How to reduce import dependence in the energy and power sector | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
May 15, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, MAY 15, 2025
How to reduce import dependence in the energy and power sector

Thoughts

Dr Md Shafiqul Islam
23 September, 2022, 10:30 am
Last modified: 23 September, 2022, 10:32 am

Related News

  • Bangladesh seeks deeper energy cooperation with Oman: Foreign adviser
  • Dhaka wants immediate activation of Bangladesh-Algeria energy working group
  • Interim govt working same as AL regime in energy sector: Anu Muhammad
  • Bangladesh’s interim government should prioritise energy sector issues
  • Energy crisis worsened by monopoly, policy failure, finds task force 

How to reduce import dependence in the energy and power sector

Achieving self-reliance in the energy and power sector requires proper planning and vision. Strengthening national institutions to expedite gas exploration, and ensuring fair and economical use of internal resources can be a starter

Dr Md Shafiqul Islam
23 September, 2022, 10:30 am
Last modified: 23 September, 2022, 10:32 am
File Photo: TBS
File Photo: TBS

Due to rising import costs, the country's dollar reserves are dwindling. As a consequence, Bangladesh Bank has issued restrictions on importing non-essential goods to safeguard reserves. Meanwhile, the export revenue from the garment industry and expatriate workers' remittances have not seen an expected growth. 

Despite the restrictions, the import cost is increasing due to the high demand and price of essential goods. The biggest challenge now is maintaining the supply of 60% import-dependent energy ie, oil, LNG (liquefied gas), and coal to meet the base electricity supply needs.

The price of crude oil per barrel had almost doubled in July due to the war in Ukraine but is currently on a downward trend. Alarmingly, LNG and coal prices look to increase more than that of oil. Due to the continuously increasing demand, oil, LNG, and coal need to be imported in large quantities. 

Even though we have enough installed capacity of power plants, the energy price hike resulted in the power generation being reduced by 1,000-1,500 MW to allay the pressure on foreign currency. As an outcome, a wide gap has been observed between supply and demand, creating a complicated situation in power generation.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

It is expected that several coal-based power plants will be commissioned by this month (September). Then winter will come, the demand will decrease, and the country will be freed from load shedding again. But can we rest assured that we won't have any more energy crises in the future and we will be able to ensure uninterrupted and affordable electricity down the line?

We fell into this situation because we do not have enough foreign currency reserves. How long can we hold onto the garment industry like this? How long can we depend on remittance from expatriates without sufficiently creating skilled labour? Will we not face any challenges in the future in these two biggest foreign currency earning sectors? 

Demand will increase day by day in this densely populated country. So shall we go for unbridled imports to serve a few beneficiaries, or look to develop the infrastructure to achieve self-reliance in the energy and power sector? 

Let us discuss how to reduce the import dependence in the energy and power sector. First, let us come to the fuel sector.

Bapex should be strengthened to increase land and offshore exploration for gas extraction. Strict regulations should be imposed to prevent the wastage of oil, gas and coal. Public transport services should be increased and the use of small and private vehicles should be decreased. The use of electric vehicles should be promoted. 

Waste-to-energy production must be implemented, and the use of renewable energy must be adopted more widely especially to replace diesel-run irrigation pumps. The public should be actively engaged in the culture of fuel and electricity saving.

The power sector is expanding day by day. By 2030, the country's electricity demand will increase to about 20,000 MW. At present, there is a total of 154 power plants under government and private ownership. The number of these plants will almost double by 2030. 

The government of India has a state-owned heavy industrial enterprise called BHEL, which is making all these heavy equipment themselves for power generation. These include steam generators, turbines, alternators, transformers, pumps, cooling towers, etc. They reached an agreement long ago regarding technology exchange with many renowned construction companies including General Electric, Siemens and Mitsubishi. 

They are also exporting these products. Now they have branch offices in 86 countries. I understand the fact that India is a big country, and it is in a better situation vis-a-vis raw materials, technology, and demand. But the size of our demand is also increasing. In this case, we can easily make steam generators, transformers, pumps and cooling towers locally both for power generation and other industries. 

Some private companies in the country already manufacture distribution transformers. This is saving a lot of foreign currency and creates employment as well. The government can decide the right course of action by discussing with the stakeholders what needs to be done to be able to compete with India and China. 

It is more or less known why public companies such as General Electric Company are failing. Furthermore, when the government managed the Bangladesh Machine Tools Factory Limited (BMTF), it incurred huge losses every year. However, once the management body was shifted to the Bangladesh Army, it became profitable. Now special attention needs to be paid to the private companies related to the power sector so that they can come forward.

