Bangladesh continues pre-construction and construction phases of gas-fired capacity development, although it is exceeding double its operating capacity, according to a recent survey by Global Energy Monitor (GEM).
Bangladesh leads in South Asia with over 23.6GW of gas-fired capacity in development, which is more than double the current operating capacity of 10.8GW in the region, the report adds.
South Asia has over 34GW of gas-fired capacity in development, at an estimated cost of Tk 2900 crore. If built, this will increase the 52.3GW of existing gas-fired capacity in South Asia by 65%.
According to the survey, a boom in gas power plant development is now larger on a capacity basis than the build-out of new coal capacity, a press release says.
Even as Bangladesh’s existing gas-fired power plants often sit largely idle, operating at 40% capacity between 2019 and 2020, there are planned future gas expansions.
The global gas plant build-out is abundant, with the leading five countries constituting 39% of new global gas-fired capacity in development, and the top 20 countries making up 75%. In comparison, the top five countries represent 82% of new coal-fired capacity in development globally, the report adds.
“Unlike coal, where China is the biggest culprit, the boom in gas plant construction is everywhere,” said Julie Joly, program director for Oil & Gas for Global Energy Monitor.
“Asian countries moving away from coal are switching to gas instead, and locking in decades of GHG emissions. Europe and the United States are expanding their gas fleets despite policy pledges to reduce emissions.”
According to the International Renewable Energy Agency (IRENA), 62% of all new renewable energy generation installed globally in 2020 will be cheaper than the cheapest new fossil fuel option.
Apart from being less expensive and more environmentally beneficial, renewable energy has specific energy security advantages over gas. Volatility in fuel costs or availability can make revenue from gas projects unpredictable or make running facilities prohibitively expensive during price spikes.
The report further said that renewables are a cost-effective and feasible alternative to gas-fired generating, given the significant drop in clean energy costs.
Constructing gas-fired power stations is financially risky and is based on the antiquated premise that gas is the most cost-effective energy source, it said.