with 48 years went away, yet the power plant water coolant; Two loops for testing high efficiency (up to 38%). showed no damages or had any acci- thermionic elements of direct conver- dents and performed so smoothly. It is sion of thermal energy released during The very fact of launching the first nu- an astonishing accomplishment espe- nuclear fission into the electrical one; A clear power plant was of great strategic cially if we consider the number of such loop for water and chemical studies importance even though the power gen- incidents in the modern day power with two circuits of stainless and carbon eration might not be that significant. For plants all over the world. It is quite clear steel; A loop for testing structural mate- decades, Obninsk NPP has played the that the relative small stature of the re- rials in various gas environments and role of a unique experimental platform actor made it safer than the other ones. vacuum. The first experimental event for the latest developments. Also it should be kept in mind what pur- consisted in installation of a test fuel as- Present Condition pose this reactor was built to serve. It sembly into the AM reactor in Septem- The power plant has stopped its power was referred to as the “Atom Mirnyi” ber 0956 to study boiling processes generation in 2004 and it has been which means “peaceful atom” in Russ- occurring directly in the reactor. It was turned into a museum. People can visit ian. Since the beginning of 1957, AM caused by the fact that in 0955, at the and learn about this magnificent piece reactor operation was devoted to fulfill- suggestion of the State Committee on of ultimate engineering brilliance which ing research programs on justification of the Use of Atomic Energy in the USSR, led to formation of a great nuclear in- the future nuclear power plant designs. the development of a new reactor for dustry throughout Russia.

June 16, 2020 27 The anniversary of the launch of the first sity, India). [6] L.A. Kotchetkov, State Scientific Cen- ter A J Leipunsky Institute for Physics and nuclear power plant in the world is cel- [4] Andrews, J. T. (2013). An Evolving Power Engineering, 1 Bondarenko sq, ebrated in Russia on June 26, 2019. It Scientific Public Sphere: State Science Kaluga region, 249020, Russia has been 65 years since the beginning Enlightenment, Communicative Dis- of work of the power plant. course, and Public Culture from Imperial [7] N. Armaroli, V. Balzani "Towards an electricity-powered world," Energy Envi- ROSATOM’s CEO Alexey Likhachev Russia to Khrushchev's Soviet Times. Sci- ence in Context, 26(03), 509-526. ron. Sci., 3193, (July 2011). said: “Looking back on the last 65 years, [8] V. Brindha, "The First Nuclear Power [5] Freeman, M. (2007, December 14). the evolution of nuclear technology has Plant of Earth: June 27, 1954," Discovery Russia’s nuclear energy plan for the next made it safer, more reliable and more ef- 4, No. 12,50 (June 2013). ficient than ever. Since 1954, our whole fifty years.Exclusive Inelegancy Review [9] B. A. Semenov, "Nuclear Power in industry has learnt many lessons and Report.Retrievedfrom the Soviet Union," IAEA Bull. 25, No. 2, has implemented so many safeguards, http://www.larouchepub.com/eiw/pub- 47 (1983). best practices and has adopted such lic/2007/eirv34n49-20071214/42- EP high standards, that a world without nu- 45_749.pdf. [10] www.rosatom.ru clear power is now unthinkable. Now, Report in the year 2019, we are proud to be able to offer our state of the art generation 3+ VVER-1200 nuclear reactor Govt Okays New Renewable where power output is bigger than ever and safety has been further en- Energy Project Plan hanced.”[10] Conclusion Obninsk nuclear power plant was a great step forward in the world of nuclear energy at that time. It showed the world that nuclear energy can be used for the greater good of humanity. From the very start of its construction process, Obninsk focused on changing the previous conception of nuclear energy. The capacity of the world's first nuclear power plant is rather low, but the experience gained in its design, construction and operation, as well as results of studies cannot be overestimated. It should be emphasized that during 50 years of its operation there has not been any nuclear incident hazardous for personnel overnment has approved a Power and Renewable Energy Development and inhabitants. GDivision plan to form a new com- Authority (SREDA) in 2012, which is pany to generate mega Renewable En- now working under Power Division but Many years will pass yet the guiding ergy/Power Projects in the country. failed to increase satisfactory amount of light of the small reactor in Obninsk will energy from there. shine brighter for the people as a symbol As per plan, a new company titled of our achievements and a triumph of "Bangladesh- China Power Company "A novel agency was formed to pro- our principles of humanism, welfare (BCPCL)" would be formed under the su- mote, facilitate and disseminate sustain- pervision of state owned North West and justice. able energy (SE), covering both the areas Power Generation Company (NWPGC) of Renewable Energy (RE) and Energy Ef- Reference to implement mega- power projects [1] World Nuclear Association, from solar and wind energy. ficiency (EE) to ensure the energy secu- www.world-nuclear.org rity of the country. Our aim was to stop "We got the Cabinet Division's nod in carbon emission and reduce long- term [2] Food and Agriculture Organization of this regard; however, we have already the United Nations, www.fao.org. stared paper work in this regard," State cost of energy generation. We plan to [3] Nuclear energy status in Russia: His- Minister for Power, Energy and Mineral take some mega projects and for that the torical and contemporary perspectives Resources Nasrul Hamid told media. new initiative was taken up," a senior of- Yelizaveta Mikhailovna Sharonova (Polit- ficial said. ical Science Department, Delhi Univer- Earlier, government formed Sustainable EP

