Complaints about electricity bills are not new in Bangladesh. However, thefrequency of allegations has come down a lot by now with the partial automationof the billing system. Unfortunately, the government attracted a widespreadcriticism over the electricity billing most recently. It is popularly termed as a‘ghost’ bill. Due to the Covid-19 pandemic, the government exempted the latepayment surcharge for the months of March, April and May if the consumers paythe bills for three months by June 30. As soon as the utility companies starteddistributing the three-month bills together, many consumers found those hugelyinflated. And, they started raising allegations. Thanks to the utility companiesrecognized the ‘mistakes’ and they have their own clarification about thewrongdoings. However, the so-called ghost bills would be only one per cent ofthe total bills distributed. The companies already corrected most of the bills andnow working on few others while the wrongdoers had to face actions. Thegovernment has also taken initiatives to completely automate the system, which itbelieves would solve the problem. It would be wise to implement the automationplans as soon as possible. It would help solve the ghost bill problem as well asgenerate more revenue for the utilities.

Fortnightly Magazine, Vol 18, Issue 3, July 16-31

It may not be possible to get ridof gas-based captive powereven after modernizing and up-grading the transmission gridand distribution networks. Evenafter taking into account thepresent enhanced price of natu-ral gas, the generation cost ofcaptive power is lower by atleast Tk 2.0 per unit than thegrid power. Unless the price ofgrid power becomes competi-tive to gas-based captive ...

Bangladesh now possesses instal-lation capacity of over 20,000MW grid-connected power and3,000 MW off-grid captive powergeneration capacity. The highestdemand for grid power never ex-ceeded 13,000 MW. Still powersupply disruptions are regularphenomenon. It also takes time inrestoration of power whenever hitby natural disaster. The systemmanagers often seek excuses oftransmission systems’...

Complaints about electricity bills are notunusual in Bangladesh. But this time the‘ghost’ power bills distributed among theconsumers during the COVID-19 pan-demic have attracted widespread criticism.The allegations were especially against thebills those prepared without taking meterreadings. Such bills were adjusted after tak-ing readings in December or June last. Thebilling system has significantly improvedby now as compared to what prevailed inlast 10-15 years. But it could not be madecompletely error-free. Automation of the ...

43 15 9

EditorMollah M Amzad Hossain

Advisory EditorAnwarul Islam TarekMortuza Ahmad FaruqueSaiful Amin

International EditorDr. Nafis Ahmed

Contributing EditorsSaleque Sufi

Online EditorGSM Shamsuzzoha (Nasim)

Managing EditorAfroza Hossain

Deputy EditorSyed Mansur Hashim

Magazine AdministratorAKM Shamsul HoqueReportersArunima HossainJannatul Ferdushy Sova

Assistant Online EditorAditya HossainDesign & GraphicsMd. Monirul Islam PhotographyBulbul Ahmed

ProductionMufazzal Hossain JoyComputer GraphicsMd. Uzzal Hossain

Circulation AssistantKhokan Chandra DasEditorial, News & CommercialRoom 509, Eastern Trade Center56 Inner Circular Road (VIP Road)Naya Paltan. GPO Box : 677Dhaka-1000, BangladeshTel & Fax : 88-02-58314532Email: ep@dhaka.netenergypower@gmail.comWebsite: www.ep-bd.comPriceBangladesh: Tk 50, SAARC: US$ 6,Asia: US$ 8, Europe: US$ 10, NorthAmerica, Africa & Australia: US$ 14

Encouraged by the readers and patrons, the EP would continue bringingout Green Pages to contribute to the country’s efforts in its journeytowards environment-friendly energy.

31 SOLshare among Ashden

Award Winners

33 France to Provide €100m

to Bangladesh for

Renewable Energy

33 British FDI Sought in

Green Financing

34 IEA Calls to Boost EU’s

‘Green’ Recovery

34 German Govt to Agree

National Hydrogen Strategy

5 WORLD WATCH

Latest Development in

World

6,8 SNAPSHOT

Latest Development

9 COVER

So­Called Scandal

SPECIAL ARTICLE

15 Why Bangladesh Needs

Smart Grid?

ARTICLE

17 Solar Sector Needs Policy

Intervention

REPORT

19 Power Billing System to Go

Online in Future: Nasrul

20 Japan to Limit Financing of

Overseas Coal Power Plants

21 Beximco­IOC Joint Venture for

LPG Business in Bangladesh

23 Mega Power Projects in

Progress for 3,840MW: Nasrul

26 LPG Export to India Remains

Suspended Due to Pandemic

27 Bangladesh Earns Huge

Success in Green Energy

28 BD Seeks $6.4b Chinese

Fund for New Projects

45 MAN Completes Power Plant

Expansion in Faroe Islands

CLIMATE

37 Back Clean Energy, UN Chief

Urges

37 IISD Launches ‘Sustainable

Recovery 2020’ Campaign

38 Environmentalists For Big

Budget to Weather Climate

Change

38 DNV GL Approves Shell’s

Carbon Capture Technique

39 IEA Report Appears to

Acknowledge 2050 Net Zero

May Be Beyond Us

39 ‘DTEK Renewables Wins

Climate Bonds Initiative’s

SPECIAL REPORT

41 Can Power from Palm Oil

Waste Replace Fossil Fuels in

Asia?

INTERVIEW

43 Md. Kausar Ameer Ali;

Managing Director, DESCO

5

Worldwatch

July 16, 2020

Royal DutchShell is notruling outmoving itsheadquartersfrom the

Netherlands to Britain, the oilcompany's chief executiveBen van Beurden said in aDutch newspaper interviewpublished recently.

Anglo-Dutch consumer prod-ucts giant Unilever said lastmonth it plans to ditch its dualAnglo-Dutch legal structureand create a single entity inBritain.

Van Beurden did not explicitlysay Shell wants to move its

headquarters, het Financieele Dagblad said.

"You always need to keep thinking," Shell's Van Beurden toldthe newspaper. "Nothing is permanent and of course we willlook at the business climate. But moving your headquarters isnot a trivial measure. You cannot think too lightly about that."A Shell spokesman confirmed the CEO's comments to Reutersand said the company was looking at ways to simplify its dualstructure, as it had been doing for many years.

Shell has a complex Anglo-Dutch holding structure with a taxresidency and headquarters in the Netherlands and a regis-tered office in Britain.

Unilever's decision to move followed the scrapping in 2018of a plan by Dutch Prime Minister Mark Rutte to do away witha 15% dividend withholding tax.

Shell CEO Does Not RuleOut Moving Headquartersto Britain

Germanengineer-ing com-p a n y

Siemens saw the volume of business contract by as much as20 per cent in the three months to June and activity in 2021would stay below 2019 levels, the chief financial officer tolda media.

Ralf Thomas said that the company’s financial third quarter,which runs April to June, “will be a big challenge for us, asfor most other market participants as well” due to the coron-avirus crisis, report agencies.

“However, it will not be a bottomless fall,” he said, addingthat the businessvolume of short-cycle activitieshad likely con-tracted by be-tween 10 percent and 20 percent in the pe-riod.

Siemens Sees up to 20pcDrop in Business in 3 Months

The U.S. Secretary ofEnergy Dan Brouilletteis travelling to San An-tonio, Texas, recently

to meet with energy stakeholders in the region and discuss thecurrent state of energy markets, the U.S. Department of Energy(DOE) has revealed.

Secretary Brouillette will head to Houston, Texas, with theU.S. Under Secretary of Energy, Mark W. Menezes, wherethey will hold a roundtable discussion with independent oilproducers, according to the DOE.

Brouillette and Menezes will also tour the DOE’s Strategic Pe-troleum Reserve Big Hill Site in Winnie, Texas, with state andlocal officials.

In a statement posted on his official Twitter account, Brouil-lette said the energy industry in Texas is “critical” to the energysupply and security of the United States. He also outlined thatthe DOE has invested over $213 million in the state to fundenergy projects.

US Energy Sec Headsto Texas

Halliburton Co.and Tech-nipFMC haved e v e l o p e dOdassea, whichthey claim is the

first distributed acoustic sensing solution for subsea wells.

It is said to allow operators to conduct intervention-less seismicimaging and reservoir diagnostics to reduce costs, while at thesame time improving reservoir understanding.

The Odassea service integrates hardware and digital systems toprovide digital capabilities in subsea reservoir monitoring andproduction optimization.

Halliburton is supplying the fiber optic sensing technology,completions and analysis for reservoir diagnostics, while Tech-nipFMC provides the optical connectivity from the topsides tothe completions.

Through this collaboration, they claim, operators can speed uptheir full-field subsea fiber optic sensing, design, and execution.

Trey Clark, vice president of Halliburton Wireline and Perforat-ing, said the service “allows our customers to monitor reservoirperformance in real-time.”

The partners arealready deliveringsolutions featuringthe technology tomultiple subseaprojects at allstages, from con-ceptual designthrough executionand installation.

Halliburton, TechnipFMCDevelop Subsea AcousticSensing System

Van Beurden

6

Snapshot

July 16, 2020

Summit Group signedan employee health-care service agree-ment with BangladeshSpecialized Hospital(BSH) to combat

Covid-19. On behalf of Summit Group and Bangladesh Spe-cialized Hospital (BSH) Lt Gen (Retd) Engr Abdul Wadud andAl Emran Chowdhury respectively signed the agreement.

Summit Group signed an employee healthcare service agree-ment with Bangladesh Specialized Hospital (BSH) to combatCovid-19. Along with Summit its partner JERA, Japan's largestenergy company, provided four ventilators and one RT-PCRMachine to BSH.

Summit Corporation and Summit Holding along with its sub-sidiaries employ over 6,000 people, said a statement.

Founder Chairman of Summit Group of CompaniesMuhammed Aziz Khan said, "Employees of Summit are itsbest assets. I am delighted that we are signing this healthcareservice agreement with BSH that would take care of ourBangladeshi employees, staff and workers given COVID careis absolutely in short supply in the world."

Vice-Chairmen of Summit Group Md Farid Khan and Md LatifKhan; Directors Azeeza Aziz Khan, Fadiah Khan and SalmanKhan; Advisor Rear Admiral Riazuddin Ahmed (Retd), MD &CEO of Summit Communications Md Arif Al Islam, MD ofSummit Gazipur II Power Engr Mozammel Hossain, MD ofSummit Technopolis Abu Reza Khan, MD & CEO of SummitBibiyana Power SM Noor Uddin, Chairman of BSH Dr Mah-bubur Rahman Chowdhury and other senior officials of BSHwere present at the virtual signing ceremony.

Summit SignsAgreement with BSHto Combat Covid-19

Bangladesh Power De-velopment Board (PDB)has organized first onlinetraining course recently

through Google Meet video conference.

PDB chairman Md Belayet Hossain inaugurated the trainingcourse styled “Transformer Relay Protection, Setting Coordi-nation, Fault Analysis and Power Transformer Commission-ing.”

Speaking at the inaugurating ceremony, Md. Belayet Hossainsaid that online course can augment the PDB training programto great extent, said a press release.

He also added that ensuring appropriate course curriculum,eligible candidates and proficient trainer will bring success toproduce skilled engineer.

Bangladesh Power Development Board, Member Administra-tion Md Zahurul Haque presided over the virtual inaugurationceremony.

Among others, Member of Planning and Development, Mus-taq Muhammad, Member of Finance Selim Abed, Member ofCompany Affairs, Nurun Nahar Begum, Member of Produc-tion, Md Zakir Hossain and Member of Distribution, ABM Ab-dullah were also present at the occasion.

Among others, General Manager (training), chief engineersand concerned officers were present at the program.

PDB Launches FirstOnline Training

A young manwas electrocutedin Kendua Up-

azila of Netrokona district recently.

The deceased was identified as OliMia, 22, son of Alek Mia, a resident ofRamnagar Paschim Para Village in theupazila.

Locals said Oli came in contact with alive electric wire while tried to repairhis auto-bike in a shop at Rampur Mar-ket, which left him dead on the spot.

Young Man Electrocuted

Petromax started com-mercial operations in2013. Octane is its mainproduct, but the com-

pany also produces small quantities of diesel, petroleum andkerosene. It buys condensate from the Rupantarito PrakritikGas Company.

Shahjibazar Power, a sister concern of Youth Group, holds a90 percent share of Petromax Refinery with an investment ofTk90 crore.

In the fiscal year 2013-14, Petromax earned Tk362.35 croreand made a net profit of Tk20.59 crore. The following year,fiscal year 2014-15, the company earned a maximum ofTk764.26 crore and made a net profit of Tk72.88 crore. Sincethen, its business has declined.

