Bangladesh to formulate integrated master plan for energy and power sector

| Update:
23, 2021, 8:31 p.m.

Responding to the suggestions of energy experts, Bangladesh is finally moving towards the formulation of an integrated master plan for the energy and electricity sector with emphasis on the “3E + S” concept.

“We will pursue the ‘3E + S’ concept of ensuring ‘energy security’, ‘economic efficiency’ and ‘environment’ while focusing on ‘security’, said the Japan International Cooperation Agency. (JICA) in a statement, adding, “Considering the need for a long-term low-carbon energy policy, we will support the formulation of the integrated energy and electricity master plan.

Citing official sources, UNB reported that the Tokyo-based consultancy Institute of Energy Economics, Japan (IEEJ) began work following an agreement the government of Bangladesh signed with JICA on the 15th. March of this year in this regard.

Official sources said that JICA will complete the formulation of the Integrated Energy and Electricity Master Plan by December 2022 under a 30-month completion contract.

JICA funded the entire project through its grant under an agreement with the Ministry of Energy, Energy and Mineral Resources (MPEMR).

It had provided financial and technical support for the formulation of all previous power system master plans (PSMP) until 2016.

According to official MPEMR sources, for decades Bangladesh had prepared two separate master plans – one for the power sector and another for the power sector – where there had been many missing links and one lack of coordination resulting in an imbalance between energy and growth in the electricity sector.

“But for the first time, we will formulate an integrated master plan focusing on the development of both sectors to support the current robust economic growth,” said Mohammad Hossain, Managing Director of Power Cell.

Against the backdrop of unbalanced growth in the power and energy sectors over the past fifteen years, the country’s energy experts have long urged the government to formulate an integrated plan to ensure coordination between the two.

Over the past 12-13 years, the country’s electricity sector has experienced robust growth with an increase in electricity generation from 4,500 MW to 21,000 MW while the growth of the energy sector is remained insignificant because a new discovery was not made for gas exploration or low cost primary fuel. was assured.

Officials said Bangladesh now needs to import a significant amount of primary fuel, especially liquid petroleum, liquefied natural gas (LNG) and coal, to meet demand from the power sector and industry. .
Welcoming the move to an integrated master plan, eminent energy expert Dr Tamim said the initiative will certainly have a positive impact on ensuring low-cost primary energy for affordable electricity generation.
He said many power plants face uncertainties in their operation due to a lack of guaranteed primary fuel supply.

“I hope such a plan will solve the main fuel problem and then give the green light to set up a new power plant,” he told UNB.

Tamim estimated that the plan should be short term 3 years, 5 years medium term and 10 years long term, with emphasis on maximizing renewables and importing energy from countries in the region.

Official sources said that the consulting company JICA will work through a joint coordination committee comprising an energy division and an electricity division whose secretaries for energy and electricity will occupy the position. post of co-chairs.

In addition, a number of working groups will work with the JICA team to formulate the integrated plan.

Official sources said that the JICA consultant will study the country’s 8th five-year development plan, the 2017 gas sector master plan, and review the 2016 power plant and other relevant policies / plans.

It will prepare the outlook for economic development and energy demand forecast by 2050 with an emphasis on energy efficiency and conservation.

A calculation and analysis of the financial costs and benefits of implementing different scenario-based plans will be another task of the plan, giving an overview of supply and demand for the median periods of 2030, 2041 and 2050, officials said.

In the Existing Electricity System Master Plan (PSMP) 2016, around 60,000 MW of electricity generation was targeted by 2041 in which the primary fuel mixture set at 70% coming from coal and gas while the 30 Remaining% will be covered by liquid fuel, renewables, nuclear and others.

Currently, the country’s power generation capacity is around 21,395 MW, of which about 50% of the electricity (10,869 MW) is produced from gas while less than 10% (1,768 MW) comes from of coal, about 30% of electricity is generated from imported liquid fuel.

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