The government of Bangladesh urgently needs to review the deal with India’s Adani Group, for the sake of the power sector in the current cash crunch. Most officials of the state-owned Bangladesh Power Development Board (BPDB) strongly believe this, noting that the government needs to pay $100 million every month to import electricity from the Adani power plant in Jharkhand. “If the Adani deal is reviewed, and the tariff is reduced, the government can save upto 50 percent of the money it now pays to Adani,” a senior BPDB official told UNB, requesting anonymity as the issue is highly sensitive. The government signed a 25-year power purchase agreement (PPA) in November 2017 with Adani Power under an unsolicited offer, to buy electricity from its 1600 MW power plant in Godda of Jharkhand. It started importing electricity from the plant in April 2023. Besides the Adani plant, Bangladesh has also been importing about 1160 MW of electricity from India, of which about half is from the Indian private sector and the other half through the government arrangement. All are from coal-fired, or thermal power plants. Read more: No reason to get affected ties with India: Foreign Affairs Adviser BPDB officials said currently this import costs about Tk 5.50 per unit (kilowatt hour) from Indian state-owned plants, Tk 8.50 per unit from Indian private sector while Adani’s power costs about Tk 15 per unit. “It means import of electricity from Adani’s power plant costs almost double compared with the average cost of the import under the Indian government’s arrangement,” said the BPDB official. If the government wants to review the deal, this is the time to do the job, he added, saying that the review will bring huge financial benefits for Bangladesh. Many energy experts in Bangladesh have also been criticising Adani's deal. They said that currently, the BPDB needs to pay over $1.2 billion a year and over 25 years, the payment will be $30 billion. If the deal is reviewed, and the tariff is halved, the BPDB can save $15 billion in 25 years. At present, the outstanding bills of the BPDB amount to Tk 45,000 crore because of its purchase of electricity from the private sector and also import from India at a higher rate. Read more: Adani Group seeks new investment opportunity in Bangladesh Energy expert and vice president of Consumers Association of Bangladesh (BPDB) M Shamsul Alam said that the government should immediately take measures to review all unsolicited deals, including Adani’s one. Sources said that after huge criticism in Bangladesh, last year the Adani Group agreed to reduce the power tariff in exporting electricity. But the arrangement was made on an ad-hoc basis and every month the BPDB has to negotiate with the Indian company to set the power price. “But we need a permanent solution to this deal through a review,” the senior BPDB official told UNB.

In a significant move to stabilize its power sector, the Bangladesh government has secured Tk 2,062 crore through the issuance of special bonds. This initiative, aimed at clearing outstanding liabilities to private power plants, involves a collaboration with two prominent private banks: City Bank and Pubali Bank. A comprehensive agreement was inked on Wednesday at the Secretariat, marking a critical step in addressing the financial challenges faced by the power sector. As per this agreement, the government will issue bonds worth Tk 1,985 crore to City Bank and Tk 77.50 crore to Pubali Bank, as confirmed by the Ministry of Finance. Sources reveal that the government’s inability to disburse subsidy funds had left private power plants struggling to meet their financial obligations, leading some to the brink of insolvency. Read: Bangladesh's imports drop over 18% in first half of FY2023-24  To counter this crisis, the government’s issuance of special bonds comes with an 8 percent coupon rate, mirroring the repo rate set by Bangladesh Bank. Notably, any future fluctuations in the repo rate will correspondingly adjust the bond interest rate. At the term’s end, the government will settle the bank dues along with interest, subsequently reclaiming these bonds. Unlike typical 15–20 year bonds, these special bonds have a maximum tenure of 10 years, a move tailored to the urgent needs of the power sector. Key players in the power sector, including Summit Power, United Power, Confidence Power, Baraka, Kushiara, Doreen, and Akron Power, are among the beneficiaries of this initiative. The Finance Division also disclosed plans for phased agreements with other banks, including BRAC Bank and Bank Asia, to further address the sector’s liabilities. Read: To ensure good governance in banks, chairman should be from independent directors: Dr Atiur  Reflecting on the agreement’s significance, managing directors of several banks expressed optimism. While banks can leverage these bonds with Bangladesh Bank, it provides the government with crucial financial breathing space. This strategic financial maneuver stands as a testament to the government’s commitment to ensuring the stability and sustainability of Bangladesh’s power sector.

