Expedite gas exploration, shift to renewables to reduce expenditure

Bangladesh should expedite gas exploration and place emphasis on renewable energy to reduce excessive expenditure on the energy and power sector, speakers said at an event yesterday.

To lower energy bills, they suggested the government ensure primary energy before setting up new power plants and renegotiate electricity prices with private power producers.

At the same time, analysts suggested the government strengthen the Bangladesh Energy Regulatory Commission and shape it as the supreme authority in power and energy supply.

These remarks came during a discussion session titled "Building Sustainable Futures: Connectivity and Energy" during a conference on "Recommendations by the Task Force on Re-Strategising the Economy" at the capital's BRAC Centre Inn yesterday.

Presiding over the session, Prof M Tamim, vice-chancellor of Independent University of Bangladesh, said there would be hard times ahead. He added that trouble might start sooner if the production at the Bibiyana gas field reduces.

"We are paying around $13 billion a year to import all types of energy sources and it may stand at $20 billion by 2030, by when estimates say Bangladesh will have more than 90 percent dependence on imported energy sources. Given the way the local gas production is going down, we will be in big trouble," he said.

"If even two or three wells in Bibiyana somehow fail to produce, what is the backup?" he asked, adding that though Bangladesh has committed to an energy transition, there are around 15,000 megawatts (MW) of fossil fuel-based power generation contracts.

He added that the previous Awami League government's aim of generating 40 percent of total power from renewable sources was made without doing any homework.

"We need a comprehensive plan engaging all stakeholders, including engineers of power grid companies. This would help us set a realistic target," he added.

Muhammad Fouzul Kabir Khan, adviser to the Ministry of Power, Energy and Mineral Resources, said the government is trying to reduce power generation costs to minimise the huge subsidy burden in this sector. 

"We have set up a benchmark tariff with the Matarbari coal-based power plant and will try to renegotiate other coal-based plants accordingly. In the same way, we will renegotiate prices with the gas-fired power plants," he said. 

Responding to a query, he said they would monitor cooling demand during the summer season based on the load of feeders managed by distribution companies. 

"If we find a feeder's load unjustifiably high, then we will go for load-shedding in that area," he said, urging people to follow the government's instruction to set air conditioners at 25 degrees Celsius or above. 

Bangladesh Energy Regulatory Commission Chairman Md Jalal Ahmed criticised the keynote paper for focusing mainly on the power sector. 

"We are short on primary energy only. The current situation has arisen due to focusing solely on power generation. We have increased power generation capacity but neglected transmission and distribution," he said. 

He added that the state-owned gas exploration company BAPEX has surveyed only 5,000 square kilometres, although there were plans in 2007-09 to survey 20,000 square kilometres within a year. 

"Offshore exploration was all set and a company won the tender, but they weren't awarded the work. Gas exploration was not a priority for the previous government and as a result, we don't know if we have gas reserves or not," he said. 

Former professor of the Bangladesh University of Engineering and Technology (BUET) Ijaz Hossain said gas production has been declining since 2017. 

"At least 10 drillings should be done every year," he said, adding that renewable energy should also be prioritised.

"It is ridiculous that we are using furnace oil to produce electricity, which costs Tk 25 per unit, when we could harness solar energy at the lowest cost while the sun is shining," Hossain commented.