We must explore alternative power source to minimise high energy costs

Capacity charges for idle power plants, theft in the name of system loss, wastage and dependency on imported gas and fuel without exploring alternatives are the main causes behind high energy costs. Think tank Centre for Policy Dialogue (CPD) urged the government to allocate more in the budget for the power transmission and distribution, rather than for its generation. Though the country has achieved the milestone of 100 per cent electrification, people are far from getting affordable and uninterrupted power. The government should focus on exploring alternatives due to the hike in prices of gas and fuel in the international market.
The capacity payment to private sector power plants, including rental and quick rentals, has gone up to Tk 26,505 crore in FY2022 from Tk 5,600 crore in FY2018. It would be Tk 31,600 crore in FY2023. This capacity payment obligation has forced the government to move for increasing power tariff. The country’s surplus electricity — which was termed an over generation capacity — has increased to 10,764 MW in 2021-22 from 8,231 MW in 2020-21 with a jump to 42.12 per cent from 37.37 per cent. The current total electricity generation is 25,556 MW and the highest generation was 14,782 MW on April 16 this year.
On one hand, we are buying 150-180 million cubic feet of gas per day from the high-priced international spot market. On the other hand, only in Titas — the largest gas distribution company — at least 150 million cubic feet are being stolen per day. In the last 25 years only 25-26 wells were drilled while there are huge prospects for gas and oil in the country as it is the biggest delta in the world. Mostly the private companies import furnace oil. They charged the Bangladesh Power Development Board Tk 92 per litre, while per litre oil costs Tk 72-74 if the government imports the furnace oil through the state-owned Bangladesh Petroleum Corporation. The government could save Tk 8,100 crore in a year if they import oil by BPC. The government is responsible for affordable power tariffs by slashing the wastage in all names.