In the first three quarters of the 2019-20 financial year, rev-enue of thecompany fellby 12 per-cent toT k 3 7 9 . 9 3crore. Fur-ther, it posteda loss ofTk5.12 crorefrom its refin-ery business.

Petromax RefineryLosing Business

8

Snapshot

July 16, 2020

Bangladesh will startimporting cleaner ma-rine fuel with 0.5 per-cent sulfur content fromJuly instead of 180 CSThigh sulfur fuel oil with

3.5 per cent sulfur as per the International Maritime Organiza-tion, or IMO, guideline.

State-run Bangladesh Petroleum Corporation, or BPC, has al-ready floated tender to import around 75,000 tonnes of cleanermarine fuel during July-December, 2020, a senior BPC officialsaid.

The bid submission deadline is July 5. The validity of the offershould be until October 2, 2020. The shipment of the fuelshould be on the cost and freight, or CFR, basis in Chattogram.

This is the country's first tender to import marine fuel with 0.5per cent Sulphur content.

The BPC has moved to import this fuel in line with the decisionof the cabinet committee on economic affairs.

The ministry of environment and forests has long been instruct-ing the state corporation to import cleaner gasoil and marinefuel for safer environment. BPC will import half of its total ma-rine fuel requirement through tender and the remaining halfthrough negotiation with the suppliers, said the BPC official.

BD Starts ImportingCleaner Marine Fuelfrom July

D h a k aPower Dis-t r i b u t i o nCompany

Ltd (DPDC) has suspended four of its officials after they werefound to be involved in bill inflating activities in a primary in-vestigation.

Besides, 13 meter readers and one meter supervisor were alsoterminated from their contract for their alleged involvement,said top officials of the company entrusted with responsibilityof distributing electricity in central and south-east part ofDhaka city and Narayanganj.

The four officials are executive engineer Helal Uddin, sub-di-visional engineer Md Raihanul Alam, assistant engineer Mu-jibul Rahman Bhuiyan, and computer data-entry coordinatorJasmin Ahmed.

"We have taken action against them on the basis of the recom-mendation of an inquiry committee," Bikash Dewan, manag-ing director of DPDC.

Final action will be taken after completion of final investiga-tion, he added.

DPDC officials said it sent letters to all their 36 divisional en-gineers seeking explanation about their roles in preparing theelectricity bills which a large number of consumers said wereexaggerated.

A huge unrest created among the consumers for receiving theirinflated electricity bills in the last three months during the timeof coronavirus.

Inflated Power Bills: 4 DPDCOfficials Suspended

National Com-mittee to ProtectOil, Gas, Min-eral Resources,

Power and Ports has expressed solidarity with 6-point demandincluding to scrap deadly coal-fired power projects here.

They came up with the solidarity at a virtual meeting. MemberSecretary of national oil-gas committee Anu Muhammadchaired the meeting attended by the representatives fromaround the world also attended.

Speaking on the occasion, Professor Anu Muhammad said,“Instead of resolving the Corona disaster, when the people ofBangladesh are facing medical crisis, job crisis and food crisis,the government has continued to work on deadly coal proj-ects including Rampal, Matarbari in the interest of some for-eign groups.”

He also added, “Without allocating necessary funds for healthcare and food supplies, the country has made huge allocationsfor the devastating Rooppur nuclear power plant. Despite hav-ing good alternatives, it is enacting laws to increase the priceof electricity whenever it wants to impose the burden of costlywaste and import-dependent power generation system on thepeople.”

The government is talking about the gas crisis and by settingup coal and nuclear power, it is taking the country to a terribledanger. On the other hand, it is subsidizing the power tradersby Tk 10,000 crore a year.

The speakers further said that when the country is facing thethreat of climate change, the government is makingBangladesh more vulnerable by setting up coal-fired powerplants across the coast.

Nat’l Oil-Gas CommitteeCalls Rally Sept 26

Workers ofBangladesh GasFields CompanyLtd have ob-

served a four-day strike protesting the decision of cancellingEid-Ul-Azha bonus.

They also staged a demonstration in front of the head officeof the company at Birasar in Brahmanbaria recently.

Bangladesh Gas Fields Company Employees Union organizedthe protest.

The workers went on the strike from 8:00 am to 10:00 am andthey will continue this for the next four days.

Murshedul Alam, general secretary of Bangladesh Gas FieldsCompany Employees Union, said, "We are working at thetime of this coronavirus disaster. The company's productionhas not been disrupted. In this situation, the decision of themanagement board to cancel our Eid-ul-Adha bonus is inhu-mane. We demand the cancellation of this decision. If our de-mands are not met within the next four days, we will call fora strong movement in all the gas fields under Bangladesh GasFields Company Ltd."

Gas Fields CompanyWorkers Observe Strike

9

Cover

July 16, 2020

Complaints about electricity bills are not unusual inBangladesh. But this time the ‘ghost’ power bills dis-tributed among the consumers during the COVID-19

pandemic have attracted widespread criticism. The allega-tions were especially against the bills those prepared with-out taking meter readings. Such bills were adjusted aftertaking readings in December or June last. The billing system

system has significantlyimproved by now ascompared to what pre-vailed in last 10-15years. But it could not bemade completely error-free. Automation of thebilling system has helpedreduce the grievances ofthe users remarkably. Butthe criticism over theghost bills grew enor-mously.

The first coronavirus in-fection was reported inBangladesh on March 8this year though the out-break took place inChina in late December,2019. The governmentof Bangladesh an-nounced general holidays from March26 to prevent the spread of the virus.After extending the holidays in phases,it ended on May 5, 2020. But the powerand gas supplies like other utility serv-ices remain as usual. No major supplydisruption was reported till now. Neitherthere was any glitch in gas supply. Thepower and gas utilities drew specialroasters of their employees continuedthe services, taking the risks of gettinginfected. However, the utility compa-nies could not prepare the monthly bills

for domestic, commercial and industrialusers on the basis of actual meter read-ing like the normal practice due to thepandemic. There were, of course, someexceptions. Some companies managedto take some meter readings. Othercompanies prepared separate bills with-out taking separate meter readings dur-ing the months of March, April and May.But two power distribution utilities car-rying out business operations in DhakaMetropolitan and adjoining areas sentconsolidated bills of three months inMay. As a result, many consumers re-

ported they received ghost bills.

Considering the financial difficulties ofthe general people during the pan-demic, the Ministry of Power, Energyand Mineral Resources (MPEMR) hadannounced special concession for pay-ment of electricity and gas bills for do-mestic consumers for the months ofMarch, April and May within June with-out any late payment surcharge. Later, ithas been extended till end July. For pre-paid meter users, the vending machinefacilities and other facilities were keptavailable. But the industrial consumers

kept out of the exemp-tion. Bangladesh EnergyRegulatory Commission(BERC) ordered fresh re-vision of the power tarifffor all categories of con-sumers before the out-break of the pandemic.The revised tariff cameinto effect from March 1,2020.

The total number ofpower consumers (do-mestic, commercial andindustrial) in Bangladeshnow is 37 million. Mostof these belong toBangladesh Rural Elec-trification Board (BREB),which operates throughi t s 8 0 P o l l i B i d y u t

11July 16, 2020

Customers wait outside a closed sub­station of the DPDC in Azimpur to recharge their prepaid electricity cards during lockdown

132kV outdoor GIS with panel at Uttara 132/33/11 kV grid substation

Samities (PBSs). Though uninterruptedservices could be maintained, yet 100%meter reading could not be done. Onthe other hand, barring the West ZonePower Distribution Company Limited(WZPDCL), others issued in end Mayand early June consolidated bills forMarch, April and May. Different compa-nies used different methods of issuingbills. DPDC sent average bills for eachmonths on the basis of meter readingstaken in May. DESCO followed a differ-ent method. They could manage takingmeter reading of approximately two-thirds of their consumers and, based onthat, it issued bills for all consumers forthe month of April. WZPDCL continuedissuing monthly bills as usual during thepandemic. Other companies sent con-solidated bills of three months.

The complaints about excess and ghostbills started pouring in from the con-sumers. In a quick response, the govern-ment and the utilities stated that each ofthe bills will be corrected after checkingif the consumers approach them. Theconsumers have been advised to get intouch with the distribution utilities incase of any confusion about the bills.State Minister for Power, Energy andMinerals Resources Nasrul Hamid invirtual meetings assured the consumersthat none would have to pay the excessbill. Every mistake will be corrected. Heinformed through media that if the con-sumers are nothappy with thedealings of thed i s t r i bu t ionc o m p a n i e s ,they can di-rectly reachhim for reme-dies. The EPinvestigationevidenced thatthough the dis-cussion aboutghost billsgrew to almostan epidemicproportion, yetthe actual vol-ume of com-plaints wasfound to be

only 1% per cent of the total consumers.It also found that the household con-sumption of electricity during the 66days of general holidays was higherthan that of the normal time as the peo-ple stayed at home more than normaltime due to the pandemic. However,many utilities took corrective actions inmany instances through their own mon-itoring even before receiving the com-plaints.

Majority of the individuals who are con-cerned about the bills while sharingopinion with the EP identified three rea-sons behind the criticism over thepower bills. Increased power tariff justbefore the outbreak of coronavirus is themain reason for excess power bill. Apartfrom the life line users, all users gothigher bills even after consuming samevolume of electricity. The second reasonis that all consumers get monthly bill,but during the pandemic, most of theconsumers got consolidated bills forthree months. This is why the bills ap-peared extraordinarily higher than theexpectation. The immediate reactions ofmost of the consumers were about ghostbills. But later, when they realized thatthe bills were for three months, most ofthem accepted it. Finally, 1-3% of theconsumers appeared to have genuinegrievances about the bills. Usually thebills are processed in computersthrough giving data input taken from the

meter reading. But this time, mistakesmight have created for using manualdata in computers instead of meter read-ing data. Finally, remedial measureshave been already taken after reviewingeach case. Consumers are now satisfiedwith the government for taking into ac-count their complaints and taking reme-dial measures. This has been reflectedthrough revenue earnings. Most con-sumers have paid the bills for the monthof June. Distribution companies ex-pected the remaining consumers to paythe bills by end July.

BREB Chairman Major General MoinUddin (Retd.) said that there were somegenuine allegations against the bills ofPBSs unlike those in urban areas.Around 500 compliant centers were setup across the PBSs franchise areas forreceiving and addressing those up to thesatisfaction of the consumers. Griev-ances of all the consumers have beenduly addressed.

Engineer Bikash Dewan, Managing Di-rector of DPDC, said it is true that wecould not correct bills of all the con-sumers. We identified two reasons forthis. One is negligence and the other iswillful mistakes. Administrative actionshave been taken against the officials fortheir negligence. Willful mistakes havebeen conducted at Banasri and Adabar.Two Superintending Engineers havebeen temporarily suspended for this.

DPDC has 13lakhs con-sumers. Mis-takes havebeen identifiedin the bills of1 2 , 0 0 0 -15,000 con-sumers. Ofthese, 5,000c o n s u m e r shave com-plained to us.We addressedthose com-plaints. Till allconsumers arebrought undert h e p r e p a i dm e t e r i n g

12July 16, 2020

Consumers of DESCO maintaining social distance at DESCO premises while recharging their prepaid cards

system, the billingissues cannot becompletely re-solved.

The complaintsagainst power billsof consumers ofDESCO, also apower distributionutility servingsomeareas inDhaka, is less thanthose of DPDC.Engr. Md. KausarAmeer Ali, MD ofDESCO, informedthe EP that “we, onour own initiative, started checking andamending the bills as soon as com-plaints against the wrong power billsstarted emanating”. DESCO takes meterreading of its consumers in four cycles.In March, three cycles could be com-pleted and only one was left to be done.But in April, meter reading could not betaken at all. In May, bills were served onthe basis of 100% meter reading. But insome houses, where the residents werenot there, mistakes have taken place.“Some incidents of wrong billing alsohappened in some industries. But assoon as these came to the notice ofDESCO, our officials rushed to the con-sumers and corrected the bills. Our con-sumers are satisfied with our promptactions.”

MD of WZPDCL Engr. Md. ShafiqueUddin told the EP that the complaintswere few in our franchise areas of 21districts. This is because we could send

them bills prepared on actual meterreadings taken in March, April and May,apart from ensuring uninterruptedpower supply during the pandemic. Yet,we promptly addressed the complaintsas and when received.