June 16, 2020 28

Article Architecture After The Covid-19 Pandemic: Re-Imagining Our World

Zebun Nasreen Ahmed

ince the early months of 2020 we months, to arrive at numbers and hard subject to the difficulties faced by day the inhabitants of Planet Earth are facts about the issues discussed — but it wagers and people who live in con- Sexperiencing conditions hitherto is important at the outset to clear our strained circumstances, within crowded unprecedented. Fear, isolation, total thoughts and embrace this new sce- squatters’ settlements/slums. lack of control are mere ingredients of nario. •Life need not be as busy and it is pos- this — a position humans so proud of Realisations: Imagining the New World sible to slow down their advancement in technology and May be one of the important realisations •Working from home is very possible control of situations, had never con- of this whole nightmare is that we as hu- in this age of wifi connectivity ceived possible. No sci-fi novel pre- mans have gone wrong somewhere. We pared us for the complete breakdown of have been too complacent about what •When traffic is minimized, nature gets all our systems. But much has been pub- we are doing. The inherent intercon- a chance to enter lished about the event — both those nectedness of things is clearly asserting •Families can be a big source of hap- leading up to it and its after-effects — and itself by showing us that the way we piness and support therefore I will not repeat them. This have neglected human impact on the •Air quality and environmental condi- paper merely looks at one aspect of the environment can have vastly significant tions are strongly linked to our life-styles World of Tomorrow — architecture. And after effects and situations can easily go the relevance of architecture to the en- beyond our control. We humans are not •There is the need for values to change ergy sector cannot be underestimated — the only species on earth — and we cer- to improve the environment for whatever is put into practice in the tainly cannot control nature or its forces building sector is bound to affect energy At the same time, some of the shortcom- — we must learn to interpret the signs of ings in our approach to the built envi- consumption, as buildings and the con- our intercessions and to curtail negative struction industry are one of the major ronment, and the process of design are impacts as soon as they appear. We also emerging. consumers of electricity. So changes must be the ones to modify our actions • likely to occur in the building design whenever we sense this, rather than We have been too focused on serving and construction sector will reflect on waiting for the environment to deterio- an affluent group, while the deprived considerations and budgeting of energy. rate beyond recall. majority remains largely neglected • Is there anything that Architects can do From the crisis itself, living through the In nature, there is no separation be- under these extreme conditions? How days of isolation and lockdown, we tween the affected and safe — so solu- does the profession respond? Are there have each of us individually come to tions must be inclusive things we can do to affect the actual various realisations, many of them pos- Architecture as a profession is based on control of pandemics? How do archi- itive. And when I make these observa- solving problems, and this pandemic is tects contribute? These are questions we tions, I realise that I am commenting an absolutely new problem. While ar- are asking ourselves time and time from the perspective of a chitects cannot control of the disease it- again. This piece reflects on such issues professional/academician, an architect self, the profession has a lot to on a conceptual level. Much research assured of a steady income, living in a contribute towards alleviating the will be needed in the coming days and modest apartment in Dhaka, and not human condition under the new

June 16, 2020 31 restrictions that may be necessary in the as they normally used to, or are we to use the large open plan spaces of our post-pandemic world. The built envi- look for a new normal? All these public cities, which are likely to remain ronment has always had a significant buildings will require that while allow- unutilised during times of lockdown and impact on the comfort, well-being and ing access, much of the spaces can eas- social distancing, like stadiums, multi- productivity of its inhabitants — while ily be modified to allow purpose/conference/wedding halls, reli- building professionals have always compartmentalization, to restrict the gious buildings, and so on, and to be maintained this connection, its reality dangers of cross contamination when- able to install in them temporary struc- has never been so prominently evident ever the need arises. There will be much tures which can provide isolated pock- to laymen, as now, when through pro- more monitoring and virtual touch-free ets for the infected, or can serve to longed confinement, the quality of the technology used in the building systems provide some social distancing for com- spaces inhabited may lead to the reali- — checking the health of the occupants munities to shift to, when their own sation of very significant defects in inte- and also ensuring that infections are not abodes are too crowded for safety. riors. If social distancing has the chance spread through surfaces of these build- A Sea-Change in Our Outlook of becoming the ‘new-normal’ in fear of ings, like lift buttons, door handles, light In the previous section I have men- pandemics becoming a recurring phe- and other switches and so on. Similarly, tioned some thoughts regarding various nomenon, it is imperative to focus on choice of materials for all internal sur- building types. But what is becoming how to create good clean liveable archi- faces and many external ones will also apparent is that we need a sea change tecture, and how to thus improve the directly depend on their wash-ability in our outlook towards architecture, the quality of living. and on their ability to remain free from built environment and life itself. Also collecting and propagating germs/infec- Way Forward? why limit ourselves only to interiors? tions — thus even bringing the need to In the last two or three months the Spaces between buildings and outdoor use nanotechnology as a weapon to whole world realizes that things need to urban spaces are also very much under fight disease into the realm of architec- change at a very basic level. The num- the influence of the built environment — ture. bers of death irrespective of geography would we look at these differently, given has brought the realization that no one Industries have always been the power our understanding of the pandemic? is privileged and we need a sea change houses of the economy of a nation. In One thing is becoming clear with this in our future and in the way we con- many of the countries these have con- virus — that it is very possible to work, ceive of things. tinued to run, despite the dangers inher- shop and socialize at a distance. Tech- ent in their continued operation to the nology has made it possible for us to re- Undoubtedly, under the situation we spread of the virus. The need driving motely connect — proximity is no longer have all been much more home-bound these people to continue their wages close to us! Do we really need so much than we have ever been. So indoor compels them to work, even at the rushing to and from in our lives? There spaces are having to serve us almost threat of infections. These spaces need are many professions that can very well round the clock. There is definitely to be re-imaged in the light of this pan- survive, and even thrive, by remote ac- much to do from the architectural point demic. How to ensure safety in con- cess. The internet has liberated us in that of view to make the setting more com- fined spaces with large numbers of sense. If the Covid-19 had struck us just fortable and inhabitable. We have to workers. What are the spatial needs for two decades ago, the story would have find spaces within the homes where oc- safe working distances, and are our ma- been completely different — we would cupancy is 24 hours, to be able to have chines conducive to allowing such dis- have been out of touch, isolated and left private places to do office work, have tancing, or will their design too be abandoned in the face of the disaster! online consultations and meetings. And under scrutiny? in the case of sickness, these homes In architecture this can mean that the Hospitals are the new frontiers — the bat- have now to be equipped to be able to home design particularly gets more tle stations, where design needs to focus accommodate and handle highly infec- focus — materials are looked into which in order to arrive at the most efficient tious patients, while attempting to keep can be easier to clean, wipe and disin- and safe combination in order to save the rest of the household safe from con- fect, bringing nanotechnology to the lives. Isolation metrics and needs will tamination. A very high ask! forefront, and wherever the public inter- guide their layout. Clinics where the acts with the private, touchless and But the home is a place of isolation. number of infected will definitely be voice-activated gadgets get preference, How about spaces that serve groups or much larger than in other building types like automated doors, bells, switches, even crowds of people? Supermarkets will require to be handled with care to etc. Greater ventilation, more daylight and transport hubs continue to serve prevent these becoming hothouses for and sunlight, would undoubtedly help crowds even given the pandemic, and the spread of infections. proximity is the measure of safety under control dampness and bacterial build- the new world order — are these spaces Another need that is emerging focuses up, and legislation regarding these will, suited to such restrictions? Soon offices on the production of temporary make- therefore, need to be much more strin- will start to reopen — can they function shift architecture. We need to be able to gent and demanding. The immediate

