A planned “integrated energy-power sector master plan” is likely to be ready by November this year.
Japanese firm—The Institute of Energy Economics, Japan (IEEJ)—gave such an indication when a team of the firm met State Minister for Power, Energy and Mineral Resources Nasrul Hamid at his office in the ministry on Wednesday.
The Tokyo-based consulting firm has been working to prepare the integrated master plan following an agreement between the Bangladesh government and Japan International Cooperation Agency (JICA) signed on March 15 in 2021.
Ichiro Kutani, the head of the IEEJ team, informed that his firm has planned to submit a draft copy of the proposed integrated plan by October this year to facilitate open discussion on it.
After a meeting with the stakeholders, the integrated master plan will be submitted in November, he told the state minister.
JICA power and energy advisor Toshiyuki Kobayash and Bangladesh presentative Taro Katsurai were present on the occasion.
Official sources said this is for the first time, the government has moved to formulate an integrated master plan comprising both power and energy issues.
Previously, separate master plans were framed for the power sector and energy sector and there was little coordination between the two sectors.
Nasrul Hamid has suggested the IEEJ team that the integrated plan should be the basis of sustainable infrastructure in the power and energy sectors which will ensure a balance between the demand and supply under an efficient management.
The fuel mix strategy should have a reflection of current and future energy sources. It should outline a pattern of consumption in different sectors including agriculture, he added.
Official sources said the Ministry of Power, Energy and Mineral Resources (MPEMR ) has moved to formulate the integrated energy and power sector master plan with a focus on the "3E+S" concept, after responding to the suggestions of energy experts.
According to sources, '3E+S' concept will be pursued in preparing the new plan for ensuring 'Energy Security', 'Economic Efficiency', and 'Environment' while focusing on 'Safety'.
As per the contract, the Japanese firm is supposed to complete the formation of the plan with a timeframe of 30 months from the signing of the agreement.
JICA, which has been funding the entire project through its grant under a deal with the MPEMR, said that in view of the need for a long-term low-carbon energy policy, it will support the formulation of the integrated energy and power master plan.
The Japanese donor agency had earlier provided the financial and technical support for formulating all the previous power system master plans (PSMPs) until 2016.
Official sources said the JICA consultant will study the country's 8th Five-year Development Plan, gas sector master plan 2017, and revise the power system master plant 2016 and other relevant policies/plans.
It will prepare the prospects for economic development and energy demand forecast by 2050 with a focus on energy efficiency and conservation.
In the existing power system master plan (PSMP) 2016, about 60,000 MW of power generation was targeted by 2041 in which primary fuel mix set at 70 per cent coming from coal and gas while the remaining 30 percent will be covered by liquid fuel, renewable, nuclear and other sources.
The BPDB official data shows the country’s total generation capacity is 25,235 MW of which grid-connected generation is 22,348 MW up to April this year while the remaining 2887 is captive generation, mainly produced by industry owners, exclusively for running their own industries.
The country’s highest generation was recorded 14,782 MW on April 16 meaning that the surplus capacity is 10,453 MW (about 41 per cent).
Currently, 50 percent of power is being generated from gas while less than 10 percent is from coal and about 30 percent of power is generated from imported liquid fuel.