DG of Power Cell Engr. MohammadHossain mentioned that the incentivefor deferred payment of bills withoutsurcharge was provided during the pan-demic in appreciation of the difficultiesof the consumers. Ghost bills are noth-ing new in the power industry. Therehas been too much discussion about itthis time. But the government tookprompt actions against the willful of-fenders.

Nasrul Hamid, State Minister for Power,Energy and Mineral Resources, said thatBangladesh like all other countries ofthe world is passing through a never-ex-perienced-before crisis. We managed tokeep all other services going, excepting

meter reading. Butwe have been as-suring the con-sumers right fromthe outset that allgenuine grievanceswould be logicallyresolved. We leftno stone unturned.Around 90% com-plaints have beenaddressed. Somemischief mongershave also beenpunished.

On threadbareanalysis, it ap-

peared that most of the minor percent-age of wrong bills were due to humanerrors. But at the same time, utilities didnot spare those who conducted the will-ful mistakes. Various administrative ac-tions have been taken against theoffenders. But we must also realize thatit is not possible getting rid of all billingissues so soon. The government is pro-ceeding with a plan for bringing all con-sumers connected to 0.4 KV lines,excepting the life line users under pre-paid metering. Industries would bebrought under the automatic meterreading (AMR). The State Minister is op-timistic that by 2023, all the consumerscan be brought under the prepaid me-tering system. We are considering thepossibilities of procuring prepaid metersfrom two local manufacturers for expe-diting the process. Distribution utilitiesare continuing installation of the pre-paid meters.

13July 16, 2020

Locals in Kamalnagar upazila of Laxmipur district formed a human chain against 'exorbitant' elec­

tricity bills distributed by the PBSHVDC at Bheramara, Kushtia

EP

Bangladesh now possesses installa-tion capacity of over 20,000 MWgrid-connected power and 3,000

MW off-grid captive power generationcapacity. The highest demand for gridpower never exceeded 13,000 MW. Stillpower supply disruptions are regularphenomenon. It also takes time inrestoration of power whenever hit bynatural disaster. The system managersoften seek excuses of transmission sys-tems’ constraints and old, out-dated dis-tribution networks. In any modernpower system 25-30% spinning reserveis an accepted phenomenon, but there

are very few countries that can affordhaving around 50% spinning reserve.For lack of adequate demand, a signifi-cant portion of the capacity is kept idleand still the aggregate buyers pay capac-ity charge which in turn inflates cost ofgeneration. Many would say smart gridis one of the way of mitigating and man-aging the issue. Bangladesh is alsospeaking about smart grid since 2010,but in reality very little has been done tillmid-2020 to plan and implement. InBangladesh, BPDB is a single buyer ofthe electricity. It buys all power frompublic and private sector owned and op-

erated generators, and de-livers power to consumersthrough various utilities.BPDB has contracts withthe producers. Due to thehigher spinning reserve,BPDB has to count hugecapacity charge for theidle generators. Industries,one of the major segmentof consumers, rely ontheir own captive genera-tion as grid power is notyet reliable for differentreasons. Consequently,the generation cost in-creases. BPDB has no op-tion but to pay subsidyand seek regular powertariff adjustment byBangladesh Energy Regu-latory Commission(BERC). Experts have rea-sons for terming the ex-cessive spinning reserveas a double-edged sword.

The country has startedsetting up prepaid metersfor the domestic con-sumers. But that programdid not achieve desiredmomentum. The recentscam of ghost bills duringthe Covid-19 pandemiccould be avoided if pre-paid meters for majority

consumers could be installed by now.

Power Grid & Smart GridPower grid is a complete network thatincludes transmission lines, transform-ers, distribution substation and all acces-sories used for delivering power from thegenerators to residence and all otherusers. The first ever power grid was builtin 1895 and as of now about 9,200 gridsare delivering over 1 million megawattsof power to the consumers. A simplepower grid is a one-way traffic from gen-eration to end use. But with evolution oftechnology, digital transformation hashappened to the power system. The newdigital technology enables a two-waycommunication between utilities and allthe consumers. This is what we callsmart grid. Smart grid consists of ad-vanced digital system, automation, com-puter and control ensuring to perform a“two-way” communication between theutilities and consumers.

The utilities know about power disrup-tion only when the consumers complainabout it. But in case of smart grid, theutilities will instantly respond to the af-fected areas as the components of smartgrid provide enough data from thepower transformer, main transmissionand distribution system and finally fromthe meters of the users.

What is Required for TransformingTypical Power Grid to Smart One? The advanced technologies those cantransform the power grid to smart oneare: •Fully automated and integrated two-way communication between the over-all components of the power grid;

•Automated control for distributionfaults and repairs;

•Advanced management panel, deci-sion support software and mechanism;and

•Accurate sensing and measurementtechnologies.

The upgraded technology of smart gridwould have well organized automationequipment and control system whose re-sponse would be accurate for meetingthe rapidly increasing demand of power.This would completely eliminate the re-quirements of meter readers going fromdoor-to-door for taking meter readings

15

Special Article

July 16, 2020

Why Bangladesh Needs Smart Grid?Saleque Sufi

and other information about the systemusers.

Smart grid also ensures efficient trans-mission and distribution of electricpower. It can restore supply after disrup-tion. It also ensures lower cost of opera-tion, maintenance, management andelectricity for both utilities and con-sumers. It also lowers power tariff andrates due to reduced peak demand.Smart grid provides better options for in-tegration of renewable energy for self-power generation systems. Finally, itimproves the security and protection.

Deployment of digital technology insmart grids ensures the reliability, effi-ciency and accessibility to the con-sumers regarding all utilities thosecontribute towards economic stability ofa nation. The basic applications are:•Improving the adeptness of transmis-sion lines;

•Recovering after any forced outage /disturbances in lines and feeders;

•Reducing cost;

•Reducing peak demand;•Ability to be integrated with renew-able energy sources on a large scale.

ConclusionThe government is well on course forachieving political vision for providinggrid power access to all by 2021. With

this end in view, the power grid has beenextended to almost the entire country,excepting few isolated islands and chars.Power generation has been increased bymanyfold. But simultaneously with theincreased generation, the transmissionsystem and distribution networks couldnot be modernised to make the powersystem reliable and dependable. Unlesssignificant works are done at an expe-dited pace, achieving sustainable supplyof modern power to all by 2030 (SDG7Target) may not be achieved.

From the generation point of viewBangladesh has huge surplus capacitynow. If one looks at the demand of gridpower, it remained almost flat over thepast few years as the industries do notconsider it prudent to risk their operationby depending on unreliable grid supply.Moreover, the works of power transmis-sion and distribution system moderniza-tion progressed at snails’ pace. Completedigitization of power system, smart gridand artificial intelligence are now essen-tial.

Power disruption for different reasonsare not uncommon, but smart grid sys-tem has the capability for securing thesystem on the spot by handling emer-gencies as they possess the ability for au-tomatic rerouting in the event of anyfault current. Smart grids not only pro-

vide links between consumers and theutilities, but they enable users to managethe electricity usage systematically likepeople use online banking from any-where anytime.

With the help of smart meters, con-sumers are not required waiting for amonth for electricity bills, but can seethe reading and receive bills daily on-line. There is no chance of theft and pil-ferage.

While planning and adopting smarttechnology, Bangladesh must be ex-tremely careful in selecting the appropri-ate technology and installations must bedone by experts having proven pasttrack records.

The Covid-19 is still in force and still noone knows how long it would continue.The post-Covid world will be much dif-ferent. Not only power supply, all utili-ties will have to embrace smarttechnology, artificial intelligence andautomation. Bangladesh power systemmust also develop core competence ofits human resources for implementationof power system digitisation, operationand maintenance.

Saleque Sufi;Contributing Editor, EP

16July 16, 2020

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With the advent of the globalpandemic Corvid-19, theBangladesh economy has

had its share of downturn. TheBangladesh Solar and Renewable En-ergy Association (BSREA), which is therepresentative body for renewable en-ergy companies has seen its businessevaporate over the span of the last quar-ter. The association has reached out tothe government for the preservation ofthis fledging industry because solartechnology has played a major role inbringing electricity to millions of off-gridpeople through solar-home system(SHS). Up to 6 million SHS have beeninstalled in remote areas that hasbrought economic benefits to some 3crore people.

This is a sector that has massive poten-tial but requires policy support toweather the current depression in de-mand due to Covid. If the renewable in-dustry is to develop, a series of policysupport measures need to be initiated,particularly if the government plans forenergy from renewables are to be met.Meeting the goal of generating 10 per-cent power from renewable energy by2021 can only happen if policy initia-tives are taken to implement a range ofprojects that will enable BSREA to re-cover and preserve its presence. For in-stance, ‘My Town, My Village’ projectenvisions the introduc-tion of solar irrigationpumps and setting upPV-diesel hybrid minicold storage that wouldgo a long way in cut-ting down the importcosts associated withfossil fuel, help playersinvolve in renewablesto survive the Covid-in-duced economicdownturn.

The association has re-quested the ministry offinance to adopt pro-

grams that would fast-track projectswhereby solar electrification of cycloneshelters, primary and secondaryschools, etc. are expedited. The AwamiLeague had given extra emphasis onsolar power in the last election mani-festo and the fledging solar industrycould rebound as a sector if innovativeprojects like ‘Floating Solar PowerPlants’ were prioritized. In a deltaiccountry like Bangladesh with millions ofhectares of land that constitute naturalwater bodies, such projects could helpexpedite reaching the said governmenttarget of power generation through re-newable energy by 2021.

Although the State Minister for Power,Energy and Mineral Resources NasrulHamid stated on July 14 that incentiveswill continue to encourage renewableenergy in the country, faster adoption ofspecific programs are necessary to pre-serve the gains that have been made inthe realm of RE. Yes, power generationin the sector is expanding under some23 projects that will generate about1.220MW of electricity. However, giventhe fact that retail demand has fallen inthe domestic market due to the eco-nomic hardships brought on by theCovid, it becomes all the more neces-sary to have the government draw upcontingency plans for the industry — thatgoes beyond subsidies and large-scale

projects, which are inevitably long-termin nature.

The Renewable Energy Policy — 2008states that the government will generatea tenth of total electricity from renew-ables. This is 2020 and there is much tobe done. For this fledging industry tothrive, it will require the same level ofsupport the government gave for the de-velopment of the independent powerproducers (IPPs) a decade ago. Initia-tives were taken to expedite develop-ment of land, make changes to bringtransmission lines closer to plants gen-erating electricity, efforts made to de-velop river ports to facilitate the fastermovement of raw materials (e.g. dieselusing river tankers). All in all, the rightpolicy support regime was put intoplace because those power plants hadto be up and running to feed an energy-starved economy.

Of course, the nature of off-grid renew-able energy will require a wholly differ-ent approach but the industry as awhole requires the state to change itsprocurement plans and expedite it inmany ways. Green financing fromdonor, multilateral and other interna-tional financial institutions can betapped to get access to funds required.All these are suggestions that can belooked into. What is clear, however, that

in the time of Covid,decisions cannot bepostponed, rather,bold, rapid decision-making is required sothat the RE industrycan build on the lau-rels of the past and bea proactive partner inthe development of thecountry.

Syed Mansur Hashim;Deputy Editor, EP

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Solar Sector Needs Policy InterventionSyed Mansur Hashim

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The National Board of Rev-enue (NBR) has reinstated

the VAT exemption for the in-ternational oil companies onlocal production and supplyof gas, condensate and otherpetroleum products.

Although their contract withthe government has such aprovision to enjoy the waiver,VAT at a rate of 15 per centwas imposed after the 2012VAT and supplementary dutyact came into force last year.

The NBR on Sunday issued astatutory regulatory order(SRO) exempting VAT withretrospective effect from July01, 2019 imposing someconditions.

The order made the submis-sion of financial statements

with monthly amount of ex-empted VAT to the field-levelVAT office of the NBRmandatory to enjoy the ex-emption.

A senior tax official said theVAT has been withdrawn touphold the spirit of the pro-duction sharing contract be-tween the government andIOCs.

The IOCs have been enjoy-ing the exemption since1993 to keep the prices ofgas affordable to the con-sumers, he added.

"We held a series of discus-sions with Petrobangla, IOCs,including Chevron, in thisconnection last year," hesaid.

IoCs Get Renewal of VAT Waiver

Electricity billing will beonline in future as part of

upgrading the system, whichwill help stop 'inflated' elec-tricity bills', state minister forPower, Energy and MineralResources, or MPEMR, Nas-rul Hamid said recently.

