Staff Reporter :
The Centre for Policy Dialogue (CPD) has recommended key amendments to the power sector agreements to reduce subsidies and streamline the industry.
A significant proposal includes advocating for a “No Electricity, No Pay” policy aimed at withdrawing subsidies and avoiding further increases in electricity tariffs by eliminating capacity payment provisions.
The CPD also urged the government to introduce a 100-day special action plan to ensure the smooth continuation of ongoing development projects within the power and energy sectors.
Furthermore, the organisation has stressed the need to abolish detrimental legislation, such as the’Quick Enhancement of Electricity and Energy Supply Act’, as part of necessary reforms in these sectors.
These proposals were presented at a press conference titled “Power and Energy Sector Reform CPD,” held at the CPD office in Dhanmondi on Sunday.
Khandakar Ghulam Moazzem, CPD’s Research Director, delivered a keynote speech during the event, outlining 17 comprehensive reform proposals for the power and energy sectors.
Moazzem emphasised the critical need for the Bangladesh Energy Regulatory Commission (BERC) to function independently, which would enhance transparency and accountability across the energy and power sectors.
He also called attention to the growing importance of renewable energy and urged sectoral organisations to lead the transition away from reliance on fossil fuels.
“The role of renewable energy must be expanded, and the Sustainable and Renewable Energy Development Authority (Sreda) should play a more prominent part in this transition,” Moazzem stated.
He further proposed enhancing Sreda’s capacity and recommended that the authority be directly linked to the Prime Minister’s or Chief Adviser’s office to increase its influence and effectiveness.
However, Moazzem has raised concerns over the current Power Sector Master Plan, which he described as “unrealistic” and in need of urgent revision. During a recent event, Moazzem projected that by 2041, electricity demand could rise to 27,000 megawatts (MW), with a reserve margin of 35,000 MW.
However, the current plan targets a generation capacity of 58,000 MW, a figure Moazzem believes is far beyond the country’s realistic needs.
“The current power generation targets are simply unattainable and do not align with the projected needs. A more pragmatic and revised plan must be adopted,” he asserted.
During his keynote presentation on the energy sector, Moazzem also highlighted the importance of strengthening the Bangladesh Energy Regulatory Commission (BERC), urging that the body should operate independently to enhance accountability within the energy and power sectors.
Moazzem advocated for an increased focus on renewable energy, emphasising the need to transition away from fossil fuels. He proposed that organisations within the sector should lead this shift, while urging for an enhancement of the capacity of the Sustainable and Renewable Energy Development Authority (SREDA).
“To make real progress, we need to ensure that SREDA is better resourced and given more influence,” he said, suggesting that the authority be linked to the Prime Minister’s or Chief Advisor’s office to increase its impact.
Looking forward, Moazzem called for immediate action from the interim government to transition towards a 40 percent renewable energy target by 2041. He proposed a five-stage plan, with key activities outlined for the short to medium term.
Phase 1 should focus on revising outdated policies such as the National Energy Policy of 2004, amending the BERC Act to strengthen its capacity, and ensuring transparency in procurement processes.
Moazzem also stressed the need to phase out inefficient power plants, revise the Annual Development Programme (ADP) to prioritise renewable energy projects, and address problems with faulty pre-paid electricity meters.
Phase 2 of the transition plan would see enhanced efforts in research, development, and demonstration of renewable technologies. Moazzem called for SREDA to be overhauled and positioned as the lead authority for renewable energy initiatives.
He also suggested the establishment of dedicated research institutions and the launch of pilot projects to test various renewable technologies.
Public awareness campaigns and attracting foreign investment were also emphasised as key components of this phase, underscoring the need for a multi-faceted approach to addressing Bangladesh’s future energy challenges.
Phase 3 should focus on infrastructure development, including upgrading the existing grid to a smart grid, prioritising domestic gas exploration over liquefied natural gas (LNG) imports, and scaling up renewable energy projects.
The tax and incentive structure should be revised to support renewable energy-based power generation.
Among others, CPD Senior Research Associate Helen Mashiyat Preoty and Research Associate Mashfiq Ahasan Hridoy were present on the occasion.