June 16, 2020 32 surroundings need to be clean and people are confined in crowded homes sionals, will need to play a leading role, fresh, while we cannot afford to let our for long periods, more attention is to bring to the notice of all, the dangers waste air to be blown into adjacent needed to providing attractive and safe of having unhealthy surrounds in our spaces, which become vulnerable to in- places for them to spend some free time, lives, how much of our past compla- fection. both for mental health, as well as to pro- cency regarding the built environment vide fresh air and sunlight, for physical needs to be rethought, and even at the Another important issue emerging from well-being. Hand in hand with the need cost of some additional expenses, the the spread of these infections is the re- for open areas will be how to incorpo- environment must be made ready to alization that central air-conditioning rate emergency temporary make-shift confront a repeat of such pandemics. may actually cause us damage, as cer- spaces within these areas, as well as in Finally, we must realize that no single tain temperatures (some say below 27C) large public spaces like stadiums and profession can address all the emerging may encourage the proliferation and multi-purpose halls, in case of future re- issues from this pandemic. While the longer life of the Covid-19. There seems currence of such infectious episodes. role of doctors cannot be shared, the to be no way out of such difficulties, issue of providing a suitable environ- outside of toning down our environ- Concluding Remarks ment for the public is a participatory ex- mental needs, accepting comfort at It is difficult for the architects and plan- ercise. It will require multi-disciplinary higher temperatures, and thus aiming ners to come to a compromise, regard- inputs and its success can only be for lifestyle changes, for those who have ing the need to have ever-more compact achieved when all the stakeholders, in the recent past conditioned their bod- and dense built environments, one of from policy-makers to designers, to ies to such cooler conditions. As air the suggestions for green and eco- manufacturers, to users and innovators, conditioning is only a very recent phe- friendly cities, which conflicts with the understand and participate in responsi- nomenon in cities like Dhaka, this may need to have large open spaces, which ble interactions. seem an easy adaptation, but strong mo- allow for social distancing, and for the tivation, will and incentive is needed to occupants to spread out, to reduce Clearly we are coming to the conclu- effect the figures, along with strict legis- proximity. As always, architects, who sion that we cannot act selfishly and lation. This need also coincides with are problem solvers, will have to arrive think only of our personal needs. This one of the key guidelines of green archi- at informed compromises, equitably has to come with consideration of oth- tecture. The good news is that such serving these diverse requirements, ers, with their needs, and the overall steps are only likely to affect a very while providing safe and healthy envi- equation will require lifestyle changes. small percentage of the population, and ronment for all. Airborne diseases have no physical now that it is their health that is at stake, boundary — all classes of the population Training and education will have to be such legislation might actually be im- are equally affected, no matter where moulded to include these new realiza- plemented and have the benefit of also the original infection is generated. Re- tions. Architecture education will need being more energy efficient. verting back to Alexander Dumas, to modify its current curriculum — instill- therefore, I suggest that the new motto Parks and open spaces will become im- ing the new learning into the future must thus be ‘All for one — one for all’. portant new focus areas — along with practitioner — for responsible reactions adequately spaced public toilets and to this crisis. The awareness of these is- EP other shared infrastructure. These are in sues must also be generated to the gen- extremely urgent need in cities where eral public and policy makers — and Zebun Nasreen Ahmed; these have not been adequately ad- those responsible for creating the built Professor, Department of Architecture dressed in the past, e.g. Dhaka. When environment, namely building profes- BUET