He said the office manage-ment system will be onlinetoo. Mr. Hamid was speakingat the inaugural ceremony ofa basic training program forpower sector engineers or-ganized by BangladeshPower Management Institute,or BPMI.

He also accused the state-runelectricity distribution com-panies of delaying in installa-tion of smart pre-paid meters

for the consumers.

If the pre-paid meters wereinstalled, we could avoid therecent mess over the billingagainst electricity consump-tion of household consumers,he said.

Some 61,265 electricityclients across the countryraised allegation until July 05against inflated electricitybills out of around 40 millionconsumers across the coun-try.

Four state-run electricity dis-tribution companies have sofar taken different punitivemeasures against some 290of their employees on thebasis of the allegations.

Power Billing System to GoOnline in Future: Nasrul

It will become more con-venient to adopt balancedpolicies if information istaken from big data with thehelp of Bangladesh Bureauof Statistics (BBS), said DrTawfiq-e-Elahi Chowdhury.

Towards this direction, thegiven six clusters can befurther analyzed, he added.

Speaking as the specialguest, Nasrul Hamid saidthat smart pre-paid meters,SCADA electricity use sys-tem will help in determin-ing the pattern of powerconsumption with big data

and electricity manage-ment.

Distribution companiesshould be sincere aboutdata collection and applica-tion as 97 percent of thepeople have been broughtunder electrification, saidNasrul Hamid.

“Big data analysis is one ofthe most advanced decisionmaking strategies and itsimportance is immense,”said the state minister wel-coming DPDC's pre-pay-ment data and satellite dataanalysis.

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Speakers at a recent sem-inar said that the ‘big

data’ system would helpadopting balanced policiesfor the power sector andgood electricity manage-ment.

They came up with the re-marks at an online seminarstyled ‘‘Big Data and Elec-tricity Management’, organ-

ized by Bangladesh Energyand Power Research Coun-cil (EPRC).

Prime Minister’s power andenergy adviser Dr Tawfiq-e-Elahi Chowdhury was pres-ent as chief guest whileState Minister for Power, En-ergy and Mineral ResourcesNasrul Hamid spoke as spe-cial guest.

‘Big Data Bring Good ElectricityManagement’

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Japan said recently it wouldtighten rules for investment

in foreign coal-fired powerstations on environmentalgrounds, but stopped short ofending government fundingfor projects.

The move comes with theworld's third-largest econ-omy under fire for financingprojects to build coal plantsat home and abroad -- no-tably in Southeast Asia.

Economy, Trade and IndustryMinister Hiroshi Kajiyamatold reporters the government"has decided to tighten" the

rules for supporting invest-ment.

Countries seeking investmentwould be required to changetheir "behavior" towards de-carbonisation, Kajiyama said,but added that the new pol-icy was not about cuttingback funding.

"There are developing na-tions in the world that canonly choose coal as an en-ergy source," he said. Further details were not im-mediately available. The gov-ernment currently providesfunding to Japanese compa-

nies if their proj-ects meet certaincriteria -- such aswhen a foreigncountry has nooptions but tochoose coal dueto economic rea-sons.

Japan to Limit Financing ofOverseas Coal Power Plants

More and more workers ofdifferent sub-contracting

firms at Rooppur NuclearPower Plant in Ishwardi up-azila are getting infected withthe novel coronavirus.

Upazila Health Officer DrAFM Asma Khatun said 103people in the upazila havebeen diagnosed with the virustill July 6. Of them, around 90workers were infected withCovid-19 in the last threedays.

The majority of the workerswho tested positive for coron-avirus work at Paharpur Cool-ing Tower Ltd, asub-contracting firm of theRooppur project.

The number of Covid-19 pa-tients has increased as over800 employees of the sub-

contracting firms at the plantgave samples to the labs of dif-ferent government and privateinstitutions for Covid-19 test-ing in the last few days, saidthe doctor, adding that thenumber of infected workers isincreasing every day.

Most of the Covid-19 patientsare the workers of PaharpurCooling Tower Ltd, a sub-con-tracting firm of the plant, saidDr Asma Khatun, adding thatthe authorities of different sub-contracting firms at RooppurNuclear Power Plant have col-lected samples of several hun-dred workers and sent those tothe lab of a private institutionin Dhaka for coronavirus test-ing but they are yet to getcopy of the test reports fromthe private institution. The government has slashed

furnace oil price in localmarket by 19 per cent to Tk34.03 per liter from the previ-ous price of Tk 42 per liter.

The price cut is retrospectivelyeffective from June 26 in linewith the instruction from the En-ergy and Mineral Resources Di-vision under the Ministry ofPower, Energy and Mineral Re-sources, said a senior official.

The state-runBangladesh Pe-troleum Corpora-tion (BPC) board

will approve the price cut offurnace oil in its next meeting,he added.

Prices of other petroleumproducts, including diesel,kerosene, petrol and octane,however, remain unchanged.

Import price of furnace oil bythe private sector currentlyhovers around Tk 17 per liter.With the newly-imposed taxby the National Board of Rev-enue (NBR), the price will bearound Tk 29 per liter, marketinsiders said.

Furnace oil is mostly used inpower plants in the country,and mainly consumed by pri-vately-owned power plants.

Furnace Oil Price Cutto Tk 34 Per Liter

While a large number of powersector projects have beenlimping for years, the govern-ment has seen a great successin timely execution of its initia-tive for bringing 2.5 millionnew rural subscribers underthe electricity overage.

Success came not only in termsof timely implementation ofthe initiative, but also in termsof keeping the project costbelow the estimate.

The optimistic picture was ob-tained after performance eval-

uation of a key rural electrifica-tion project namely “Connect-ing 25 lakh new subscribersthrough expansion of ruralelectrification,” Planning Min-istry officials said.

The scheme has been able tocreate an example as mostother schemes fail to meet theirdeadline even after a repeatedtime extension and cost hike,think officials of Implementa-tion monitoring and evaluationdivision (IMED) that has donethe evaluation.

Timely Execution of Key SchemeBoosts Rural Electrification

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RNPP: Rising InfectionsAmong Workers

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Bangladesh's current mas-ter plan to increase

power-generating capacity,that accommodates increas-ing dependence on expen-sive, imported coal and LNG,puts it on course for evendeeper financial stress.

It will emanate from thepower sector and percolatethrough the entire economy,similar to the strains alreadybeing felt amid the Covid-19pandemic in some othercountries as well.

This was highlighted in astudy report conducted bythe Institute of Energy Eco-nomics and Financial Analy-sis -- a highly reputedinternational energy researchorganization.

According to the study,Bangladesh will have 58 per

cent surplus power in2029-30 if it keeps adheringto the existing power systemmaster plan 2016 where spe-cial emphasis was laid tobuild power plants poweredby imported coal and LNG.

Power Division officials saidthe country's current powergeneration capacity is22,000 MW while maximumdemand is 12,000-13,000MW leaving an idle capacityof between 9,000 MW-10,000 MW.

The IEEFA study saidBangladesh will be stuck in avicious circle of an obligationfor making "capacity pay-ment" for unused power toprivate power plant ownerswithout receiving their elec-tricity.

Coal, LNG-Based Power Plantsto Have Huge Unused Capacity

to Trigger Crisis: Study

Coal production from theBarapukuria mine in Di-

najpur may be obstructeddue to a delayed shifting tothe new phase caused bylabor unrest.

The country's first coal powerplant, located near the mine,also may be forced shutagain, after 2018, because ofthe coal shortage as the stockhas started depleting.

If that happens, the northernregion of the country mayface a massive power supplydisruption after August,sources at the power divisiontold The Business Standard.

Currently, the yard has 1.50lakh tonnes of coal in stock,which may not be enough tomeet fuel needs after 27 daysif the plants run in full capac-ity.

Barapukuria CoalMining CompanyLimited (BCMCL), asubsidiary of thestate-owned oilc o m p a n yPetrobangla, hasbeen extracting

Barapukuria Coal MiningUncertain for Labor Unrest

Dubai's IOC Middle East,a wholly-owned sub-

sidiary of Indian Oil Corpo-ration, and Ras AlKhaimah-based RR Holdings,the holding company of Bex-imco LPG of Bangladesh,have signed an agreement forthe formation of a 50:50 jointventure company (JVC) forLPG business in Bangladesh.

LPG (liquefied petroleumgas) market in Bangladeshhas seen a five-fold growth inthe past five years and is ex-pected to grow at a CAGR(compound annual growthrate) of 12-13%.

The JVC will draw strengthfrom the core competenciesof IndianOil and the local ex-pertise of Beximco.

As per the business plan, theJVC would begin functioningby acquiring Beximco's exist-ing LPG assets.

Dharmedra Pradhan, minis-

ter for Petroleum & NaturalGas and Steel of India, saidthat the agreement is a majormilestone in the annals ofIndia-Bangladesh coopera-tion when a group companyof Indian oil based in Dubaiis joining hands with one ofthe most promising LPGcompanies in Bangladeshthrough its holding companyin UAE for LPG business inBangladesh.

Salman Fazlur Rahman MP,Private Industry and Invest-ment adviser to the PrimeMinister of Bangladesh, said,"The JVC should serve as atestament to the remarkableinvestment potential ofBangladesh. At a time whenthe entire world is grapplingwith the severe economicconsequences of the Covid-19 pandemic, this investmentalso reflects the resilient andenduring friendship betweenBangladesh and India."

Beximco-IOC Joint Venture forLPG Business in Bangladesh

coal from the mine phase byphase since 2005.

Production from the lastphase ran out last May whenthe country was under a longholiday to curb the Covid-19outbreak countrywide.

Generally, preparing a newphase takes two to three

months. However, this time itmay take some more time tostart production from the newphase because the mine de-veloper, China National Ma-chinery Import and ExportCorporation (CMC), hasplaced some conditions re-garding local labor.

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Muhammed Aziz Khan,founder and Chairman

of Summit Power InternationalLimited, Summit Holdings Ltdand IPCO Developments(Bangladesh) Limited, has saidthere will be huge opportuni-ties for Bangladesh in the post-Covid-19 scenario that thecountry needs to utilize.

Talking about the impact ofCOVID-19 on infrastructuresin Bangladesh at a virtual Cos-mos Dialogue recently, AzizKhan said the pandemic willbring new life and new cul-ture.

He said here is shortage in de-mand and supply and this will

encourage other countries tosupply to Bangladesh and alsotake goods from the country.

"Bangladesh will be in a muchstronger position to negotiatewith the importers of garmentswhich is a basic goods", headded. "We will have possibil-ity to have better contracts".

Describing different infrastruc-tural development in thecountry, Aziz Khan saidBangladesh now generates20,000 MW of electricity,Padma Bridge and three portsare coming up which willconnect the country with therest of the world.

Post-Covid-19 Era Offers HugeOpportunities for BD: Aziz Khan

State Minister for Power,Energy and Mineral Re-

sources Nasrul Hamid hassaid mega projects having3,840 MW power generationcapacity are being imple-menting at Payra, Ma-heshkhali and Matarbariareas aimed at ensuringpower and energy security inthe country.

“Considering land availabil-ity, fuel transportation facili-ties and load centers, thegovernment has been devel-oping Payra, Maheshkhaliand Matarbari areas as‘Power Hubs’ by establishingmega projects,” he said whileexchanging views withyoung teachers and studentsof Cumilla University at awebinar recently.

Social Research Group of

Cumilla University organizedthe live webinar titled “TheFuture of Bangladesh’s En-ergy Sector” which was mod-erated by Assistant ProfessorKrishna Kumar Saha.

The state minister said theconstruction work for settingup coal-fired Rampal 1,320MW Maitri Super ThermalProject, Matarbari 1,200 MWUltra super Critical Coal Proj-ect and Payra 1,320 MWproject are going in fullswing.

“The power and energy sec-tion will be more secureddue to the interest andawareness of the young gen-eration. Of course, aware-ness will ensure efficiencyand economical use of elec-tricity and energy,” NasrulHamid said.

Mega Power Projects in Progressfor 3,840MW: Nasrul

Manufacturing of uppersemi-vessel of Reactor

Pressure Vessel (RPV) for theUnit 2 of Rooppur NuclearPower Project has achieved

significant progress.

Welding of two shells of theupper semi-vessel at circum-ference has been completed at

the VolgadonskBranch of AEMT e c h n o l o g yAtomash in Rus-sia recently.

