Editor Fortnightly Magazine, Vol 17, Issue 14, January 1-15 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 Bangabandhu’s policy was to ensure hassle-free power supply at affordable price Magazine Administrator for achieving economic development of the country. His strategy was to utilize AKM Shamsul Hoque own resources instead of dependence on imported fuel. Bangladesh in its long Reporters Arunima Hossain journey of about 50 years since independence made significant progress — be it in Mohiuddin Miah terms of the economy or other areas. The energy sector is not also lagging behind. Assistant Online Editor The power subsector has made remarkable progress particularly in generation Aditya Hossain thanks to tremendous efforts especially over the last 11 years. The overcapacity of Design & Graphics Md. Monirul Islam late drew some criticisms though. However, one of the major issues of concern is Photography that the country is gradually getting dependent on imported fuel, putting price Bulbul Ahmed pressure on the consumers. There is a projection that the country is approaching Production towards 90 percent dependence on the imported fuel. Ultimately, the consumers Mufazzal Hossain Joy Computer Graphics will have to bear the brunt. Md. Uzzal Hossain The main challenge is to increase the contribution of own fuel to the fuel mix to Circulation Assistant limit the power generation cost. It is not an easy task, however. But, hectic efforts Khokan Chandra Das Editorial, News & Commercial should be there for exploring own primary fuel alongside taking a realistic plan to Room 509, Eastern Trade Center limit the use of imported fuel to its lowest possible level. 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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A proper mix of own and im- The power and energy ministry The year 2020 is going to be a very impor- ported primary fuel needs to be has doubled the capacity of LNG tant year for Bangladesh in many consider- ensured for Bangladesh to import terminal and re-gasifica- ations. The countdown for ‘Mujib Barsho’ achieve affordable power sup- tion while adding 2,153 megawatt on the occasion of birth centenary of the ply. But the country is not pur- (MW) of electricity, making the father of the nation Bangabandhu Sheikh ’ suing that path. The trend over country s overall installed capac- Mujibur Rahman will be launched on Janu- the past twelve years is driving ity to 19,467 MW in 2019. ary 10, marking his homecoming day. The Bangladesh increasingly to- A new LNG import terminal with forward march to achieve economic devel- wards imported fuel depend- a re-gasification capacity of 500 opment of the war-ravaged country ency. This will put new stress million cubic feet per day through ensuring effective and economic on the economy and affect the (mmcfd) was added in the just use of fuel that was started by his historic envisioned high growth rate. concluded year, totaling the coun- initiatives. Not only the anti-liberation syn- ’ Policy towards increasing... try s LNG import terminals to ... dicate energized through the midnight ... 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 Sungrow Secures Contract for 35 MW Plant

37 First Nationwide Network of Bio­CNG Projects Under Development in US

37 Can Algae­Based Biofuels Ever Be Cost Effective?

38 Potential of Renewables for Refugee Settlements

38 COP25 Sees Launch of New €18m Hydropower Initiative

5 WORLD WATCH 30 Govt Relaxes Rules for Latest Development in Captive Power Plants World 31 Power Tariff Hike from Jan 1 6,8 SNAPSHOT Not Lawful: CAB Latest Development 31 Govt Seeks JICA Fund for 9 COVER Building Two Matarbari Power 2020: Year of Taking Plant Units Pragmatic Approach 32 World’s First Floating COVER ARTICLE Nuclear Power Unit Supplies 21 Don’t Lose Sight of Energy Electricity to Russian Grid Sector in 2020 32 Electricity Import from Indian SPECIAL REPORT Firm’s Plant in Nepal Okayed 25 Energy Sector Witnesses CLIMATE ‘Unplanned’ Growth 41 Key Trends Impacting Power REPORT Industry in 2020, Says 27 Nasrul Slams Petrobangla, GlobalData Bapex Officials for Poor 42 Dhaka Ranks 7th Worst in Air Performance Quality Index 27 More Japanese Mega 43 Climate Change, Sea­Level Projects Possible: Envoy Rise Serious Threat to Agri 29 Turkey Keen to Invest in BD's Growth Energy Sector 44 73 Countries Commit to Net 29 ADB to Provide $333m for Zero CO2 Emissions by 2050 Power, Transportation INTERVIEW Sectors 45 Prof Dr. M Tamim, 30 KPCL to Acquire 35pc Stake Pro­Vice Chancellor of in United Payra Power Plant BRAC University Worldwatch

Under-fire Australian Brazil's Aussie PM Defies Coal Prime Minister Scott Brazil’s Petrobras Mulls New state-con- Critics as Fires Rage Morrison recently re- $400m Lubricant Plant trolled oil jected calls for “reck- company less” and “job-destroying” cuts to the country’s vast coal Petrobras SA is mulling construction of a new lubricant plant industry in the face of a deadly climate-fuelled bushfire crisis. that could quadruple its production capacity by 2022, the Morrison’s conservative government has fiercely defended the company's refining chief said recently. lucrative coal industry in Australia, which produces a third of Anelise Lara, Petrobras' refining and natural gas chief, told global coal exports and provides work in key swing electoral Reuters the company will invest about $400 million to build districts. the new plant in the Comperj refinery, raising its lubricant pro- “I am not going to write off the jobs of thousands of Aus- duction capacity to 225,00 cubic meters. tralians by walking away from traditional industries,” Morrison The new Comperj plant will use raw materials from another told the refinery, Reduc, she added. Both refineries, located in the state Seven Net- of Rio de Janeiro, will be linked by a pipeline. work, in one When the Comperj plant is concluded, Petrobras plans to shut of several down its lubricant production unit at Reduc. morning in- terviews re- jecting calls for further action.

Saudi Saudi Aramco Shares Rocket Aramco's on Debut After Record IPO shares soared on their debut on the domestic stock exchange recently, be- coming the world's biggest listed company worth $1.88 tril- lion after a record-breaking IPO. Anelise Lara Aramco had priced the initial public offering at 32 riyals ($8.53) per share, raising $25.6 billion and eclipsing Alibaba's Chevron Cor- $25 billion IPO of 2014 to become the world's largest. Chevron Will Write Down poration said recently it will Aramco shares rose 10 per cent to 35.2 riyals just seconds Assets by at Least $10bn book a charge after trading began on Riyadh's Tadawul exchange, the max- of at least $10 billion because lower imum allowed on any trading day, further boosting the energy long-term prices for oil and natural gas giant's valuation. will reduce the value of its assets. "Today is a day of immense pride for Aramco," company chief More than half the write-down is related executive Amin Nasser said at a glitzy launch ceremony. to gas drilling operations in Appalachia. "Today we make history as Saudi Aramco marks the beginning of an important new chapter in our company's journey of The huge fourth-quarter write-down – prosperity," he added. between $10 billion and $11 billion – underscores the challenge posed by ris- Qatar’s ing production that has prevented energy prices from increas- Qatari Fund to Invest $450m sover- ing sharply during a time of increasing global demand. in India’s Adani Transmission eign wealth Chevron said it will reduce spending on some investments in- fund will invest $450 million in a unit of Indian power company cluding Appalachian shale, a liquefied gas terminal in British Adani Transmission Ltd for a 25.1 percent stake, the two entities Columbia, and other international projects. The company said said recently. it is evaluating options including selling those assets. Qatar Investment Authority will buy the stake in Adani Electric- The San Ramon, California-based company disclosed the es- ity Mumbai Ltd (AEML) in a deal that will also include subordi- timated charge as it announced that capital and exploration nated loans. spending next year will be held flat at $20 billion. Chevron AEML is an integrated power distribution, transmission and gen- will focus on operations in the Permian Basin of west Texas eration business that serves more than 3 million consumers in and New Mexico, a big project in Kazakhstan, and deepwater Mumbai, India’s financial capital. drilling opportunities in the Gulf of Mexico.

January 1, 2020 5 Snapshot

The government has ap- Religious Affairs Secre- Power Division Gets pointed new secretary to Energy Division Gets tary Md. Anisur Rahman New Secretary the Power Division, said New Secretary has been transferred to gazette notifications of the Energy and Mineral the public administration Resources Division recently. ministry recently. Md. Anisur Rahman was born Chairman of Rajdhani Un- on December 31, 1962 in nayan Kartripakkha (RAJUK) Shariatpur district. He had Dr. Sultan Ahmed has been completed his Secondary appointed secretary to the School Certificate and Higher power division of power, en- Secondary Certificate examina- ergy and mineral resources tion from Chandpur Hasan Ali Government High School and ministry. Besides, he has been Chandpur College respectively. promoted from additional sec- He has obtained Honors and retary. Masters Degree from the De- Earlier on Sunday, power divi- partment of Geography, Uni- Dr. Sultan Ahmed sion sr. secretary Dr Ahmad Md. Anisur Rahman versity of Dhaka. Kaikaus was appointed as the He is also a member of BCS (Administration) cadre belonging principal secretary to the prime minister. in 1985 batch and joined on 15th February 1988. He served in Dr Sultan is a member of Bangladesh Administrative Services various capacities in the field service as Assistant Commissioner, of the 8th batch. Upazila Magistrate, Upazila Nirbahi Officer. Sultan Ahmed has been having an excellent academic feat in Engineer Sayeed science, engineering and technology, and an outstanding ex- Engineer Sayeed Ahmed Ahmed joined as perience of solid works in development administration. Joins BPDB as Chairman the new Chair- This has made him an expert official with a unique blend of man of general and technical abilities. Mr Sultan studied civil engi- Bangladesh Power Develop- neering and transportation engineering at Bangladesh Univer- ment Board (BPDB) recently. sity of Engineering and Technology (BUET). Engineer Sayeed, who re- placed former BPDB Chairman Azam J Engineer Khaled Mahmud, Azam Chowdhury Reelected Chowd- joined as its 35th chairman, ac- President of BAPLC hury, cording to a BPDB release. Be- managing fore joining to the post, he was director of MJL Bangladesh, a member of the PDB. has recently been re-elected Sayeed Ahmed was born in president of the Bangladesh Rangpur district on February 1 Association of Publicly Listed in 1961. Companies (BAPLC) for 2020 After obtaining BSC engineer- and 2021. Engineer Sayeed Ahmed ing degree from the The association also elected Bangladesh University of Engineering and Technology (BUET) Riad Mahmud, managing di- in 1982, he joined in PDB as Assistant Engineer on January 10 rector of National Polymer In- in 1984. dustries, as vice president, From according to a statement. The Palli Bidyut Prepaid Meter Bill now, BAPLC represents companies besides ’ Can Be Paid Through Bkash Azam J Chowdhury listed with Bangladesh s stock Palli exchanges. Bidyut postpaid bills, customers can recharge their prepaid Other executive committee members are M Anis Ud Dowla, meter through bKash as well. Customers of Bangladesh Rural Syed M Altaf Hussain, Manzurul Islam, Ruhul Amin, Mo- Electrification Board (BREB), popularly known as Palli Bidyut, hammed Younus, Matiur Rahman, Rokeya Quader, Farzanah will be able to recharge meter 24/7 from anywhere of the coun- try, said a statement. Chowdhury, Syed Farhad Ahmed, Shahriar Ahmed, Mominul Islam, Md Abu Noman Howlader, ATM Mahbubul Alam, Md With this initiative, more than 27 million both postpaid and pre- Nazrul Islam, Hasan Morshed Chowdhury, Imam Shaheen, paid Palli Bidyut subscribers across the country can now pay Md Faisal Karim Khan, Iftekhar Uddin and Oli Kamal. their electricity bills with great convenience.

January 1, 2020 6

Snapshot

State Min- Summit Power Lim- Govt Working on Gas Sector ister for SPL Wins ICMAB Best ited has secured the Automation: Nasrul Power, En- Corporate Award first position at the ergy and ICMAB Best Corpo- Mineral Resources Nasrul Hamid has said the government is rate Award 2018 under the power generation category. This working to modernization and automation of the gas sector is the seventh times in a row that Summit Power Limited has aiming to prevent misuse of the national resource. received this recognition from the ICMAB for corporate gov- The state minister said this as the chief guest while addressing ernance. a seminar on “Pre-paid or smart gas meter purchase and in- The award ceremony was held at the Hotel InterContinental, stallation policy-2019” at Petrobangla office recently. Dhaka recently. Vice Chairman of Summit Group Md Farid Terming the Pre-paid meter is cost-effective and safe, Hamid Khan, Director Azeeza Aziz Khan, Managing Director of Sum- said, “If there is any leakage in the gaspipe lines, gas supply mit Power Lt Gen (Retd) Eng Abdul Wadud, Managing Direc- will be suspended automatically due to use of the prepaid gas tor of Summit Gazipur II Power & Summit Ace Alliance Power meter, which also prevents accident.” Eng Md Mozammel Hossain, Chairman of Bangladesh Secu- rities and Exchange Commission Dr. M. Khairul Hossain, Joint secretary of Mineral Resource Division Dr Shah Md Chairman of CABC Committee of ICMAB Mohammad Ali Sanaullah Haq read out a keynote paper at the seminar. Newaz FCMA, and President of ICMAB M. Abul Kalam Chaired by Petro Bangla Chairman Md Ruhul Amin, the sem- Mazumdar FCMA were also present among the dignitaries. inar was addressed, among others, by Energy and Mineral Re- sources Division Senior Secretary Abu Hena Md Rahmatul Munim.

A man died after Titas Gas Approves Titas Gas Transmission & 'Gas Cylinder Blast' Kills sustaining se- Distribution Company Two in Keraniganj, Savar vere burn in- 26pc Cash Dividend Limited has approved juries in a 26 per cent cash divi- reported gas dend earlier recommended for the year ended on June 30, cylinder explosion in Hasnabad area of Keraniganj recently. The 2019. The approval came at the company's 38th annual gen- deceased was identified as Mahiuddin Mahi, 52, owner of a eral meeting (AGM) in the capital recently, said a statement. mattress shop where the fire broke out during the blast. The company said its income from gas sales declined 0.25 per According to Shah Zaman, officer-in-charge of Keraniganj po- cent to Tk 14.15 billion in the fiscal year (FY) 2018-19 when lice station, doctors declared Mahiuddin dead after he was it sold more than 16.56 billion cubic meter of gas. taken to the burn unit of Dhaka Medical College Hospital. The company's net profit after tax stood at above Tk 4.64 bil- Witnesses said that the fire occurred due to a gas cylinder blast. lion for the FY 2018-19. "The company deposited above Tk Five units of Postogola and Keraniganj Fire Service stations 5.92 billion to the government exchequer in the FY 2018-19," brought the fire under control after an hour of frantic efforts, said said the release. Nuruzzaman, deputy director of the Fire Service. Titas Gas, presently an 'A' category company, was listed with Meanwhile, a garment worker was killed and ten other pedes- the stock exchanges in 2008. The company's share price trians were injured as a wall of a sweater factory collapsed on closed at Tk 31.10 each on Monday with a marginal loss of them following a blast inside garment factory at Gouripur in 0.64 per Ashulia recently. cent or The deceased was identified as Rima Khatun, 20. Tk 0.2 on the Anwarul Haq, Savar fire service zone commander, said that Dhaka when a gas heater machine of Natural Sweater Village Ltd fac- Stock Ex- tory exploded, a wall of the two-storied factory collapsed on change Rima and ten others who were passing through the area, leaving (DSE). Rima dead on the spot.

