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Cutting fuel oil and LNG dependency the way forward

Update : 27 Mar 2015, 08:27 PM

Power sector leaders recommend reducing the dependence on fuel oil and LNG-based power plants and called for quick decision-making on domestic coal development in order to hit the targeted electricity generation capacity of 40,000MW by 2030.

They offered seven recommendations in support of the government’s plan to achieve electricity for all by 2021 and achieving a power generation target of 40,000MW by 2030. 

Power Division additional secretary and convener of the workshop organising committee, Ahmad Kaikaus, placed the recommendations at the closing ceremony of a two-day workshop last week to address the emerging energy situation.

The Power Division, under the Ministry of Power, Energy and Mineral Resources, organised the workshop.

Recommendations included setting up domestic and imported coal-run power plants for base load and speeding up the process of getting them set up. 

The use of nuclear energy for base load was also suggested since it is cost effective.

The workshop called for the reduction of fuel oil and Liquefied Natural Gas (LNG)-based combined cycle power plants because they are very costly.

Participants emphasised cross-border power transfers, institutional development, human resource development and introducing a corporate culture at public sector entities.

Although the limited remaining discovered reserve of natural gas is fast depleting, the country has discovered a reserve of high quality coal. 

But because the government has not been able to decide whether or not to mine coal domestically, the country currently relies mostly on imported coal.

But for the coal import option to be used optimally, many issues and challenges must be overcome. 

Bangladesh has no coal import port infrastructure and it does not have the trained manpower to implement major projects like a coal port or to operate the latest technology coal-fired power plants.

Ahmad Kaikaus told the workshop that securing primary fuel for power generation remains the main challenge. 

Other challenges include securing financing for the generation, transmission and distribution of electricity.

Instituting a fair land acquisition compensation and resettlement policy and land constraints in urban areas, especially Dhaka city, were also highlighted as challenges for the future. 

To improve the sector’s performance the public sector should get private sector-like incentives, proper planning and coordination between the power and energy sectors should be maintained and power projects should take early steps to get their Environmental Impact Assessment clearance, he said.

The country has a present installed power generation capacity of 11,609MW which includes 500MW imported from India. 

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