Monthly price adjustment policy to be ready in Jan

Bangladesh will finalise a policy within this January for monthly adjustments of gas, oil and electricity prices with the global market, and this is why it was necessary to amend the BERC Act, said State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Monday.

He was speaking to the media after the signing ceremony of Sirajganj 68MW Solar Park Project Power Purchase Agreement (PPA) and Implementation Agreement (IA) at the capital’s Biddut Bhaban.

Responding to a question about the impact of retail electricity price hike on the public, Nasrul Hamid said, “The government decided to hike the power price taking into account the country’s socio-economic conditions.

“However, this is the Bangladesh Energy Regulatory Commission’s (BERC) decision.”

He mentioned that subsidies will be needed for the next year to keep the electricity prices low. It should be noted that recently, Prime Minister Sheikh Hasina had asked everyone to pay production costs to get a smooth supply of electricity.

Commenting on the subsidy issue, Nasrul Hamid said, “The per unit natural gas price in India is around Tk 34, which is TK 12 in Bangladesh. It will not always be possible to provide subsidies.

Regarding the gas crisis, he said, “Our first priority is to supply gas to export-oriented industries and power plants, so our efforts continue.”

Sirajganj 68MW Solar Park Project

Delivering a speech as the chief guest in the PPA and IA signing ceremony earlier in the day, Nasrul Hamid said, “It is difficult to find non-agricultural land for solar projects in Bangladesh.

“In one and a half to two years, Bangladesh will add 2,000MW of electricity to the national grid from renewable energy sources.”

Bangladesh-China Renewable Energy Company Ltd (BCRECL), a joint venture initiative by state owned North-West Power Generation Company Ltd (NWPGCL) and China National Machinery Import and Export Company (CMC) is building the Sirajganj 68MW solar park.

The under-construction project – being implemented at a cost of $87.71 million – is scheduled to go commercial in December 2023. This project is part of a BCRECL agreement with the Power Division to build 500MW of renewable power plants – including solar and wind.

Power Division Secretary Md Habibur Rahman presided over the PPA and IA signing ceremony.

Sustainable and Renewable Energy Development Authority Chairman Munira Sultana, Bangladesh Power Development Board Chairman Mahbubur Rahman, Power Grid Company of Bangladesh Managing Director Golam Kibria and NWPGCL Chief Executive Officer Engineer Khorshedul Alam also addressed the event.