Bangladesh is facing a critical juncture in its energy sector, with experts advocating for enhanced gas exploration and a significant shift towards renewable energy sources to mitigate soaring expenditures. This was the key message at a discussion titled Building Sustainable Futures: Connectivity and Energy, held during a conference focused on Recommendations by the Task Force on Re-Strategising the Economy at the BRAC Centre Inn on Monday.

Speakers emphasised that the Government should prioritise securing primary energy supplies before launching new power plants and called for renegotiating electricity prices with private power producers. They highlighted the urgent need for a robust regulatory framework, urging the Government to strengthen the Bangladesh Energy Regulatory Commission (BERC) so it can effectively oversee the power and energy supply chain.

Prof. M Tamim, Vice-Chancellor of Independent University of Bangladesh, warned of impending challenges, especially with the potential decline in production at the Bibiyana gas field. He noted that the country currently spends around US $ 13 billion annually on energy imports, a figure projected to rise to US $ 20 billion by 2030, as Bangladesh’s reliance on imported energy sources is expected to exceed 90 per cent.

Despite commitments to an energy transition, Prof. Tamim pointed out that there are still approximately 15,000 megawatts (MW) of fossil fuel-based power generation contracts in place. He criticized previous Government efforts to generate 40 per cent of total power from renewable sources, stating that such plans lacked comprehensive stakeholder engagement and realistic targets.

Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources, stated that the Government is actively working to reduce power generation costs to alleviate the financial burden of subsidies in the energy sector. He mentioned the establishment of a benchmark tariff with the Matarbari coal-based power plant and plans to renegotiate pricing with other coal and gas-fired power plants.

Md Jalal Ahmed, Chairman of the Bangladesh Energy Regulatory Commission, criticised the focus of the keynote address, arguing that the current energy crisis stems from an overemphasis on power generation at the expense of transmission and distribution. He pointed out that state-owned gas exploration company BAPEX has only surveyed 5,000 square kilometers of potential gas fields, falling short of the 20,000 square kilometers targeted in earlier plans from 2007-09.

Ijaz Hossain, a former professor at the Bangladesh University of Engineering and Technology (BUET), echoed these concerns, highlighting the decline in gas production since 2017. He urged the Government to conduct at least 10 drilling operations annually and called for prioritizing renewable energy initiatives.

As Bangladesh navigates its energy landscape, the calls for urgent action in gas exploration and a pivot to renewable energy are more pressing than ever, particularly for the country’s vibrant ready-made garment (RMG) sector, which heavily relies on affordable and consistent energy supply to remain competitive in the global market.

News Link: Bangladesh urged to expedite gas exploration and shift to renewables amid rising energy costs