Reza Mahmud :
The power sector in Bangladesh is facing a severe crisis due to several recent initiatives by the interim government, such as the cancellation of quick rental power plants and LNG terminal deals, without alternative measures in place, experts have warned.
Energy experts have painted a concerning picture for the near future of the power sector, highlighting the lack of visible efforts to meet the country’s growing electricity demand.
They cautioned that shortages of gas, coal, and oil could lead to a weakening of power production, particularly after the winter months.
Experts noted that many government and privately managed power plants are struggling with fuel shortages and maintenance issues, yet there are no apparent plans from the government to address the looming crisis.
Moreover, insufficient progress has been made in exploring new gas fields or establishing solar power plants to alleviate potential electricity shortages.
When contacted, BPDB Chairman Md. Rezaul Karim told The New Nation, “There are no shortages in power production in the country at the moment. During peak hours, the electricity demand ranges between 9,000 MW and 9,500 MW, and we are able to meet that demand.”
However, energy experts disagreed with his statement. Prominent energy expert Professor M. Shamsul Alam told The New Nation, “There are significant issues in the power sector that have been compounded by long-standing ambiguity.
The interim government must identify these problems and make all dealings transparent to revive the sector.”
He added that while LNG prices are currently low and demand in Bangladesh is high, dealers have refrained from importing LNG. However, when prices rise, they procure LNG at inflated costs to profit only a few individuals. The government must stop such practices, he said.
Professor Dr. Ijaz Hossain, another eminent energy expert, told The New Nation, “The country will face significant difficulties due to an electricity crisis, as there are no visible initiatives from the government to address the potential issues.” He called for clear and well-prepared plans to tackle the impending crisis.
Energy expert BD Rahmatullah also expressed concern, stating, “The people of the country, particularly those in industrial sectors, will soon face hardships, as there is no visible roadmap to address the crisis in the power sector.” He criticised the government for imposing stringent conditions on the installation of solar plants.
“While contractors are accustomed to installing small-scale solar plants, the government’s new requirements favour foreign investors and hinder local businesses,” he said.
Experts have recommended procuring and storing sufficient quantities of gas, coal, and oil to ensure uninterrupted power production.
Sources have indicated that India’s Adani power plant has reduced its electricity supply to Bangladesh by 60 per cent, adding to the vulnerability of the country’s power sector.
As part of a crackdown on deals made under a special law enacted by the previous Awami League government to bypass competitive tendering processes, the interim government has cancelled several projects, including LNG terminal deals.
In its first major move, the interim government cancelled the final agreement for the construction of a 4.5 million mt/year floating storage and re-gasification unit (FSRU) by Summit Group in Moheshkhali, Cox’s Bazar.
One week after this decision, Petrobangla also cancelled the term-sheet agreement with U.S.-based Excelerate Energy for another FSRU project near Payra seaport. Additionally, the government has cancelled deals for several quick rental power plants.