January 1, 2020 8 Cover

he year 2020 is going to be a very important year for TBangladesh in many considera- tions. The countdown for ‘Mujib Barsho’ on the occasion of birth cente- nary of the father of the nation Banga- bandhu Sheikh Mujibur Rahman will be launched on January 10, marking his homecoming day. The forward march to achieve economic develop- ment of the war-ravaged country through ensuring effective and eco- nomic use of fuel that was started by his historic initiatives. Not only the anti-liberation syndicate energized

January 1, 2020 9 through the midnight massacre of Au- Bangladesh is approaching towards 90 challenges, according to him, are effi- gust 15 in 1975, the initiatives and poli- percent dependence on imported pri- cient use of fuel for power generation cies of his government to create mary fuel. The Awami League-led gov- and supplying power efficiently to all competent human resources for explo- ernment over the past 11 years has consumers. The other main challenge, ration and exploitation of own resources completely failed to supply power and however, is increasing contribution of have also been abandoned. The Awami energy at an affordable cost. The power own fuel to the fuel mix. This is not an League-led government assuming office tariff required increasing in phases for easy task though. in 1996, following the 21-year rule of several times to manage the situation. Experts and analysts of the energy and military dictators, resumed the develop- For utilizing the imported LNG in the power sector observed that ensuring ment works of the energy and power wake of depletion of own natural gas, seamless supply of primary fuel would sector through formulating blueprints the price of gas needed to be increased be a major challenge for the government following the doctrines of Banga- too. Consumers have already become in 2020. This has to be at affordable bandhu. Notable achievements could panicked due to increased electricity least cost also. For this, contribution of be made in five years. A foundation for and gas prices. Energy experts and lead- own gas and coal needs to be increased redeveloping a modern, dynamic en- ers of Consumers Association of through expeditious exploration and ex- ergy and power sector could be virtually Bangladesh have alleged that this situa- ploitation. On the other hand, we have laid. The main essence of Banga- tion has been created due the failures of to ensure that the price remains compet- bandhu’s policy was making power sup- the government in exploring and ex- itive with the neighboring countries. Un- ply hassle-free for achieving and ploiting own primary fuel resources. fortunately, over the past 11 years the ensuring economic development of the Even now, no such initiative is visible for government over its consecutive terms country. That has to be affordable also. sourcing low-cost fuel option. has miserably failed to explore and ex- Instead of imported fuel dependency, he From the present situation, it would not ploit own primary fuel resources, for ex- thought about the need for effective use be easy at all to start turning around in ample, natural gas. The government also of own fuel, especially the natural gas 2020 towards self-sustaining energy and failed to adopt right policy and strategy resources. Besides natural gas, the power sector. State Minister for Power, for exploiting discovered coal reserve. thoughts for exploration of other primary Energy and Mineral Resources Nasrul The government is talking about expe- fuel coal also started during his regime. Hamid also thought that supplying reli- diting exploration initiative for gas in the But at the door step of the golden jubilee able power at affordable cost is now the onshore, but nothing is being heard of glorious independence in 2021, main challenge of the government. The about exploring coal. The government Increasing Own Fuel Contribution, Ensuring Reliable Power Supply Major Challenges Nasrul Hamid MP State Minister, Ministry of Power, Energy & Mineral Resources Government of the People’s Republic of Bangladesh

ower and energy sector of Bangladesh have grown is another major primary Phuge now than ever before. We have failures, but our fuel resource. In my opin- achievements are also significant. The greatest challenge ion, decision for mining for us is ensuring uninterrupted quality power supply. Of own coal and setting up of Nasrul Hamid MP course, that has to be at affordable cost. This is our main mine mouth power plants challenge in 2020. Achieving this is not going to be easy should be taken. We are waiting for directives of the at all. For this, we have to restrict reliance on imported Prime Minister for this. primary fuel as far as practical. We have to increase con- I believe that Petrobangla lacks initiative for exploring tribution of own gas for this. I believe that we have great new gas resources. We are working to reinvigorate possibility of discovering new gas resources. In 2020, we Petrobangla. We believe that we can expedite petroleum will give top priority to gas exploration. We have to create exploration in 2020. opportunities for IOCs, getting out of BAPEX-alone strat- egy. A proposal of Chevron is under final review of the On the other hand, 2020 will also be an important year for government now. Alongside onshore exploration, we are achieving fuel efficiency in power generation and enhancing ef- also looking into the possibility of expediting commence- ficiency of power transmission and distribution. These will also ment of deep water exploration in the Bay of Bengal. Coal act to reduce cost and making power supply more affordable.

January 1, 2020 11 Govt Fails to Make Power, Energy Supply Sustainable Prof. Dr. Ijaz Hossain Professor, Chemical Engineering Department Bangladesh University of Engineering & Technology

he government has failed to make energy and power sec- tional gas grid. But till now Ttor sustainable despite getting enough time over the three not more than 600 MMCFD consecutive terms. There were not too much challenges in could be taken. Last year, the achieving over 20,000 MW installed power generation ca- average supply was 300 pacity over this period. It has been possible through invest- MMCFD. We have to account ment of donor agencies and private sector investors. But for service charge for 1000 Prof. Dr. Ijaz Hossain Bangladesh is lagging way behind in setting up of modern re- MMMCFD. This is also liable power transmission and distribution system. In my opin- adding to the cost of LNG. ion, it could be a great achievement if we could set a Initiative has been taken for setting up a land-based LNG ter- self-sustaining reliable 10,000 MW power supply system. The minal. Gas grid must be ready for evacuating this LNG before that plant becomes operational. power generation cost is increasing by about 30-40% for pay- ing capacity charge to idle generators. This is completely un- The government has completely failed in the exploration of desirable. The industrialization did not take place as oil, gas and coal over the past 11 years. Consequently, we are anticipated over the past decade. Major industries are not becoming more and more dependent on imported primary showing any interest in grid power for the issues like reliability fuel. This is putting additional burden on consumers for pay- and relatively higher price than the captive power. The power ing higher power tariff and energy price. Has the government demand as such is not increasing as industries remain mostly any study on how this impact would be confronted? dependent on captive power still. In my opinion, the greatest challenge for the government in 2020 would be expediting oil and gas exploration. Even if it Payra power plant is a classic example of lack of coordination among different entities of power sector. The power evacua- starts under a clear and transparent policy in 2020, it will take tion facilities must have been completed alongside the com- 2-3 years to gather momentum. The government must initiate pletion of the plant construction. At this stage, it is not sure simultaneous activities in onshore and offshore areas. The when the plant can start commercial operation. Ensuring ac- IOCs must be given opportunities for bidding even in onshore cess of power to all by 2020 is a commendable success. But areas in addition to the offshore. If this happens, we may start the question is how reliable will be that power supply? It is getting positive results from 2023. Otherwise, power genera- also not clear how long will it take to ensure reliable power tion would gradually become exclusively dependent on im- supply to all. For this to achieve, quicker transmission and dis- ported fuel. That will require power tariff and energy price tribution segments may be opened to private investors. But hike in several phases. there exists considerable doubts whether that will be as at- I believe that the government must work out a comprehensive tractive as that in the power generation. plan for power and energy sector. Lessons must have been The gas sector is also not outside the crisis. We have devel- learnt from past failures. Otherwise, Bangladesh would be left oped infrastructure for 1000 MMCFD RLNG injection to na- behind in the race for becoming a developed country. is still hesitating to take a political deci- diverted the gas to power, suspending Local coal was given priority in this sion in this regard. Exploration of coal supply to new industries. The interim planned fuel mix. Contribution of natu- now entirely depends on the Prime Min- government had also initiated process to ral gas was planned to be 25%. The sce- ister’s mindset and directives. set up liquid fuel-based power plants as nario of depletion of own gas reserve Natural Gas, LNG a contingency measure for confronting was taken into consideration. Initiative Own natural gas used to contribute the crisis. Short, medium and long-term was taken on urgent basis for the import about 89% of the fuel mix for power power generation strategies were of LNG. The plan was to start LNG im- generation in 2009 when the Awami worked out in 2009 for implementing port within two years through setting up League-led government returned to the fuel mix in accordance with the Floating Storage and Regasification Unit power for the second term. That contri- Power System Master Plan 2010. Basi- (FSRU). But the first 3.5 million tonnes bution has dropped to 62% now. But the cally, with the intention to supply power per annum FSRU came into operation at gas crisis started rocking at least two at affordable cost, 50% of the 40,000 the end 2018. A similar capacity FSRU years before 2009. The interim caretaker MW power generation target by 2030 also became operational in 2019. The government for managing the gas crisis was planned for generation from coal. production of own gas in 11 years could

January 1, 2020 12 be increased from 1600 MMCFD to 2700 MMCFD. There is hardly any success in finding new gas resources over the past 19 years. Over this period, about 13 Tcf gas has been consumed, but the new addition is only about 2 Tcf. Moreover, these are only marginal gas fields. The recoverable reserve of natural gas in Bangladesh is 27.9 Tcf. Out of this, 16.9 Tcf has already been used. The remaining reserve is 11 Tcf. Petrobangla informed that the entire reserve would be de- pleted by 2031 if no new re- serve is added through discovery in the meantime. Payra coal­fired power plant The total number of gas con- RLNG-supplying capacity is 1000 Of the gas produced, 42.9% is being sumers is now 4.2 million. Of the 27 dis- MMCFD. But for restricted capacity of used for power generation, 15.64% for covered gas fields, 20 are in operation the gas grid, the RLNG supply now is captive power, 15.76% in industries, with 112 producing wells. The coinci- 600 MMCFD. Over the last one year, 15.21% by the domestic consumers, dent peak demand is 3685 MMCFD. 300 MMCFD RLNG could be supplied 5.5% for fertilizer production, 4.05% Adding RLNG, the maximum supply ca- on average per day. Around 1600 goes to the CNG fuelling stations and pacity now is 3300 MMCFD. There ex- MMCFD of the 2700 MMCFD own gas the remainder to commercial con- ists 385 MMCFD of deficit now. The is coming from IOC-operated gas fields. sumers. It has been seen over the past Technical Study Must for Resolving Issues of Reliable Power Supply Engr. SA Mayeed Former Chairman, Bangladesh Power Development Board

n naked eyes, it appears now that there is surplus genera- mensurate with the power Ition capacity, but not enough demand of grid power is generation. This has put there. But the suppress demand cannot be converted to de- power sector in huge chal- mand now. Most of the major industries are still relying on lenge. In my opinion, a detail off grid captive power. They cannot have confidence on techno-economic feasibility the reliability of grid power supply. Moreover, for many study must be conducted for Engr. SA Mayeed different reasons, the required momentum in industrializa- identifying bottlenecks and tion has not been achieved up to the expectation. There limitation of power transmission and distribution segments. was high expectation that investors would respond mas- Planning for updating the system must be done based on sively to invest in special economic zones the government that. We must do this as soon as possible without wasting is now setting up. Consequently, the demand for grid time. Unbalanced growth through irrational investment power is not increasing as expected. For this, power gener- across the power value chain has created the present issues. ation cost is increasing as capacity charges for some plants Making power system mainly the transmission and distri- require to be accounted for even after leaving these idle. bution segments more reliable and dependable for quality The end users are made to bear the brunt through in- power supply on consistent basis is the major challenge of creased power tariff. These are not desirable. power and energy sector in 2020. If required actions can This situation has arisen for failure in expanding and mod- be taken, the demand would increase and power tariff can ernizing power transmission and distribution system com- be made rational and affordable.

January 1, 2020 13 four years that the annual gas use is about 1 Tcf. Exploring Domestic Coal, Over the last 10 years till August 2019, Gas Main Challenge Now only 4 fields (Sundalpur, Sreekail, Rup- Prof Dr. Badrul Imam ganj and Bhola North) could be discov- Supernumerary Professor, ered from 17 exploration wells. Four Geology Department, Dhaka University drilling rigs were purchased for BAPEX. Apart from the exploration wells, 55 de- chieving sustainable supply of primary fuel velopment wells were drilled and 36 Ais the main challenge of power and energy wells were worked over. Compressor sector in 2020. The government is heading to- stations were set up on the gas grid and wards 90 percent imported fuel. It is true that wellheads. import cannot be entirely avoided. But import dependency needs to be restricted as far as Coal Politics practical through ensuring exploration and ex- In PSMP 2010, coal was considered as Prof Dr. Badrul Imam ploitation of own coal and natural gas re- preferred fuel for power and 20,000 sources. Supplying power at affordable price cannot be achieved otherwise. MW power was planned to be gener- ated from coal. But in PSMP 2015, It is a matter of great frustration that nothing has been done over the past 10 planned contribution of coal was years. There is not much indication that something significant would be done brought down to 35%. Almost the entire soon. Not much has also been done in coordinated manner for oil and gas ex- coal is planned to come through import. ploration at onshore. We must bear in mind that there is no option to own fuel Right now about 22000 MW coal-based resources exploitation. Attaching top priority on national attention in the en- power generation initiatives are under ergy sector, the government has to ensure efficiency, transparency and ac- contract, negotiation and implementa- countability in the power and energy sector. tion stages. Of these, 660 MW capacity of the first of the 2X660=1320 MW now. Deep sea coal terminal at Matar- transportation. As such coal transporta- Payra Power Plant is now ready for com- bari is expected to come into operation tion would present a major challenge for mencing operation. Construction works in 2023. The capacity initially would be all imported coal-based power plants for power plants at Rampal and Matar- 5 million tonnes a year. There is a plan other than those at Matarbari. Payra Port bari are also advancing. The preliminary to expand the capacity to 30 million Authority has a plan for developing a works of a private sector S Alam Group tonnes coal transshipment terminal in deep sea coal terminal. But there is no 1320 MW power plant at Bashkhali has future. The planned target to implement definite timeframe as yet when it will also started. But no deep sea coal port this is by 2030. Consequently, all im- materialize. This has limited the possi- for coal import could be constructed by ported coal-based power plants else- bility for getting power at affordable cost now. For shallow draft, coal is being where than Matarbari have to import from imported coal-based power plants. brought using smaller 20,000 MT ca- coal by transshipment. This would add Right now local coal effectively con- pacity vessels for Payra power plant about USD 10-20 per tonne for coal tributes only about 2% to fuel mix for power. But for inefficient min- ing, the price of local coal is US$130 per tonne. Five discovered coalfields of Bangladesh (Barapukuria, Phulbari, Dighipara, Khalaspir and Jamalganj) have a total proven reserve of 3.3 billion tonnes. Of these, the mining from the largest field at Jamal- ganj having 1.1 billion tonnes has not been found feasible as yet. A study done for extract- ing Coal Bed Methane (CBM) also did not give encouraging result. Petrobangla has just completed a feasibility study for mining from Dighipara. A project for open pit min- Coal jetty at Payra power plant ing in the Southern flank of