The process took25 days and wasconducted at awelding stand ata temperature of150-300 degrees.A total of 4,027

RNPP Unit 2: A Major Phase inManufacturing of RPV Completed

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kilograms of flux and 3,057kilograms of wire of 4 mm di-ameter were used for welding.

After welding operation, it wasmoved to a furnace for heattreatment, where it is to beheated at a temperature of upto 270 degrees Celsius for 4days. The next step in manu-facturing is welding of shellsand the head of the lowersemi-vessel.

The reactor represents a verti-

cal cylindrical body with anelliptical head, containing theCore and the Internals. Ontop, it is sealed with a coverwith drive mechanisms andregulating mechanism in-stalled on it. In the upper partof the vessel, there are nozzlesfor the coolant input and out-put, as well as nozzles foremergency supply of thecoolant if the circuit is depres-surized.

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Eastern Refinery Ltd (ERL),the lone crude oil refin-

ery of the country, resumedits operation this week asthe private sector started tak-ing furnace oil from thestocks.

Local Summit Group tookaround 10,000 tonnes acouple of days back, facili-tating the refinery to backinto operations, ERL manag-ing director Md AkterulHoque said.

He expected that the privatesector would continue tak-ing furnace oil to run theirpower plants.

The ERL, a wholly-owned sub-sidiary of state-run Bangladesh

Petroleum Corporation, orBPC, had to suspend its opera-tion due to inadequate de-mand for the fuel oil amidCovid-19 pandemic.

ERL's oil storage capacitywas saturated due to themuted domestic demand asa result of the ongoing coro-navirus pandemic and sub-sequent limited scale ofbusiness and commercialoperations.

The BPC had to cancel one100,000 tonne Murbancrude oil term cargo fromAbu Dhabi National OilCompany, or ADNOC, thismonth as the consequence.

ERL Resumes Operation as PrivateSector Starts Buying Furnace Oil

Export of LPG or liquefiedpetroleum gas to neigh-

boring India has remainedhalted for about three and ahalf months due to the coro-navirus pandemic, market in-siders said.

LPG export to India has re-mained suspended since thefirst day of the nationwideshutdown on March 26, chiefexecutive officer of OmeraPetroleum Ltd ShamsulHaque Ahmed said.

During the shutdown or lock-down in both the countries,

almost all types of transporta-tion including air, rail, publictransport as well as move-ment of private vehicles wererestricted excepting somecritical travel services.

However, public and privateoffices in the two countrieshave recently reopened on alimited scale.

Bangladesh initiated export-ing LPG commercially toIndia from the first week ofJanuary this year with an ini-tial consignment of around1,000 tonnes per month.

Two privately-ownedBangladeshi firms--Omera Petroleum andBeximco LPG-- arenow exporting LPG toTripura, the landlockednortheastern state ofIndia, by road.

LPG Export to India RemainsSuspended Due to Pandemic

In an intensified move to ensurerational use of natural gas, Titas

Gas Transmission and Distribu-tion Company Limited (TGT-DCL) has embarked on a plan tobring over 2.8 million con-sumers under prepaid meteringsystem in phases to reducewastages of this natural resource.

"We have a plan to install over2.8 million prepaid metersunder Titas's jurisdiction inphases, as the state-ownedcompany has already installed0.2 million (two lakh) metersand proposed for another1,20,000," Managing Directorof TGTDCL Ali Mohd. AlMamun said.

He said the Titas has alreadyinstalled 0.2 million prepaid

meters in the city financed bythe Japan International Coop-eration Agency (JICA) and aRevised Development ProjectProfile (RDPP) will be sent tothe Executive Committee of theNational Economic Council(ECNEC) for approval.

"The RDPP for setting up another1,20,000 pre-paid meters be-tween 2020 and 2022 was en-dorsed by the ministry's steeringcommittee, and it will be sent tothe planning commission for ap-proval," Mamun said. He saidthat after the approval of theRDPP, the Titas will start settingup prepaid meters in the city'sfive areas- Paltan, Ramna, NewMarket, Khilgaon and Segun-bagicha.

Titas to Bring Over 2.8m ConsumersUnder Prepaid Meters

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If countries, communities, andhouseholds are going to have

a chance to recover and getback to having a decent andsustainable means of liveli-hood, then the future of workmust be addressed and it mustbe done quickly,” said Wig-naraja, also Assistant Adminis-trator & Director of theRegional Bureau for Asia andthe Pacific of UNDP.

With a view to facilitatingSouth-South cooperation andaccelerating Bangladesh to-wards a more robust economy

with consideration of the manychallenges it is facing, theUNDP in collaboration with itsBangkok Regional Hublaunched the Future of WorkLab over a virtual program,said UNDP recently.

Deputy Resident Representa-tive of UNDP, Van Nguyen de-livered the welcome remarksat the session, followed by of-ficial inauguration by Wig-naraja.

Located in Bangladesh, theLab will support the Asia Pa-cific region.

Green Jobs, Closing Gender GapsKey Issues for Future Work: UN

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The government has devel-oped power generation

strategy based on fuel diver-sification to enhance energysecurity.

Thanks to sincere commit-ments and efforts of the pres-ent government led by PrimeMinister Sheikh Hasina,Bangladesh has attained out-standing success in the fieldof green energy as it securedthe second position in pro-ducing renewable energy(RE), especially off-grid solarsolutions.

"Bangladesh is now generat-ing 630.96 megawatts (MW)electricity from renewablesources of which 397.03MW power come from thesolar system," State Ministerfor Power, Energy and Min-eral Resources Nasrul Hamidsaid recently.

He said the government hasdeveloped power generationstrategy based on fuel diver-sification to enhance energy

security.

According to REN21's Re-newables 2020 Global StatusReport (GSR) published re-cently, Nepal topped with 11percent access to electricityfrom off-grid solar solutions,while Bangladesh and Mon-golia jointly ranked secondposition with eight percentpower from the samesources.

"One successful businessmodel for the deployment ofoff-grid solutions is the con-cept of peer-to-peer electric-ity trading or 'swarmelectrification', which hadbeen tested among ruralhouseholds in Bangladesh,"the report said.

In the wake of the extraordi-nary economic fallout of theCovid-19 pandemic, the In-ternational Energy Agency(IEA) predicts energy-relatedCO2 emissions are expectedto fall by up to 8 percent in2020, it said.

Bangladesh Earns Huge Successin Green Energy

The net profit of Titas GasTransmission & Distribu-

tion Company Limited hasdropped 27 percent in thefirst three quarters of the cur-rent financial year as the min-imum charges were replacedwith demand charges at con-sumer level.

However, the sale of gas hasincreased by 28 percent dur-ing this period.

An official of Titas Gas saidthat it has withdrawn theminimum charges in all con-sumer levels from July 1,2019, and imposed a de-mand charge of Tk0.10 per

cubic meter, causing a dropin the profit.

Despite the sale quantity ofTitas Gas remained the same,the sales figure rose due to anincrease in gas prices. Thecompany receives distribu-tion charges only for distrib-uting gas.

The Bangladesh Energy Reg-ulatory Commission (BERC)has increased gas priceswhich came into effect onJuly 1, 2019. It also fixed thedistribution charge of TitasGas at Tk0.25 per cubicmetre which was Tk0.22 ear-lier.

Revised Charges Pull DownProfits of Titas Gas

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ABB will supply Yinsonwith electrical, control,

and telecommunicationequipment and services on-board the FPSO Anna Nery.

Yinson is converting the ves-sel - a crude oil tanker built

in 2002 - for a new 25-yearlifespan as an FPSO on Petro-bras’ Marlim 2 oil field in theCampos basin offshoreBrazil.

ABB will use the ABB AbilitySystem 800xA control system

with selectinput /output(IO) for inte-grating all thep r o d u c t i o nmodules into acombined inte-grated safetyand controlsystem.

ABB to Implement Marlim FPSOTopsides Control Package

Select IO is an Ethernet-based, single-channel inputoutput system under whichfield signals are digitally mar-shaled in ‘smart’ junctionboxes. By using the com-pany’s xStream engineeringapproach alongside digitalmarshaling, select IO will re-duce project time, ABB said,

allows the project team tode-couple the hardware andsoftware tasks and fully stan-dardize the cabinet design.

Cabinets can then be in-stalled and terminated at amuch earlier phase duringconstruction.

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The national demand forelectricity is not growing

with increasing supply.

This is due to slow-paced in-dustrialization and construc-tion of 100 economic zonesas well as a lack of develop-ment of power dependenttransport systems like themetro rail.

The economic disruption dueto Covid-19 may furthershrink industrialization in thecountry — which may widenthe gap between supply anddemand.

Considering all these, notedeconomists and experts have

recommended, at a webinar,that the government gradu-ally phase out rental andquick rental power and notrenew agreements for themany longer.

The Dhaka School of Eco-nomics — an undergraduateand postgraduate institutionof University of Dhaka —arranged a webinar on the"Power and Energy Sector inthe Proposed Budget forFY2020-21" on Saturday. DrAKM Nazrul Islam, Associateprofessor of Dhaka School ofEconomics, moderated thewebinar.

Experts Recommend Rental, QuickRental Power Be Phased Out

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The Supreme Court re-cently stayed for 16

weeks a High Court orderthat granted bail to contractorAsif Hossain in a case filedover corruption in purchas-ing furniture and householditems for the officials ofRooppur Nuclear PowerPlant in Pabna.

Chamber judge of the Appel-late Division of SupremeCourt Justice Md Nuruzza-man passed the order aftervirtually hearing a petitionfiled by the Anti-CorruptionCommission, seeking a stay

on the HCorder.

A C Clawyer Ad-

vocate Khurshid Alam Khantold The Daily Star that AsifHossain, managing directorof construction company --Mujib and Sons -- cannot getrelease from jail followingthe SC stay order.

The apex court stayed the HCbail order, considering thegravity of the offence al-legedly committed by Asif,he added.

Barrister FM Kamal appearedfor Asif during the hearing onACC's petition. Following abail petition filed by Asif, the

HC bench ofJustice MdNazrul IslamTalukder onJune 29granted ad-in-terim bail tohim in thecase.

RNPP Graft Case: SC StaysContractor’s Bail Order

Bangladesh now wantsChinese funds for nine

new projects worth US$ 6.4billion.

The Economic Relations Di-vision has recently sent a let-ter to the Chinesegovernment seeking invest-ment fund for these projects,said finance ministry officials.

The government sought $1.6billion for the construction ofthe first phase of the Payrasea port and $1.2 billion forthe construction of the coun-try's longest bridge to linkBarisal with the island districtof Bhola, according to the let-ter.

The authorities also sought$853 million for the Teestariver comprehensive man-agement and restoration proj-ect and $805.35 million forthe project on the "Expansion

of Strengthening of PowerSystem Network underDPDC area (PGCB part)."

The other projects of the listare the establishment ofSheikh Hasina Institute of In-formation technology and hi-tech park, procurement of oiltankers, upgrades of Barisal-Kuakata highway to four-lane, construction ofhigh-tech rural bridge acrossthe country, and the con-struction of sewerage collec-tion system underDasherkandi STP catchmentof Dhaka city.

The proposal was made inline with the discussions heldat the first meeting of the In-vestment Cooperation Work-ing Group held in Dhakarecently, finance ministry of-ficials said.

BD Seeks $6.4b Chinese Fundfor New Projects

The International FinanceCorporation will lend $20

million to Omera Petroleumin order to help theBangladeshi company meetfunding requirements to facethe challenges posed by thecoronavirus pandemic.

The funding will help Omera,a subsidiary of Mobil JamunaBangladesh, enhance storageand filling capacity and over-come challenges resulting

from theo n g o i n glimited ac-cess to for-

eign currency.

The loan's tenure is four yearsand it will be paid back on aquarterly basis by Omera,which has been engaged inimport, storage, bottling anddistribution of liquefied petro-leum gas (LPG) since 2015.

"The IFC's support will help usrespond to the challenges re-sulting from the Covid-19pandemic and it will allow us

to finance foreigncurrency liability forLPG import," saidMd Akter H Sanna-mat, chief financialofficer of Omera.

The interest rate isattractive and prefer-ential, he said.

IFC Provides Omera with$20m Funding

India will gradually end cen-tral controls on gas pricing as

it seeks to attract foreign in-vestment and technology tolift local output, oil ministerDharmendra Pradhan said re-cently.

India, which is a large emitterof greenhouse gases and hasmultiple gas pricing regimes,aims to raise the share of gasin its energy mix to 15 percent by 2030, from 6.2 percent.

