High time to act wisely in the energy sector
Tuesday, 20 April 2010
K. Ahmed
THE country is suffering from a serious energy crisis. This has been the case for past several years in a row. Notwithstanding this, no tangible progress is yet in sight about the success of much-touted claims about governmental efforts to improve or revitalise energy sector management.
This is evident from the extensive power load shedding that the whole country is now experiencing. There is a shortage of about 1500 megawatt (mw) or even more, of power supply against the estimated daily demand for 5500mw. Most power is generated in the country by using natural gas which is also used for fertiliser production, industrial, commercial and domestic uses and furthermore for CNG. The gap continues to widen further between demand for, and supply of, gas. Though it was claimed by the government in the past that the country is floating on gas, there are now fears in some quarters about its proven gas reserve depleting alarmingly in the event of non-discovery of new gas fields and lack of efforts to bring the same into production. A sizeable area, offshore and onshore, is yet to be explored. Bangladesh is reported to possess about 4.0 billion tons of high heating value, low sulphur and low ash coal reserve in about 100 square kilometre area in the greater Rangpur and Dinajpur areas.
In its election manifesto, the incumbent government had declared that by 2011 it would add 1500 mw new power and by 2013 another 3500mw. This means that by the end of their tenure, the country's total power generation capacity would reach 8800 mw. Many concerned hold the view that the main ruling party had not done the necessary homework, in order to achieve this target. It is not out of context to recall here that some policy-makers of the government stated in public, after assumption of office, that coal and offshore exploration policies would be finalised and put into operation sooner than later. But judging from present stalemate situation in the energy sector, it appears that actions so far have been few and far between to redeem the electoral pledge.
The incumbent government has spent about 15 months in office. It is not that too short a period, considering its normal five-year electoral tenure. The present situation hardly gives any positive indication that the government would be in a position to achieve its election vision of adding substantial new power to the national grid. They possibly will not have the required fuel; they cannot complete installations of the required power plants.
Notwithstanding the limitations of Petrobangla that could not retain its trained professionals and witnessed its capacity being eroded over time due to brain drain, this parastatal is yet to receive appropriate government support for exploration works in gas sector. No efficiency check relating to its operational activities could so far be made. Appropriate professionals are yet to man key Petrobangla positions. Each of Petrobangla company that has its assigned tasks has not likewise undergone re-structuring for raising management efficiency.
On its part, the government has not been pro-active enough to take positive decision on offshore exploration. Unless that is done, it will not be possible to get benefit in less than seven years which, again, will depend on discovery of gas.
The coal exploration efforts are also stuck in the quick sand of coal policy. The country is yet to have an effective coal policy, though it has a mines and minerals Act and mines and minerals rules.
Time is running out for the government. It will be impossible for it to reach anywhere near its energy sector vision if it fails to do the needful at the earliest. It must evaluate the performance of present energy sector management without bias. Truly committed professional personnel have to be engaged, if the government really means business.
THE country is suffering from a serious energy crisis. This has been the case for past several years in a row. Notwithstanding this, no tangible progress is yet in sight about the success of much-touted claims about governmental efforts to improve or revitalise energy sector management.
This is evident from the extensive power load shedding that the whole country is now experiencing. There is a shortage of about 1500 megawatt (mw) or even more, of power supply against the estimated daily demand for 5500mw. Most power is generated in the country by using natural gas which is also used for fertiliser production, industrial, commercial and domestic uses and furthermore for CNG. The gap continues to widen further between demand for, and supply of, gas. Though it was claimed by the government in the past that the country is floating on gas, there are now fears in some quarters about its proven gas reserve depleting alarmingly in the event of non-discovery of new gas fields and lack of efforts to bring the same into production. A sizeable area, offshore and onshore, is yet to be explored. Bangladesh is reported to possess about 4.0 billion tons of high heating value, low sulphur and low ash coal reserve in about 100 square kilometre area in the greater Rangpur and Dinajpur areas.
In its election manifesto, the incumbent government had declared that by 2011 it would add 1500 mw new power and by 2013 another 3500mw. This means that by the end of their tenure, the country's total power generation capacity would reach 8800 mw. Many concerned hold the view that the main ruling party had not done the necessary homework, in order to achieve this target. It is not out of context to recall here that some policy-makers of the government stated in public, after assumption of office, that coal and offshore exploration policies would be finalised and put into operation sooner than later. But judging from present stalemate situation in the energy sector, it appears that actions so far have been few and far between to redeem the electoral pledge.
The incumbent government has spent about 15 months in office. It is not that too short a period, considering its normal five-year electoral tenure. The present situation hardly gives any positive indication that the government would be in a position to achieve its election vision of adding substantial new power to the national grid. They possibly will not have the required fuel; they cannot complete installations of the required power plants.
Notwithstanding the limitations of Petrobangla that could not retain its trained professionals and witnessed its capacity being eroded over time due to brain drain, this parastatal is yet to receive appropriate government support for exploration works in gas sector. No efficiency check relating to its operational activities could so far be made. Appropriate professionals are yet to man key Petrobangla positions. Each of Petrobangla company that has its assigned tasks has not likewise undergone re-structuring for raising management efficiency.
On its part, the government has not been pro-active enough to take positive decision on offshore exploration. Unless that is done, it will not be possible to get benefit in less than seven years which, again, will depend on discovery of gas.
The coal exploration efforts are also stuck in the quick sand of coal policy. The country is yet to have an effective coal policy, though it has a mines and minerals Act and mines and minerals rules.
Time is running out for the government. It will be impossible for it to reach anywhere near its energy sector vision if it fails to do the needful at the earliest. It must evaluate the performance of present energy sector management without bias. Truly committed professional personnel have to be engaged, if the government really means business.