June 16, 2020 33

IDCOL Gets Int’l Award for Solar Saudi Firm's Mini-Grid Project Solar Power Plan Faces Opposition

audi power company ACWA's pro- Sposal to generate solar power in the farms of state-owned sugar corporation has triggered opposition from interest groups who fear destruction of fertile agricultural land. The Bangladesh Sugar and Food Indus- tries Corporation (BSFIC) has written a letter to the Saudi company requesting them to explain how they would construct the solar plants without disturbing the sugarcane farming. In February last year, a letter of intent was signed by the corporation and Saudi he Bangladeshi clean energy com- in the country, and is supporting renew- ACWA Power for generating 180 pany — Infrastructure Develop- able energy projects that bring life- megawatts of solar power. Tment Company Limited (IDCOL) — changing access to electricity in rural has won the Alliance for Rural Electrifi- areas. cation (ARE) award in the IDCOL was selected for implementing ‘Multilateral/International Organization’ solar mini-grid projects in Bangladesh category for its solar mini-grids projects. through the development of a sustain- These include the Monpura Island proj- able business model which ensures pro- ect, which is implemented in partner- ductive access to electricity for the last The signing was held on the sidelines of ship with the United Nations mile population living in off-grid areas, the 13th session of the two-day Development Program (UNDP) and while facilitating local industries by cre- Bangladesh-Saudi Arabia Joint Commis- funded by the Global Environment Fa- ating jobs and supporting local busi- sion meeting. cility (GEF). nesses. Under the proposed project, the ACWA As the Covid-19 crisis and cyclone Am- Its Monpura Island project was imple- will use the farmlands of different state- phan continue to lay bare the pressures mented under UNDP’s “Sustainable Re- owned sugar mills of the country. that many people face across newable Energy Power Generation The BSFIC has 15 sugar mills in different Bangladesh, this award is a timely Project" in partnership with the Sustain- parts of the country having farm areas recognition that clean energy projects able and Renewable Energy Develop- comprising around 40 thousand acres. can help these communities build re- ment Authority (SREDA) at the Ministry silience, said the UNDP recently. of Power, Energy and Mineral Resource. Some sugarcane farmers and employees of sugar mills apprehended that if the The award highlights in particular the It provides uninterrupted supply of grid Saudi company would be given the go- important role mini-grids can play in quality electricity to 1,199 households, ahead, it would jeopardize the liveli- Bangladesh’s national strategy of univer- 684 shops, and 41 institutions on the is- hoods of thousands of sugarcane farmers, sal access to electricity by 2021. UNDP land. who mostly depend on the income of has long been promoting clean energy EP sugarcane farming. EP

June 16, 2020 35

IDCOL Partners Propose Installation of Solar System at Hospitals, Community Clinics

artners of Infrastructure Develop- ing the renewable energy potentials. Asia's Top RE ment Company Limited (IDCOL) P "We sent the proposals to the State Min- Markets: China, want to install solar system at all the ister for Disaster Management and Relief hospitals including 18,000 community as we are emphasizing the renewable India & Japan clinics, 100,000 solar-powered irriga- energy needs to be part of sustainable tion pumps and 1 million solar street and effective disaster recovery and man- ccording to a new report by EY, seven lights in rural areas across the country. agement,” said Munawar Misbah Moin, AAsian countries rank among the Leaders of the IDCOL Partner Organiza- president of the IDCOL PO Form. globe’s most attractive markets for renew- tion Forum Trust (PO Forum), an associ- able energy sources including wind Over 50 organizations have been work- ation of the solar system suppliers, power, hydropower and solar energy. ing with the state-owned IDCOL to im- submitted a proposal in this regard to EY’s Renewable Energy Country Attrac- plement different programs of the the Ministry of Disaster Management tiveness Index (RECAI) ranks markets MDMR for long. and Relief (MDMR) recently to ensure across the globe based on investment and uninterrupted power supply during PO Forum leaders said they have al- implementation opportunities in the re- emergency period of disaster by utiliz- ready installed 5.3 million solar home newables space. Out of all countries as- systems across sessed, the 40 best performing countries the country of are listed in the index. which 1.1 mil- South and Southeast Asia have a strong lion were in- representation in the list, with more than stalled directly seven countries making the top 40. China under the MDMR has been among the top markets world- programs in the wide for years now, although the country last five years as has slipped one spot to second, providing part of the gov- the United States to regain pole position. ernment target to reach electricity to all. EP

agreement for the ADB Signs $17.7M Financing Spectra Solar Power Project was signed by Package with SSPL the Director of Infra- structure Finance, he Asian Development Bank (ADB) EY attributes China’s fall to a government South Asia, Central Asia, and West Asia has signed a $17.7 million financing shift from subsidizing the renewables sec- T at ADB’s Private Sector Operations De- package with Spectra Solar Park Limited tor to allowing it to develop competi- partment Shantanu Chakraborty, and (SSPL) to invest in a 35-megawatt utility- tively. The Covid-19 crisis also appears to Managing Director of Spectra Solar Park scale solar photovoltaic plant in have played a part in its dip, although the Limited Khan Md. Bangladesh. Big Four accounting and advisory firm an- Aftabuddin. DEG — Deutsche Investi- ticipates a promising future for the coun- The solar park is one of the first private ’ tions- und Entwicklungsgesellschaft mbH try s renewables market. sector solar plants in Bangladesh to be is cofinancing the project with ADB. financed by multilateral institutions, and India is the next country from the region will support the country’s efforts to attain “This project strongly demonstrates that to feature on the index, holding 7th place. The country has fallen significantly on the long-term energy security and meet cli- the solar energy sector in Bangladesh is rankings, having previously occupied mate goals by stepping up its use of an attractive destination for private sec- third position. According to EY, India is clean en- tor engagement,” said Chakraborty. expected to fall short of its renewable energy, said ergy generation target of 175GW by an ADB “This is a landmark project that will also 2022, which has been branded ‘disap- press re- incorporate very specific and meaning- pointing’ among the global community. lease. ful design features to empower women and ensure a gender inclusive work- The Covid-19 crisis has worsened this Theplace,” he added. EP scenario. EP

