Meeting the energy crisis
IN Bangladesh, 110 million people live without electricity while only 50 million have access to poor quality electricity. Yet, Bangladesh has been competitive in garments, textiles manufacturing and agricultural production. Bangladesh's competitiveness stems from 2 principal reasons:
Today, energy is not cheap. This is the most challenging threat faced by the country. One can assess the challenge comparing the developments that took place in eastern Bangladesh, where gas is available, with western Bangladesh. Even though the western region has fewer and less damaging floods and cyclones, and connection with India, it does not have a manufacturing base. The cost of irrigation and agriculture is also higher in western Bangladesh. Presently, it seems that all of Bangladesh faces conditions similar to the western side. It is now being said that Bangladesh has very limited reserves of natural gas. The government must take immediate steps to meet this huge challenge, which can only be done by creating a suitable energy mix. Among the steps necessary are:
To achieve these, Bangladesh will need to increase its imports of fuel. At this time Bangladesh does not have the physical infrastructure required to import the necessary liquid fuel and coal, which are replacements for natural gas. Therefore, creating such an infrastructure is necessary. These would include among others:
Similarly, to support coal-based power generation and manufacturing, huge coal yards in Chittagong and Mongla will be necessary. Bangladesh's import volume will increase by many folds. To accommodate this, Mongla port will have to be a comprehensive and enabled port, connected by rail, road and river to the rest of the country. For this, a new bridge with rail tracks will have to be built over the Rupsa river. In order to achieve these the government will need to provide fiscal incentives and allowances, such as:
Renewable energy is challenging for Bangladesh as a whole but has substantial potential in the off-grid locations. The NGOs may pursue this very good cause to provide electricity to the underprivileged. The danger zone that Bangladesh is entering is not seen and comprehended by most. The global melt- down or cyclones or floods are almost nothing compared to a country without primary energy. Honourable prime minister and energy minister, I urge you to kindly re-evaluate the extent of the energy crisis and the necessity for resolving it in the light of the new realities.
- Cheap labour
- Cheap energy, i.e. natural gas.
Today, energy is not cheap. This is the most challenging threat faced by the country. One can assess the challenge comparing the developments that took place in eastern Bangladesh, where gas is available, with western Bangladesh. Even though the western region has fewer and less damaging floods and cyclones, and connection with India, it does not have a manufacturing base. The cost of irrigation and agriculture is also higher in western Bangladesh. Presently, it seems that all of Bangladesh faces conditions similar to the western side. It is now being said that Bangladesh has very limited reserves of natural gas. The government must take immediate steps to meet this huge challenge, which can only be done by creating a suitable energy mix. Among the steps necessary are:
- Investing in natural gas exploration, production and transmission;
- Increasing the price of gas to discourage inefficient use and encourage more production;
- Allowing use of natural gas as feed stock only on combined cycle power plants with at least 53 percent efficiency;
- Allowing use of natural gas only on distributed power with minimum 40 percent efficiency at 33 kva.
- Allowing captive power plants to run only on liquid fuel or coal;
- Allowing all heavy energy needs to be met with liquid fuel;
- All future manufacturing on liquid fuel;
- No more conversion to CNG.
- All future domestic cooking or other requirements by LPG;
- Keeping and using all natural gas for generation of electricity.
To achieve these, Bangladesh will need to increase its imports of fuel. At this time Bangladesh does not have the physical infrastructure required to import the necessary liquid fuel and coal, which are replacements for natural gas. Therefore, creating such an infrastructure is necessary. These would include among others:
- Petroleum depots with many times more capacity than presently available;
- Distribution network for oil, including depots in river ports;
- Ship tankers to transport oil from Chittagong to river port depots;
- Tank lorries to transport oil to the industries.
Similarly, to support coal-based power generation and manufacturing, huge coal yards in Chittagong and Mongla will be necessary. Bangladesh's import volume will increase by many folds. To accommodate this, Mongla port will have to be a comprehensive and enabled port, connected by rail, road and river to the rest of the country. For this, a new bridge with rail tracks will have to be built over the Rupsa river. In order to achieve these the government will need to provide fiscal incentives and allowances, such as:
- Allowing the private sector, public sector and public-private partnerships to be involved in each of the activities;
- To encourage a shift to energy sources other than natural gas all energy imports must be tax free; (It is unreasonable to tax petroleum and coal imports while subsidising natural gas, when natural gas is in sort supply.)
- Energy is the main input of a country's GDP, therefore all earnings connected with energy imports and infrastructure may be exempted from tax;
- While we are required to move towards expensive energy, the manufacturing sector must move forward with value addition and move up in the value chain.
- Further, the power system master plan built on the basis of abundant gas would have to be amended, keeping in mind the following:
- Future generation of electricity with coal as feed stock;
- Planning for coal mining as well as imports. This will determine the new load centre, generation centre and the transmission and distribution networks;
- Nuclear powered electricity and its viability. One of the options that may be kept in mind is to negotiate with India to set up the power plants in India on a purpose built basis to buy/import electricity from these plants. This would hasten the process and remove the apprehensions the world may have about safety and security. After all Bangladesh needs electricity not nuclear power.
Renewable energy is challenging for Bangladesh as a whole but has substantial potential in the off-grid locations. The NGOs may pursue this very good cause to provide electricity to the underprivileged. The danger zone that Bangladesh is entering is not seen and comprehended by most. The global melt- down or cyclones or floods are almost nothing compared to a country without primary energy. Honourable prime minister and energy minister, I urge you to kindly re-evaluate the extent of the energy crisis and the necessity for resolving it in the light of the new realities.
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