"This is an incentive we aregiving to investors to come toIndia and take advantage ofpricing and marketing free-dom and produce more andinvest more," Pradhan said atthe BNEF summit.

To boost gas usage,India is expandinginfrastructure in-cluding building

new liquefied natural gas(LNG) import plants and con-necting households with anexpanding gas pipe network.

New Delhi said recently thatno authorization was neededto set up LNG dispensing fa-cilities for vehicles.

India's top gas importerPetronet LNG said it wants topartner with fuel and gas re-tailers on LNG stations alonghighways for long-haul trucksand buses.

Petronet wants to set up 5LNG stations in the fiscal yearending March 2021, and 300by 2023. It eventually aims tohave 1,000 LNG stationsacross India, it said on its web-site.

India to End CentralControl of Gas Prices

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31July 16, 2020

SOLshare hasbeen recog-nized by the

Ashden Awardsamongst some ofthe world’s mostpractical and scala-ble low carbon in-novators. SOLshareis the winner of theAshden Award inthe category of En-ergy Access - Fi-nance & BusinessModel Innovation.

SOLshare, foundedin 2014 in Dhaka,Bangladesh, is a so- cial enterprise and dubbed as ‘the

AirBnB of the en-ergy off-grid space’.

SOLshare has cre-ated a revolution-ary new approachto bring affordablesolar electricity toeveryone inBangladesh and be-yond. We believethat our smart peer-to-peer grids can bethe future for en-ergy utilities glob-ally.

SOLshare intercon-nects solar home

systems, monetizing excess solar energyin real time with mobile money and em-powering rural communities to earn adirect income from the sun by turningpassive consumers into active pro-sumers.

Ashden spotlights and supports climateand energy innovators around the world— including businesses, non-profits andpublic sector organizations which aredelivering proven, ready-to-scale cli-mate solutions.

SOLshare was among 11 winners at theannual Ashden Awards [announced on2 July] all of whom were chosen fromover 200 applicants for their work cre-ating resilience, green growth, and fairersocieties.

SOLshare is only the fourth Bangladeshicompany to ever receive this award.The last Bangladeshi organization towin was Grameen Shakti, now a strate-gic partner of SOLshare’s, who won theprestigious award 12 years ago.

SOLshare Among Ashden Award Winners

State Minister for Power, Energy andMineral Resources Nasrul Hamid

recently said renewable energy andgreen energy will ensure energy secu-rity in the future.

“The governmenthas been cooperat-ing for expansionof renewable en-ergy,” he told thisat a virtual confer-ence recently inthe city as the chiefguest.

Nasrul Hamid said it is possible to ad-vance with a concept for setting uprooftop or floating solar power plants,as Bangladesh has no scope for large

scale solar power plant due to an agro-based economy.

“The government has approved netmetering guidelines in 2018 and nowthe power division has been working

on wind andwaste,” the stateminister added.

He saidBangladesh underthe leadership ofPrime MinisterSheikh Hasina hasmade a remarkable

success in power sector as it securedsecond position in accessing powerfrom Renewable Energy (RE) especiallyoff-grid solar solutions.

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Bangladesh has sought fresh foreigndirect investment from the United

Kingdom (UK) in its in green financingbusinesses, clean technologies, renew-able energy and IT-enabled services.

“UK investors should specially focus oninvesting in green financing businesses,clean technologies, renewable energyand IT-enabled services in the post-pan-demic trade and investment partnershipbetween Bangladesh and the UK”, saidBangladesh High Commissioner to theUnited Kingdom Saida Muna Tasneem.

The Bangladesh envoy was addressingas the special guest at a virtual meeting

co-hosted by Bangladesh InvestmentDevelopment Authority (BIDA) andBritish Business Group (BBG) aiming atreviving post-COVID British FDI toBangladesh, said a press release issuedby Bangladesh mission in London re-cently.

The high commissioner also recom-mended to BIDA for creating a special‘focal point’ for facilitating green financ-ing, clean technology, recycling and re-newable energy projects — the prioritysectors in the UK’s overseas investment.

Terming the BBG, a group of Britishmultinational investors in Bangladesh,‘as brand ambassador’ to promote freshBritish investment in Bangladesh, Tas-neem encouraged BIDA to provide all-out support to the BBG so they canre-invest their retained profit inBangladesh.

British FDI Soughtin Green FinancingFrance is going to provide €100 mil-

lion to Bangladesh for energy effi-cient, renewable energy, andenvironment friendly projects.

A Credit Facility Agreement (CFA) hasbeen singed virtually between the gov-ernment ofBangladesh andthe Agence Fran-caise de Develop-ment (AFD),according to apress release ofEconomic Rela-tions Division(ERD).

The FCA was signed on June 15.

Dr Gauranga Chandra Mohanta, Addi-tional Secretary of ERD and DanielVain, Country Director of AFD signedthe loan agreement on the behalf of theGovernment of Bangladesh and AFD re-spectively.

The loan will be provided for long-term

debt financing and catalyzing privatesector participation through the imple-menting agency Infrastructure Develop-ment Company Limited (IDCOL).

IDCOL is a public financial institutionspecializing in the financing of infra-

structure and re-newable energyprojects and de-veloping interven-tion into newgreen segments.

It is a loan the gov-ernment ofBangladesh, witha repayment pe-

riod of twenty years and a grace periodof seven years.

A concessionary rate six months' euroLIBOR + 35 percent will be offered as arate of interest under this CFA.

This CFA aims to contribute toBangladesh's transition to a less carbon-intensive economy.

France to Provide €100m to Bangladeshfor Renewable Energy

Bangladesh Double Glazed Ltd (BDGL)has brought latest glazing technology

in the country to provide energy-efficient,pollution-free and sustainable glazing so-lutions.

Glazing solutions refer to door and win-

dow works in buildings. Suchtechnology aims at increasing thebuildings' energy performance byreducing the need for artificialheating, cooling and lighting, ac-

cording to a statement.

As a leading glazing solution provider,BDGL offered 'economy in investment'since the buildings with double-glazedwindows can be cooled with air condi-tioners of lesser cooling capacity, saving

up to 30-40 per cent on themonthly electricity bills.

In addition, BDGL's glazedproducts are able to keep ex-ternal sounds at bay. Theycan reduce the levels of out-door noise emanating fromtraffic and other sources by50-80 per cent, givingdwellers complete peace ofmind. The company beganproduction in its own factoryin December 2017.

BDGL Brings in ModernGlazing Technology

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34July 16, 2020

The German government is poised toagree Wednesday on a long-term

strategy for increasing production anduse of hydrogen as part of a plan to cutthe country's greenhouse gas emissions.

While hydrogen is currently producedalmost exclusively from fossil fuels, thegovernment plans to encourage its pro-duction from excess electricity gener-ated by renewable energy sources.

Experts say this so-called green hydro-gen could help smooth out the problemof solar and wind power's fluctuatingsupply, and replace fossil fuels in indus-

trial processes that require high temper-atures such as steel making.

The government plans to invest 9 billioneuros ($10.2 billion) to promote hydro-gen production and use, including 2 bil-lion euros that will go toward projects indeveloping countries.

Germany's transport minister, AndreasScheuer, told the Funke Media groupthat the widespread use of technologysuch as hydrogen-powered engines inbuses and trucks is necessary if thecountry wants to meet its emissions re-duction targets in the transportation sec-tor.

German Govt toAgree NationalHydrogen Strategy

Bangladesh-based off-grid solar en-ergy marketplace firm SOLshare is

closing a US$ 1.1 million financinground. IIX Impact Partners - one of themost successful debt and equity crowdfunding platform for impact investing -has supported the company through itsnetwork of impact investors.

Current investors innogy New VenturesLLC - the venture capital investment armof the German utility firm innogy SE-and EDP Ventures, the investment arm

of Portuguese based utility firm EDP, arealso part of the round, as well as newangel investors from around the world.

SOLshare is the AirBnB of the energy ac-cess space working toward an energy fu-ture fueled not by fossil fuels but bydemocratization, by decentralizationand decarbonization.

To date, the Bangladeshi company hasset up 30 peer-to-peer solar electricitytrading grids in Bangladesh and India

empowering remote communitiesby allowing them to share electricityseamlessly and fully embedded in amobile money platform.

Funding will be used to bring smartsolar microgrids to off-grid, under-served communities in Bangladesh,putting SOLshare on track to posi-tively impact 2.5 million people by2023.

SOLshares Closes $1.1m FinancingRound with Partners

The International Energy Agency (IEA)recently called for the European

Union to accelerate low-carbon build-ing renovations and introduce schemesto encourage consumers to replace in-efficient old cars and fridges as part of apost-pandemic “green” recovery.

Setting out its policyrecommendations forthe EU, the IEA saidnew policies wouldhelp ensure the Euro-pean Commission’sproposed 750 billioneuro recovery fundboosts clean energyand avoids a sus-tained rebound in emissions after thepandemic, report agencies.

As the Commission aims to steer thebloc towards becoming climate neutralby 2050, the IEA said energy-savingstimulus investments should be a “primetarget”.

Low-carbon building renovations -

guided by stricter EU building standards- would help cut bills for Europe’s 513million energy consumers, while publicschemes could encourage consumers toreplace old cars and refrigerators withnew, efficient ones.

The IEA said the virus-induced drop infuel prices is an op-portunity for the EUto phase out fossilfuel subsidies and re-form taxes to favorlow-carbon energy.Planned changes toEU state aid rules nextyear should enablepublic investments in

large hydrogen and lithium-ion batteryprojects.

The Commission has said EU recoveryspending must “do no harm” to its aimto cut net greenhouse gas emissions tozero by 2050 - down from more than 4billion tonnes of CO2 equivalent today.

IEA Calls to Boost EU’s ‘Green’ Recovery

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Climate

July 16, 2020

Annual forest harvesting in26 European countries in-

creased nearly 50 percent dur-ing 2016-2018 compared toan average of the four previ-ous years, a trend that couldthreaten the European Union’sclimate goals, according to astudy by the European Com-mission.

Researchers at the Joint Re-search Centre in Italy ana-lyzed 15 years of satellite data,documenting a dramatic shiftin forest harvesting to meet in-creased demand for wood,they reported in the journalNature.

Biomass was reduced by 70percent, they found, leading toless CO2 captured from the at-mosphere and stored in trees.From 2000 through 2015, for-est harvesting in Europe de-creased due to concerted EU

preservation efforts.

“The sharp increase in the har-vest of biomass is reducing thetotal forest carbon stock at EUlevel relative to a hypotheticalcontinuation of previous har-vest levels,” lead authorGuido Ceccherini said.

“At the EU level, the forestscontinue to remain a carbonsink, but less than before.”

The European Union haspledged to reduce greenhousegas emissions at least 40 per-cent by 2030. Forests repre-sent about 10 percent ofcarbon capture potential.

While forest harvesting variesby country, the rise was partic-ularly dramatic in Scandina-vian countries (Sweden,Finland) and Eastern Europe(Latvia, Estonia).

Forest Harvesting in EuropeThreatens Climate Goals: Study

Global natural gas capac-ity under construction

has doubled in a year accord-ing to new analysis thatwarned recently the invest-ment boom in the world'sfastest-growing fuel risks a"perfect storm" of climatechaos and stranded assets.

Capital expenditure on lique-fied natural gas (LNG) facili-ties has surged from $82.8billion to $196.1 billion overthe last 12 months, accordingto a report by Global EnergyMonitor.

Following a string of divest-ments from high-profile LNGfunders, the report warnedthat at least two dozen proj-ects were recently cancelledor are in serious financial dif-ficulty.

"LNG was once considered asafe bet for investors," saidGreg Aitken, research analystat Global Energy Monitor.

"Not only was it considered aclimate-friendly fuel, butthere was substantial govern-mental support to make sure

that these mega-pro-jects were shepherdedto completion with allthe billions theyneeded.

"Suddenly the industryis beset with problems,"Aitken said.

Gas Boom Risks ‘Perfect Storm’For Climate, Economy: Report

United Nations chief An-tonio Guterres recently

urged world leaders to favorclean energy solutions asthey pour money into theireconomies to save them froma coronavirus-induced melt-down.

Governments should exitcoal, stop subsidizing otherfossil fuels, and pressure pol-luting industries to clean up

their act inexchange forbailing themout, the UNS e c r e t a r y -

General told an InternationalEnergy Agency conferenceby video link.

