The Centre for Policy Dialogue (CPD), a think tank, said that the government has boarded a journey in the opposite direction of clean energy transition by increasing dependence on coal and LNG imports.
Dr Khondaker Golam Moazzem, research director of the CPD, made the observation at a quarterly media briefing titled 'Current Change’ in the power and energy sector, held at the CPD office in Dhanmondi on Thursday.
Helen Mashiyat Preoty, Researcher Associate of the CPD presented the keynote paper on the power and energy sector at the event.
Dr Moazzem said coal is the worst source of fossil fuel, its use is increasing in Bangladesh as the government has embarked on a journey in the opposite direction to the energy transition.
“There are talks of reducing coal dependency nationally and internationally. But the use of coal and spending for coal is increasing day by day,” he said.
“Loadshedding continued in June, July, and August. Loadshedding is increasing due to faults in transmission and distribution systems. A lot of bills are due in the energy sector. I also see the impossibility of importing fuel,” he added.
On the other hand, avoiding domestic gas production, the government is leaning towards importing LNG, and LNG infrastructure development is increasing. As a result, the pressure on the government to pay debts and bills is increasing, Dr Moazzem said.
He said, “Although there is an opportunity to increase domestic gas production, it is not being done. Loans are being taken for importing LNG with funds allocated for gas field development. The government has a target of drilling 46 wells, which should be met.”
Regarding renewable energy, Dr Moazzem said that although the government is interested in renewable energy production, there are questions about the efficiency of the institutions involved in renewable energy production.
“Without increasing efficiency, the potential of domestic and foreign investment cannot be realised. If a competitive market is not created, the high cost of electricity will increase the pressure on the consumers,” he said.
He said renewable energy is most profitable in the medium and long term, but its progress is much lower than expected in the last three months.
On the other hand, the US dollars are constantly being wasted in the name of capacity charges, while fighting to keep a dollar in savings, dollars are being spent on LNG and coal imports.
The CPD says carbon emissions from gas have increased in Bangladesh. Carbon emissions from coal-based power generation have also increased. It has increased by 68 percent in the last 11 years. People are losing life expectancy due to air pollution.