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CPD for structured energy budget to ensure sustainability

Staff Correspondent
23 Jun 2024 17:43:57 | Update: 23 Jun 2024 18:50:00
CPD for structured energy budget to ensure sustainability

The Centre for Policy Dialogue (CPD) on Sunday laid emphasis on a structured budget for the power and energy sector to ensure energy sustainability in the country.

The think-tank also observed that without proper planning, allocation, implementation and monitoring, both energy sustainability and energy transition will not be achieved. The observations were made at an event at the BRAC Centre Inn in the city.

A K Azad, Member of Parliament, attended the event as the special guest while Mohammad Hossain, Director General of Power Cell under Power Division was present as guest of honour.

Dr M Tamim, professor of the Petroleum and Mineral Resources Engineering of BUET and former special assistant to the chief advisor of last caretaker government; Mohammad Alauddin, rector of the Bangladesh Power Management Institute; Professor Dr M Shamsul Alam, energy advisor of the Consumers Association of Bangladesh (CAB), attended as distinguished discussants.

Dr Khondaker Golam Moazzem, research director of CPD, delivered a keynote presentation styled “Power and Energy Sector in the National Budget FY2025: Can the Proposed Measures Address the Challenges?” at the event.

In his speech, Khondaker Golam Moazzem said the budget for the power and energy sector needs to be structured from an energy sustainability and energy transition point of view.

In the budget for the fiscal 2024-25, he said, some important issues that required very distinctive fiscal measures are not being addressed.

These include fossil fuel phase-out, the retirement of quick rental power plants, ending capacity payments, and incentivising renewable energy through fiscal measures, he added.

He mentioned that more budgetary allocation needs to be ensured for speedy expansion of renewable energy. Renewable energy-friendly fiscal and budgetary incentives should be proposed and recommended.

Golam Moazzem said a special allocation of Tk 100 crore has been proposed by the finance minister to encourage the development and use of renewable energy.

Though the amount is small, he said, the initiative is appreciated since it will accelerate the breaking of carbon lock-in in the country. He informed that prioritising the distribution and transmission network of the drilled gas is appreciated.

In Bangladesh, he said, the power and energy sector is passing a challenging period which needs proper fiscal, budgetary and policy planning with regard to generation, transmission and distribution of electricity and generation, transmission of domestic gas.

He called for stopping funding for any new fossil fuel-based power generation and recommended reducing load-shedding and enhancing allocation for drilling more gas wells.