January 1, 2020 14 Barapukuria mine has been prepared. Without political decision, it is no longer area proved counter productive. There The government has not given any possible to start coalmining now.” has been virtually no effective explo- green light for this yet. There is no direc- ration at all. Over the last 10 years, only State Minister Nasrul Hamid also ac- tive yet also about whether mining will 4 marginal gas fields could be discov- knowledged that local coal should be be done at Dighipara. A Scheme of De- ered from 17 exploration wells. Produc- used for power generation. But he also velopment (SOD) with all techno-eco- tion from one has already stopped for mentioned that the Prime Minister nomic feasibility studies were submitted depletion of recoverable reserve. Right would have to take decision for mining in accordance with the contract for initiative of the government could help own coal. Phulbari mining in 2006. But over the resolve long standing maritime bound- last 13 years, this is waiting for govern- Prof Dr. Badrul Imam also observed that ary disputes with India and Myanmar in ment approval. A Chines company and using local coal is the best option if we the Bay of Bengal. Despite that no suc- local Hosaf Group Joint Venture submit- want to supply power at affordable cost. cess could be achieved in a long time ted a SOD for mining from Khalaspir. Energy experts and research fellows also for exploration from offshore resources. During the tenure of the interim govern- considered that this is the prime time for Contractors could not be engaged in 5 ment, a company has been assigned to taking decision on mining own coal. years of efforts by Petrobangla for 2 non- evaluate it. They identified some inade- Cost of mining will increase sharply as exclusive multi-client surveys in the Bay quacies in their report and advised for time whistles by. On the other hand, it of Bengal. Although a company has further study. But all these remained would be possible to get power from been selected in 2019, the first phase of buried and gathering dust somewhere. plants using local coal by 2024 if the the survey may not be completed before Energy expert Prof Dr. M Tamim said, decision for mining is taken in early winter 2020. The government has ap- “Exploring own coal and setting up of 2020. This would significantly reduce proved the final version of updated mine mouth coal power plant is the best the emerging dependence on imported model PSC in 2019. Experts observed option for Bangladesh for supplying fuel. that this updated PSC creating some ad- power at affordable cost. There are chal- Exploration of Oil & Gas ditional incentives for IOCs may en- lenges for mining coal, but there are Oil and gas exploration has practically courage them for risk investments. But technology for successfully managing all lost momentum since long. Relevant ex- it is unsure whether without enough re- challenges and impacts. Mining own perts observed that the BAPEX-only quired information,the bidding would coal is now an absolute political issue. strategy for exploration in the onshore encourage major IOCs. But if the bid- ding round has to wait for the outcome Lack of Coordination of multi-client survey, it may not be pos- sible going for it before 2022. Right now Main Problem three IOCs are working in four offshore Prof Dr. Shamsul Alam blocks. Petrobangla expects that by the first half of next year, 4 exploration wells Dean Daffodil University may be completed. The date for next Energy Advisor, bidding round has not been firmed up Consumers Association of Bangladesh (CAB) yet.

ack of coordination is the main problem Petrobangla has planned for carrying Lnow in the works of energy and power sec- out and completing more 2D and 3D tor of Bangladesh. A chaotic situation prevails seismic surveys by 2023. Over the past now in the sector for this. For this reason, de- 10 years, 28,347 line kilometer 2D and pendable infrastructure for reliable and quality Prof Dr. Shamul Alam 5000 square kilometer 3D seismic sur- power supply could not be developed despite veys have identified 22 potential struc- having surplus generation capacity. In my opinion, the main focus in energy tures. Plan has been made for 11 and power sector in 2020 must be directed to achieving reliable uninterrupted exploration wells, 14 development wells supply of quality power. Bangladesh Energy Regulatory Commission (BERC) and 15 work overs by 2023. Over the must give their opinion clearly about this to the people. past 10 years, 13 field compressors have been set up for augmenting gas produc- In reality, the power and energy sector of the government over the past decade tion. BAPEX developed a five-year mega has failed to achieve affordable power supply to the people. Their competence plan in 2016 for drilling 108 wells which and capability have now become questionable. For complete failure of the included 53 exploration wells. But prac- government in exploring and exploiting own primary fuel resource, the govern- tically the overambitious plan could ment has made people bearing the brunt of expensive imported fuel. The con- now grow to encouraging stage. In a re- sumers have become panicked about power tariff and gas price hike. But cent workshop, State Minister for En- without taking notice of this, the government is going more and more towards ergy Nasrul Hamid blamed Petrobangla imported primary fuel. This will create enormous stress for the economy. and BAPEX for their inefficiency

January 1, 2020 15 in exploration of oil and gas. But ac- cording to Prof Dr M Tamim, absence of Private Investment Must required directives of the government is for Making Transmission, the main reason for failures in explo- ration of petroleum resources. For suc- Distribution Reliable cessful exploration, the blocks and areas Imran Karim outside BAPEX-allotted blocks onshore President, Bangladesh Independent Power should be leased out through PSC bid- Producers Association (BIPPA); ding rounds to IOCs. Prof Dr Tamim thought that there would be encourag- Managing Director, Confidence Group ing responses to such bidding round if fresh PSC for onshore blocks is invited atering to the peak power demand has be- by 2020. Some successes would be Ccome a major issue now for the power sec- tor. The 12,000 MW peak summer demand achieved by 2023. He suggested the Imran Karim government for not leasing out any drops down to 6,000-7,000 MW in the winter. block in joint venture with BAPEX. The present situation has been created for absence of required growth of grid power in the industrial sector. The industrial sector continues relying on The government is not yet completely 3,000-4,000 MW captive power. Industries could move out from captive prepared for going to fresh bidding power if the government could ensure reliable grid power supply by this time. round in the offshore. The government That could increase grid power demand to 16,000 MW by now. On the other could encourage IOCs more in the off- hand, much higher amount of gas is being used in fuel inefficient captive shore exploration if data bank of infor- power plants than plants connected to the power grid. The present success in mation could be developed by now. We power generation could be achieved for facilitating private sector integration must do it quickly and go for bidding as in power generation. In my opinion, reliable supply of quality power can be soon as possible. Bangladesh could not achieved quickly if the private sector is allowed to invest in power transmis- achieve any mentionable success in the sion and distribution under a comprehensive policy. vast offshore areas as yet. Only required extensive exploration can prove There are allegations that capacity charges are being provided to power plant whether we really have expected re- owners keeping these idle. For this, the government policy is responsible, not source in the vast explored offshore and the investors. The government must not extend contracts of those rental, quick frontier areas in the onshore. But there rental and IPPs the term of which are expiring. On the other hand, quite a few is considerable doubt about the pre- more than 25 years old, fuel-inefficient public sector power plants which have paredness of the government for this. outlived their economic life are still kept in operation. These must be retired. However, Nasrul Hamid is optimistic Formulating appropriate policies for uninterrupted quality power supply and that massive exploration campaign can ensuring their seamless implementation are the major challenges for the gov- be launched from 2020. ernment in 2020. Energy Efficiency Sustainable and Renewable Energy De- achieved yet. The average efficiency in now. Over the last 1 year, 300 MMCFD velopment Authority (SREDA) on the be- power generation is now 33%. The LNG has been used on average. At least half of the government is working under price of gas is increasing. It will keep on for 87 days every year, FSRU cannot op- a master plan for ensuring efficient use rising with more and more LNG is intro- erate in Bangladesh coastal areas for tur- of power and energy. They are working duced in the fuel mix. The generation bulence of the sea during high to achieve a target for reducing 30% of cost of power would increase if this monsoon. Petrobangla is accounting for power use through implementing effi- does not become more fuel efficient. Ex- minimum charge to FSRU operators cient use of power and energy. The im- perts observed that if fuel efficiency can though it fails taking full 1000 MMCFD pacts of their work started getting visible be increased to 45%, at least 1.5 times delivery for restricted capacity of gas now. Investment has started in the in- power can be generated using the same grid. Bangladesh is purchasing LNG dustry sector for enhancing efficiency. amount of fuel being used now. The en- from Qatar and Oman under long term Power generation is a major area in hancement of fuel efficiency will be a contract. In addition, 17 companies Bangladesh for increasing fuel effi- challenge for the government in 2020. have been short-listed for supplying ciency. But fuel efficiency in power gen- Imported Fuel Dependency & LNG from spot market. The present eration to an acceptable limit has not Price Impact LNG price is US$10 per MMBTU. For- been achieved yet. Power division Two FSRUs, each 3.5 million tonnes ca- mer Power Secretary Dr. Fouzul Kabir stated of achieving nearly 50% effi- pacity, have started operation in the Khan in a presentation at Dhaka Cham- ciency by 2021. Works for constructing country for LNG import. The capacity is ber of Commerce and Industry claimed high efficiency power plants has started. 1000 MMCFD though 600 MMCFD that Bangladesh is buying LNG at higher But expected success could not be RLNG is being delivered to gas grid than international market price. The

January 1, 2020 16 landing cost of LNG in India is US$6.00 more of the projected demand would be dence the lack of coordination among per MMBTU. The government has required to be met from imported LNG. different utilities in the power sector. abandoned plan for any new FSRU. Ini- Hence, we will have to ensure LNG Plan for developing power transmission tiative has been taken for a land-based purchase from the global market at system was made almost at the same LNG terminal at Matarbari. The initial competitive price. Even then, a lot time when imported coal-based power capacity would be 7 million tonnes would depend on global geopolitics plant was planned at Payra, Patuakhali. equivalent to 1000 MMCFD. Eventually and associated impacts on energy price The first 660 MW unit of the the capacity may be doubled. in global market. 2x660=1320 MW is now ready for de- livering power. But the commissioning Experts believe that long term contracts On the other hand, 66 million tonnes of is being held up for non-completion of alone cannot bring down the LNG price coal will be required every year to meet power evacuation facilities. Industries effectively. We have to go for spot pur- the projected demands for the planned are not showing any interest for grid chase. The government may engage imported coal-based power plants. At power as it is not yet reliable for consultant group to look after the nego- present, the entire amount of coal pur- uninterrupted supply. Industries still rely tiation. On the other hand, local man- chase is being planned through long- on captive power. Chief Executives of power must be trained effectively to term contracts. Absence of deep sea power distribution utilities told EP dur- gain expertise at all segments of the port would add cost of transportation. ing discussions that they are moving LNG supply chain. Petrobangla evi- The cost of generation would increase ahead with required projects for making dences state that the gas demand in and would be reflected upon power tar- distribution system completely reliable. 2021 will be 3600 MMCFD and own iff. It may take 2-3 years to achieve com- gas production will be depleted to 2400 Uninterrupted Power Supply plete success. MMCFD. LNG import through FSRU There is no denial of the government Former Chairman of Bangladesh Power and import from India may become achievements in the power generation. Development Board (BPDB) SA Mayeed 1200 MMCFD. Gas demand in 2030 But the cost of generation remains told the EP that the government must would be increased to 4700 MMCFD. higher for not being able to utilize most know where is the shortcomings and Own production would then may stand of the installed capacity. Consumers are bottlenecks in the power transmission at 1800 MMCFD and LNG availability bearing the brunt paying higher power and distribution system and what are the would be 2900 MMCFD. In 2041, the tariff. BIPPA President Imran Karim ob- most appropriate actions to address gas demand would be 5900 MMCFD. served that the grid power demand these. He suggested carrying out a detail Petrobangla expects that including 500 could be increased to 16000 MW dur- study to identify and assess these for MMCFD supply from offshore (in the ing high summer of 2019 if power trans- subsequent follow up actions. He sug- event of discovery), own production mission and distribution system could gested that all activities for updating and would be 2000 MMCFD and LNG be developed to make these reliable for modernizing power transmission and availability would be 3900 MMCFD. supplying quality power on uninterrupt- distribution system must be done ac- It appears that about two-thirds or even ible basis. One example would evi- cording to the findings and recommen- dations of the above study report. Nasrul Hamid also ad- mitted the constraints of the power transmission and distri- bution system. He informed that works have already started to confront these chal- lenges for upgrading and modernizing power supply system. In 2020, these works would be better coordinated. Conclusion Proven gas reserve could not be increased due to very lim- ited new gas discovery over the past 20 years. Increased gas production from discov- ered fields is causing fast de- pletion of the reserve. The gas demand would grow double Under construction grid substation of PGCB in 2041. There is no option

January 1, 2020 17 now than importing more and more LNG even if we launch major exploration drive for new gas soon. Possibly right initia- tives can bring down the quan- tity of LNG imports to some extent. On the other hand, Bangladesh is not yet efficient in using gas for power genera- tion, fertilizer production and industry. To increase this effi- ciency, actions must be taken in 2020, along side reinvigorating initiatives for oil and gas explo- ration in offshore and onshore. Procurement of LNG must be done through proper negotia- tion and at competitive price. Up to 10,000 MW coal-based power can be generated for 50 Construction of Sediment Mitigation Dike­1 at Matarbari project years if we can exploit our own import. These must be given top priority developing economy, power supply must discovered coal reserve and set up attention for speedy implementation. be affordable to all besides making this power plants. Local coal can generate Fuel supply would be reliable in the reliable and sustainable. Exploration and power at 5 US cents while imported event of failure in completion of coal exploitation of own primary fuel and en- coal-based power generation cost port and LNG terminal at Matarbari in suring its maximum use also need to be would not be below 7-8 cents. But the 2023. The cost of power generation ensured. Eventually, import of fuel cannot power plants need to be setting up at the would further increase. be avoided. Appropriate utilization of mine mouth. This will relieve stress from own fuel can delay the requirement for Works for upgrading and modernizing natural gas also. On the other hand, this huge import in the near future. Optimum power transmission and distribution sys- also can reduce dependency on im- use of own fuel would definitely make tem under long term plan must get re- ported fuel at least by 50%. In consid- significant impacts on overall develop- quired momentum in 2020 for achieving eration of all, there is no other option ment of the national economy. Keeping efficient and reliable power supply. Atten- but going for mining own coal without the higher price of primary fuel in global tion must be directed towards achieving wasting any more time. Experts believe market, Bangladesh must gradually tran- 45% efficiency in power generation by that it will be a blessing to the nation if sit to lower energy-intensive industries. 2025. The works of different utilities must MPEMR can start this in 2020. Otherwise, our vision 2021 for becoming be properly coordinated. In 2020, another major challenge is ex- mid-income country and vision 2041 for pediting construction of deep sea port Finally, there is no other option but up- developed economy would be impeded. and land-based coal terminal for sup- grading and modernizing infrastructures plementing initiatives of coal and LNG of power and energy system. In case of a EP

