1,210MW set to be added to national grid this week: State minister

Highlights

• Five expired-contract plants will generate 550MW without capacity charges
• The 660MW Rampal plant is expected to resume operations this week
• Government plans 106 new gas wells and offshore exploration
• Bangladesh aims to overcome the energy crisis by 2030

A combined 1,210MW of electricity is expected to be added to the national grid this week as the government moves to ease widespread power shortages amid an ongoing gas and energy crisis.

Five power plants whose contracts have expired are set to generate 550MW for the national grid this week without capacity charges, while the 660MW Rampal power plant is also scheduled to resume operations, State Minister for Power, Energy, and Mineral Resources Aninda Islam Amit told parliament yesterday (7 September).

"The government has short-, medium- and long-term plans to tackle the energy crisis," he said while taking part in the discussion on the country's energy crisis tabled by Leader of the Opposition Shafiqur Rahman at the House.

Expressing optimism about an improvement in the situation next year, Amit said he expects Bangladesh to overcome the energy crisis by 2030.

He said, "The national grid is expected to receive around 500 megawatts of electricity from five power plants whose contractual terms have expired. No capacity charges will be required for electricity generated by these plants.

"In addition, the government has allocated Tk6,000 crore to generate up to 4,000MW of electricity from HFO-fired power plants."

Amit added that one 660MW unit of the Rampal Power Plant is also expected to resume generation within a week.

Gas exploration, LNG infrastructure planned to ease energy crisis

An offshore bidding round has been launched for oil and gas exploration in the sea, he said, adding, "The government has also undertaken a programme to drill 106 new gas wells, with work on 30 of them already underway."

The state minister further said agreements are expected to be signed by the end of this year for the installation of at least two new floating storage and regasification units (FSRUs).

"Preparations are also progressing for the construction of a land-based LNG terminal at Matarbari," he said.

Amit said the cost of purchasing LNG from the spot market had increased by Tk15,350 crore due to higher global energy prices and the crisis in the Middle East.

He said that once the second unit of the Eastern Refinery becomes operational, the country's annual crude oil refining capacity will increase from 15 lakh tonnes to 45 lakh tonnes.

IsDB backs refinery modernisation as government pushes energy reforms

The Jeddah-based Islamic Development Bank (IsDB) will provide over $1 billion in financing for the modernisation project. The Bangladesh government and the IsDB signed a financing agreement on 3 September.

A sustainable plan has also been made to increase power generation through rooftop and land-based solar systems. The duty-free policy supported by the government will bring a revolution in the renewable energy sector, said the state minister.

About the fuel price, Amit said the fuel price has been hiked in all the developed countries, including Australia and the US, after the Middle East crisis, but Bangladesh has coordinated the price to reduce smuggling to the neighbouring countries.

Under the coordinated fuel price from 18 February to 31 August, the government had to pay Tk25,000 crore as a subsidy.

Participating in the discussion, Home Affairs Minister Salahuddin Ahmed said the government is trying to make the energy sector self-sufficient instead of an import-based policy undertaken by the previous fascist government.

Raising the discussion in parliament, Shafiqur, also the chief of Jamaat-e-Islami, said the government should take a pragmatic and sustainable policy to reduce the energy crisis.

He called for the formation of a special taskforce comprising political parties and technical experts to tackle the country's ongoing electricity and energy crisis.

During the discussion, the opposition leader said the government must present the public with a clear picture of the country's electricity shortage.

"This crisis cannot be resolved simply by blaming one another," he said, calling for transparency and accountability in major energy projects.

He also demanded an end to meter rental fees and demand charges, alleging that the charges were still being collected despite assurances in parliament that they would be withdrawn.

On concerns raised by consumers, Amit said that Tk29,000 crore would be required to completely abolish meter rental fees.

The government aims to bring most consumers under smart prepaid meters by 2030 to eliminate billing irregularities, he said.