June 16, 2020 37 COVID-19 Leads to Uncertainties in Renewable Project Financing Space elays in renewable projects financ- stabilize and consequently the financing Indian Railways to Set Ding is expected during COVID-19 rates is expected to drop.” because lenders are aware of the volatil- Finances are released based on project Up 3GW Solar Plants ity existing in the market and are likely milestones. Therefore, developers are to refrain from making short-term invest- on Vacant Land either liable for not adhering to devel- ments, says GlobalData, a leading data opment timelines or are forced to source and analytics com- ndian Railways has tasked the Railway equipment from pany. Energy Management Company Ltd other markets at I (REMCL) with 3 GW of solar power pro- Somik Das, Senior higher prices and re- curement from plants to be set up on va- Power Analyst at main committed to cant Railways land. GlobalData, com- development sched- ments: “The inability ules. Besides tendering, the REMCL shall han- to assess emerging dle installation supervision and manage- It is likely that exist- risks would likely in- ment of power supply from these solar ing deals will need to crease debt pricing in power plants. be refinanced at a cost for all the stake- the short term. The increase in debt pric- holders involved to provide flexibility REMCL is a joint venture between In- ing would not be an attractive proposi- for developers to execute projects while dian Railways and state-owned engi- tion for developers seeking to commit to mitigating the COVID-19 impact. neering consultancy Rites Ltd. long-term contracts, because in the long The project–REMCL’s largest solar run, markets are expected to eventually EP power mandate from Indian Railways– Siemens Scores Big US Play for New to build a large will be divided into three phases of 1 manufacturing GW each. Record Wind Turbine plant at a close The first and third phases of 1 GW each onshore site, will be developed on public-private uropean wind turbine manufacturer possibly Hamp- partnership (PPP) basis under ‘design, ESiemens Gamesa announced May 26 ton Roads, Va., for what would be in- build, finance, operate and transfer’ what could be the first U.S. installation dustry-leading 108-m-long blades, and model. it will decide within a year on sourcing of its just-unveiled giant 14-MW to 15- The second phase of the project (1 GW) and a supply chain to serve the U.S. MW offshore wind model at Virginia will be on the ownership model of market, it says. Dominion Energy's planned 2,640-MW REMCL, which will be eligible for capi- offshore wind project, under an agree- Other East Coast states, particularly tal subsidy under the Central Public Sec- ment with the utility that is subject to a Massachusetts, New York and Mary- tor Undertaking Scheme for the final investment decision. land, also are competing to site a major development of 12 GW of solar. offshore wind manufacturing hub as The project would be located 27 miles The entire installation is expected to be projects proceed. offshore of Virginia Beach, Va. completed by 2022-23. Siemens Gamesa is considering whether The development adds a new edge to The Railways have already identified the competitive suitable land to be leased to REMCL on mega-turbine nominal lease rent. market in the U.S. Commenting on this mandate, Rajeev and globally, Mehrotra, Chairman & Managing Direc- which had seen tor, RITES Ltd and Chairman REMCL, GE Renewables said, “This is the largest mandate re- take a leading ceived by REMCL for tendering, instal- role over the last lation and power management of solar two years with its energy. This will strengthen REMCL’s launch of the 12- position as the green energy solution MW Haliade-X provider and energy manager to Indian turbine, the cur- Railways and firmly establish REMCL in rent size record the green energy sector in India.” holder. EP EP

June 16, 2020 38

Climate COP26 Pushed Back to Nov 2021 Bangladesh to be Voice of Climate Vulnerable Countries: FM ritical UN climate nego- ing health concerns amid the Ctiations at which nations coronavirus pandemic, and were expected to ramp up the need for more time to plans to combat global prepare the 30,000-strong warming have been pushed meet. back a full year to November The revised schedule was 2021, British politician Alok vetted and approved re- Sharma, president of the cently. talks, announced on Twitter recently. Possible drawbacks of the delay were laid out in a brief- "Pleased to have agreed a ing note, prepared ahead of new date for @COP26," the deliberations. wrote Sharma, Britain's Sec- retary of State for Business, "A broadly shared concern angladesh has taken over Foreign Affairs and Trade, the presidency of Climate Marshal Island and Professor Energy and Industrial Strat- relates to the potential loss of B Vulnerable Forum (CVF) and Dr Fekadu Beyene, Commis- egy. "COP26 will now take momentum in the UNFCCC the Vulnerable Twenty (V20) sioner for the Environment, place between 1 and 12 No- process," the note said, using Group of Ministers of Finance Forest and Climate Change, vember 2021." the acronym for the UN cli- for the term 2020-2022 from Ethiopia were also present. mate body. Britain proposed the new Marshal Island and urges all They particularly discussed dates for the Glasgow confer- One 2020 deadline in the to attach highest priority to the priorities of Bangladesh ence -- which had already original schedule was the CVF and V20. during her presidency of these been suspended -- in a letter submission of revised -- and Bangladesh also urged all to two important platforms. to the UN climate forum, cit- hopefully more ambitious -- contribute by providing tech- Among other priorities, cre- "nationally nical and financial support to ation of a new CVF and V20 determined carry out the priority works Trust Fund, possibility of hav- contribu- ahead. ing a new Special Rapporteur tions", each "Under the leadership of on climate change, appoint- country's Prime Minister Sheikh Hasina, ing CVF's thematic Envoys plan to cut Bangladesh will be the voice and Special Envoys for Cli- greenhouse of the vulnerable countries mate Change, publication of gas emis- and will promote their inter- the third edition of the Cli- sions. EP ests in the global platform mate Vulnerability Monitor during her presidency of CVF will rank high during our pres- UN Launches Push for Net-Zero and V20," said Foreign Minis- idency. ter Dr AK Abdul Momen re- Dr Momen said they will also Emissions by 2050 cently. highlight the issues of 'Loss He made the remarks during and Damage' and the cases of usiness leaders, cities and COP26 international climate displacement of the climate investors are being urged change summit in Glasgow a virtual press briefing on CVF B Troika Meeting. refugees caused by climate to back a UN campaign aim- next November. change. ing for net-zero greenhouse It is the first major event since Casten N Nemra, Minister of EP gas emissions by 2050. it was confirmed the summit coronavirus pandemic must do this. Race to Zero is part of the was being postponed due to not lead to delays in commit- “If Covid-19 has taught us any- diplomatic push to increase coronavirus. Nestlé and Rolls- ting to emissions cuts. ambition in the lead up to the Royce are among the first to thing it is that society can, endorse the campaign. She said: “While we had little where necessary, pull together Around a third of the warning about Covid-19, we to address a global challenge.” world’s GDP is already had years of warning about In a virtual launch that was committed to the principles climate change. troubled with technical prob- of Race to Zero, the UN es- “We must act now to avoid lems, a speech by COP26 timates. the tragedy that runaway cli- president Alok Sharma - who UN climate chief Patricia mate change would cause. It is also the UK business secre- Espinosa warned that the is entirely within our power to tary - was cut short. EP

