Sustainable energy security
Sunday, 18 April 2010
THE good supply of energy for now and assurances of similar future supply appear to have become the focal point of demand and aspirations in Bangladesh. The country has been growing economically at over 5.0 per cent on an annual average in the present decade. But considering the vast remaining number of the poor in the population and the country's actual economic possibilities, there is a strong need for a higher rate of economic growth. And the potentials to achieve the levels of such higher growth are there. The way the Bangladesh economy stands today or considering the net of its able and willing entrepreneurial people, a much higher growth rate is not a dream but a very much attainable reality. Only, it is necessary to meet the vital requirement of augmenting energy supply to spur on this growth.
Experts have the opinion that a growth rate of eight per cent and even higher is easily obtainable but that currently remains on hold from the poor energy supply situation. The manufacturing sector in Bangladesh has otherwise been growing at an impressive pace for some years. But recently that growth has tapered off or seems to be falling as a consequence of the severe energy crunch. Thus, it is most unfortunate that when conditions are seen as favourable for a take-off of the Bangladesh economy in all other respects, severe energy constraints are acting as one of major deterrents to its accelerated growth performance. The country has a growing entrepreneurial class, having the requisite flair and initiatives, a growingly efficient and easily trainable workforce to work at competitive wages, adequate finances from institutional sources, etc. But all of these favourable conditions cannot be utilised as there are not enough energies to drive productive ventures fully. Thus, addressing of such energy-starved conditions calls for the highest focused attention on the part of the government. This point was specially emphasised at a recent seminar on the energy situation that was organised by the International Chamber of Commerce, Bangladesh (ICC,B). The details of that seminar were reported in this paper. Furthermore, the discussants later last week at an investors conference, organised by Board of Investment and a local think-tank, Policy Research Institute of Bangladesh, also highlighted the imperative for taking effective actions sooner than later for improving things in the country's most critical power and energy sector.
On its part, the government has been explaining that it carries the accumulated burden of wasted time in the energy sector for nearly seven years -- the five-year ineffectual period under the immediate past elected government when timely works were not done to increase power generation capacities and explore for more gas and later the period of 'barren' two years under the caretaker government when nothing of substantive nature was done to remedy the situation. However, such past lapses would not certainly help justify the incumbent government's inactions for long. It has been in power for nearly one year and four months, knowing very well how critically important it is to go for total allout actions to increase energy supplies. But this period also appears to be marked by indecisiveness, lack of urgent planning and actions. The increases in power generation capacities and addition of gas to the grid in this period have not been up to the mark, to say the least, compared to the demand. In this context, people are likely to bear out this year and keep faith in the latest promises now being made that notable improvements in energy supply will occur in 2011.
But all the apparatuses and means available to the government -- to ensure keeping of this promise from its highest level -- must be mobilized and set to work very efficiently and purposefully --immediately -- to fulfill the pledge that has made afresh. The well-being of the country's economy absolutely demands this positive outcome. And not only providing a glimmer of hope in the next year, all activities in the energy sector by that time should be concretised, made operational and streamlined to assure that all medium-term plans to boost energy supplies would be well on the way of implementation.
Experts have the opinion that a growth rate of eight per cent and even higher is easily obtainable but that currently remains on hold from the poor energy supply situation. The manufacturing sector in Bangladesh has otherwise been growing at an impressive pace for some years. But recently that growth has tapered off or seems to be falling as a consequence of the severe energy crunch. Thus, it is most unfortunate that when conditions are seen as favourable for a take-off of the Bangladesh economy in all other respects, severe energy constraints are acting as one of major deterrents to its accelerated growth performance. The country has a growing entrepreneurial class, having the requisite flair and initiatives, a growingly efficient and easily trainable workforce to work at competitive wages, adequate finances from institutional sources, etc. But all of these favourable conditions cannot be utilised as there are not enough energies to drive productive ventures fully. Thus, addressing of such energy-starved conditions calls for the highest focused attention on the part of the government. This point was specially emphasised at a recent seminar on the energy situation that was organised by the International Chamber of Commerce, Bangladesh (ICC,B). The details of that seminar were reported in this paper. Furthermore, the discussants later last week at an investors conference, organised by Board of Investment and a local think-tank, Policy Research Institute of Bangladesh, also highlighted the imperative for taking effective actions sooner than later for improving things in the country's most critical power and energy sector.
On its part, the government has been explaining that it carries the accumulated burden of wasted time in the energy sector for nearly seven years -- the five-year ineffectual period under the immediate past elected government when timely works were not done to increase power generation capacities and explore for more gas and later the period of 'barren' two years under the caretaker government when nothing of substantive nature was done to remedy the situation. However, such past lapses would not certainly help justify the incumbent government's inactions for long. It has been in power for nearly one year and four months, knowing very well how critically important it is to go for total allout actions to increase energy supplies. But this period also appears to be marked by indecisiveness, lack of urgent planning and actions. The increases in power generation capacities and addition of gas to the grid in this period have not been up to the mark, to say the least, compared to the demand. In this context, people are likely to bear out this year and keep faith in the latest promises now being made that notable improvements in energy supply will occur in 2011.
But all the apparatuses and means available to the government -- to ensure keeping of this promise from its highest level -- must be mobilized and set to work very efficiently and purposefully --immediately -- to fulfill the pledge that has made afresh. The well-being of the country's economy absolutely demands this positive outcome. And not only providing a glimmer of hope in the next year, all activities in the energy sector by that time should be concretised, made operational and streamlined to assure that all medium-term plans to boost energy supplies would be well on the way of implementation.