Experts urge caution in energy transition decisions

Experts are cautioning against rushing into decisions on energy transition projects, warning that haste could create serious problems for both technology choice and the countrys financial sector.

"We need to scrutinize all issues, including the present scenario of Bangladeshs energy sector, economic growth, transmission and distribution capacity, as well as the investment scenario," said Dr M Tamim, an energy expert and former energy advisor to the caretaker government, at a seminar on Wednesday. "If we plan to scrap all the coal or other projects right now, we need to address a huge compensation claim. We need to phase out gradually and set a real priority list right now."

He highlighted that Bangladesh has signed many projects based on coal or other fuels, while also aiming to produce 40 per cent of its energy from renewable sources by 2041. "We need to start working on this now," he emphasized, asking, "But what will happen to the investments in the 11-megawatt coal-fired and numerous gas-fired power plants?"
Dr Tamim identified land scarcity as the main obstacle to promoting renewable energy in Bangladesh. He stressed the need for planning, reviewing demand forecasts, ensuring good governance, and replacing outdated assumptions with new realities to ensure energy security. He made these remarks at a seminar titled "Challenges and Opportunities for Energy Transition in Bangladesh: A Citizens Manifesto" at the BRAC Centre Inn Auditorium, organized by the Centre for Policy Dialogue (CPD).

Dr Tamim pointed out that the government could easily offset 3,000 MW of electricity shortage with daytime solar power, but no such plan exists. He added that under the current plan, 10,000 MW of coal power plants will be running for the next 20 years.

The CPD presented the first-ever analysis of political parties election manifestos regarding their plans for the countrys energy issues. Additionally, it gathered stakeholder opinions and desires from the parties.

"We see that the newly elected government and opposition parties emphasize power and energy-related targets," said Dr. Fahmida Khatun, Executive Director of the CPD. "In line with that, the government of Bangladesh has undertaken various policies, plans, and initiatives. We expect the current government to address and prioritize the energy transition goal by accelerating renewable energy initiatives in the coming years."

Civil society organizations have been undertaking various initiatives to raise awareness among policymakers, bureaucrats, the private sector, workers, and development partners regarding the energy transition in Bangladesh.

Analyzing political parties stances, Dr. Khondaker Golam Moazzem, research director of the CPD, noted that all major parties except the ruling Awami League want to get rid of capacity payments in the power sector. He pointed out that reducing overgeneration of power capacity is absent in the Awami Leagues election manifesto.

The seminar was addressed by various dignitaries, including politicians, government officials, academics, and NGO representatives. They all emphasized the need to reduce dependence on imported power and primary energy to make the power and energy sector financially sustainable.

AL lawmaker Tanvir Shakil highlighted the achievement of 100 per cent electrification as the biggest success of the Awami League government. Shafiqul Alam, an energy analyst, warned that importing electricity and energy is leading to a dollar shortage in the country. He advocated for increased exploration of local gas resources to reduce dependence on imports.

Abul Kalam Azad of ActionAid stated that Bangladesh had to spend Tk 52,000 crore on buying electricity from private producers and Tk 17,000 crore in capacity payments during the last financial year.

Mohammad Hossain, Director General of the Power Cell, emphasized the need for a holistic approach to the power and energy sector. He acknowledged that the government cannot shift its energy transition plans overnight.

She said Civil society organisations have been undertaking various initiatives to sensitise/aware policymakers, bureaucrats, private sector, workers and development partners regarding the energy transition in Bangladesh
Analyzing the political parties opinion, Dr Khondaker Golam Moazzem, research director of CPD said all political parties in Bangladesh except the ruling Awami League want to come get rid of capacity payments in the power sector.

He said that the reduction of over generation of power capacity is missing in the Awami Leagues election manifesto announced before the January 7 parliamentary vote.

The think tank presented the report at a seminar titled: "Challenges and Opportunities for Energy Transition in Bangladesh: A Citizens Manifesto" at BRAC Centre Inn Auditorium in the city.

 He said that the reduction of over generation of power capacity is missing in the Awami Leagues election manifesto announced before the January 7 parliamentary vote.

The seminar was addressed by Tanvir Shakil Joy, MP, Member, Parliamentary Standing Committee on Ministry of Power, Energy and Mineral Resources, Mohammad Hossain, Director General of Power Cell of Power Division, Dr M Tamim, Professor and Dean of Chemical and Materials Engineering Faculty, BUET and Former Special Assistant to the Chief Advisor; Md. Shahriar Ahmed Chowdhury, Director, Centre for Energy Research (CER), United International University (UIU); Mr Hasan Mehedi, Chief Executive, Coastal Livelihood and Environmental Action Network (CLEAN); Abul Kalam Azad, Manager, ActionAid; and Shafiqul Alam, Lead Energy Analyst, Institute for Energy Economics and Financial Analysis (IEEFA).  

 The speakers said the government must reduce dependency on import of power and primary energy. Or else, the power and energy sector would not get rid of continuous losses.  AL lawmaker Tanvir Shakil said reaching the goal of cent percent electrification of the country has been the biggest success of the Awami League government.  

Shafiqul Alam said import of electricity and energy is leading to an increase in the shortage of dollars in the country. "We need to enhance our exploration effort of local gas to reduce dependency on imports", he added.

  ActionAids Abul Kalam Azad said the country had to spend Tk 52,000 crore in buying electricity from the private producers, Tk 17,000 crore in capacity payment during the last financial year (FY2022-23).

Power Cell Director General Mohammad Hossain said that the power and energy sector has to be looked at in a holistic approach.

He said the government cannot overnight shift its plan to move for energy transition.