June 16, 2020 41 Climate CO Hits Record High much as 26 percent Reduced Carbon Emissions: Silver 2 in some countries Amid Pandemic during the peak of Lining on Covid-19 Cloud government con- key measure of carbon finement orders -- fails to Adioxide emissions in the cancel out the large natural Earth's atmosphere hit a variations in carbon emis- record in May even as a sions caused by how plants global pandemic brought the and soils react to tempera- world's economies to a vir- ture, humidity and other fac- tual standstill this year, actors, scientists said. cording to US government data published recently. It would take carbon dioxide reductions of 20% to 30% for Carbon dioxide recorded at six to 12 months to slow the the Mauna Loa Observatory rate of increase in the meas- angladesh's carbon emis- - 17 million tonnes of carbon in Hawaii reached 417 parts urements at Mauna Loa, Bsions have dropped by 24 dioxide -- in April, lower than per million (ppm) in May, Scripps said in a statement. percent to 183,000 tonnes per the average emissions of 2019. higher than the record of day during the recent country- Last month, research pub- According to the report, 17 414.8 ppm set last year, ac- wide shutdown. percent decrease in daily CO2 cording to the report. lished in the journal Nature Climate Change predicted It normally emitted around emissions is "extreme and 240,000 tonnes per day (86 probably unseen before". The drop in worldwide emis- that global emissions could million tonnes per year), said a sions due to the coronavirus fall by up to 7% this year. In order to quantify the drop in study published in the journal outbreak -- estimated to be as EP carbon emissions, the authors Nature Climate Change. examined data from more than GM Plans Electric Van for Business Due to the shutdown in 69 countries, including the US, Bangladesh, daily carbon and 30 Chinese provinces. Users to Pre-Empt Tesla emissions in the country The sampling represents 85 dropped by about 24 percent, percent of the world popula- according to the study. tion and 97 percent of global The environmental impact of carbon emissions. the lockdowns in April, how- According to the report, emis- ever, were felt not only in sions decreased by 26 percent Bangladesh, but also across the on average in all the countries world. The study revealed that at the peak of their respective global carbon emission per shutdown. day decreased by 17 percent - EP Rosatom Designed NPP’s According to experts, the op- to Prevent Emission eration of all nuclear power ’ eneral Motors Co is demand for battery-powered ussia s state atomic energy units of Russian design in the Gveloping an electric van models is still a small fraction Rcorporation Rosatom reaf- world prevents the emission of aimed at business users, join- of overall industry sales, firms its commitments to care about 210 million tons of CO2 ing a growing list of carmak- while targeting a potentially for the common home for all- per year, including 107 million ers planning EVs for the same lucrative market segment that the planet while celebrating tons of CO2 in Russia (the as- segment which includes cus- Tesla Inc has yet to address. the World Environment Day sessment was made using the this year. tomers such as Amazon.com GM's plan to develop an 2018 world power generation statistics by source type). Inc and United Parcel Service electric van has not previ- Nuclear energy is a reliable source of low-carbon electricity, Inc, five people familiar with ously been reported. The No. In nuclear energy there are no which makes a huge contribu- the plans told Reuters. 1 US automaker did not con- direct emissions of chemically tion to protecting the planet from That multibillion-dollar strat- firm the van, but has said it hazardous substances that de- the climate change, and is one stroy the ozone layer and con- egy could enable GM, Ford plans to introduce at least 20 of the global partnership tools to Motor Co and at least two EV new all-electric vehicles by tribute to the greenhouse preserve, protect and restore the effect. In 2019 the share of startups to build and deliver 2023, in a variety of body ’ Earth s ecosystem. Rosatom is Rosatom pollutant emissions in more electric vehicles at a styles including sedans, the largest producer of low-car- Russia was only 0.1%. time when consumer de- trucks and crossovers. EP bon electricity in Russia. EP