The growing backlog in payment obligation is emerging as a major problem in Bangladesh's power sector that may impede the growth of the sector. According to official sources, the payment mode in Bangladesh Government's power purchase agreement (PPA) with the private sector has mainly been made in foreign currency, specially, the US dollar. As per the existing arrangement, as a single payer the state-owned Bangladesh Power Development Board (BPDB) pays to the private power producers in local currency against its purchase of electricity. Under the PPA, the private power producers are allowed to convert the payments into US dollars to meet their different kinds of payment obligations like bank loan, fuel and machinery imports and also paying foreign staff salaries. If the investors are foreign companies, they can repatriate their profits in US dollars, said the officials of the BPDB. They also noted that the BPDB always remains in constant contact with power producers, their banks and the central bank to smooth the foreign currency repatriation. But following the dollar crisis in the country, official sources said in recent months, both the BPDB and the private power producers have been experiencing severe problems in getting dollars from their banks and also from the Bangladesh Bank. Official sources said the BPDB has been struggling to keep up with its payments owed to the private power producers for more than a year. Officials at the Power Division and BPDB said currently the total owed to the Independent Power Producers (IPPs) is $3.5 billion (equivalent to over Tk 35,000 crore) as of September 2023. Read: Rooppur Nuclear Power Plant to receive fresh batch of uranium from Russia’s Rosatom at ‘Graduation Ceremony’ tomorrow As per contract with the government, the IPPs are facing dual problems with their bills. First, they are not getting bills on time and secondly, they are getting partial bills, but not being able to convert the payment into foreign exchange due to the dollar crisis. A top BPDB official admitted the problem to UNB, saying that they had reached an understanding with Bangladesh Bank under a mediation of the Finance Ministry that the central bank will provide on average $20 million every day to BPDB to cover its costs. “But we’re not getting more than $10-15 million a day,” a top BPDB official told UNB on condition of anonymity as the issue is very sensitive and he is not allowed to speak on the issue. He also said that if measures are not taken to contain the growing dues in the power sector it will further aggravate the problem. Read: Japan provides $1500 million to implement Matarbari coal-fired power plant Admitting about the payment backlog, Imran Karim, former president of Bangladesh Independent power Producers Association (BIPPA), said the government should take necessary measures to clear the dues in the power sector. "Otherwise, it will accumulate the dues and create a major problem in the sector", he told UNB. Energy experts said the country is heading for problems in the power sector and it would have a big impact on the overall economy pushing up inflation further. Eminent energy expert and advisor to the Consumers Association of Bangladesh (CAB) Prof M Shamsul Alam said the government has been put in such a major problem because of its wrong planning in the power sector. He said that as a result of the wrong planning, the country is witnessing 50 percent surplus power in summer and 70 percent in winter, for which it is heading towards a disastrous situation. “There will be a big indiscipline in the power sector as pressure for private sector’s capacity payment will continue to go up while import of primary fuel will be increasing. Finally, it will lead to energy insecurity,” he told UNB. Read more: Cabinet purchase body approves proposals including 3 solar power plants in private sector

The BNP will hold an hour-long sit-in programme in front of all the district offices of the Power Division across the country on June 8 to protest the ongoing loadshedding and 'corruption' in the power sector. Besides, the party will also submit a memorandum to the district power offices on the same day. BNP's Senior Joint Secretary General Ruhul Kabir Rizvi announced the programme on Tuesday at a press conference at the party's Nayapaltan central office. Also Read: People suffer as severe load shedding continues countrywide He said the programme was worked out at a meeting of their party’s standing committee, the highest policy-making body, on Monday night. “A sit-in program will be observed from 11am to 12pm in front of the power office at the district headquarters on June 8 and a memorandum will be submitted there in protest against the unbearable loadshedding and massive corruption in the power sector,” the BNP leader said. Also Read: Imagine if electricity generation capacity were still 3000 MW like in BNP-Jamaat govt period: Nasrul Hamid He said people are going through unbearable suffering due to terrible power outages across the country. "In villages and towns, people get electricity for one or two hours in 24 hours. People are experiencing loadshedding for five-six hours during the day as well.” The BNP leader also said power is also not available in the capital for more than 3/4 hours every day. He alleged that the government looted thousands of crores of taka in the name of quick rental power projects and subsidies for the power sector.  “Their (govt) fraudulence is now clearly exposed before the people through the rampant loadshedding.” Also Read; Sylhet BNP expels 43 leaders for contesting city polls “The Awami government has committed a criminal offence by creating scope for looting in the power sector. The indemnity law has been enacted to legitimize looting in the power sector. That is why those involved in these quick-rental projects should be arrested. They’re the biggest enemies of the people,” the BNP leader said. He condemned the attack at on the peaceful road march programme of Ganatantra Mancha in Bogura.    

