DHAKA, Dec 7, 2024 (BSS) - Speakers at a seminar today urged the government and other stakeholders to pay more attention on improving the own sources and management of energy to reduce its import dependency.

They made the emphasis at a seminar titled "Predictable Energy Pricing and Supply Stability" organized by the Dhaka Chamber of Commerce and Industry (DCCI) held at the DCCI Auditorium in the capital today.

Speaking on the occasion as the chief guest, Muhammad Fouzul Kabir Khan, Adviser on the Ministry of Power, Energy and Mineral Resources, said the government still provides subsidy to the consumers for electricity.

Regarding gas, he said that the country needs at least 4000 MMcf/d of gas, but the supply is lower than 3000 MMcf/d.

He also informed that there is a reserve of 60-70 MMcf/d of gas in Bhola and for that the government is going for an open bidding method.
 
Kabir said not only for Bhola, but also for all procurement process related to power and energy, the government from now on would vie for open bidding system to ensure fair competition.

And for that the government has already changed the law of 2010, he added. In the power sector, he said the IPP is outdated and merchant power plant system should replace it.

The Adviser also commented that the government would soon go for drilling of 50 gas wells in the country and it would be increased up to 100 in phases. Regarding solar projects funding, he said that the lending by the banks should be asset-based and cash-flow based rather than collateral based loan.

He said the advertisement for 40 solar power plant projects would be published in the newspapers soon for which the government would arrange land for the interested investors.

DCCI President Ashraf Ahmed said that over the last 50 years, the economy of Bangladesh has transformed from an agrarian to industrial economy.
 
Therefore, it is necessary to ensure uninterrupted energy supply at a sustainable price to grow business activities in the country, he added.

The DCCI president said that in the last two decades, the energy consumption has increased almost 4 times to almost 45 million "Tones of Oil Equivalent (TOE)".
 
To meet the growing demand of power and energy in the industrial sector in Bangladesh, Ashraf said there is no alternative but to import and enhancing local energy production.

"We have to focus on increasing our capacity to use energy in this regard. In view of the current situation, there are various challenges in extraction of domestic coal, but the extraction process across the country needs to be enhanced," he added.

The DCCI President also said that despite the potential of solar power, the country is lagging behind due to lack of necessary land and complex procedures and delays in land allocation management, which needs to be considered actively.

He pointed out that some of the power plants are quite old and their production capacity would be significantly reduced by 2030. "Nuclear energy, renewable energy-based power generation needs to be increased. At the same time, the government's energy import procurement policy should be revised to keep the price stable," he added.

Ashraf also opined that tech-based energy storage system would bring in energy efficiency in the power consumption system.
 
The Dhaka Chamber President also requested the government to focus more on the overall development of power and gas management.

Dr. Mohammad Tamim, Professor, Department of Petroleum and Mineral Resources Engineering, BUET in his presentation said that a long-term energy pricing would not be practical rather it is workable for 3 to 5 years.

He stressed on exploring the own gas to mitigate price as well as utilizing the rooftops to generate renewable energy.

"Cost of generation of power especially after FY2020-21 by gas has increased a lot mainly because of devaluation of Taka, high inflation, increasing fuel import and international energy price hike. At least 5% gas has been lost due to system loss which is equivalent of 130 mmcf/d," he added.

For LNG import, he suggested for long-term contract or hedging system side by side LNG storage capacity should be enhanced for the future.

Dr. Badrul Imam, Honorary Professor, Department of Geology, University of Dhaka said despite the huge potential of natural gas, the reluctance of exploration has led to today's situation. "Besides, we have shown more interest in importing LNG to produce gas,"

He therefore urged the government to give more focus on own gas exploration that will give a good return in the long-term.

Dr. Ijaz Hossain, Professor and Dean of Engineering, Department of Chemical Engineering, BUET said that the industrialists should increase their involvement with the government so that the government cannot increase the price of energy without consulting with the business community.

He also proposed to utilize unused or underutilized lands for solar power projects to produce low cost renewable energy.

Imran Karim, Vice Chairman, Confidence Group, Engr. Md. Nurul Aktar, President, Bangladesh Solar & Renewable Energy Association and Convenor, DCCI's Energy standing committee, Barrister Shahwar Jamal Nizam, Partner, DFDL Bangladesh, and Saumitra Kumar Mutsuddi, Head of Corporate Affairs, BSRM spoke on the occasion.

Besides, DCCI Senior Vice President Malik Talha Ismail Bari, former Senior Vice Presidents, DCCI Kamrul Islam, and Humayun Rashid and former Vice President M. Abu Horairah also spoke.

DCCI Vice President Md. Junaed Ibna Ali was also present.