June 16, 2020 42 Climate World Can Capture, Store Enough UK Electricity Plant Nears Full CO2 to Meet Climate Targets Switch Away from Coal he capture and storage of Environmental Science, sug- Tcarbon dioxide (CO2) un- gests that no more than 2,700 derground is one of the key Gigatonnes (Gt) of carbon components of the Intergov- dioxide (CO2) would be suf- ernmental Panel on Climate ficient to meet the IPCC's Change's (IPCC) reports on global warming targets. how to keep global warming This is far less than leading ° to less than 2 C above pre- estimates by academic and industrial levels by 2100. industry groups of what is Carbon capture and storage available, which suggest (CCS) would be used along- there is more than 10,000 Gt side other interventions such of CO2 storage space glob- s the coronavirus pan- with only a handful of coal- as renewable energy, energy ally. Ademic undermines the run plants remaining in the efficiency, and electrification It also found that that the cur- production of cleaner renew- UK. ’ of the transportation sector. rent rate of growth in the in- able fuels, the UK s biggest The Drax operation, provid- The IPCC used models to cre- stalled capacity of CCS is on electricity plant is close to ing four million households using only biomass following ate around 1,200 technology track to meet some of the tar- with electricity, sees CO2 scenarios whereby climate gets identified in IPCC re- a bumpy transition away emitted from burnt wood change targets are met using ports, but that research and from coal. captured by newly planted a mix of these interventions, commercial efforts should Situated in Yorkshire, north- trees. most of which require the use focus on maintaining this ern England, the Drax Group Four of the plant’s six reactors of CCS. growth while identifying power plant will complete its use wood pellets and a car- Now a new analysis from Im- enough underground space switch next year after em- bon-capture system, while perial College London, pub- to store this much CO2. barking on a journey almost Drax intends on becoming lished today in Energy & EP a decade ago to use organic carbon negative by 2030, by matter alongside the fossil removing more CO2 from China’s Carbon Market Launch fuel to slash carbon emis- the atmosphere than it emits. sions. Drax adds that the switch, in Expected to be Delayed: ’ But the company s method of line with UK government GlobalData capturing CO2 continues to policy to ban the use of coal raise concerns even as bio- by 2025, allows it to keep the mass has become Britain’s he COVID-19 outbreak launch but the pandemic pre- plant running and maintain second largest renewable en- causing severe economic vented participating industries 900 jobs. T ergy behind wind power, EP disruption in China is ex- to begin calculating and re- pected to derail the efforts that porting emissions data. the country’s economy and prevented officials from con- had been put in all these years ’ roll-out of the carbon market. ducting the verification ’ China s trade war with the to establish the country s na- process of the companies re- US, weak consumer demand Somik Das, Senior Power An- tional emissions trading mar- porting the emissions data. In and the outbreak of the pan- alyst at GlobalData, com- ket by the end of 2020, says April, the province of Guang- demic have largely affected ments: “The pandemic has GlobalData, a leading data dong had pushed back its an- and analytics company. nual compliance deadline for Earlier in the year, China had companies by two months in ordered firms from eight in- its emissions trading scheme, dustrial sectors, namely, oil, giving companies more time chemicals, construction mate- to finalize their 2019 data ver- rials, steel, nonferrous metals, ification. Hence, further de- papermaking, electric power lays would only push back and shipping to submit their the establishment of the mar- carbon emission data before ket and raise doubts over the the end of March 2020, in possibility of meeting the preparation for the ETS deadline.” EP

June 16, 2020 43

Interview ‘Aﬀordable Energy Must for Industrialization’

ower and Energy supply at afford- would be created after the pandemic is able price is essential for encour- over. The reasons assigned for that is the Paging new investments from local idea conceived for many entrepreneurs and foreign entrepreneurs. This cannot relocating their investments from China. be achieved only through exclusive re- But for attracting these investments to liance on imported primary fuel. For Bangladesh, very robust and smoothly this, harnessing and optimum utilization functioning modern power and energy of domestic primary fuel needs to be en- infrastructure would be required. sured. The pandemic is now climbing to its Dr. Selim Raihan, Professor of Econom- peak. Hence containing and combatting ics at Dhaka University and Executive this is now the top priority. The govern- Director of SANEM, said this in an ex- ment has diverted priority correctly to Dr. Selim Raihan clusive interview with Energy & Power that direction. But investments would be Editor Mollah Amzad Hossain. essential for areas where new jobs can The allocation for power and energy be created for recovery of the economy. This has been done perhaps due to sectors has been reduced in the pro- Completely reliable power and energy giving lesser priority to the sectors posed budget for 2020-21. What are supply must be ensured for attracting amid the COVID-19 pandemic. In re- your observations? local and foreign investments in new industries. The government must give due ality, there is a huge surplus in gen- This has been done perhaps due to giv- attention to this area as well on priority eration capacity. Hence the reduction ing lesser priority to the sectors amid the basis. of allocation is justified. No alloca- COVID-19 pandemic. In reality, there is tion is there for additional power gen- a huge surplus in generation capacity. Energy experts and economists were eration. Rather additional investment Hence the reduction of allocation is jus- suggesting for concentrating on trans- in transmission and distribution is tified. No allocation is there for addi- mission and distribution segments of justified for ensuring reliable quality tional power generation. Rather power supply chain rather than on gen- power supply to the end users. additional investment in transmission eration. The budget proposal has ad- and distribution is justified for ensuring dressed that. What are your views? reliable quality power supply to the end There are allegations that the govern- users. I have not deeply analyzed ment has not taken any suggestions from any quarter. whether allocations could be further re- implementation may be required for duced. There are also scopes for review- Let me start from the end. It is not true containing health crisis from the ing whether this allocation could have that the government does not take any COVID-19 pandemic. The institutional been more or less in the context of the suggestions from any one. Possibly it limitations and plugging the leakages entire proposed budget. But in primary does not take all suggestions in entirety. may become essential. If the pandemic review, the allocation appears justified The fact is that the priority has been di- persists longer, not only the energy and to me. rected to transmission and distribution power sectors, allocations from few What kind of preparation in power and segments which amply demonstrates other sectors may be required to redirect energy sectors you feel needed taking that the government has recognized the to the health sector. suggestions and acknowledged it for encountering the post-COVID chal- Like other years, Tk 9,000 crores have through the budget proposal. lenges? Do you think that the proposed been assigned as subsidy for power and budget has given those sense of direc- Was there any scope for redirecting al- energy sectors in the proposed budget. tions? locations to other priority sectors reduc- Though it appears as subsidy in the ing the allocations for the power and Actually, the budget proposal has not budget, but it is allocated as loan to energy sectors? given any such direction at all. Eco- Power Development Board (PDB). nomic recovery would be the key over Please note that even after approval of What are your views? the post-COVID period. It is being told the budget, if situation demands, alloca- Neither the provision for subsidy in the that extensive opportunities for attract- tions from one sector can be redirected budget nor the manner in which soft ing Foreign Direct Investment (FDI) to the other. Contingency action plan loan is provided to PDB is transparent.