In this case, it is worth considering acquiring and transferring technology by making agreements with India's BHEL and kindred companies with any capable industrial entity in the country. In my opinion, this process will be easy and sustainable. If necessary, an agreement can be made directly with General Electric, Siemens or Mitsubishi later. 

The building of a power plant is 100% import dependent. Even the maintenance is done by the original builder. It requires spending approximately $10-15 billion from the reserves every year. If our engineers can construct the Padma bridge, why can't they build such kinds of machines? 

Achieving self-reliance gradually in the energy and power sector requires proper planning and vision. Here, it is very important to nurture and retain the patriotic mentality of all the key players, abolish the 'exemption of liability sample clause' (which essentially means the Company shall not be liable for compensation with regard to any damages sustained by the Partner], and ensure fair and economical use of internal resources. 

It is necessary to ensure proper management and good governance and ensure a congenial environment. Only then will any organisation be successful.

Today, 50 years of independence have passed, but we have not succeeded in devising a power and energy master plan without foreign assistance. It is important to think about how to move this sector towards self-reliance by avoiding those who are forcing import-dependent fuel and an externally leveraged power sector. It is not possible to build a developed and prosperous Bangladesh by keeping this important sector under fragile conditions.


Sketch: TBS
Sketch: TBS

Dr Md Shafiqul Islam is a professor at the Department of Nuclear Engineering, University of Dhaka.

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions and views of The Business Standard.

Top News

energy sector / power sector

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Shift to market-based exchange rate regime – what does it mean for the economy?
    Shift to market-based exchange rate regime – what does it mean for the economy?
  • A JnU student announcing an indefinite sit-in programme over three-point demand at Kakrail in Dhaka on 14 May night. Photo: Sakhawat Prince/TBS
    'Won't leave until demands met': JnU protesters announce indefinite sit-in at Kakrail over three-point demand
  • Naser Ezaz Bijoy. Sketch: TBS
    Now is an opportune moment to trial market-based exchange rate: StanChart CEO Bijoy

MOST VIEWED

  • Representational image. File Photo: UNB
    Army updates contact numbers for people seeking help across Dhaka, surrounding districts
  • Logo of bkash. Photo: Collected
    bKash posts Tk132cr profit in three months
  • IMF agrees to release $1.3b in June for Bangladesh as disagreement over exchange rate flexibility resolved
    IMF agrees to release $1.3b in June for Bangladesh as disagreement over exchange rate flexibility resolved
  • Collage shows [from left] shows the woman rushing to her house with the cat after, getting into the lift and the cat that was beaten. Collage: TBS
    Animal abuse outrages citizens: Grameenphone condemns incident allegedly involving employee
  • Photo: Screenshot
    Businessman shot in Gulshan after reportedly refusing to pay extortion
  • Walton expands footprint in Sri Lanka
    Walton expands footprint in Sri Lanka

Related News

  • Bangladesh seeks deeper energy cooperation with Oman: Foreign adviser
  • Dhaka wants immediate activation of Bangladesh-Algeria energy working group
  • Interim govt working same as AL regime in energy sector: Anu Muhammad
  • Bangladesh’s interim government should prioritise energy sector issues
  • Energy crisis worsened by monopoly, policy failure, finds task force 

Features

An old-fashioned telescope, also from an old ship, is displayed at a store at Chattogram’s Madam Bibir Hat area. PHOTO: TBS

NO SCRAP LEFT BEHIND: How Bhatiari’s ship graveyard still furnishes homes across Bangladesh

6h | Panorama
Sketch: TBS

‘National University is now focusing on technical and language education’

1d | Pursuit
Illustration: TBS

How to crack the code to get into multinational companies

1d | Pursuit
More than 100 trucks of pineapples are sold from Madhupur every day, each carrying 3,000 to 10,000 pineapples. Photo: TBS

The bitter aftertaste of Madhupur's sweet pineapples

1d | Panorama

More Videos from TBS

Mustafizur joins Delhi Capitals, but BCB unaware — will he get the NOC?

Mustafizur joins Delhi Capitals, but BCB unaware — will he get the NOC?

1d | TBS SPORTS
Are the murders of Samya and Parvez tied to the same thread?

Are the murders of Samya and Parvez tied to the same thread?

3h | Podcast
Trump urged the President of Syria to normalize relations with Israel.

Trump urged the President of Syria to normalize relations with Israel.

4h | TBS World
Record Gold Prices: Will You Invest or Risk Falling into Trouble?

Record Gold Prices: Will You Invest or Risk Falling into Trouble?

5h | Others
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net