January 1, 2020 18

Cover Article Don’t Lose Sight of Energy Sector in 2020

Saleque Sufi

he year 2020 will present multi- ploitation of discovered coal reserve, The power generation capacity has dimensional challenges for greatly expediting petroleum resources more than quadrupled to 19,570 MW TBangladesh. The jumbo set of de- exploration. These all sound easy but (Grid Connected Power) as of Decem- velopment, after taxing on slippery run- extremely challenging in implementa- ber 2, 2019. Maximum demand served way, has taken off and gathering tion in a resource-constraint small coun- so far was 12,893 MW on May 29, momentum in the sky. It must be let fly- try with huge population. 2019. If 2800 MW captive power gen- ing to reach destination on time and in eration capacity and 359 MW off grid Prime Minister Sheikh Hasina spear- style. The nation would be celebrating solar power capacity are added, total in- headed Bangladesh Awami League gov- the birth centenary of its dreamer, cre- stalled capacity now is 22,727 MW. ernment to complete eleventh ator and architect Bangabandhu Sheikh Around 95% of the population have successive year in a row since 2009. Mujibur Rahman with due fervor and now access to power. Bangladesh is festivity this year. Like all other sectors, The world community has admired all well on its course to achieving 24,000 the energy and power sector would round development of Bangladesh as it MW installed capacity by 2021, the have to keep its development momen- achieved impressive economic devel- golden jubilee year of liberation of tum going and overcoming few lapses opment consistently over the past Bangladesh. If one looks back in retro- experienced over the last decade for decade. The country is well on its way spect must agree that the days of dia- achieving the SDG7 (quality energy and for achieving its vision of mid-income bolic power supply crisis, massive power supply to all on sustainable basis country status by 2021. In all index, it is power loadshedding is way past. at affordable cost ensuring safe and en- set for achieving the Sustainable Devel- Looking at the mix of the primary fuel vironment development). The chal- opment Goals (SDGs) by 2020. We (56.34% natural gas, 30.69% liquid lenges of the year are ensuring know Bangladesh was among the top fuel, 5.93% power import, 2.68% coal affordable mix of fuel (own and im- countries achieving Millennium Devel- and 1.18% hydro), the energy sector an- ported) for achieving economic cost of opment Goals (MDGs). As far as the en- alysts observe that Bangladesh will have generation of power, modernizing and ergy and power sector is concerned, to do a lot in 2020 and beyond for smartening power transmission and dis- even the bitterest critics would agree achieving the sustainable energy secu- tribution network, enhancing efficiency without any hesitation that Bangladesh rity. Compared with the achievement of of power and energy supply, improving has made commendable achievements power generation, unfortunately noth- governance and curbing corruption and in the power sector in the context of the ing has been achieved in exploiting the misuse, commencing long awaited ex- crisis situation of 2009. considerable discovered re- serve of own superior qual- ity coal, very little progress has been achieved in ex- ploration and development of own petroleum re- sources at onshore and off- shore. Consequently, the proven recoverable reserve of natural gas keeps deplet- ing alarmingly. The govern- ment has diversified the fuel mix bringing coal as fuel of choice from 2010 (PSMP 2010 prescribed 50% of targeted 40,000 MW generation capacity from coal). But till the end of 2019, the contribution of coal is not even 2%. The government introduced im- Floating LNG terminal at Moheshkhali ported liquid fuel-based

January 1, 2020 21 contingency power generation plan transmission pipelines, not more than for a limited period of 3-5 years from 550-600 MMCFD RLNG evacuation is 2010. But in late 2019 its contribution possible at this stage. Even if 1000 is over 30%. None of the large im- MMCFD RLNG is possible from say ported coal-based power plants has March or April 2020, the present come into operation yet which could deficit of gas supply would not be mit- have relieved the power sector from igated. using expensive liquid fuel-based gen- The government has started imple- ’ eration. The government s program for menting a project for land-based LNG Liquefied Natural Gas (LNG), sup- terminal and has adopted a policy for posed to be materialized by 2014, private sector to import LNG. But any started through FSRU-based import in land-based LNG terminal may not be- October 2018. The power tariff re- come operational before 2025. In such quired increasing several times and situation, the gas supply would con- gas price also required adjusting to off- tinue to remain in crisis. set the impacts of the imported liquid fuel (LNG, LPG, Furnace Oil). Sustain- Petrobangla and BAPEX did very little able energy security in accordance for exploring new gas resources over with SDG7 requires government to en- the past decade. BAPEX has the sole sure sustainable quality supply of mandate for carrying out exploration power and energy to all at affordable in the onshore. It could discover only cost. In the present scenario, the gov- a few marginal gas fields some of ernment needs to do a lot in 2020 in which have already depleted. The significantly reinvigorating endeavors government had to abandon the highly for exploiting its own fuel resources ambitious 108 gas well drilling pro- (coal and gas), smartening its power gram. Petrobangla also failed to even start exploration in the deep water of supply value chain (transmission and contributes to higher generation cost. the Bay of Bengal though the maritime distribution), professionalizing Moreover, single buyer BPDB has to ac- boundary disputes with India and Petrobangla and its companies and count for capacity charge even if the Myanmar was resolved through arbitra- vastly advancing energy and power sec- plants are used for peak shaving only. tor efficiency. tion. In a recent event in Dhaka, the All gas wells of the producing gas fields state minister for energy and the EMRD Analysis of Power & Energy are depleting. Some wells already have secretary sounded frustrated at the Scenario wellhead compressors installed for sec- abysmal performance of Petrobangla Let us revisit power generation scenario ondary recovery and some more wells and BAPEX. as seen in BPDB and Petrobangla web- would have compressors soon. The ac- sites (table-1). tual production from own gas fields The Petrobangla and EMRD also failed would continue depleting at the present to convince the government for com- Maximum Demand Served: 12,893 alarming rate if not immediate actions mencing mining from discovered coal MW on May 29, 2019; Fuel Mix (on the are taken for production enhancement. mines. Mining from the only operational basis of installed capacity) scenario is Experts observe that by 2023 the pro- mine at Barapukuria has become haz- given on table-2. duction from own gas fields may drop ardous and expensive. The government- appointed high-powered committee It appears that no way near the capacity below 2000 MMCFD. With the intro- suggested for open pit mining from the generation was achieved. The coinci- duction of RLNG in gas grid, the total Northern and Southern flanks of Bara- dent peak demand is around 60% of the gas availability has increased to 3760 pukuria and to consider mining from installed capacity meaning that spin- MMCFD. But for non-completion of gas Phulbari after getting the documents ning reserve is about 70-80% of the submitted the Scheme of Develop- demand. This is way above the in- ment (SOD) by a foreign company ternational standard of 20%. The vetted by an internationally accred- high spinning reserve creates higher ited consultant. Mining can also be cost of generation and requires conducted from Dighipara and Kha- higher power tariff or providing sub- laspeer. But Petrobangla did nothing sidy. Supply of natural gas and coal to positively move with mining. being a great issue, the actual fuel mix would be much different. The This leaves the increasing reliance on contribution of liquid fuel in that imported fuel for meeting the grow- case may be about 50%. This also ing fuel demand. The government

January 1, 2020 22 has no option but to continue import- ing petroleum products (furnace oil, diesel), LPG and LNG. Now it is going ahead for importing coal. Need Expediting Petroleum Exploration Petrobangla must let out a fresh bid- ding round for engagement of IOC through PSC for offshore exploration by February 2020 so that IOCs can be se- lected and agreements signed by Oc- tober — November 2020. It could be suggested to let out bidding for Western region and deeper prospect exploration of existing gas fields in 2020 as well. Bangladesh must not leave any stones unturned for discovering additional gas resources before the proven resource completely depletes. There are still some reservations about fiscal and fi- coal-fired power and challenges associ- Matarbari coal port would be linked nancial incentives in updated Model ated with development of import infra- with deep water by a 14 KM long 250- PSCs. But these can be resolved for ar- structure, the government needs to meter wide and 18-meter deep link riving at Win-Win PSCs. But review its coal power generation op- canal. The coal port being constructed Petrobangla must be more professional tions. now can feed the 2x600 MW plant and much more technically equipped under construction and another plant of Three projects are now at different with competent manpower in 2020. the same capacity. stages of implementation. Of these, the Power Sector Scenario first unit of 2X660 MW imported coal- Apart from the above three plants, the The power sector by adopting the liquid fired power plant at Payra may start op- prospects of other imported coal-fired fuel contingency plan has successfully eration in early 2020 and the complete power plants looks uncertain at this confronted the crisis. The Speedy Sup- plant by end 2020. There are some stage. Of course, if the government can ply of Power and Energy (Special Provi- challenges for coal transportation as re- start mining its own coal and improve sions) Act 2010 allowed the government quired coal port development in Payra its railway communication to an ad- to engage companies for power genera- may still take few years. Coal imported vanced level, own coal can be trans- tion based on unsolicited offers without using several smaller shallow draft ves- ported by railway to Payra, Rampal and tendering. Even some companies were sels from suppliers or using tranship- other places accessible to Railway. But engaged for gas field development ment from mother vessels anchored even then, accessing to funding for large under this act. This act was for meeting somewhere in the deep sea may not be coal-fired power generation from devel- crisis situation only. But that act still pre- ideal as the additional cost of trans- opment agencies and international vails and business as usual the govern- portation would negate the advantage banks would become extremely difficult ment procurement rule is still not of lower cost generation. given the global resistance against fossil followed. Through mid-term planning, fuel. the power sector was supposed to have The 2X660 MW imported coal-based some coal-based large power plants by power plant at Rampal, Bagerhat may LNG remains a potential option. The this time. That could relieve BPDB from come into operation in 2023. But like global price of LNG is expected to re- relying on expensive liquid fuel use. But Payra it will encounter similar chal- main stable for a while as global market unfortunately the challenges for setting lenges for coal transportation to the is now over supplied with LNG. up coal import infrastructure (coal port plant site. Bangladesh can expedite construction and coal terminal) got extraordinarily of land-based LNG terminal at Matar- The situation is, however, different for delayed. bari where up to 3000 MMCFD capac- 2x600 MW power plant at Matarbari. ity LNG terminal is a possibility. JICA The government planned for several im- This plant being implemented by Coal has negated the possibility of land- ported coal-based power projects at Power Generation Company of based LNG terminal at Payra, consider- Matarbari — Maheshkhali, Cox’s Bazar, Bangladesh with the Japanese assistance ing the requirement of huge capital Payra at Patukhali, Rampal at Bagerhat, may come into operation in 2024. The dredging that would be required for Bashkhali and few other places. But in coal port being developed there would keeping the 90KM channel all sea- consideration of global reluctance for become ready for use by end 2023. son navigable. However, this can be

January 1, 2020 23 reviewed. Universities and ed- The 2x1200 MW ucational institutes Rooppur Nuclear should set up effec- Power plant by 2025 tive linkages with in- would be a blessing dustries. Graduates for Bangladesh. In must be made job 2020, considerable ready through such progress is expected linkages. The year of this project as the 2020 must be the construction work stepping stone for has gathered mo- these. mentum there. Once Need Better commissioned, this Coordination will provide effective It is expected that all baseload to national government-owned power grid. agencies in power Power import from Construction works of Rooppur Nuclear Power Plant and energy sector would better coordi- India is major servation and efficiency need achieving nate in 2020 for achieving the common achievement. Around 1160 MW of for optimum economic use. Smart me- goal of sustainable energy security a present import is already making great tering, pre-paid metering, use of effi- must for achieving mid income country contributions. In 2020, all diplomatic cient appliances (certified) should status and developed economy. parleys should continue for further de- gather momentum in 2020. Rooftop veloping BBIN initiatives for power trad- solar power and availability of spare Conclusion ing in the region. If an ideal grid can be power to grid, wherever feasible Bangladesh would enter 2020 in much put into operation, Bangladesh may also through net metering, would make im- better shape with its burgeoning power make its surplus off peak power avail- pacts. Mini grid and micro grid should and energy sector. The ambitions how- able for trading in the region. be given priority in distant remote ever, are sky high. But there are few credible challenges. Of these, identified Power Transmission & Distribution places. Power to all through grid cover- above is implementable appropriate Several projects to upgrade and mod- age would prove luxury. fuel mix for power generation, mod- ernize power transmission and distribu- BERC should be better equipped with ernising all segments of power and en- tion system are in progress. In 2020 trained resources for efficiency auditing. ergy value chain, improving governance many of these would reach advance for achieving efficiency, human capital stages. A 400 KV mother grid needs to BERC has Greater Role to Play development. Mining own coal must be developed as soon as possible to ef- Apart from determining and suggesting start being the best fuel option, imported ficiently evacuate power from Payra, for approval of power tariff and gas coal-based power generation option Rampal, Matarbari and Rooppur power price adjustment, BERC had additional must be reviewed, fresh bidding round plants. SCADA system already in oper- role for auditing efficiency of its license. for offshore exploration must be let off ation may also require strengthening. For human resource constraint, it could without delay in early 2020, BAPEX ca- Smart grid may be set up wherever fea- not start doing that. BERC has to police pacity must be objectively evaluated sible. Modern power substations and re- the implementation of law, acts and and strengthened. BERC must have ap- quired capacity transformers setting up policies of power and energy sector propriate quality manpower for more ef- should be better coordinated. Wherever through auditing. Let 2020 be the ficiently performing its mandated tasks. possible, power transmission and distri- launching year of these activities. There must be a process for monitoring bution system may be taken under- Effective Human Capital Development performance of each individual of each ground. Significant works are expected It goes without saying that Bangladesh entity. Let the year 2020 set some mile- to be completed in 2020 as in 2021 requires huge army of qualified, trained stones in power and energy sector. Bangladesh may like to see its 100% human resources for better managing population better served with reliable Hope the nation would not lose sight of implementation and proper manage- quality power supply. essential requirements for power and ment of operation of all facilities of energy sector while celebrating the birth Power Conservation & Efficiency power and energy value chain. Massive centenary of the father of the nation in SREDA has completed most of the capacity development programs are in 2020. preparatory works for renewable energy operation. BPMI and BPI are entrusted EP expansion, energy conservation and en- entities. Every mega projects have own hancing efficiency. Both from the supply training windows. In 2020 these must Saleque Sufi; side as well as utilization of energy con- be properly coordinated and monitored. Contributing Editor, EP