"Today I would like to urgeall leaders to choose theclean energy route for threevital reasons -- health, sci-ence and economics," Guter-res said.

"Bailout support to sectorssuch as industry, aviation and

s h i p p i n gshould beconditionedon align-ment withthe goals ofthe ParisA g r e e -ment," hesaid.

Back Clean Energy, UNChief Urges

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IISD's ‘Sustainable Recovery2020’ campaign advocates

for public spending that min-imizes impacts on nature, ac-counts for climate risks,improves social cohesion,and stimulates green innova-tion.

The ‘Sustainable Recovery2020’ website features simula-tions, commentaries, andblogs that highlight how toachieve a sustainable recov-ery.

The International Institute forSustainable Development(IISD) has launched a web-site, ‘Sustainable Recovery2020,’ and a correspondingcampaign. In response to theeconomic stimulus packageslaunched in 2020, the cam-

paign advocates for publicspending that minimizes im-pacts on nature, accounts forclimate risks, improves socialcohesion, and stimulatesgreen innovation.

The ‘IISD Sustainable Recov-ery 2020 campaign’ websiteserves as a resource for thosefocused on pandemic re-sponse measures. It featuressimulations, commentaries,and blogs that highlight howto achieve a sustainable re-covery. Using the ‘Sustain-able Asset Valuation,’ (SAVi),the campaign is working toanalyze societal impacts ofgreen stimulus packages andmeasures, such as stimulusfinding for climate-resilientretrofits of buildings and en-ergy efficiency.

IISD Launches ‘SustainableRecovery 2020’ Campaign

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Climate

July 16, 2020

Temperatures in Britaincould exceed 40 degrees

Celsius every three or fouryears by 2100 if greenhousegas emissions continue un-abated, research publishedrecently has found, as climatechange increases the likeli-hood of scorching heatwaves.

The modelling study byBritain’s Meteorological Of-fice found that emissions aredramatically increasing thelikelihood of extremely warmdays in the UK, particularly inthe southeast.

Without climate change, asummer in which the mer-cury went above 40o Celsius(104 Fahrenheit) somewherein the UK would be expectedaround once in hundreds, oreven thousands of years, theresearchers found.

But sweltering 40oC dayshave already become morelikely with global warming,and are currently estimated to

occur every 100 to 300 years,they reported in the journalNature Communications.

If the present high rates ofgreenhouse gas emissionscontinue, these extremescould occur every three tofour years by 2100, the studyconcluded.

Even under a mid-range emis-sions scenario, they could stillhappen around every 15years.

Lead author Nikolaos Chris-tidis said the rate of change inthe expected frequency ofthese high temperatures was“remarkable”.

“Exceeding extreme tempera-ture thresholds like the 40C inthe UK would be accompa-nied by severe impacts – onpublic health, transport infra-structure,” he told AFP,adding that a key motivationfor the study was to helpbuild the country’s resilienceto such events.

UK ‘Increasingly Likely’ to See+40oC Temperatures

DNV GL has qualifiedShell’s technology for a

full-scale demonstration proj-ect to remove carbon emis-sions at a waste-to-energyconversion plant in Oslo.

Gassnova, Norway’s stateagency for carbon captureand storage projects, is sup-porting the project, whichtested Shell’s CANSOLV CO2carbon capture technique atFortum Oslo Varme’s plant atKlemetsrud.

The long-term goal is to cap-ture around 400,000 metrictons/yr (440,924 tons) ofCO2 at the site for subse-quent injection into subsur-face geological formationswest of Norway.

This will help the country meetits target of reducing emissionsby close to 55% by 2030,compared to 1990 levels.

The Varme plant incineratesdomestic and internationalsorted household and indus-

DNV GL Approves Shell’s CarbonCapture Technique

trial waste. Excess heat isused to produce district heat-ing and electricity.

DNV GL worked with Shelland Fortum Oslo Varme toverify application of its rec-ommended practices;DNVGL-RP-A203 Technol-ogy Qualification and

DNVGL-RP-J201 Qualifica-tion procedures, for carbondioxide capture technology.

These practices are said toprovide a systematic ap-proach to technology qualifi-cation in a way that ensurestraceability throughout theprocess.

Civil society leaders at arecent press conference

demanded allocation of atleast one per cent of GDP inthe national budget toweather the impacts of cli-mate change.

Network on Climate Changein Bangladesh (NCC,B), aplatform of 19 non-govern-mental organizations, heldthe press conference atDhaka Reporters Unity(DRU).

In a written statement, readout byNCC,B Research andAdvocacy Officer Md Mah-bubur Rahman, recom-mended increasing thedevelopment budget to 10per cent in crusading the cli-mate change and reductionin the operational costs.

Member secretary of Un-nayandhara Trust AminurRosul Babul, DRU PresidentRafiqul Islam Azad, journalistNikhil Chandra Bhadra andAl Imran, among others,spoke on the occasion.

Their five-point demands in-clude formation of a climatechange commission compris-ing the prime minister andcivil society people to ensuretransparency and accounta-bility of climate funds, levy-ing of green tax on transportsand air trips to create climatefunds and launching of localclimate fiscal framework atdistrict levels in line withBangladesh Climate FiscalFramework introduced bythe Ministry of Finance.

Environmentalists for Big Budgetto Weather Climate Change

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Following the news thatvice-president and Prime

Minister of the United ArabEmirates (UAE) and ruler ofDubai, Sheikh Mohammedbin Rashid al-Maktoum, an-nounced a government re-structuring;

Jennifer Aguinaldo, Energy &Technology Editor at MEED,part of GlobalData, com-ments: “This move reflectsthe changing nature of previ-ously independent sectorsand their growing interde-pendence primarily througha sharing of limited re-sources, be it human or fiscalcapital.

“Equally important, the in-creased convergence of en-ergy and the varioustechnologies that enable thedelivery of sustainable infra-structure — whether in termsof smarter buildings, roads orrailways — also validates themerging of the two ministries.

“It must be noted that trans-port and industry account foran estimated 34% and 47%,respectively, of energy con-sumption in the Gulf Cooper-ation Council (GCC), whileresidences account for thethird-largest share (10%). It isforeseeable that policy mak-ing and legislative functionswill expand under the com-bined ministry to include op-timizing the use of energy,water and land, among oth-ers, to facilitate federal infra-structure projects and deliver,in a more cohesive way, thecountry’s stated sustainabledevelopment objectives.

“The new ministry could alsopave the way for centralizedplanning in terms of UAE-wide infrastructure such asthe Etihad Railway, or the en-actment of one instead ofseven regulations — one foreach emirate — related toelectric vehicles.”

UAE’s Move to Merge Energy,Infrastructure Ministries Could

Foster Sustainability: MEED

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Climate

July 16, 2020

Astudy into the clean en-ergy tech innovation rate

required to keep global heat-ing under control may sug-gest concepts such aslithium-air could yet keep usto the mid-century ambition,but it is also starting to con-template the temperature riseto be expected if we onlyachieve net-zero by 2070.

Perhaps the most sobering as-pect of the technology inno-vation report publishedrecently by the InternationalEnergy Agency (IEA) is howthe advent of Covid-19 ap-pears to have quietly pushedback the deadline for com-bating global heating.

Under the ‘sustainable devel-opment scenario’ outlined intoday’s Special Report onClean Energy Innovation, theIEA considers the technolog-ical advancement required toreach a net-zero-carbonworld by 2070, rather thanthe 2050 deadline outlinedin so many previous publica-tions.

Reaching net zero in 50years’ time would give us a66% chance of limiting theglobal average temperaturerise to 1.8 degrees Celsius, isthe chastening conclusionreached.

Enabling less-than-zero-carbon technology at scalebeyond that point, however,could give us a chance of thedreamed-of 1.5 degrees Cel-sius ambition this century.And that is the point of the185-page study, to considerthe rate of clean energy tech-nological innovation re-quired to hit such goals. Forexample, under the sustain-able development track, theIEA estimates almost 35% ofthe emissions savings re-quired would have to comefrom technologies currentlyat the large prototype anddemonstration stages.Around 40% would have tocome from tech which hasalready been developed butis not yet commercially avail-able.

IEA Report Appears to Acknowledge2050 Net Zero May Be Beyond Us

DTEK Renewables hasbeen awarded a 2020

Green Bond Pioneer Awardby The Climate Bonds Initia-tive, in recognition for beingthe first Ukrainian company toissue green bonds.

Awarded to companies, or-ganizations, financial institu-tions and governments, theGreen Bond Pioneer Awards(GBPA) are the premier inter-national recognition of bestpractice and innovation ingreen finance.

They are presented by The Cli-mate Bonds Initiative (CBI), an

investor focused not-for-profitwhich is seeking to mobilize$100 trillion in bonds totackle climate change.

The CBI said: “The addition ofa Ukrainian non-financial cor-porate to a growing group ofentities issuing green bonds isa welcome and encouragingsign of market developmentand shrinking barriers to entry.Further, the Ukraine’s energymix is dominated by fossilfuels — and DTEK’s placementrepresents a key step in a rightdirection in this regard.”

In November 2019, DTEK Re-

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oneer in the Ukrainian renew-ables market.

The transaction became thefirst ever single “B” greenbond issued in EUR, and thefirst issuance by a renewablecompany from Central andEastern Europe.

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Then came the biomass industry. Al-though Asia’s rising coal consump-tion was not as controversial a topic

as it is today, Singapore-headquarteredcompany Provident Biofuels recognisedin 2011 that burning biomass residuesuch as kernel shells could help slashemissions from coal combustion, andstarted buying the materials from mills inIndonesia and Malaysia to sell it to powerproducers across the region.

Traditionally, some of the kernel shellswere used by factories themselves fortheir own purposes, particularly in In-donesia. Faced with an unreliable powersupply, they installed boilers to combustthem to generate their own electricity.

But about half of the roughly 7 milliontonnes of the kernel shells coming out ofIndonesian mills each year are excessand cannot be put to any use. Not onlydo these materials attract insects that canwreak havoc on plantations, but they alsoeventually pose a fire threat due to themethane they generate if left to rot.

To avoid such risks, mills used to paycompanies to dispose of their kernelshells. Mixed with concrete, they havebeen used to pave roads and in founda-tions of buildings, but often they werediscarded in irresponsible ways, saidDouglas Tay, director at Provident Biofu-els.

“There are only so many roads that youcan build. If the [biomass] industry didnot exist, the mills would still be dumping[PKS] in rivers, the sea or in open fields,”he told Eco-Business.

Tay said the company has also had posi-tive impacts on local communities in In-donesia and Malaysia through the jobs itprovides, as it needs to hire thousands toprocure PKS and transport them to thecompany’s stockpiles where they getscreened and loaded onto vessels forshipping. “We provide about 8,000 jobs,directly and indirectly through logisticspartners,” he said.

Other than the carbon dioxide producedduring transportation, there is no addi-tional environmental impact from burn-ing palm kernel shells.

Ryuu Lee, manager, trading of renewableenergy sources, Hanwa, Thailand

Today, companies pay the mills for theshells they supply, but the materials re-main cheap. They can also easily be han-dled in bulk and transported whilerequiring minimal processing. But it istheir high calorific value–they releasehigh amounts of energy as heat whenburned–and their low moisture contentcompared to other agricultural biomasstypes that make them attractive to powergeneration businesses.

“PKS are almost like natural biomass pel-lets. The costs of making them ready forcombustion are almost zero. When theyare dried, moisture levels go down to 20per cent, and their calorific value is equalto that of low-grade thermal coal,” ex-plained Tay.

Climate savers?According to Ryuu Lee, who manages thetrade of renewable energy sources forJapanese trading company Hanwa inThailand, PKS are a renewable energysource in that new fruit bunches willgrow to replace those that are harvested.As this happens, oil palms remove thecarbon emitted when the shells areburned.

This makes their combustion carbon neu-tral, with net emissions only pumped intothe atmosphere during shipping, he said,adding PKS also emit less nitrogen oxideand sulfur oxide than coal when burned.

And unlike other biomass materials, PKSdo not have the issue of timing. BurningPKS may release large amounts of carbonall at once, but it does not take long fornew fruit bunches to grow and absorbcarbon back out of the atmosphere, andoil palms are harvested up to three timesa year.

Forests cut down to produce wood chipsor pellets, on the other hand, can takedecades to capture the same amount ofgreenhouse gasses released. The sameapplies to residues from the wood andfurniture industry used to make pellets,which could instead be recycled.