A two-day meeting of the joint steering committee (JSC) and joint working committee (JWC) on Bangladesh – Nepal power and energy sector cooperation is set to start in Bangladesh on Monday with a target to address the transmission bottleneck in regional electricity trade. The JWC meeting is scheduled for May 15 while the JSC meeting is set for May 16 at the same venue at Payra power plant in Patuakhali, official sources said. Ahead of the meetings, Nepalese Foreign Minister Narayan Prakash Saud in a meeting on Saturday urged Bangladeshi private and public sector companies to invest in the hydropower sector in the Himalayan nation which holds about 60,000 MW of clean energy potentials. “There is huge potential in the Nepal hydropower sector. India is investing in our country and we also welcome Bangladesh to invest in Nepal,” he said at an event titled: “Realizing Energy Cooperation between Nepal and Bangladesh” at the Embassy of Nepal in Dhaka.    “We want to export power to Bangladesh from Nepal as there is an unlimited market,” he said. Responding to a question from reporters on impediments in cross border transmission facilities, he said Nepal hoped to resolve the issue as the Nepalese Prime Minister is expected to visit India soon. “We’re discussing and negotiating with India to resolve the issue. India is now positive in this regard. We’re looking positively to address the issue during the coming tour of the Nepalese Prime Minister to India,” he said. Official sources in Bangladesh Power Development Board (BPDB) said that Bangladesh has a plan to import 500 MW of electricity from Nepal where Indian company GMR Upper Karnali Hydropower is building a 900 MW hydro power project. But so far, no breakthrough was made in resolving issues on transmission facilities due to Indian lack of clearance, said a top BPDB official UNB spoke to. Preferring anonymity to discuss the sensitive issue, he said Bangladesh and Nepal were trying to persuade India to agree a regional arrangement to build a cross border transmission facility to facilitate electricity trade. “But India always prefers to settle such issues on a bilateral basis”, he added, "Bangladesh and Nepal prefer a tripartite or regional agreement”. Explaining the matter he said, If Bangladesh wants to import power from Nepal, it has to first sign a deal with India, not directly with Nepal. Then Nepal will sign a separate deal with India, each deal will be bilateral basis.       In this case, Bangladesh has to import electricity from Nepal through an Indian company. Currently, Bangladesh is importing electricity from India through a similar arrangement where Indian company NTPC Vidyut Vyapar Nigam (NVVN) is importing power for BPDB. As there are no adequate transmission facilities in place, Bangladesh is now trying to start electricity import by 50 MW through the existing limited facilities. But still such a plan is not getting clearance due to lack of Indian approval, said the BPDB official.  Meanwhile, the meeting of the Bangladesh-India Joint Steering Committee on Power Sector Cooperation was held in Khulna on May 4. Joint development of cross-border trade and relevant projects and projects on energy efficiency in Bangladesh were discussed, a press release of the Ministry of Power, Energy and Mineral Resources had said at that time. It also had mentioned that the meeting also discussed India-Bangladesh interconnection link for electricity import, the signing of a proposed agreement to import 500 megawatts of hydroelectricity from Nepal by Indian company GMR to Bangladesh through India, tripartite investment of Bangladesh, India and Bhutan in hydroelectricity project in Bhutan and also the importing of electricity from the project to Bangladesh.  

