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Energy, power market

Minister for ADB aid in fixing prices

FE REPORT | February 13, 2024 00:00:00

State minister for power, energy and mineral resources Nasrul Hamid sought assistance from the Asian Development Bank (ADB) to help fix the actual energy prices and establish a power market.

The government required appointing a consultant to fix 'actual' power and energy prices, and the Asian Development Bank could help the government in this connection, he clarified.

A power market is necessary for buying and selling electricity as per requirements, he added.

Mr Hamid sought support of the multilateral donor during a meeting with ADB director general (South Asia) Takeo Konishi and country director Edimon Ginting at his secretariat office.

The government has a plan to import an estimated 9,000MW of electricity in future, according to him.

Electricity could also be exported to Nepal or Bhutan in winter, observed Mr Hamid.

The Asian Development Bank officials stressed increased participation of the private sector in energy transition, a roadmap for increased use of electric vehicles, energy efficiency, solar irrigation and regional interconnection.

Addressing the meeting, Mr Hamid said special bonds were being issued to reduce government subsidies in power and energy sectors.

Initiatives have also been taken to convert 1.30-million diesel pumps into solar pumps.

According to a statement issued by MPEMR deputy press information officer Meer Mohammad Aslam Uddin, the ADB has so far funded $2.57 billion in seven projects in the power sector.

Two projects worth an estimated $360 million were approved in 2023.

Besides, three projects funded by the ADB are ongoing and five projects are in the pipeline.

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