Power crisis: Need to formulate national energy policy
Sunday, 8 November 2009
Power crisis has been plaguing the country for almost the whole of the past decade. Soon after coming into office, in January, the present government took up the issue on a priority basis and things started showing improvement. There has not, though, been any radical improvement in the situation yet. While the peak-hour demand of electricity is about 5,500 MW, about 3,800 MW is now generated, leaving a shortfall of about 1,700 MW everyday. The shortfall between the demand and generation of electricity has, thus, come down only marginally. Power outlook is still bad, affecting production in mills, factories and fields, discouraging fresh investment, and making a hell of the civic life. Against this gloomy backdrop, Prime Minister Sheikh Hasina made an announcement on Wednesday, November 4, in the Jatiya Sangsad that power crisis would be over in two years' time, by 2011. This announcement is reassuring.
The Prime Minister's announcement is backed by feasible government programmes in power development. The current national budget has allocated Tk. 4,310 crore for the power sector, which is 48 per cent higher than what was allocated in the last revised budget. The Prime Minister mentioned in the Jatiya Sangsad that about 1,487 MW would be added to the national grid by 2011, according to the government's current plan. The government is encouraging the private sector to invest in the power sector by setting up rental power plants which may produce as much as 530 MW by August next year. The Prime Minister disclosed that a process was underway to set up a rental power plant with the capacity of generating extra 970MW of power.
The government has apparently gone all-out for solving the power crisis. In the Jatiya Sangsad, the Prime Minister spoke about a bright future: "Bangladesh will be self-sufficient in power by 2021 and 100 per cent people of the country will get electricity facility according to the government's vision." If that vision is realised it will be a very big leap forward. At present only 45 per cent of the population has access to electricity and per capita power consumption is 172 kwh compared to 325 kwh in Sri Lanka, 408 kwh in Pakistan and 665 kwh in India, 17179 kwh in Canada, 13338 kwh in the USA, 11126 kwh in Australia, 8076 kwh in Japan, 7689 kwh in France, 7030 kwh in Germany, 6206 kwh in the UK, 5642 kwh in Russia and 5644 kwh in Italy.
The Prime Minister mentioned her government has undertaken feasibility studies for setting up coal-based power plants in Chittagong, Khulna, Shariatpur and Meghnaghat by 2014 with a capacity of generating 2,000-2,600MW. A project is also underway to set up wind power units and solar power plants to generate 280 MW of power by 2013. The Prime Minister did not, however, say anything about the agreement with Russia on setting up a nuclear power plant and the possibility of collaborating with India on the power sector. During the September 7-10 visit to India, Foreign Minister Dipu Moni signed a joint agreement with her Indian counterpart which says: "Both sides agreed to enhance cooperation in the power sector. India agreed to provide at least 100 MW to Bangladesh on a priority basis. Ahead of this, it will also undertake a feasibility study on power grid inter-connectivity for transmission lines, etc from India to Bangladesh."
While the initiatives and programmes aimed at overcoming the power crisis and, eventually, achieving self-sufficiency in power are welcome, it is necessary for the government to formulate a comprehensive national energy policy with the participation of all the stakeholders in the sector. Otherwise, the long-term goals, as past experience has shown, may be defeated with a change in the government. Besides, there are critical issues to settle regarding nuclear power, extraction as well as use of coal and gas, bilateral and regional cooperation etc.
The Prime Minister's announcement is backed by feasible government programmes in power development. The current national budget has allocated Tk. 4,310 crore for the power sector, which is 48 per cent higher than what was allocated in the last revised budget. The Prime Minister mentioned in the Jatiya Sangsad that about 1,487 MW would be added to the national grid by 2011, according to the government's current plan. The government is encouraging the private sector to invest in the power sector by setting up rental power plants which may produce as much as 530 MW by August next year. The Prime Minister disclosed that a process was underway to set up a rental power plant with the capacity of generating extra 970MW of power.
The government has apparently gone all-out for solving the power crisis. In the Jatiya Sangsad, the Prime Minister spoke about a bright future: "Bangladesh will be self-sufficient in power by 2021 and 100 per cent people of the country will get electricity facility according to the government's vision." If that vision is realised it will be a very big leap forward. At present only 45 per cent of the population has access to electricity and per capita power consumption is 172 kwh compared to 325 kwh in Sri Lanka, 408 kwh in Pakistan and 665 kwh in India, 17179 kwh in Canada, 13338 kwh in the USA, 11126 kwh in Australia, 8076 kwh in Japan, 7689 kwh in France, 7030 kwh in Germany, 6206 kwh in the UK, 5642 kwh in Russia and 5644 kwh in Italy.
The Prime Minister mentioned her government has undertaken feasibility studies for setting up coal-based power plants in Chittagong, Khulna, Shariatpur and Meghnaghat by 2014 with a capacity of generating 2,000-2,600MW. A project is also underway to set up wind power units and solar power plants to generate 280 MW of power by 2013. The Prime Minister did not, however, say anything about the agreement with Russia on setting up a nuclear power plant and the possibility of collaborating with India on the power sector. During the September 7-10 visit to India, Foreign Minister Dipu Moni signed a joint agreement with her Indian counterpart which says: "Both sides agreed to enhance cooperation in the power sector. India agreed to provide at least 100 MW to Bangladesh on a priority basis. Ahead of this, it will also undertake a feasibility study on power grid inter-connectivity for transmission lines, etc from India to Bangladesh."
While the initiatives and programmes aimed at overcoming the power crisis and, eventually, achieving self-sufficiency in power are welcome, it is necessary for the government to formulate a comprehensive national energy policy with the participation of all the stakeholders in the sector. Otherwise, the long-term goals, as past experience has shown, may be defeated with a change in the government. Besides, there are critical issues to settle regarding nuclear power, extraction as well as use of coal and gas, bilateral and regional cooperation etc.