Power secretary Md Habibur Rahman has sought the leading global companies' collaboration with the Bangladesh power sector for its sustainable development. "Switching to hydrogen fuel for power generation in the future is one example, where global companies like GE, having tremendous experience in the field, can collaborate with us," he said while addressing a seminar titled: "Powering Smart Bangladesh" at a city hotel on Tuesday. American company GE (General Electric) hosted the seminar, which was also addressed by Bangladesh Power Development Board (BPDB) chairman Mahbubur Rahman, and chief executive officer of GE Gas Power South Asia, Deepesh Nanda. The power secretary said Bangladesh will also welcome the tested technologies in the power and energy sector to reduce carbon emissions. Also Read: Bangladesh number one place to engage 3 big powers and play a bridging role: Prof Kanti Bajpai "We're keen to invest in technologies that are already tested and can help Bangladesh to reduce carbon emissions quickly", he said He noted that the government is prioritising the introduction of policy interventions that can support the development of clean energy infrastructure in Bangladesh and contribute towards economic growth of the country by effectively meeting the power demand in the future. The central theme of the seminar was leading a new era of clean energy by focusing on GE’s advanced gas turbine technology, which is capable of burning blends of hydrogen and natural gas, to lead the energy transition in Bangladesh and decarbonise it further. It was informed in the event that GE has more than 120 gas turbines globally that are running on between 5 percent (by volume) and 100 percent hydrogen, and have accumulated more than 8.5 million operating hours. In a move to lead the global energy transition, GE announced in 2022 the spin-off of GE Vernova as a purpose-built business, that highlights the company’s commitment to sustainability and elevating its position as a key player in the energy industry that empowers climate action in all markets. BPDB chairman Mahbubur Rahman said Bangladesh is already a power surplus nation with 100 percent coverage of electricity, and now our focus is to supply reliable electricity in an uninterrupted manner. "We are deploying the latest technologies and digital solutions to make the power infrastructure more robust, and I see GE Vernova, a new company, through its comprehensive portfolio, playing a crucial role in taking this journey forward", he said. "GE Vernova can also help us in meeting the Smart Bangladesh Vision in the future,” he added. GE Gas Power South Asia CEO Deepesh Nanda said his company remains committed to leading a new era of clean energy in Bangladesh. "Today, GE’s technology is powering multiple power plants in the country and our power services are helping the power plant owners to use the fuel efficiently while generating electricity at lower cost", he said. "GE will continue to offer a comprehensive portfolio of powering solutions distinguished by our commitment to quality, productivity, cost effectiveness and safety standards.” He said as Bangladesh diversifies its energy mix, GE’s hybrid power solutions can create an ecosystem in Bangladesh to supply electricity on round-the-clock basis in future. Managing director of Ashuganj Power Station Company Ltd., Sazzadur Rahman, director general of Power Cell Mohammad Hossain, Global Hydrogen Value Chain Leader, GE Power Jeffrey Goldmeer also spoke at the event.    

State Minister for Power, Energy and Mineral Resources Nasrul Hamid has sought cooperation from Japan to implement Bangladesh's integrated energy and power master plan.  "Japan can help prepare and implement a smart and detailed master plan which will take forward other sectors from behind,”  he told Iwama Kiminori, the newly appointed Japanese Ambassador to Bangladesh, while making a courtesy call on him at the power and energy ministry on Tuesday.   The state minister said that a smart power and energy master plan is needed for a smart Bangladesh. Welcoming the newly appointed ambassador of Japan, he said Bangladesh will require $30 billion in investment in the next 5 years to implement the projects to be undertaken under the master plan. He floated an idea that a joint operation and maintenance company could be formed which could save both money and time for Bangladesh. "JICA can support Bangladesh Power Management Institute to make it an international standard institution," he added. During the meeting they discussed various issues related to mutual interest. Progress of different projects in the power and energy sector including Matarbari Power Hub, underground cables and sub-stations, prepaid meters, smart meters, gas meters and upcoming projects also came up for discussion. The ambassador thanked the State Minister for 100 percent electrification and said that Japan will always cooperate in the development activities of Bangladesh. He said Japan International Cooperation Agency (JICA) will work on capacity building for human resource development in Bangladesh. Iwama Kiminori said that many more small and large Japanese companies are showing interest in coming to Bangladesh after witnessing the success of the Japanese company ONUDA in manufacturing gas meters. He also said that the concept of 'Smart Bangladesh' will transform Bangladesh into a developed Bangladesh by 2041.    