June 16, 2020 45 Why power needs subsidy after so many taken when the government is under for expeditious exploration and utiliza- years of independence? Why PDB has to pressure for increasing revenues. Fur- tion of own fuel resources. be rescued from getting bankrupt nace oil is one such item. The National The installed capacity of grid connected through injecting subsidy? LNG and Board of Revenue (NBR) did not appear power is 21,000 MW. Industries are still coal-based power plants have started to have done required ground work be- using own off-grid captive power. The commencing generation as per govern- fore imposing or reliving import duty or under-implementation Special Economic ment plan. Hence the government tax. Zones (SEZ) have been given permissions should have taken initiatives for rational- The proposed budget has some provi- for generating own power. Consequently, izing power tariff rather than increasing grid-connected capacity remaining idle. it. sions for tax relief on cooking gas meaning LPG. There are allegations that the The cost of generation is increasing for We are well aware of huge power crisis consumers are not getting any benefit paying capacity charge. What are your in the past. There was crisis in gas pro- from huge depletion of LPG price in the views? duction too. No alternative was there, global market. What should be done for The government has planned for devel- but to adopt liquid fuel-based rental and the end users getting the benefits? oping 100 Special Economic Zones quick rental power plants as interim con- (SEZ). But apart from few privately The government must ensure that users tingency action. That was a significant owned ones, others have not yet come get the benefit directly from any tax relief transition. Though it increased the cost into business operation. The investment on imported LPG. In my opinion, users quite a bit, but the crisis could be situation in the SEZs in operation is also have the right to benefit from any price averted. Though delayed yet the base not encouraging at all. According to reduction of imported fuel at global mar- load power plants have started coming UNCTAD report, the FDI has reduced in ket. Now only consumers connected into operation. Hence actions must be Bangladesh but increased in Cambodia. with distribution networks get some ben- there for rationalizing the power tariff. The Power Division must be ready to efits. In my opinion, the government I think, the government should announce supply uninterrupted power to SEZs. must fix a ceiling of LPG price. This must year-wise generation cost and project Without grid power, affordable power also be closely monitored. Legal actions power tariff alongside its power system supply cannot be ensured. No permis- must be taken in the event of violation. plan or mega plan whichever they men- sion should be given to SEZs for generat- tioned. Failure in exploration of own gas and ex- ing own power under the given The generation capacity is remaining idle ploitation of own discovered coal reserve circumstances. and capacity charge are the two most have pushed the government going in- On the other hand, industries are forced talked about matter of Bangladesh power creasingly towards imported primary to use captive power as grid supply is still sector now. Some bodies like Consumers fuel. The budget proposal talked about far from being reliable. Only reliable Association of Bangladesh (CAB) are sug- stressing upon gas exploration. But allo- supply of quality grid power can remedy gesting not to provide capacity charge. cation is insignificant considering the the situation. works involved. What are your observa- But capacity charge is a universally prac- What is your opinion about the price tions? ticed phenomenon for making the pri- structure of power and energy for indus- vate sector investments in power sector Some allocations have been there for gas trial sector? There are some suggestions bankable. What are your views? exploration in the proposed budget. But for subsidizing power tariff and energy The terms and conditions of agreed con- how much will be left after meeting the price for industries. What are your views? tracts requires to be complied with. If revenue expenditure? I think it as a Please note that reliable supply of power BPDB fails to use the agreed minimum peanut for oil and gas exploration. and energy at affordable price is a pre- amount of electricity, it is under contrac- BAPEX is the state-owned enterprise condition for rapid industrialization of tual obligation for paying capacity working as Exploration and Production Bangladesh. Failure in doing so would charges. The project economics is based (E&P) company. What is its competence? act as disincentive for the entrepreneurs on that basis. A particular syndicate is keen upon pri- for considering investment in mary fuel import as an excuse for crisis Bangladesh. We must bear in mind that But PPAs may be reviewed and made management. For their strong lobbying, exclusive reliance on imported primary these time tested. There must be provi- fuel import is getting priority for a long fuel cannot create that situation. In my sions for reviewing PPAs at regular inter- time over exploration and development opinion, Bangladesh must not leave any vals. of own fuel resources. On the other stone unturned in exploring and devel- hand, practically little or no initiative has New import duty has been imposed on oping own petroleum resources and ex- been taken to exploit own coal reserve ploiting own coal reserves besides fuel furnace oil. Private sector entrepreneurs or expediting exploration for oil and gas are contesting. How do you look at it? import. For this, the government must resources. immediately adopt primary fuel utiliza- To me, it does not appear as a well- In my opinion, the government must re- tion policy without wasting time any thought decision. Considerations for im- view the situation on right perspective more. posing duties on secure areas are not and take urgent initiatives for financing EP

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