Failing to develop domestic coal or offshore gas, the government is now opting for an even costlier method of generating electricity than either gas or coal.
It plans to generate 8,125MW of electricity by installing seven power plants run on imported re-gasified liquefied natural gas (LNG).
Importing LNG is now on the cards because the country is reeling from an acute gas crisis because of the fast depletion of current reserves and a lack of new discoveries of sources where fuel might be extracted.
Despite staggering losses and controversies in recent years, the government shows no sign of moving away from private rental power plants.
Since taking office in 2009, the Awami League government has built around 30 fuel oil-run rental and peaking power plants with a combined capacity of 3,000MW in a bid to meet growing demands, but costly fuel oil has meant very high costs for the operation.
In its second successive term, the Awami League government is planning to install LNG-fired power plants whose generation costs will be even higher than either gas or coal.
Currently, the cost of electricity produced in a gas-run plant is less than Tk2 per unit, coal costs Tk6 per unit and the cost of electricity produced in a diesel or oil-run plant is Tk14 to Tk18 per unit.
Electricity produced in an LNG-based plant will cost Tk16-18 per unit.
Power sector leaders earlier called for the development of domestic coal in order to hit the electricity generation capacity target of 40,000MW by 2030.
Currently, the country has an installed power generation capacity of 11,609MW which includes 500MW imported from India.
“We have made a mega plan to construct LNG-based power plants for sustainable energy security,” Power Division Secretary Monowar Islam told the Dhaka Tribune.
“It is a new option for us to provide electricity for all,” he said.
Energy experts have said the government should focus on gas and coal-based power plants and move away from a dependence on fuel oil and LNG.
“We are not seeing a resolution to the primary energy crisis. There has been no positive progress on the coal issue.
“The productivity of gas has increased but is not sufficient to meet demand,” Professor Ijaz Hossain of the Department of Chemical Engineering at Bangladesh University of Engineering and Technology told the Dhaka Tribune yesterday.
That is why the government is planning to build new LNG-based power plants, he added.
The plants are to be operated by both public and private sector companies.
The state-owned North-West Power Generation Co Ltd is planning to build a 750MW-850MW plant in Khulna while state-owned Power Development Board will build two 1,000MW plants in Maheshkhali, Cox’s Bazar.
MPC-Bangla Power, a joint venture of Meiya Power Company Limited and Trade Matrix Venture Limited, will also build a 1,075MW plant in Maheshkhali.
Summit Group is looking to build a 700MW plant and United Power Generation and Distribution Co Ltd is planning on a 500MW plant in Chittagong.
Indian conglomerate Reliance Group will build a 3,000MW LNG-based combined cycle power plant.