January 1, 2020 24 Special Report Energy Sector Witnesses ‘Unplanned’ Growth

Azizur Rahman

he power and energy ministry has state-run entity is bound to pay to the pacity of 19,467 MW. doubled the capacity of LNG im- power plant owners, if the government However, available electricity at substa- port terminal and re-gasification fails to purchase a certain portion of the T tion end, excluding transmission loss, while adding 2,153 megawatt (MW) of electricity readily available with them. ’ was only 6,277 MW. electricity, making the country s overall The privately-owned power plants, with installed capacity to 19,467 MW in majority of the oil-fired ones, received a Electricity generation during evening 2019. staggering Tk 89.29 billion in 'capacity peak hours on December 18 was 8,479 MW, which was 43.55 percent of the A new LNG import terminal with a re- payments' from the government in fiscal total installed capacity. Available elec- gasification capacity of 500 million year (FY) 2018-19. The amount is higher ’ tricity at substation end, excluding trans- cubic feet per day (mmcfd) was added than the BPDB s annual revenue short- mission loss, was 7,877 MW. in the just concluded year, totaling the fall worth Tk 86.08 billion in FY '19. ’ country s LNG import terminals to two The plants got the fund without gener- The BPDB statistics shows that the over- and LNG re-gasification capacity to 1.0 ating any electricity. The capacity pay- all electricity generation during day Bcf (billion cubic feet). ments were 43 percent up from that of peak hours one year ago on December 18, 2018 was 6,301 MW. Electricity The highest electricity generation was FY '18, worth around Tk 62.41 billion. generation during evening peak hours recorded at 12,893 MW, which is the The BPDB is keeping the country's over- on the same day was 7,865 MW. record highest electricity generation so all electricity generation to lower level far. due to decline in demand, a senior offi- A total of 17 new power plants, having cial told the EP. Some power plants have the total generation capacity of 2,135 But the demand and consumption did been asked to suspend their operations MW, came into operation over the past not increase to that level resulting in re- and some others to do maintenance one year since February 2018. But, the duction of electricity generation com- work, he added. country's overall electricity consump- pared to capacity throughout the year tion increased marginally. and it dipped to around one-third of the According to the BPDB statistics, the overall capacity during the later part of countrywide electricity generation dur- The BPDB is the lone buyer of electric- the year due to the sagging electricity ing the day-time peak hours on Decem- ity from the power producers across the demand in winter, said a senior official ber 18 was 6,644 megawatts (MW), just country. The agency then sells the elec- of state-run Bangladesh Power Develop- 34.12 percent of the total installed ca- tricity to the distribution companies that ment Board (BPDB). Re-gasification of LNG (lique- fied natural gas) was below 600 mmcfd, keeping over 40 percent of the capacity unuti- lized, due to capacity con- straints of existing pipelines, a senior Petrobangla official said. With the increased electricity generation capacity and keeping most of them idle, the BPDB will have to count a huge additional amount in capacity payment to the power plant owners, said the official. The capacity payment is a sort of penalty, which the 132KV Substation, Jamalpur 100 MW Power Plant

January 1, 2020 25 Supplying of additional re- gasified LNG from the FSRUs will not be possible until the construction works of two necessary pipelines — a 90- km pipeline connecting Mo- heshkhali to Anwara, and another 181-km pipeline connecting Chittagong, Feni and Bakhrabad — are com- pleted, said a senior GTCL of- ficial. State-run Gas Transmission Company Ltd (GTCL) is re- sponsible for building gas transmission pipelines in the country. When contacted, energy ad- viser of the Consumers Asso- LNG metering station at Moheshkhali ciation of Bangladesh (CAB) Professor M Shamsul Alam supply it to the end-users. Excelerate Energy initiated commercial said the power and energy sector is wit- operation on August 18, 2018 after im- Petrobangla is paying ‘capacity pay- nessing ‘unplanned’ growth. Common- porting the first LNG with Excelerate’s ments’ or ‘rents’ to the LNG terminal ers are bearing the brunt, he added. commissioning cargo on April 24, 2018. owners without re-gasifying the ex- The country’s second LNG import ter- EP pected level of LNG in the FSRUs (float- minal owned by Summit and Mitsubishi ing, storage and re-gasification units). started operation on April 29, 2019 dou- Azizur Rahman; The Petrobangla is currently re-gasifying bling the total LNG re-gasification ca- Journalist around 600 mmcfd of LNG from two pacity to 1,000 mmcfd. [email protected] LNG import terminals against their ca- pacity to re-gasify around 1,000 mmcfd. Report Petrobangla has deals with the terminal owners to pay around US$ 450,000 (Tk Russia for Better Cooperation on 38.25 million) per day to re-gasify up to around 1,000 mmcfd of LNG, a senior Light Water Reactors with India petrobangla official told the EP. ussia’s state atomic energy corpo- ment of cooperation between Russia According to the deal, Petrobangla is re- ration — Rosatom looks forward for and India in the sphere of light water quired to pay the US’s Excelerate En- R further co-operation with India in the reactors, specific features of their li- ergy’s FSRU around $237,000 per day field of Light Water Reactors (LWR). censing and safety requirements, and to Summit’s FSRU around $217,000 Rosatom experts were addressing a safety features of VVER 1200 reactors per day. It will have to pay the similar session of the international conference as well as perspectives of small modu- amount to Excelerate Energy and Sum- titled “Future of Light Water Reactor lar reactors development. mit Group no matter it re-gasifies the Technology in India”, held in Mumbai agreed quantity or less, he added. The conference was dedicated to the recently. future utilization of Light Water Reac- Both the deals are on take or pay basis, The conference was organized by the tors in India to supplement existing meaning Petrobangla will have to pay Bhabha Atomic Research Centre plans of construction of heavy water the said amount after commissioning of (BARC) and Nuclear Power Corpora- pressurized reactors. During the con- the FSRUs, no matter it re-gasifies or tion of India Limited (NPCIL) under the ference participants discussed issues not. Both the FSRUs are designed to re- aegis of Homi Bhabha National Insti- and possibilities of localization of light gasify around 500 mmcfd, which is the tute (HBNI). water reactor systems manufacturing agreed quantity between the within the framework of the “Make in Petrobangla and contractor. Rosatom experts in their presentations India” program. addressed topics on further develop- EP The first LNG terminal owned by US’s

January 1, 2020 26 Report Nasrul Slams Petrobangla, Bapex More Japanese Mega Projects Officials for Poor Performance Possible: Envoy ith over 300 Japanese Wcompanies already working in Bangladesh’s de- velopment projects, the envoy from the land of the rising sun believes more mega investments from his country is possible provided adequate local support is available. Naoki Ito, the Japanese am- bassador in Dhaka said in the last decade, number of tate Minister for Power, owned principal organiza- Japanese companies in Naoki Ito Energy and Mineral Re- tion in the country’s hydro- S Bangladesh jumped three to improve supply chain sources Nasrul Hamid re- carbon exploration, times to 300 now. management, tax simplifica- cently came down heavily on production and marketing in tion, cross-border trade, com- the top executives of both upstream and down- Japanese corporate giants are petitive policy and Petrobangla and Bapex for stream while Bapex has been keen to invest in Bangladesh, intellectual property safe- their ‘failure’ to work out any its subordinate body engaged he said, adding that Japan To- guard.” effective plan in the last sev- in exploration and produc- bacco made its bigger project eral years. tion activities. here last year. Bangladesh will get more for- eign investment if it facilitates “To attract and facilitate He warned them of retrench- Held with senior secretary of existing companies. The mega investment, ing manpower as happened energy division Abu Hena Japanese envoy underscored Bangladesh needs to achieve in Desco and DPDC for their Md Rahmatul Muneem in the need for more infrastructural infrastructural and supply poor performances. chair, the seminar was also development and simplifica- addressed by Petrobangla chain developments,” he said “We’ll reassess your human tion of taxation and project chairman Ruhul Amin, in an interview. resources if we don’t have approval procedures. Bapex managing director Mir “However, Bangladesh needs EP our works done by you,” he Mohammmad Abdul Han- told the officials of the two nan and energy expert Syed by transporting organizations while address- GTCL Holds AGM Badrul Imam. 24,786.54 million cubic ing a seminar titled “Hydro- meter gas and 249.59 he 26th Annual General carbon Exploration in Nasrul Hamid said this is un- million liter condensate. Meeting (AGM) of Gas Bangladesh: Progress & Chal- fortunate that Petrobangla T Transmission Company Lim- The company earned Tk. lenges” organized by Bapex and Bapex were asked to ited was held at Kaliganj in 320.89 crore pre-tax profit (Bangladesh Petroleum Ex- give plans for their future Gazipur recently. and contributed to the na- ploration and Production works but both failed to do tional exchequer a total Company’s shareholders and Company) at its auditorium so. amount of Tk. 748.19 crore as directors were present in the in the city. principal loan, interest on “Even Petrobangla was asked meeting, said a press release. Petrobangla is the state- to organize a seminar to dis- loan, CD VAT and excise duty During the FY 2018-2019, the and income taxes during the company earned an amount FY 2018-2019. of Tk. 997.65 crore revenue EP

cuss the future activities of import huge gas from abroad. hydrocarbon exploration. But Petrobangla and Bapex have to it failed to organize it,” the think in a wider perspective state minister said. and engage themselves in that Voicing his resentment, Nas- way. But the biggest challenge rul said the government is is their human resources very serious about domestic who’re not ready to think out gas exploration as it has to of the box,” he said. EP

January 1, 2020 27

Report BB Governor for Collective Turkey Keen to Invest in BD's Efforts to Achieve SDGs Energy Sector

angladesh Bank (BB) Realities'. BGovernor Fazle Kabir The two-day conference was said concerted efforts of all included two keynote pre- the academics, scientists and sentations, five plenary ses- researchers concerned is very sions, meeting with invited crucial to supplement the guest and presenting 18 con- ’ government s relentless ef- tributory papers. forts of achieving the Sustain- able Development Goals Statistical inference, infer- (SDGs) within the time- ence in stochastic processes, frame. statistical computing, biosta- tistics, reliability, survival "Reaching the messages of analysis and industrial statis- SDGs to grassroots people tics were the major focus can be a vital means of areas of the conference. achieving those successfully Chaired by RU Vice Chancel- utgoing Turkish Ambas- nomic development of by 2030," he said while ad- sador in Bangladesh Bangladesh under the leader- dressing the closing session lor (VC) Prof Abdus Sobhan, O the function was addressed Devrim Ozturk said recently ship of Prime Minister Sheikh of an SDG related two-day- Turkey is interested to invest Hasina. "This credit goes to long workshop at Senate by former BB Deputy Gover- nor Dr Sohrab Uddin, RU in the energy sector of you (PM). It (economic devel- Building of Rajshahi Univer- Bangladesh. opment) is your success. I've sity (RU) recently. Pro-VCs Prof Ananda Kumar Shaha and Prof Chowdhury "Turkish investment is com- witnessed how fast RU's statistics department Zakaria as special guests. ing to Bangladesh. Turkish Bangladesh progressed dur- hosted its seventh interna- Convener of the conference entrepreneurs are interested ing my tenure," the envoy tional conference on 'Data Prof Sayedur Rahman also to invest in the energy sector was quoted as saying. Science and SDGs: Chal- spoke on the occasion. here," he said when he met In reply, the Prime Minister lenges, Opportunities and EP Prime Minister Sheikh Hasina said her government's main at her official residence goal is to make village-cen- ADB to Provide $333m for Power, Ganobhaban in the city. tric development so that rural Transportation Sectors PM's Press Secretary Ihsanul people could get its benefits. Karim briefed reporters after She said now the country's he Asian Development room in the capital, said a the meeting. The outgoing GDP growth is 8.15 per cent TBank (ADB) will provide press release. ambassador said they are while the per capita income ready to share technologies US$ 1909. Besides, the US$333.26 million loans for Economic Relations Division with brotherly countries like poverty rate has now de- expansion of power transmis- (ERD) Secretary Monowar Bangladesh. clined to 20.5 per cent from sion lines and designing the Ahmed and ADB Country Di- 41 per cent in 2005. Dhaka Mass Rapid Transit rector Manmohan Parkash He highly praised the eco- EP (MRT) line. signed the agreements on be- Infrastructure Investment transmission network is cru- In this regard, the government half of their respective sides. Bank (AIIB) is considering cial to improve power supply recently inked several agree- For expanding power trans- $200 million in co-financing efficiency after significant im- ments with ADB at a function mission lines in greater Dhaka to finance transmission lines, provement in power produc- at the National Economic and the western zone of substations and an enterprise tion in Bangladesh. Council (NEC) conference Bangladesh, the government resource planning system. “The project will help achieve signed agree- The assistance also comprises the government target of elec- ment for a $750,000 grant from the tricity for all by 2021 by im- €271.84 million People’s Republic of China’s proving the reliability and ($300 million Poverty Reduction and Re- efficiency of the electricity equivalent) gional Cooperation Fund supply in the greater Dhaka loans. (PRC Fund). and western zone of ’ Besides ADB s Manmohan Parkash said up- Bangladesh,” he added. loan, the Asian grading and expanding the EP

January 1, 2020 29 Report KPCL to Acquire 35pc Stake in Move Underway to Extend United Payra Power Plant Contract with Posco he board of directors of agreement with Bangladesh TKhulna Power Company Power Development Board tate-run Petrobangla has in response to the demand Ltd, a listed company, has de- on August 21 this year. Splanned to give South Ko- made by Posco for reviewing cided to acquire 35 per cent rean oil and gas firm Posco the existing 'commercial As per the agreement with International six more term' of its contract signed ordinary shares in United the government, United Payra Power Plant Ltd. months to carry out its with Petrobangla. Payra Power will develop a mandatory contractual obli- Posco also sought a favorable Acquisition of shares of 150 MW HFO (heavy-fuel- gation for hydrocarbon ex- cost recovery provision in the United Payra Power is sub- oil) power plant at Patuakhali ploration in deep sea block production sharing contract ject to obtaining regulatory on Build-Own-Operate in the Bay of Bengal. approvals of relevant author- (BOO) basis for 15 years from (PSC) which will help the in- ities, said an official disclo- the date of commercial oper- "Petrobangla intends to offer ternational oil company re- sure recently. ation, said the disclosure. Posco the additional time to trieve its investment early. ensure the South Korean United Payra Power Plant ex- The required commercial op- Earlier, Posco had informed firm's continuation of hydro- ecuted a power purchase eration date (RCOD) of the Petrobangla as well as Energy carbon exploration job in the power plant and Mineral Resources Divi- country," said a senior is November sion under the Ministry of Petrobangla official. 21, 2020 in Power, Energy and Mineral accordance The state-run Oil, Gas and Resources about its intention with the Mineral Corporation has to relinquish deep sea block terms of the moved to extend the contract DS-12. EP project agree- ments, it Govt Relaxes Rules for Captive added. EP Power Plants aptive power plants pro- power plants. ducing up to 10 Coal Imports Surge on Rising C In a meeting last month, the megawatts (MW) of electric- Power Division favored a no- Demand for Bricks ity for industrial units will no tion for allowing captive longer require any approval oal imports are soaring to to buy coal in the last fiscal power generation until unin- from the Power Distribution fuel hundreds of brick year, and the cost of import terrupted power supply is en- C Companies. kilns that produce the key of the fuel was two and a half sured to industrial units. construction material to feed times the import cost three The Energy and Mineral Re- “We suggest relaxing the the growing demand from years ago. sources Division will issue an conditions for captive power both public and private sec- official order in this regard “The number of brick kilns is plants to get natural gas sup- tors. soon. increasing. Kilns cant’ burn ply for producing electricity Imports of the fossil fuel rose bricks without coal as the Industrial units are now re- to run their industries until 70 percent year-on-year to government has banned the quired to obtain No Objec- we can ensure uninterrupted 57.54 lakh tonnes in fiscal use of firewood,” said Syed tion Certificate (NOC) from power supply to industries,” year 2018-19, customs data Atiqul Hassan, president of power distribution compa- Additional Power Division showed. the Bangladesh Coal & Coke nies before operating any Secretary AKM Humayun Importers Association captive power plants. Kabir said at a meeting of In monetary terms, (BCCIA). Bangladesh Energy and Bangladesh’s private im- The new order will set the Power Research Council porters spent Tk 3,182 crore He said 98 percent of the im- threshold for the size of cap- (BEPRC). ported coal are tive power plants allowed to used to burn bricks be operated without any ap- The previous order issued in to support the in- proval from the authorities. August this year asked the in- creasing demand dustrialists to obtain NOC The move came as part of from public and from power distribution com- maintaining a balance in the private sector con- panies for setting up any cap- efforts to discourage the sup- struction. tive power station. EP ply of natural gas to captive EP