State Minister for Power, Energy and Mineral Resources Nasrul Hamid urged the officials of his ministry to ensure more coordination in implementing projects on development of infrastructures in the power sector. “Many achievements are turning into failures due to lack of coordination,” he told officials at a workshop titled: “Together for a Smart & Green Bangladesh '' at Biduyt Bhaban in the city on Tuesday. The call from the State Minister came against the backdrop of the recent grid failure that plunged most areas of the country into a 7-hour blackout on October 4. Chinese technology company Huawei and the Power Ministry’s technical wing Power Cell jointly organised the workshop on development of smart grid and use of electric vehicles. The State Minister said that automation of the power grid is an essential need of the hour. “A smart grid can automatically ensure a match between the demand and the supply”, he said adding that the introduction of information technology and smart devices will keep the power transmission system secure. He also underscored the need for development of skilled manpower in the power sector to transform the power system from conventional grid to smart grid alongside technological development. He reiterated his call to the people to be patient in the nagging power crisis that triggered 5-6 hours of daily load shedding in and outside the capital. Talking to reporters on the side-line of the workshop, he said the people have to wait until November to get a better power supply situation. Two papers on Smart Grid, Electric Vehicles and Global Context were presented in the workshop. Smart grid, cyber-attack prevention, digitisation, automation as well as technology-based clean energy and electric vehicles are also discussed. The matter of electric vehicles also came up at the workshop as such vehicles are eco-friendly and cost-effective. Bangladesh has already prepared a policy regarding charging guidelines, the workshop was told. Power Secretary Md. Habibur Rahman and Chief Executive Officer of Huawei Technology (Bangladesh) Pan Junfeng also spoke at the event.    

BNP Secretary General Mirza Fakhrul Islam Alamgir on Wednesday blamed the government’s overall ‘failure’ and theft in the power sector for Tuesday’s long power blackout in most areas of the country caused by a national grid failure. “We feel that this (national grid failure) happened due to a total failure of the government, and the problem relating to planning, structural and technical matters, and widespread theft in the power sector,” he said. Read: Power supply restored across Bangladesh after 7hrs The BNP leader also said the power sector is not alone facing such problems. “These are happening everywhere. I think the main reason behind it is taking various unplanned development projects by the government only for indulging in corruption." He made the remarks while talking to reporters at BNP standing committee member Iqbal Hasan Mahmud Tuku’s Asad Gate residence in the city. Fakhrul along with another BNP standing committee member Amir Khosru Mahmud Chowdhury went to Tuku’s house as he fell sick. Earlier on Tuesday, power supply across the country was disrupted for nearly seven hours, plunging most areas into a blackout following the failure of the national power grid. Fakhrul said the government used to brag about attaining self-sufficiency in electricity and having the capacity to produce more power than the country’s demand, but people are regularly facing power outages. “Yesterday's (Tuesday’s) case was unusual. There was no power in most parts of the country for about 8 hours. It’s like a total blackout," he observed. Read: Power blackout triggers chaos in Dhaka petrol pumps The BNP leader said the blackout has manifested that the ruling party leaders made huge money by taking various projects in the power sector, but failed to ensure real and sustainable development. “It (blackout) threw the country into a great disaster. As a result mobile network and internet, all factories and filling stations were shut down.” He said the current government is taking unplanned projects and plundering public money as there is no accountability anywhere. “There is not an elected parliament. Since this government has no accountability to  people, we’re facing many problems and disasters in every sector. This incident (national grid failure) is a proof of it. That’s why we are saying repeatedly that this government has become a burden on the country,” Fakhrul said. He said it will be difficult for the nation to survive if this government is not removed immediately. The BNP leader said the current regime must resign by handing over power to a non-party caretaker government for holding a credible national election and to establish a government of people. “There’s no other alternative left for us to get rid of the current situation of the country.”

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. READ: Bangladesh to formulate integrated energy-power sector master plan with focus on 3E+S concept 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.