Dr Ahsan H Mansur (top, centre), executive director of the Policy Research Institute of Bangladesh (PRI), speaks at a webinar titled, 'Energy Crisis and Policies: Current Scenario and the Future,' organised by the Economics Study Center (ESC) of Dhaka University on Thursday night Speakers at a webinar have demanded annulling the provision of making capacity payments to idle power plants to keep down overall electricity-generation costs and keep the national economy vibrant.
They also have suggested a pragmatic forecast over the country's power and energy demand to avoid keeping the ready power plants idle and help the business entrepreneurs chalk out time-bound investment plans.
More than 40 per cent of the country's power plants are now kept idle but the government is making capacity payments as incentives, say the speakers.
They were speaking at a webinar titled, "Energy Crisis and Policies: Current Scenario and the Future," organised by the Economics Study Center (ESC) of Dhaka University on Thursday night.
Moderated by Professor Dr M M Akash, chairman of economics department at Dhaka University (DU), and Dr Sayema Haque Bidisha of economics department at DU, the webinar was addressed by Dr Ahsan H Mansur, executive director of Policy Research Institute of Bangladesh (PRI), Dr Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), and Dr Badrul Imam, honorary professor of geology department at DU.
The discussants also pointed out that the country's oil and gas exploration works started slowing down over the past one decade when the lobby for importing liquefied natural gas (LNG) started getting stronger in the country.
Expediting exploration for hydrocarbons is the only option to ensure the country's future energy security, said Professor Badrul Imam.
"The failure of our policymakers to make right decisions on time has led us to the present situation," he opined.
Lack of timely investment has also put Bangladesh in an unpleasant position, said Mr Imam.
Speaking on the occasion, Dr Ahsan H Mansur said the country is at risk of ensuring the supply of natural gas and keeping the economic momentum going due to dwindling natural gas output.
"To keep up with today's world, we need to focus more on green energy," he said, adding, "New initiative to transform fuel-based irrigation pumps into solar-based pumps is also necessary."
Importing solar energy from India can be a good but temporary solution, he said.
Encouraging rooftop solar, especially in industries, is also necessary, said Mr Mansur.
Some 500 megawatt (MW) of electricity can be generated if rooftop solar systems are installed in the ready-made garment (RMG) industries alone, he added.
Using electric cars and trucks can eventually reduce the mass use of petroleum products, he said.
To make this massive change possible, Bangladesh needs to change the infrastructure and introduce some new rules, he added.
CPD Research Director Dr Golam Moazzem said inflated and confusing projection over electricity demand is paying the country heavily as the government is paying billions of taka every year as capacity payments to non-operating power plants.
Stressing the need for annulling the provision of capacity payments to power plants, he said the country is not in a position to bear such expenses now.
Making capacity payments to power plants owners was logical during 2009-2010 when the country was lacking investments and entrepreneurs in this sector.
"But now we have a lot of entrepreneurs willing to invest in the power sector," Mr Moazzem added.
He suggested de-incentivising the existing hydrocarbon industries to promote the use of renewable energy in Bangladesh.
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