January 1, 2020 30 Report Govt Seeks JICA Fund for Building Power Tariff Hike from Jan 1 Two Matarbari Power Plant Units Not Lawful: CAB

he government is seeking the issue with the Embassy of TJapan International Credit Japan in Dhaka several times Agency (JICA) funding for set- for funding the unit-3 and ting up another two units at unit-4 of Matarbari power Matarbari super critical coal- plant through economic rela- fired power plant complex, tions division (ERD) and official sources said. made a proposal in this re- According to the power divi- gard,” an official said on con- sion officials, the coal-fired dition of anonymity. power generation cost will The preliminary study on come down significantly Matarbari power project con- onsumers Association of convened at Dhaka Re- based on implementation of ducted by JICA in July 2013 Bangladesh (CAB) has porters' Unity recently. another two units including kept the provision for unit-3 C opposed a government move unit-3 and unit-4 at Matar- and unit-4. CAB president Golam Rah- ’ to raise power tariff from Jan- man, secretary Humayun bari in Cox s Bazar. The ‘Matarbari 1200MW uary 1, terming it 'unlawful Kabir Bhuiyan, power-related “We have already discussed Ultra Super Critical Coal- and against consumers'. complaint enquiry and re- fired Power It said Bangladesh Energy search committee president Project’ unit- Regulatory Commission Syed Abul Maksud, energy 1 and Unit-2 (BERC) has allowed high-cost adviser Prof Dr Shamsul are being im- but low-efficient rental/quick Alam and member Prof plemented at rental plants to produce Badrul Imam spoke. a cost of power through misusing the Tk359.84 bil- Urban planner Mubasshar 'Gas and Electricity Develop- lion. Hussein, among others, also EP ment Fund'. addressed the programme, The agency made its opposi- according to a release. dent Xi Jin- tion at a press conference EP Three Projects Taken Off ping's visit to Chinese Funding List Dhaka in Power Generation Cut to senior offi- October, cial. he government is going to 2016. One-Third of Capacity Some power implement three projects T The minutes of the recent plants have with funding from others, in- lectricity generation meeting show that the three been asked to suspend their stead of Chinese assistance as across the country has projects were undertaken by E operations, and some others was initially planned. been reduced to around one- the Power Division, the En- third of the overall capacity to do maintenance work, he This was disclosed in a recent ergy and Mineral Resources under a 'rationing' system in added. meeting where 11 slow-going Division and the Bangladesh view of the sagging demand According to the BPDB statis- projects came under review. Railway. in winter. tics, the countrywide elec- Bangladesh and China earlier The project titled 'Extension of tricity generation during the signed a memorandum of un- The state-run Bangladesh the existing underground min- day-time peak hours on derstanding (MoU) on Power Development Board ing operation of Barapukuria Wednesday (December 18) 'Strengthening Investment and (BPDB) is keeping the coun- Coalmine' was included in the was 6,644 megawatts (MW), Production Capacity Cooper- try's overall electricity gener- list of schemes for Chinese just 34.12 per cent of the ation' for implementing these ation at such a low level due funding to increase the pro- total installed capacity of projects during Chinese Presi- duction capacity of the Bara- to decline in demand, said a 19,467 MW. pukuria Coalmine. However, available But recently the ministry electricity at substa- concerned said they were tion end, excluding not interested in the Chi- transmission loss, nese loan for the project as they want to implement it was only 6,277 MW. on their own. EP EP

January 1, 2020 31 Report Electricity Import from Indian World’s First Floating Nuclear Firm’s Plant in Nepal Okayed Power Unit Supplies Electricity

he Cabinet Committee on GMR at a tariff rate of $Cent to Russian Grid TPublic Purchase (CCPP) 7.7172 (equivalent to Tk recently approved four pro- 6.4284) per kilowatt hour he floating power unit energy industry.” curement proposals, includ- (each unit) for over a period T(FPU) Akademik The project has been wel- ing one for importing 500 of 25 years. Lomonosov has been con- comed by scientists, nuclear nected to the grid and has MW electricity from an In- For the import, the govern- energy experts and environ- started supplying electricity dian company's power plant ment will have to pay a total mentalists across the world. in the isolated Chaun-Bilib- in Nepal. amount of Tk 38,160.75 ino network in Pevek of Kirsty Gogan, Head of Energy The bulk electricity will be crore to GMR through Chukotka at Russia’s Far East. for Humanity, a London imported through another In- NVVN. based NGO, said,“For hard- Alexey Likhachev, CEO of dian company NTPC Vidyut It was informed that state- to-reach regions, with a cli- Rosatom said, “Following its Vyapar Nigam Ltd (NVVN) owned Bangladesh Power mate that is simultaneously connection to the grid, complying with the Indian Development Board (BPDB) too harsh to support the use Akademik Lomonosov be- regulatory commission's and the NVVN signed a non- of renewable energies and comes the world’s first nu- terms and conditions. bonding memorandum of too fragile to continue its clear power plant based on The committee gave the nod understanding (MoU). heavy dependence on fossil Small Modular Reactor (SMR) to the proposal at a meeting fuels, small nuclear, includ- Under the Power and Energy technology to generate elec- held with Finance Minister ing floating plants, is the only Increase of Speedy Supply tricity. This is a remarkable AHM Mustafa Kamal in the answer. Act 2018, now the BPDB will milestone for both the Russ- chair. sign power sales agreement ian and the world’s nuclear Akademik Lomonosov is the As per the proposal, (SPA) with the NVVN to im- first step to- Bangladesh will import the port the electricity from the wards demon- electricity from Indian firm GMR. EP strating its potential for exploration in a Exploring Fossil Fuel planned way," said decarbonisa- tion of the he state-run energy ex- a senior official. Arctic and be- plorer has prepared an op- T An advanced and standard yond.” erating procedure from exploration procedure will be EP hydrocarbon exploration to developed after carrying out production aiming to develop further scrutiny, he said. a new methodology for strik- Technip Revises Down Construction ing fossil fuel. The Bangladesh Petroleum Exploration and Production Cost of Oil Refinery to $ 2.23b The procedure details the re- Company Ltd (Bapex) is ex- quired job for any explorer to pected to follow the proce- rench firm Technip, which work has opined that the cost carry out seismic surveys, drill dure for exploring oil and gas Fis keen to clinch the con- might be significantly lower if tract for building the country's it is built through tendering, he wells and find hydrocarbon in future. It will also be fol- second crude oil refinery, has added. reserves. lowed by others too. revised down the estimated The Indian consulting firm, En- "It will be a sort of guideline Officials said Bapex has cost of its construction to US$ gineers India Limited (EIL), has for carrying out oil and gas chalked out a mega pro- 2.23 billion. also estimated that the cost gramme The oil refinery will have an might be around $1.80 billion to boost annual capacity of 3.0 million if the engineering, procure- hydro- tonnes. ment and construction (EPC) carbon The revised cost of this project contractor is selected through discov- is around 20 per cent lower competitive bidding. ery, using than the cost of $2.80 billion as The project cost is expected to the latest estimated by Technip initially, be provided by the govern- technol- a senior BPC official said. ment and the state-run ogy. But the Indian consultant for Bangladesh Petroleum Corpo- EP project management of this ration (BPC). EP

January 1, 2020 32

Sungrow Secures Contract for 35 MW Plant

he engineering, pro- curement and construc- Ttion (EPC) services unit of Chinese inverter maker Sungrow has secured a 35 MW solar park contract in the Manikganj district of Bangladesh. The project, which will be the first in Bangladesh to feature central inverters, is being de- veloped by domestic com- pany Spectra Solar Park Ltd with financial support from the Asian Development Bank and German development Sungrow beat off competition from China Energy Engineering Corp as well lender KfW. state-owned rivals PowerChina and as ERS Malaysia and the Mahindra Susten unit of Indian conglomerate common people”, said Mahindra Group. Make Renewable Energy the state minister The contract was signed recently by while addressing as Available, Says Nasrul the chief guest at an Imran Chowdhury, country head for innovative idea hunt- Sungrow Bangladesh, and he told pv tate Minister for Power, Energy and ing grand finale competition on the use magazine: “We are really happy to get SMineral Resources Nasrul Hamid of renewable energy at Sheikh Hasina quick success in [the] Bangladesh mar- recently underscored the need for National Youth Centre. ket as [an] EPC and from next year we more research aiming to make the re- have the plan to work as [a] project de- Despite the price of the renewable en- newable energy available for the peo- veloper [and] IPP [independent power ple. ergy is comparatively higher, but this producer] to expand our portfolio in this sort of the energy is becoming popular “Necessary initiatives should be taken in the developed world due to its envi- emerging market.” for conducting more research to make ronment friendliness, said Nasrul at the Construction is set to start on the project the renewable energy available for the function arranged by Young Bangla in by the second week of January with cooperation with Power Cell completion slated for August. The proj- and Green Delta Life Insur- ect was approved by the Bangladeshi ance Limited. government’s cabinet committee on Power Cell Director General public procurement in April 2017. Mohammad Hossain and Dhaka is aiming to generate 10% of the ’ Managing Director of Green nation s electricity from renewables next Delta Life Insurance Limited year. The government will purchase Farzana Chowdhury also solar electricity generated at the plant spoke on the occasion among for 20 years at a rate of Tk 11.12/kWh others. ($0.13). EP EP

January 1, 2020 35

First Nationwide Network of Bio-CNG Projects Under Development in US

ominion Energy and Vanguard Re- alliance with Dairy Farmers of America, Can Algae-Based Dnewables announced a more than we’re rapidly accelerating the develop- Biofuels Ever Be $200 million, nationwide strategic part- ment of these transformational projects nership to convert methane from U.S. and for the first time on a nationwide Cost Effective? dairy farms into clean, renewable natu- scale,” said Diane Leopold, Dominion ’ ral gas that can fuel vehicles, heat Energy s Co-Chief Operating Officer. he ENBIO project uses excess energy homes and power businesses. “We’re substantially reducing green- Tfrom wind turbines to power sixteen Multiple projects are under develop- house gas emissions from U.S. dairy 1,000-litre photo-bioreactors which grow ment in Georgia, Nevada, Colorado, farms, delivering new sources of clean algae that can then be used for biofuels. New Mexico, and Utah with additional energy to U.S. consumers and providing The project demonstrates how green projects planned nationwide. Under this a new source of long-term revenue for technologies can work together, but can partnership, Dominion Energy will own family farmers across the country.” it make algae-derived fuel competitive? GlobalData’s power technology writer the projects and market the biomethane, A typical dairy waste-to-energy project Umar Ali investigates. and Vanguard Renewables’ subsidiary consists of a cluster of multiple farms to- Clean Energy Investment USA dba Van- Ali says: “Algae-derived fuel was an ex- taling 20,000 to 30,000 dairy cows. The guard Renewables Ag will design, de- citing prospect for energy companies in methane produced from dairy manure is velop and operate the projects. the early 2010s, with a number of invest- captured through a process known as ments made into exploring the potential “Through our strategic partnership with Farm Powered® anaerobic digestion of algae fuels to combat the climate crisis Vanguard Renewables and our strategic and is then transported through low- and facilitate the development of renew- pressure gathering lines to able energy sources. a central conditioning fa- “In 2010 the Algae Biomass Organisation cility. (ABO) predicted that algae fuel would Once the gas is processed reach price parity with oil by 2018, with and cleaned of any impuri- ABO head at the time Mary Rosenthal ex- ties, it is then delivered to pecting “several billions of gallons” of local consumers through algae to be produced as a fuel source by the existing underground 2017. distribution network. “However, the reality of algae-based fuel Source: Dominion Energy today is far from the green superfuel pre- dicted by the energy industry, and al- EP though these algae projects demonstrate the utility of existing renewable energy KfW Continues to Fund Energy Efficiency infrastructures, the viability of algae as a in Public Buildings in Montenegro fuel source itself is up for question. “A major problem with algae as a fuel ermany’s KfW Development Bank “We have a large portfolio in the Balkans source is the high-maintenance growing Gis giving Montenegro a loan of EUR in the segment of energy efficiency. conditions required to produce the re- 45 million and a EUR 4.8 million grant However, Montenegro was first and we quired quantities of algae — the plants for the third phase of the project for en- learned from it as an example. This is need large open ponds, and significant ₂ ergy efficiency in public buildings. where we had our first experiences and volumes of CO and fertiliser to enable learned a lot together about implemen- the algae to photosynthesise fast enough On behalf of the government in Podgor- at large scales.” ica, minister of finance Darko tation. We look forward to further chal- Radunović signed the credit contract lenges and the realization of the ENBIO business development officer Ca- role Shellcock tells GlobalData: “If we while minister of economy Dragica program. As far as KfW is concerned, we are talking about algae-based fuel, pro- Sekulić inked the part facilitating the do- will remain your faithful partner.” duction cost is the main limitation. For nation. The ceremony which will lead to the the moment it’s around £10 per litre of improvement in energy efficiency in “This is a great opportunity both for you biodiesel. The quantity of algae that public buildings was attended by and for us,” said Pablo Obrador Al- needs to be produced to enter the market varez, KfW’s chief of energy and trans- deputy ambassador of Germany Cristoff is huge compared to the current global Breuning. port in Southeast Europe and Turkey. EP production.” EP

