Finance Minister AHM Mustafa Kamal proposed an allocation of Tk 26,758 crore for the Power, Energy and Mineral Resources Division in the budget for FY2020-21, which was Tk 28,051 crore in FY2019-20.
Finance Minister said the government with its firm commitment to ensure uninterrupted and quality power supply in the Mujib Centenary, together with “Sheikh Hasina’s commitment to extend electricity to all households”, has been relentless in facilitating a coordinated development in power generation, transmission and distribution.
As part of the Mega Plan to generate 60,000 megawatts by 2041, we have already been able to enhance the electricity generation capacity to 24 thousand megawatts including captive and renewable energy, extend the electricity facility to 96 percent of our population, and raise the per capita electricity generation to 510 kilowatt-hour.
Currently, 48 power plants with a combined generation capacity of 16 thousand 875 megawatts are under construction, and the signing of agreements for construction of 12 power plants with a generation capacity of 2 thousand 785 megawatts are under process (LOA and NOA have been issued).
Further, the tendering processes for 6 power plants with a generation capacity of 650 megawatts is underway. We have also taken up plans to construct 16 more power plants with a generation capacity of 19 thousand 100 megawatts in near future.
“Having identified Payra, Maheskhali and Matarbari as Power Hubs, the government has been implementing a number of mega projects in the power sector. These include, among others, implementation of the Rampal 1,320 megawatts Friendship Super Thermal Project, the Matarbari 1,200 megawatts Ultra Super Coal Project, and the Payra 1,320 megawatts Thermal Power Plant Project have been going on in full swing.
Steps have been taken to construct coal-based power plants having 10,000 megawatts generation capacity in Maheskhali in joint ventures.
To tackle the scarcity of gas as a fuel for power, plans have been made to construct Liquefied Natural Gas (LNG)-based power plants. Construction of the 2,400 megawatts Nuclear Power Plant in Ruppur is progressing well,” he continued.
Mustafa Kamal further said in his speech “We are currently importing 1,160 megawatts of electricity from the neighboring country India as part of energy connectivity under regional and sub-regional cooperation. An MOU has been signed with Nepal for bilateral energy trade, and negotiation has been finalised to import 500 megawatts of electricity from an IPP.
Signing of a tri-partite MoU with Bhutan to import hydroelectricity via India is at its final stage. Negotiations to import hydroelectricity from Myanmar and North-east India are in progress.”
The finance minister said aiming to enhance the contribution of renewable energy to 10 percent of total power generation, we are laying emphasis on solar energy-based electricity. We have so far been able to generate 628 megawatts of power from renewable energy, and power plants of a combined generation capacity of 1 thousand 221 megawatts are either under construction or in the planning process. To make our power generation and its use sustainable, we have taken up plans to install solar panels on the roof-top of every educational institutions in the country. In addition, electricity has been provided to the people living in off-grid areas through the installation of 58 lakh solar home systems.
Following the all-out efforts of our government, the total transmission line has now increased to 11 thousand 119 circuit kilometers and the distribution line to 5 lakh 60 thousand kilometers. In addition, we are moving ahead with the agenda of bringing all upazillas of the country under electricity coverage by December 2020.
Prime Minister has already inaugurated the full electrification of 257 upazillas, and the same programme for another 153 upazillas awaits inauguration.
To augment the production of gas, short, medium and long-term exploration plans have been taken in both land and sea areas. As a result, the gas production capacity in the country has now risen to about 2 thousand 522 million cubic feet. To meet the rising demand for gas, BAPEX has already completed the drilling of 29 wells as part of its plan to drill 108 wells by 2021.
After gaining the new maritime boundary, Bangladesh has framed the Onshore Model PSC 2019 and the Offshore Model PSC 2019 to start new rounds of bidding for blocks in onshore and offshore areas in the country. To prevent wastage of gas, improve energy efficiency, and reduce monitoring costs by installing pre-paid gas meters, 2 lakh 60 thousand pre-paid meters have been installed in Dhaka city and Chattagram region.
As the supply from domestic natural gas is unable to meet the ever increasing demand for energy, two Floating Storage and Regasification Unit (FSRU) with a daily capacity of 1,000 million cubic feet have been installed at Maheskhali, which currently adds around 560 million cubic feet LNG daily to the national grid.
Further, to install a Land-based LNG Terminal at Matarbari with a 1,000 million cubic feet capacity, activities such as the Feasibility Study and the Terminal Developer Selection are currently in progress.
