Will RNPP change the north’s economy?

There are 16 agro-based districts in the northern region that are lagging most economically compared to the other parts of Bangladesh due to a lack of power and energy facilities.

Lack of employment and the higher poverty rate has already put six of the northern districts among the top 10 poorest ones in the country, according to the Bangladesh Bureau of Statistics (BBS).

However, that will change and the North’s economy will significantly improve once the 2,400 MW Rooppur Nuclear Power Plant (RNPP), being built at Rooppur in Pabna’s Ishwardi Upazila, starts full commercial production in 2024, say the people concerned.

On October 19, while inaugurating the installation of the reactor pressure vessel at RNPP Unit-2, Prime Minister Sheikh Hasina said that the people and economy of the northern region will receive most of the benefit of cheap nuclear electricity.

But the question remains — how will RNPP help build or improve upon the poorest northern economy?

Bangladesh Economic Zone Authority (BEZA) says the government, with the aim to become a developed nation by 2041, plans to build 100 economic zones around the country and 11 of them will be in nine northern districts. RNPP will ensure cheap and uninterrupted power supply to these 11 economic zones.

Also, the two export processing zones (EPZ) at Ishawardi and in Nilphamari’s Uttara will benefit the most after RNPP becomes operational.

The northern region will soon have a mixed and improved economy with light and agricultural industries thriving in the EPZs and economic zones, says BEZA.

However, while talking to The Business Post, BEZA General Manager (planning and development) Doyananda Debnath could not confirm when the construction works of the economic zones will start. “All of the projects are still in the feasibility study stage.”

Power and energy key

According to the Bangladesh Power Development Board (BPDB), the power generation capacity of the existing 154 power plants across the country is 22,500 megawatts (MW).

The government is also either building or planning to build 35 power plants with the capacity to generate 13,134 MW. They will become operational and start adding electricity to the national grid gradually between 2023 and 2030.

Analysis shows that almost all the big power plants will be built in the south and south-eastern regions of the country. Alongside them, with natural gas connections already existing, a massive number of industrial factories and employment opportunities are being developed there.

However, the 16 northern districts, which represent a quarter of the country, are still far behind when it comes to the availability of gas and electricity.

At present, there are 20 public and private power plants across the Rajshahi and Rangpur divisions that have a combined power generation capacity of 2,447 MW. But many of them are sitting idle most of the time due to the high prices of diesel and furnace oil and that is leading to the suffering of the people of the north as load-shedding has become more frequent.

According to energy expert Professor Shamsul Alam, the northern districts receive fewer benefits of power and energy due to the failure of the national grid and imbalanced distribution.

The indifference of the government and disinterest of energy companies in spending more money to transport fuel to power plants are to blame for the lack of electricity in the northern region, he told The Business Post.

Meanwhile, gas has already reached three-quarters of the country’s districts through pipelines, but not in the northern districts yet.

Because of that, proper industrial factories, apart from some husking mills, have not been established here. Large industrial groups have now put the traditional rice industry at risk, said traders in Dinajpur, Rajshahi and Naogaon.

The lack of heavy industry has punished the people of the northern region low number of jobs and poverty, BBS said in a report published last year. Of the districts, Kurigram, Dinajpur, Gaibandha, Lalmonirhat, Nilphamari and Rangpur have faced extreme poverty.

Of the 16 northern districts, Rangpur and Rajshahi have seen the highest number of people migrate to Dhaka and Chattogram to find jobs and a better life due to these reasons, the Bangladesh Institute of Development Studies said in another report.

Weighing on the issue, Policy Research Institute of Bangladesh Executive Director Ahsan H Mansoor told The Business Post, “While export-oriented industries in the north are less profitable, there is still potential for agro-based industries. But there is no action plan [of the concerned authorities].”

He also expressed concern over the proper functioning, under current circumstances, of the economic zones that have been planned for the northern region.

RNPP to the rescue

RNPP is the country’s largest investment project that is being built by the Bangladesh Atomic Energy Commission (BAEC) at a cost of $12.65 billion, 90 per cent of which is coming from Russia.

Once RNPP starts power generation, the capacity of the northern region will rise to 4,847 MW.

Although there are security and safety concerns, BAEC officials say nuclear power plant is still the most popular option around the world as it generates cheap and carbon-free electricity. This will help reduce carbon emissions and dependency on fossil fuels.

According to the International Atomic Energy Agency, 34 countries currently use 437 nuclear reactors to generate power. At present, 57 reactors, including RNPP, are under construction and 100 more reactors are still in the planning stage around the world.

BAEC says the average lifetime of a normal power plant is 20-25 years but RNPP’s lifetime will be 60 years. It is also possible to keep this plant operational for 80 to 100 years.

According to BPDB, the average cost of per unit power generation is around Tk 9. However, at present, the cost of power generation using all types of sources, except for gas, has exceeded Tk 10 per unit.

However, the electricity generated by RNPP will cost Tk 4-4.35 per unit. RNPP will reduce the pressure of importing expensive gas, coal and fuel.

Meanwhile, the Power Grid Company of Bangladesh is building six high-voltage transmission lines to distribute electricity from RNPP.

Among them, the 65-km-long 230 KV double circuit line from Rooppur to Sirajganj’s Baghabari and the 102-km-long 400 KV transmission line from Rooppur to Bogura will supply power to the northern districts only and the other four to Dhaka and Gopalganj.

RNPP Project Director Shawkat Akbar told The Business Post that one of the main objectives of building RNPP in the north is to ensure the supply of cheap electricity to the region’s districts and help their agro-based economy flourish and improve their poor condition.

People will get electricity from RNPP for about 100 years. A lot of jobs will be created around this project as infrastructure development takes place, he said.