January 1, 2020 37 Potential of Renewables for Iraq and Ethiopia. Solar mini-grids in Refugee Settlements particular, are high- lighted as being able n-site renewable energy solutions to boost the efficiency Economic Slowdown Ocan cost-effectively supply refugee of humanitarian operations, avoid costly communities with low-cost, reliable diesel consumption, and support re- Affecting Solar electricity, according to the findings of a cently arrived refugees with immediate, new report by the International Renew- reliable electricity access. Installations in India, able Energy Agency (IRENA) in cooper- The report was launched as both organ- says GlobalData ation with UNHCR, the UN Refugee izations agreed in a new Memorandum Agency. of Understanding (MoU) to enhance he economic slowdown in India and There are currently almost 26 million their existing cooperation on promoting Tconsequently the lack of inflow of in- refugees in the world today. Unreliable renewable energy solutions for the im- vestments are affecting the renewable en- energy exposes them to additional and provement of the humanitarian situation ergy sector, including the solar power associated risks which renewables can for millions of people displaced from segment, says GlobalData, a leading data serve to overcome. their homes today. and analytics company. Renewables for refugee settlements: Sus- “In line with our Global Strategy for Sus- The Ministry of New & Renewable En- tainable energy access in humanitarian tainable Energy, we aim to ensure that ergy (MNRE) had set a target of 8.5 gi- situations, released at the Global refugees can meet their basic energy gawatt (GW) of solar installations during Refugee Forum currently taking place in needs in exile while also minimizing en- the financial year (FY) 2019-2020 of Geneva, examines the energy needs at vironmental degradation. Sustainable which, the sector had installed around refugee camps and identifies renew- energy access will bridge this gap, en- 3.5 GW during the first half (till October ables-based solutions for four sites in abling refugees to pursue education, 2019), which is 41% of the target instal- supporting businesses and lation for the year. social enterprises, spurring innovation and exponen- The annual target for FY2018-2019 was tially enhancing the safety 11 GW, out of which the sector installed and well-being of people around 6.5 GW, contributing around and communities, until 59% of the targeted installations. One of such time that they can re- the primary reasons for the drop in instal- lations is lack of investment in the sector turn home,” said UN High because of the economic slowdown. Commissioner for Refugees, Filippo Grandi. Mohit Prasad, Project Manager at Glob- EP alData, comments: “The economic slow- equipment manufac- down is impacting the rooftop solar PV COP25 Sees Launch of New turers, universities, re- sector, which was the bright spot in the €18m Hydropower Initiative search centers and previous year. The sector has been hit by consultancies. It will the slowdown, with installations drop- ping by 43.6% in the quarter ended Sep- demonstrate how major new energy innovation proj- tember 2019, on a year-on-year basis. modern hydropower plants can provide ect to demonstrate how smart hy- The sector has achieved installations A the vital power grid services required by dropower technologies can deliver a worth 482.45 megawatt (MW) till Octo- variable renewables such as wind and low-carbon, reliable and resilient power ber-end against the financial year target solar power. system was launched at the United Na- of 1,000 MW. tions climate change conference The launch comes after a UN Emissions (COP25) in Madrid, Spain. “The corporate and commercial cus- Gap Report looking at ways to reduce tomers, who are the key players in the € The 18 million initiative was an- global carbon emissions said that solar rooftop space, are witnessing drop nounced by the European Commission greater power system flexibility was in their sales, and therefore subsequently and a consortium of 19 partners, includ- “key” to integrating larger shares of vari- in their investments and new rooftop ing the International Hydropower Asso- able renewable energy into the power solar installations.” EP ciation. supply. The XFLEX HYDRO (Hydropower Ex- The project will conclude in 2023 by dropower fleet, with policy and market tending Power System Flexibility) proj- delivering a roadmap to increase adop- recommendations for governments, reg- ect is a four-year initiative by utilities, tion of the technologies across the hy- ulators and industry. EP

January 1, 2020 38

Climate

have been involved in the development Key Trends Impacting Power Industry of microgrid projects, the scale of which has also been increasing with projects in 2020, Says GlobalData as large as the 100MW Armonia Micro- grid Project in Palau being developed. EP Desk Large corporates are increasingly sign- ing PPAs with genera- he power sector tors to meet their power is witnessing sig- needs. Most of these Tnificant changes. are signed with renew- As 2019 draws to a able energy generators, close, Harminder enabling them to in- Singh, Director of crease the share of re- Power at leading data newable energy in their and analytics company total consumption. GlobalData, looks at Companies such as the key trends that will Google, Amazon, Face- shape the industry in book and Microsoft 2020, ranging from have continued to sign electric vehicles to cor- PPAs during 2019 and porate power purchase this trend is expected to agreements (PPAs). continue in the future year has seen a number of microgrid "The adoption of electric vehicles (EVs) due to the expansion of the data centers projects being announced by compa- is set to continue on the steep trajectory market increasing their power require- nies across the world. Utilities such as witnessed in the last few years. The ments. Duke Energy, EDF, Engie and AusNet EP global EV fleet, which stood at over 5.1 million in 2018, is expected to reach ishment,” said DNCC around 130 million by 2030 as per In- No Air Polluter Will Be mayor Atiqul Islam while ternational Energy Agency (IEA) fore- inaugurating the drive casts. Spared: DNCC Mayor against air pollution at Power utilities, which have traditionally Niketan. mobile court of Dhaka North City been averse to the adoption of new Corporation (DNCC) recently He said many people consider them- technologies, are now realizing their A fined four contractors -- including a selves “powerful enough” to do any- benefits and offering heavy investment. DNCC contractor -- Tk 80,000, for thing they wish, and do not follow An emerging technology trends survey keeping construction materials on rules. “They will have to understand conducted by GlobalData reveals that footpaths and polluting air at Niketan. that no one is more powerful than the cyber security, big data, cloud comput- government,” he added. ing, robotics and Internet of Things (IoT) The mobile court, led by executive are being seen as the top five technolo- magistrates Md Abdul Hamid Miah It is not acceptable that anyone will gies that will have the maximum impact and Mir Nahid Ahsan, also pulled come and set up billboards, festoons, on the sector over the next three years. down illegal billboards from road me- banners on footpaths, medians or elec- dians at Gulshan-1 and Gulshan-2. tric poles, the mayor said. There is a Energy storage installation among end- provision of taking permission from users (renewable energy generators, grid “All development work will have to be city corporation before doing these, operators and distributed generation) is done in a compliant manner, other- and anyone wishing to do so will have projected to witness larger growth due wise no one will be spared from pun- to follow the law, he said. to smart grid development. The battery energy storage system (BESS) market, “We are only removing the illegal which is estimated at 4.9 gigawatt (GW) billboards this time, but we will in 2018, is forecast to reach 22.2GW by take legal action against the of- 2023. fenders if anyone does it again,” the mayor said. Microgrids will continue to make in- roads in the power sector, driven by the Atiqul also distributed leaflets to need for resiliency, energy security and locals to raise awareness about air the electrification of remote areas. This pollution. EP

January 1, 2020 41 Climate Dhaka Ranks 7th Worst in Air RAKEZ Pioneers Eco-Friendly Quality Index Developments in Ras Al

he capital city of Dhaka 223, 194 and 193 respec- Khaimah Tranked 7th worst in the tively. Air Quality Index (AQI) re- as Al Khaimah Economic ciency of buildings while re- When the AQI value is be- cently. RZone (RAKEZ) has be- ducing energy consumption. tween 151 and 200, entire come the first entity to sup- Significant water savings are Dhaka had a score of 175, population is more likely to port Ras Al Khaimah’s Energy also anticipated. which means the air quality begin to experience health Efficiency and Renewables The facilities were designed was 'unhealthy'. effects. Strategy 2040. With its up- with PV solar system provi- Mongolia's Ulaanbaatar, The air quality is categorized coming developments, the sion which RAKEZ clients Afghanistan's Kabul and Pak- as good when the AQI score economic zone has commit- can use to provide electricity istan's Lahore occupied the remains below 50. The air is ted to complying with Bar- to their machineries and first three slots with scores of classified as moderate when jeel, the green building equipment to save on energy. the score is 51- regulations of the emirate, In addition, the warehouses 100. But when which will soon be manda- will have insulated external the number is tory to all building construc- walls to decrease the absorp- between 101 tions. tion of heat during the day, and 150, the air Currently, RAKEZ is con- thus reducing the energy re- is classified as structing new warehouses quired to cool the facility, unhealthy for and labor accommodations and providing better indoor sensitive groups. in its Al Hamra Industrial conditions for the occupants. EP Zone. These two projects are “The project will play a sig- being rolled out in compli- nificant role in reducing en- Offshore Energy Integration ance with Barjeel regulations ergy and water bills by giving and standards, which are ex- our clients the opportunity to Plays Key Role in UK’s Move pected to increase the effi- install and use Towards Net Zero Target alternative en- ergy resources, he UK’s upstream regula- cept substitutes open cycle such as renew- Ttor, Oil and Gas Authority gas turbines (OCGTs) with able energy (OGA), in its recent study ti- electricity supplied by under- from PV solar tled ‘UK Continental Shelf water cables directly from panels,” said (UKCS) Energy Integration: offshore wind farms. Gas-to- Ramy Jallad, Interim Findings’ claims that wire projects aim to tap un- Group CEO of integrating the UK offshore developed gas reserves and RAKEZ. EP energy sector, including generate electricity for export closer links between oil and through an offshore grid Greenland Ice Melt ‘Is simistic projec- gas and renewables, can re- using existing wind farm ca- tion of the future. duce carbon emissions in oil bles. Accelerating’ and gas production and can It means an addi- CCS concept comprises of actively support the delivery reenland is losing ice tional 7cm of ocean rise compression, transport and of the UK's net zero target by seven times faster than it could now be expected by injection of CO2 emissions G 2050. was in the 1990s. the end of the century from into offshore subsurface stor- Greenland alone. This This study assessed five off- age sites. Hydrogen has fea- The assessment comes from shore integration technolo- an international team of threatens to put many mil- sible production avenues ’ gies such as carbon capture through both ‘blue’ hydrogen polar scientists who ve re- lions more people in low- and storage (CCS), platform (produced by natural gas re- viewed all the satellite obser- lying coastal regions at risk electrification, Gas-to-Wire forming) and ‘green’ hydro- vations over a 26-year of flooding. It’s estimated (GtW), hydrogen, and energy gen (electrolysis produced by period. roughly a billion live today hubs to potentially reduce renewables) routes, enabling They say Greenland’s contri- less than 10m above current emissions from the oil and decarbonisation of power, bution to sea-level rise is cur- high-tide lines, including gas production sector further. heat and transport. rently tracking what had 250 million below 1m. Platform electrification con- EP been regarded as a pes- EP

January 1, 2020 42 Climate Climate Change, Sea-Level Rise Eco-Friendly Hollow Blocks Cut Serious Threat to Agri Growth Building Costs by 25pc: Study he cost of building con- pieces of stones. These blocks Tstruction could be needn't be burned. That's brought down by 25 per cent why they are environment- with the use of eco-friendly friendly,” said Akhter Hossain materials like hollow blocks, Sarkar, a senior research offi- instead of traditional bricks, cer of HBRI. according to a study of the The sound and heat protec- House Building Research In- tion capacity of these blocks stitute (HBRI). are higher than that of tradi- The study titled “The cost- tional bricks. The lightweight, benefit analysis of using hol- saline, and humidity-protec- low block in modern tive nature of the blocks en- limate change and sea- Khan Khasru, k ministry sec- building” was conducted by sures longevity, Sarkar said. level rise pose a serious retary Raisul Alam Mondal, C HBRI in recent months. The HBRI official also said threat to the country's im- WB's acting country director According to the study, coun- that the cost of building con- pressive growth in agricul- for Bangladesh and Bhutan tries like China, Vietnam, and struction could be brought tural productivity. Dandan Chen, and joint sec- Indonesia have already down 25 per cent with the Bangladesh and the World retary (blue economy) Taufiq started to use a combination use of these hollow blocks. Bank (WB) recently launched Arif also spoke on the occa- of sand, cement, and stone- “Each piece of hollow blocks the Climate-Smart Agricul- sion. made blocks, instead of tradi- costs Tk. 30—35. A piece of ture Investment Plan (CSAIP) “During the last 25 years, tional bricks, to reduce any hollow block is 4.5 times big- to address the impact of cli- Bangladesh’s agricultural harmful environmental im- ger than a traditional brick. mate change on agriculture productivity growth has been pact. So, it will reduce the con- and to prioritize investments among the highest in the struction cost,” he added. to improve productivity, re- “These blocks are made of world and supported around silience, and mitigation in the river sand, cement, and small EP 87 per cent of the rural agriculture sector at the city’s households. But rising tem- Krishibid Institution. peratures will affect the yield Agriculture minister Abdur of Aman and Boro rice, the Razzaque was present on the country’s two major staple occasion. Fisheries and live- crops,” Abdur Razzaque stock minister Md Ashraf Ali said. EP Govt Drafts Rules for Clothing Industry Registration with Strict Environmental Conditions he government has conditions including restric- Tdrafted rules (industry tion on discharging industry Jute (MoTJ) drafted the rules make the service-receiving registration) 2019 for the wastes to nearby rivers, and published it at the offi- process easy, a department textile and clothing sector, connecting canals and cial website of DoT on No- official said. vember 25. aiming to ease the registra- other common water bod- The move came in line with tion process and bring the ies without treatment. The ministry also sought the government's measures industries under the spon- It also asked for mandatory feedback on the draft from to empower the DoT as the soring authority's regula- setting up of effluent treat- the stakeholders/ trade bod- sponsoring authority to pro- tion, officials said. ment plant and making it ies concerned. vide services to the coun- To get industries registered functional along with abid- The DoT has convened a try's textile and clothing with the Department of Tex- ing by the law related to the meeting next week with the sector by enacting Textile tile (DoT), the draft rules in- environment. stakeholders to get their Law 2018, he said. corporated some 15 The Ministry of Textiles and opinion on the rules and EP

January 1, 2020 43 Climate Eco-Friendly Blocks Made 73 Countries Commit to Net Zero Mandatory in Govt Projects CO2 Emissions by 2050 he government has made which use valuable topsoil as he COP25 Presidency an- 2020 and achieve net zero Tmandatory the use of raw material. Tnounced additional com- carbon dioxide (CO2) emis- blocks in public construction Agencies will have to use 10 mitments within the Climate sions by 2050. from this fiscal year as it Ambition Alliance. percent blocks in the current UN Secretary-General An- moves to cut the reliance on fiscal year of 2019-20 and 20 Chile's Minister of Environ- tónio Guterres asked Chile to bricks for building structures, percent the following year, ment Carolina Schmidt said lead the Climate Ambition walls and roads, an official according to a notification of 73 parties to the UNFCCC, Alliance in the context of document showed. the environment, forest and 14 regions, 398 cities, 768 government’s role as the orig- Under the plan, state-run climate change ministry, is- businesses and 16 investors inal host of COP25. During agencies will use blocks, sued on November 24. are working to achieve net- the September 2019 UN Cli- which will be made up of “Fire-burnt bricks pollute air zero CO2 emissions by mate Action Summit, Presi- sand, cement fly ash or mate- and the environment. It also 2050. dent of Chile Sebastián rials other than clay, to build Piñera launched the Alliance affects agricultural lands. This The UN Secretary-General and repair walls of buildings, to accelerate the transforma- is why we want to move to said he is “deeply encour- surrounding walls, herring- tion needed to meet the goals blocks from bricks,” said aged by the growth” in the bone bond road, and rural of the Paris Agreement on cli- Mallick Anwar Hossain, addi- Alliance, and major emitters passages in place of bricks, mate change and stabilize tional director will be a top priority between the global average tempera- general of the now and COP 26. Department of ture rise at 1.5°C above pre- Environment. The Chilean Presidency of industrial levels. the 25th session of the Con- “We have de- In addition to 73 UNFCCC ference of the Parties (COP cided to com- parties, 14 regions, 398 25) to the UNFCCC an- pletely shift to cities, 768 businesses and 16 nounced a renewed Climate blocks from fire investors are working to Ambition Alliance, in which bricks by 2025.” achieve net-zero CO emis- participating countries com- 2 sions by 2050. EP mit to accelerate action by EP Rajuk, and Govt Bodies Contributing record is 2016 some rele- ‘Global Warming Trend when a strong El vant min- to Air Pollution Niño made a istries to Continue Next Year’ ather than reducing air significant dif- worsen the quality of air he global warming trend ference. Rpollution, government in- through unplanned develop- will continue next year T This weather phenomenon stitutions actually contribute ment activities, including with temperatures again likely sees sea surface temperatures to it, environmental activists random road and sewer line to rise more than one degree alleged at a press conference repairs and metro rail con- increase in the central and above pre-industrial levels. ’ in the capital’s Kalabagan re- struction. eastern Pacific and it s associ- cently. According to the Met Office, ated with a range of impacts These sources are among the 2020 will likely be 1.11C around the world, including At the programme, activists greatest pollutants of Dhaka, warmer than the average be- the overall global level of from Poribesh Bachao An- along with brick kilns, unfit tween 1850-1900. warming. dolon (Poba) and Bangladesh vehicles and heavy industry, The year ahead is set to extend Resource Center for Indige- According to the Met Office, the speakers said citing re- the series of the warmest years nous Knowledge (BARCIK) the chances of a strong El Niño search. on record to six in a row. Sci- in 2020 are low. observed that institutions entists say the strongest factor They urged the government They forecast that the global such as the city corporations, causing the rise is greenhouse to immediately come up average temperature next year gas emissions. The world first with a specific action will be in the range of 0.99C to broke through one degree plan to check air pollu- 1.23C with a central estimate above pre-industrial tempera- tion, which has recently of 1.11C. The researchers say tures back in 2015. become a major health that the key factor will be emis- concern for the city’s in- Each year since then has seen sions of CO2 and other warm- habitants. temperatures close to or above EP ing gases. EP this mark. The warmest year on

