Owing to a severe energy crisis particularly in industrial units, experts on Sunday underscored the need for exploring natural gas, renewable energy, and control system losses to ensure sustainable energy solutions in the country.
They urged the authorities concerned to take necessary measures to increase renewable electricity penetration from the current present 2 per cent to at least 10 per cent by 2035 to meet the crisis.
Experts came up with the remarks at a luncheon meeting titled, “Sustainable Energy for Bangladesh,” organised by Foreign Investors' Chamber of Commerce and Industry (FICCI) in the capital’s Pan Pacific Sonargaon Dhaka.
FICCI President Zaved Akhtar gave the welcome speech, while GE Vernova Bangladesh Country Manager Nowshad Ali moderated the event.
As the Chief Guest, Adviser for the Ministry of Power, Energy and Mineral Resources Muhammad Fouzul Kabir Khan said, “The Bangladesh Energy Regulatory Commission (BERC) will determine the price of gas and electricity through public hearings.
“The government will not take decisions about gas and electricity prices.”
He added, “The gas and electricity price will be fixed through mass hearings, not by the government. The government has a plan to excavate 50 exploration wells by 2025.
“Henceforth all purchases in the energy sector will be through open tender methods rather than through any negotiation.”
Noting the realisation of demands like the paddy cutting season, Fouzul said, “The current government will not get much time to reform the energy and power sector. The government accepted all logical demands of the Palli Bidyut Samity.
“The government will take decisions considering demands of temporary workers for permanent jobs. Not only in Palli Bidyut Samity, but also outsourcing workers were in other organizations. The government will do it at any cost. Those who were responsible for the law and order situation, we will take necessary action against them.”
He emphasised the government's commitment to fostering a sustainable energy future for Bangladesh, highlighting ongoing initiatives to enhance energy efficiency and diversify energy sources.
Gas demand could reach 4,622 MMcf/d by 2030
Presenting a keynote paper there, Dr Ijaz Hossain, former Dean of the Bangladesh University of Engineering and Technology (BUET) noted significant shifts in energy consumption patterns.
He pointed out that, as of 2022-23, the industrial sector's consumption of grid electricity was only half that of the domestic sector, a stark contrast to 2010 when both sectors consumed similar amounts. This change, he noted, is largely due to the expansion of rural electrification.
Dr Ijaz also emphasised the need for maintaining natural gas production levels, warning that without the drilling of at least ten new wells annually, the country may face increased reliance on imported LNG.
He forecasted that gas demand could reach 4,622 MMcf/d by 2030, posing a significant challenge to Petrobangla’s capacity to supply.
According to Petrobangla, the demand for gas is 4000 MMcf/d in the country. Now, the country supplies only 2,700 MMcf/d including 700 MMcf/d LNG.
Dr Ijaz informed that the consumption of grid electricity by the industry sector is half that of the domestic sector. 98 per cent of the Energy is Fossil Fuels and 53 per cent of the fuels/electricity is imported. This is totally unsustainable from a Climate Change and affordability perspective.
“Bangladesh needs to set up regasification terminals capable of processing 2000 MMcf/d LNG which present capacity is 1,000 MMcf/d, speed up exploration to discover new gas, and improve LPG distribution network and facilitate import of 4-5 million tonnes of LPG as a transition from natural gas to LPG in urban households and transportation,” he recommended.
Dr Ijaz said to mine coal (first priority) or secure low cost supply if required to buy coal mines.
Policy reforms key issue
Dr Ijaz also said, “We should reform gas exploration policy, coal mining policy, and renewable energy policy. Illegal gas connections should be detected and stopped, and carbon-free electricity should reach 40 per cent by 2040.”
He recommended that the power sector must use more of their coal fired power plants and in the future the nuclear power plants. This will reduce demand for gas in the power sector. Domestic and Commercial sectors have a good alternative fuel in LPG.
Among the panelists, Dr Badrul Imam, a professor at the University of Dhaka, discussed the geological implications of energy sourcing, while Dr M Rezwan Khan, former Vice-Chancellor and Professor Emeritus at United International University, examined the role of renewable energy in achieving sustainability.
