They also suggested a long-term integrated power and energy sector master plan to help the country’s industries grow with a stable energy tariff and introducing more modern technology to improve energy efficiency.
The private sector in particular will not feel encouraged to invest in a situation where power and energy prices are felt to be unstable, and arrived at through opaque processes, they observed.
“There should be transparency in any bidding process....The biggest problem is over-costing and overpricing of infrastructure project,” said CPD Chairman Dr Rehman Sobhan, while presiding over the seminar titled: “Dialogue on Power and Energy Sector: Immediate Challenges and Issues,” at a restaurant in the city.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid spoke at the seminar as chief guest and along with the other speakers, including eminent energy experts Brac University’s pro-Vice Chancellor Prof Dr M Tamim, Prof Dr. Badrul Imam of Dhaka University and Consumers Association of Bangladesh (CAB) Advisor Prof Dr M Shamsul Alam, Norwegian Ambassador in Bangladesh Sidsel Bleken, Australian High Commissioner Julia Niblett, additional secretary of Power Division Siddique Zobair and Wartsila Bangladesh’s managing director Jillur Rahim made up a high-level panel.
CPD director (research) Dr Khondaker Golam Moazzem made a keynote presentation on the topic while Prof Mustafizur Rahman, now a distinguished fellow at the leading think-tank, conducted the function.
Defending the government’s different steps for bringing transparency in the power and energy sector, State Minister Nasrul Hamid claimed the system loss in power sector has come down to 11 percent from 44 percent in 2006.
He said digital technologies are being introduced to bring transparency in the sector.
“Sometimes the government becomes confused by the conflicting views from different experts in the power and energy sector,” he added.
Referring to the Power System Master Plan, he said the government has been maintaining an energy-mix with combination of use of different fuels like liquid fuel, gas, imported LNG, coal, renewable, nuclear and hydro.
“This is a part of the strategy as global energy technology is fast changing. New technologies are coming with newer options,” he said.
Nasrul Hamid said developing skilled and efficient manpower for energy and power sector has been the biggest challenge for the country.
He said the country needs $71.5 billion to generate 60,000 MW by 2040.
“But financing and technology are not a big problem for Bangladesh. Many globally-reputed companies from USA, China, Germany, India, Canada, Saudi Arabia are coming to Bangladesh to invest in energy and power sector,” he mentioned.
He said providing uninterrupted electricity at affordable cost is the government’s main priority now for the sector.
“But this is not a very easy task. A country like South Korea required 30 years to ensure uninterrupted power supply,” he observed.
Prof M Tamim of BUET, an expert on energy-related matters, said the government has been frequently shifting its policy and strategy about primary source of energy supply which cannot facilitate a stable power tariff.
“But the country needs a long-term master plan for power and energy sector to ensure a stable power tariff for the industrial sector,” he said, adding otherwise entrepreneurs will not feel safe to invest.
Prof Badrul Imam said neighbouring India and Myanmar are desperately engaging foreign and local companies to explore for hydrocarbons in their offshore areas while Bangladesh has explored the least in its maritime area.
“Most of the potentially hydrocarbon-rich areas both offshore and onshore remain unexplored,” added Prof Imam, one of the country’s foremost geologists.
Prof Shamsul Alam raised serious concerns about the government’s move for raising gas price, using the public hearing as a rubber stamp.
He alleged that BERC as a regulatory body has lost all credibility of actually serving the cause of transparency and public service through their public hearings.
Yet the regulator is going to hold another public hearing bypassing a pending case in the High Court over the gas price which is totally illegal, Prof Alam said.
He also mentioned that the gas companies have appealed to raise the gas price showing a Tk 31,000 crore deficit in their business.
Wartsila Bangladesh managing director Jillur Rahim said supply of gas to the economic zones and industries at a pressure of 150 psi (pounds per square inch) will enable near-optimum use of highly efficient modern technology for power generation.