January 1, 2020 44 Interview ‘Imported Fuel Dependence to Be A Burden ’

proper mix of own and imported affordable cost. How ready you think is primary fuel needs to be ensured the government for these? for Bangladesh to achieve afford- A The past 11 years of the Awami League- able power supply. But the country is not led government evidence that the power pursuing that path. The trend over the generation has increasingly become re- past twelve years is driving Bangladesh liant on imported fuel due to lack of ini- increasingly towards imported fuel de- tiatives for exploring and exploiting own pendency. This will put new stress on the fuel resources. The lowering trend of fuel economy and affect the envisioned high in the global market is creating our ex- growth rate. Policy towards increasing pectation for supplying power and fuel at energy independency must be adopted as affordable cost. This is beyond our con- soon as possible for coming out from it. Prof Dr. M Tamim trol. For affordable energy supply, more Energy expert Prof Dr. M Tamim, Pro-Vice specifically power supply, we need to Chancellor of BRAC University, said this adopt a proper mix of own and imported in an exclusive interview with Energy & fuel. Unfortunately, no such initiative is Power Editor Mollah Amzad Hossain. visible now. Exploitation of own coal re- The past 11 years of the Awami serve and setting up of power plants using 2021 will be the Golden Jubilee Year of League­led government evidence that this could be the best option for supply- Bangladesh’s liberation. Different mile- the power generation has increasingly ing power at affordable cost. But over the stones have been set already for achiev- become reliant on imported fuel due to past, no such initiative has been taken. ing in the power and energy sector for lack of initiatives for exploring and giving it a new dimension. It is definitely The required initiative has not also been exploiting own fuel resources. The a huge challenge to achieve these. How taken to explore petroleum resources lowering trend of fuel in the global do you evaluate these challenges? over the past 11 years. I would not hesi- market is creating our expectation for tate to say that the government has com- supplying power and fuel at Power generation has surplus now. Still pletely failed here. Resolution of affordable cost. the incidents of power loadshedding exist maritime boundary disputes of the Bay of due to constraints in transmission and dis- Bengal with Myanmar and India were tribution system. Consequently, the sup- great achievements. Another commend- ply of quality power on uninterruptible able success is commencement of power basis is still a far cry despite having sur- trade with India. Increasing the present plus in generation. I do not think it will 1160 MW power import from India in be possible making a significant achieve- phases would auger well for Bangladesh. at all segments of the power and energy ment in power transmission and distribu- value chain — power generation, trans- tion in 2020. You are voicing concern over the past 5 mission, distribution and supply to the years that the power and energy sector of end users. Not only in the power and en- No reliable initiative is visible now for ex- Bangladesh would become 92 percent ergy sector, but improved governance ploring own primary fuel — coal and gas. dependent on imported fuel if it fails to would also be essential at the govern- The present policy would lead exploit its own reserve. The present trend ment level as well. These are huge chal- Bangladesh towards 90 percent depend- is actually like that. Will this turn into an lenges for Bangladesh. ency on imported fuel by 2030. This will impediment towards achieving national stress the economy. The power tariff and vision of mid-income and developed Exclusively imported fuel dependent gas price would require increasing re- economy for Bangladesh? countries like Japan, South Korea, Taiwan peatedly in phases to manage the im- and Singapore could achieve and main- pacts. In my opinion, this will be the Pursuing the path of fuel import, tain competitiveness in global market major challenge of the government in Bangladesh has stepped into higher through good governance and efficient 2020. priced fuel highway. Consequently, this use of power and energy. I do think that The power sector has grown massive will create adverse impacts on the econ- this is not at all easy for Bangladesh. Get- compared to earlier situation. But selec- omy if efficient use of power and energy ting the expected return from the market tion of fuel and ensuring its supply are cannot be ensured through good gover- from supplying power based on imported major challenges for supplying power at nance. Efficiency requires to be ensured fuel and gas from imported LNG would

January 1, 2020 45 be the major challenge in the future. power act as contingency initiative for 2- prehensive manner. These would entirely depend on good 3 years after 2009 was appropriate to Liquid fuel contributes over 30% to total governance in the country. In general confront crisis. We also vouched for this. generation now. The government is talk- terms, governance of power and energy But war like emergency cannot continue ing about bringing it down to 5% by sector would require major improve- for indefinite period. People would defi- 2041. What is your opinion about the ment. Taking the economy to ride on nitely question about the lack of trans- planned fuel mix of the government? right track would be extremely challeng- parency. It will not be difficult to achieve it if the ing without this. The only possibility of Capacity charge needs to be accounted under construction and planned coal and comfort would be there if the present low for keeping some private sector power LNG-based power plants come into op- trend of price of fuel in global market plants idle due to surplus generation ca- eration. We must bear in mind that the continues. pacity and less demand. This is increas- possibilities of imported coal-based ing average cost of generation. What are Public sector companies are still leading power plants other than that at Payra, your suggestions for coming out of it? the power generation. But there exists Rampal and Matarbari are remote. But many complaints regarding the effi- Keeping the political consideration at dependence on coal-based plants can be ciency, transparency and manpower bay, power plants must be used on the reduced if 7000-8000 MW LNG-based competence of the companies. It is being basis of efficiency in generation. Many power plant construction is possible. At alleged that the consequence of ineffi- power plants of the public sector have the same time if we can achieve the tar- ciency and poor governance of power outlived their economic design period. geted import of 9000 MW, the simple sector is transferred to the power users Most of these are operating at very low theoretical calculation would tell you through increased power tariff. What are efficiency or are shut down now. These that bringing down the contribution of your views? must be retired. On the other hand, due liquid fuel-based to 5 percent by 2041 is to cooling load the demand varies by There is no doubt that the power users possible. But proven track records of 3000-4000 MW in summer and winter. are bearing the burnt of inefficiency of project implementation would keep Hence we have no option now but keep- public sector utilities. One example some doubts as well. ing some power plants idle for 4-5 would substantiate. The system loss of months. The demand in the industrial There are more allegations of inefficiency Titas Gas Transmission and Distribution sector did not grow as expected by the and poor management of energy compa- Company Limited (TGTDCL) has in- government. But the demand in domestic nies compared with the public sector creased from 3 percent to 12 percent after sector keeps increasing. power companies. For these the explo- the LNG import increased the supply ration of own coal and gas as well as pressure. This has exposed the level of I am more than sure that many agree- modernization of energy sector are lag- pilferage in the system. The government ments made under contingency program ging behind. What is your opinion about and utilities must work hand in hand to have been subsequently extended. In fu- these allegations? get out of the menace. I think the govern- ture no agreement with liquid fuel-based ment is in a policy dilemma. The govern- power plants should be further extended, It is not only in the power and energy sec- ment has to take responsibility and give especially the inefficient and expensive tor. Every sector of the country have crisis proper directives to improve the situation. ones. These would reduce installed ca- of competent manpower. We do not have pacity by about 2000 MW that could eas- required number of competent and effi- Around 30 private companies including ily be replaced by the Rampal and Payra cient manpower for processing raw ma- Summit and United are involved in the plants. There may be questions what terials to final products adding values to power generation. What positive contri- would happen in case of demand in- these. Without wasting time anymore, the butions these companies have made in crease. I think some large plants in the government must set up a separate min- the enhancement of power generation in pipeline under mid-term planning would istry for human capital development. The Bangladesh? Consumers Association of cater for the increased demand. responsibility of that ministry would be Bangladesh (CAB) has raised questions objectively assessing the human resource The projection of power demand by Gov- about the transparency of signing agree- requirements and implementing that with ernment policy was based on the hope of ments with private sector companies. the assistance of universities and insti- increased industrial demand that was How do you evaluate this? tutes. In five years, Bangladesh will start tagged to GDP growth. Unfortunately, the getting into comfortable position if this The new agreements and extension of contribution of industrial growth in our can be initiated now. Otherwise, the agreements for rental, quick rental and GDP growth was not as projected. As a GDP growth at expected level will not be IPPs are not transparent to people. They result, we do have some excess capacity achieved. believe that these have served the pur- now. The mismatch in demand forecast pose and interests of individuals and and supply is not unusual when it is Petrobangla and its companies cannot identified groups. Especially concluding lumped with GDP growth. A much better explore the petroleum resources due to these agreements under speedy power approach would be to tag the power de- lack of personnel, investment, equipment act instead of resorting to national pro- mand forecast on a bottom up sector wise and knowhow. The man power shortage curement policy has intensified the growth approach. We need to rethink the in Petrobangla has grown over the years doubts and concerns. Adoption of speedy entire energy planning situation in a com- due to absence of recruitment and

January 1, 2020 46 training fueled by lack of activities. The It could be possible to supply power at for cheaper prices of energy and power. energy sector is suffering from policy affordable cost if we could set up mine Power tariff has now increased to re- confusion. It is not clear who is going to mouth coal power plants, exploiting our gional level and gas price is also being lead the exploration and production. In own coal reserve. There exists opportu- adjusted. Consequently, the investment my opinion, if government is truly sin- nity for generating up to 5000-7000 MW in energy-efficient machineries has in- cere about exploring own petroleum re- of power using our own coal. The cost of creased significantly in industry sector. sources, it must go for immediate PSC power to be generated by using imported Captive power plants are going for co- bidding round at onshore for exploration. coal at Payra, Matarbari and Rampal generation and tri-generation for enhanc- It is already established that oil and gas would not be cheap at all. ing efficient use of fuel. The government exploration through PSC is economically initiatives for enhancing energy effi- Our negligible carbon footprint is not an beneficial for Bangladesh. Petrobangla ciency and energy conservation are com- issue at all for mining own coal or gener- can always grow parallel like Petronas or mendable. ating power with coal. USA, Germany, ONGC by active engagement in both South Africa, China and India are still In my opinion, for achieving greater en- technical and management issues with largely dependent on coal for power gen- ergy efficiency, the government must en- the IOCs. eration. Local pollution is a problem for sure use of star-rated appliances for every We have heard a lot about oil and gas ex- Bangladesh rather than the contribution user in the household sector. ploration. But over last 20 years, the suc- to the global increase. The government is working on low car- cess is not at all encouraging. What are Coal mining in Bangladesh has technical bon development policy. Do you think your suggestions for onshore exploration challenges and also some financial issues that the government in power and energy now? but these are manageable. No serious sector is on the right track for achieving I have already mentioned that apart from study was initiated by the government on this? coal mining. Rejecting the idea of mining the blocks allocated to BAPEX and IOCs, The government has to initiate actions without such study shows that the prob- fresh bidding round must be invited as both at the demand and supply segments lem lies somewhere else. I think that the soon as possible for exploration. I do not for reducing carbon emissions to achieve government feels mining in northern re- think joint venture will bring any divi- low carbon development. Especially gion will harm their political interest. dend. BAPEX can have joint venture for power generation must be more efficient Hence coal mining in Bangladesh now developing any discovered gas field. We for limiting emissions. On the other hand, depends entirely on political decision. must bear in mind that PSC is a success- as Bangladesh is increasingly moving to- ful exploration model for Bangladesh. The government has several plans, in- wards expensive imported primary fuel, Petrobangla has finalized a fresh Model cluding master plans, for power and en- we must encourage investment more and PSC 2019 for offshore exploration. It has ergy sector development. These are also more on low energy-intensive industries. being implemented. How do you evalu- updated few provisions including gas The renewable energy target of 2020 will ate these plans? price and terms. Do you think that Model not be achieved. What are your sugges- PSC 2019 would be attractive for leading I have already mentioned that the Power tions for increasing contributions of re- IOCs for risking investments? System Master Plan have been made newable energy in Bangladesh? What do considering the GDP growth though the you think would be the reasonable tar- We have fallen way behind in offshore government anticipates that the power get? exploration. Even the non-exclusive demand would exceed what was esti- multi-client survey for development in- More success could be achieved in re- mated in the PSMP. But till now the de- formation package could not be started newable energy if feed-in-tariff could be mand did not reach the projected limit. in 5 years. I have heard that a company introduced. The rooftop solar and net The demand in the industry sector has has finally been selected for this. It will metering system introduced recently is not increased as expected. Failure in sup- take at least one year to acquire some praiseworthy. In my opinion, there is no plying reliable power and difference of data if the works start in 2020. The Model better option than the feed-in-tariff to in- tariff between grid power and captive PSC 2019 is time tested. The response crease the contribution of RE. If that is power keeps industries dependent on could be encouraging if we had informa- done, several small investors would im- captive power. These matters should tion data bank. We must approach off- plement small projects with government have been taken into account while for- shore exploration with appropriate approval. Getting land is a major imped- mulating the PSMP. preparations. iment to grid-connected solar projects. SREDA is working for energy efficiency Land is a problem not only for the private Use of coal for power generation is on and conservation. A roadmap has also sector but also for the public sector in the decline globally for restricting carbon been formulated. What are your views Bangladesh. emissions. But in Asian countries it is in- about the achievements of the govern- Solar is the main renewable energy in creasing. New coalmines are also being ment in this area? developed in different parts of the world. Bangladesh. The government must con- What should Bangladesh do in such a sit- The consumers have never made any in- tinue its policy support for its expansion. uation? vestment in energy-efficient appliances EP

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