“Other than the carbon dioxide producedduring transportation, there is no addi-tional environmental impact from burn-ing palm kernel shells,” said Lee, whosecompany buys kernel shells from Provi-dent Biofuels to sell them across the re-gion.

Palm Kernel ShellsIn Asia, PKS are burned for utility-scalepower production mainly in Singapore,South Korea and Japan. Both South Koreaand Japan subsidise their use for powergeneration.

According to Daichi Kamite, generalmanager and head of corporate planningat eREX, an electric power company thatoperates four biomass power plants inJapan, the Japanese government pays afeed-in tariff for electricity produced fromPKS, which it regards as a form of renew-able energy.

Bonar Silalahi, head of industrials andconsumer goods, sector solutions groupat UOB, a Singapore bank that has pro-vided finance for Provident Biofuels,commented: “In [Asia], the use of palmkernel shells as an alternative to fossilfuels can help to address rising green-house gas emissions. In addition, the useof palm kernel shells as a biofuel can alsohelp the industry to better manage thediscarded waste material generated dur-ing the production of palm oil.”

However, exactly how much carbonswitching PKS with coal can save has notbeen worked out yet.

According to Naruhito Sugiura, forestcampaigner at environmental groupFriends of the Earth in Japan, it is theirtransport emissions which make it ques-tionable whether kernel shells can helpshrink climate impacts at all.

PKS should be burned locally to cut coaluse in palm oil-producing countries in-stead, said Sayoko Iinuma, of the GlobalEnvironmental Forum (GEF), a Tokyo-headquartered non-profit organisation.

But most coal-burning nations already rely

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Special Report

July 16, 2020

Can Power from Palm Oil WasteReplace Fossil Fuels in Asia?

Eco-Business

on coal from beyond their borders, andoften from far away places, generatingtransport emissions in addition to those re-leased when coal–the world’s dirtiest fos-sil fuel–is combusted. South Koreasources 90 per cent of its coal from over-seas, while Japan imports 99 per cent of it,with most imports coming from Australia.

While the industry has yet to finalise itsemissions analysis, Lee said he could“confidently” say that carbon emissionscould be slashed by at least 75 per centif kernel shells were burned instead ofcoal, adding the amount of emissionssavings the materials could deliver de-pended on where they were combusted.

The problem is that power from PKS isnot cheap. At 24JPY/kilowatt-hour, theelectricity price that the shells canachieve is more than double than themarket price in Japan, said Kamite.

While this makes the cost of generatingelectricity from PKS more expensive thansolar and onshore wind energy, biomasscomes with a significant advantage, ex-plained Lee. “Solar and wind energy areintermittent renewable energy sources.You cannot control them, so they are dif-ficult to handle. But electricity from PKSis available 24/7, and can be turned onand off at will,” he said.

Energy experts say battery storage,pumped hydropower, cross-border en-ergy sharing and emerging technologiessuch as green hydrogen will eventuallysolve the issue of fluctuating clean energyoutput, but most countries today stillgrapple with the challenge.

Will PKS be able to replace coal com-pletely in Asia? Probably not, said Tay.Japan alone burns more than 100 milliontonnes of coal a year, whereas kernelshells currently exported from Malaysiaand Indonesia only amount to about 4million tonnes. Ultimately, they can onlyreduce the amount of coal that is burnedby a few per cent.

Not everyone agrees PKS should beburned for power. Grant Rosoman, aglobal forests solutions senior adviserwith Greenpeace International, said:“The burning of any biomaterial is thelowest value use and releases the storedcarbon back into the atmosphere.”

“Rather than burning them for electricity,other higher-value uses of PKS and any

compounds they contain should be priori-tised and explored, especially with rapidadvances and innovations in bioeconomytechnology,” he told Eco-Business.

Studies have shown the energy value ofPKS significantly increases if they areconverted to bioenergy through thermo-chemical processes, where organic ma-terials chemically decompose at elevatedtemperatures, rather than combusted.

Rosoman said the palm oil sector shouldalso consider returning PKS to the soil toincrease carbon and substitute chemicalfertiliser instead of shipping them overvast distances for power production. “Theburning of PKS should be an absolute lastresort,” he noted.

Meanwhile, there are concerns in SouthKorea, where biomass is heavily sub-sidised, the biomass industry could hurtefforts to adopt solar and wind technolo-gies. A recent report by Korean environ-mental advocacy group Solutions for ourClimate warns if large quantities of re-newable energy certificates are issued forbiomass in the country, it could nega-tively affect the competitiveness of theclean energy market, discouraging utili-ties from investing in renewables.

Sustainability EffortsIt is unsurprising that an industry whichbuys waste from a sector associated withvarious environmental and social ills hascome under scrutiny. Tay said clients areincreasingly demanding that PKS besourced responsibly, with some callingfor certification by a third party.

“Our customers require us to get betterinformation from the mills, so we will tryto provide them with that information.But it will take time,” he told Eco-Busi-ness.

Provident Biofuels, which currently ex-ports about 1 million tons of PKS a year,started its traceability efforts earlier thisyear. So far, the company has visitedthree mills with independent auditors andeventually wants to ensure the mills itsources from treat their workers fairly,comply with environmental regulationsand are not built on stolen land. The firmwill also verify an environmental impactassessment was conducted, and that themills have a proper license to operate.However, it will only be able to trace thematerials back to where it procures them,

and not beyond. Where the mill procuresthe fresh fruit bunches from is beyond thecompany’s control, said Tay.

He explained at 0.3 per cent, the eco-nomic value of PKS made up only a sliverof the mill’s total income, making it diffi-cult for the company to influence how andwhere fruit bunches are sourced. “We areway too small to have an impact. How-ever, it is clear that the industry could ben-efit from greater supply chaintransparency,” he said.

Environmentalists are worried. Soo-JinKim, senior researcher at Solutions for ourClimate, said any analysis of carbon emis-sion reductions that PKS could delivershould take emissions from land usechanges from carbon-rich rainforest orpeat to monoculture tree plantations intoaccount.

Tay, however, pointed out the shells’ loweconomic value would be unlikely to in-centivise farmers to convert more forests.“Nobody would grow additional oil palmsfor such a small increase in profit as thiswould be akin to buying an office buildingto be able to collect its rubbish,” he said.

But as demand for the materials skyrock-ets, environmentalists believe the industrycould eventually eat into forests. Sugiuraof Friends of the Earth said: “If the value ofPKS increases, it might drive plantationdevelopment.”

Kamite said the quantity of PKS Japan im-ported had increased significantly over theyears, from 540,000 tonnes in 2015 to 1.8million tonnes in 2018. Lee shared de-mand for the shells has been growing sofast that Hanwa is looking as far as Nigeriato procure them.

Greenpeace’s Rosoman said any produc-tion, trade and processing of kernel shellsmust only be from transparent supplychains with verified NDPE–no deforesta-tion, no peatland, no exploitation–sources.

As the sector expands, its sustainabilitycredentials will improve in step, Tay said.

“We’re trying to clean up the palm oil sup-ply chain. We provide the rural economywith jobs and our business principles haveimproved governance and compliance inthe industry. Without us, there would bemore waste and more coal burning. As wegrow, so the sector’s environmental andsocial performance grows too,” he said.

42July 16, 2020

EP

It may not be possible to get rid of gas-based captive power even after mod-ernizing and upgrading the

transmission grid and distribution net-works. Even after taking into accountthe present enhanced price of naturalgas, the generation cost of captivepower is lower by at least Tk 2.0 perunit than the grid power. Unless theprice of grid power becomes competi-tive to gas-based captive power, the in-dustrial demand for grid power cannotbe increased. Bangladesh Energy Regu-latory Commission (BERC) has to initiatethe process for this.

Md. Kausar Ameer Ali, Managing Direc-tor of Dhaka Electric Supply CompanyLimited (DESCO) said this in an exclu-sive interview with Energy & Power Ed-itor Mollah Amzad Hossain.

The COVID-19 pandemic is still there infull spate. The utility service providerslike the rest of the world kept going dur-ing this unusual period. What are theexperiences of DESCO? What is newyou have learnt during this pandemic?

Please note that the capacity of thepower distribution utilities has remark-ably advanced. It has been possible tomeet the increased demand for the con-sumers as the generation capacity hasalso significantly increased. Preparingand sending bills after taking meterreadings during March and April was re-ally challenging. DESCO usually sendbills to its consumers in four time cyclesevery month. Following that we couldsend bills in three time cycles in March.In April we could not take any meterreading. But in May, it was possiblesending bills to all taking 100% meterreading. It was possible amending thebills of 1% users having issues.

There is no better option than compre-

hensive digitization of power distribu-tion system is the most important lessonlearnt during the pandemic. Like allother sectors, billing methods for powerneeds complete overhauling. We hadactually planned for introducing Ad-vance Metering Infrastructure (AMI).The pandemic in fact taught us to expe-dite that process.

But we must mention that our appropri-ate strategy enabled us to continueseamless services to the consumers dur-ing the pandemic.

Consumers have numerable complaintsabout electricity bills for the months ofMarch, April and May 2020. How manycomplaints DESCO received? Was itpossible to address all?

I have already mentioned how we man-aged taking meter reading. Whilepreparing bills for the month of April,we observed that the power use was20% higher than that of April 2019.Hence, the bills were charged 20%higher. About 99% of the users could beserved with right bills. In our investiga-tion, it appeared that issues were cre-ated for industries which closed shuttersor residences from where occupants lefttemporarily. We amended those billswhich appeared wrong in our assess-ment. Besides, we talked with con-sumers on line and sending our officialswho took remedial actions as soon aswe received the complaints. The con-sumers expressed deep satisfaction forour prompt customer services despitefew complaints about the bills.

You have provided various digital op-tions for the payment of bills. Besides,what percentage of your consumers areusing prepaid meters? How long will ittake to bring 100% consumers (except-ing, of course, the industrial consumers)

under prepaid metering system?

DESCO is implementing a plan forbringing all consumers connected underLT i.e. 0.4 kv under prepaid metering.And HT meaning industrial consumersare being brought under AutomaticMeter Reading (AMR) system. Three outof 10 lakhs of domestic consumers ofDESCO are already using prepaid me-ters. Another 4,000 are being providedwith meters soon. We are expecting thatby 2022, all domestic consumers can bebrought under prepaid metering withprovisions for digital payments.

But it is worth mentioning that DESCOhave abandoned plans of manufacturingown prepaid meters for continued evo-lution of technology of prepaid meters

Md. Kausar Ameer Ali

DESCO is implementing a plan forbringing all consumers connectedunder LT i.e. 0.4 kv under prepaid

metering. And HT meaning industrialconsumers are being brought underAutomatic Meter Reading (AMR)

system.

‘Captive Power Still FinanciallyAttractive’

43

Interview

July 16, 2020

It has not been possible for ensuring un-interrupted quality supply of power toall consumers so far. But the govern-ment has a plan for achieving this withinfew years. What kind of plan DESCOhas for this? How long will it take toachieve?

Please bear in mind that for achievingthis target, upgrading of infrastructureand smooth communication with con-sumers need facilitating. There was noshortage in our capacity for catering todemand up to June 2020 which weachieved through upgrading some sub-stations. DESCO had two 132/33 KVsubstations. In addition to upgradingthose two, we have added 5 more newsubstations. By 2025, all 132 KV lineswould be lid underground. Works fortaking all 33 KV overhead lines under-ground is ongoing for the last two years.About 100 KM more needs to be laid.We are expecting to complete this byend 2021. Already 400 KM 33 KV lineshave been laid so far.

For supplying uninterrupted qualitypower supply to users, 33/11 KV substa-tions are crucial. The existing feedersare too long. Consequently, initiativehas been taken to split these into 425smaller feeders. Again, each of the sub-stations will be connected with twofeeders. This will create redundancy tothe extent that if one feeder malfunc-tion, the other would automatically takecare. On the other hand, engineers andtechnicians are being trained on howsubstations can be repaired without sus-pending power supply through feeders.For ensuring uninterrupted qualitypower supply of Baridhara, Gulshanand Banani, we have initiated actionsfor taking the entire system under-ground. The works will be completedby 2023. But at least 15 years will be re-quired for taking the entire DESCO sys-tem underground. But within 2 years,quality uninterrupted supply to indus-trial areas and within 3 years to all do-mestic and commercial users can beensured.

Well-coordinated development of gen-eration, transmission and distribution isessential for achieving power system se-curity of supply. Bangladesh could

never do this in a coordinated manner.You have worked in all segments ofpower value chain. From your vast ex-perience, will you mention why it didnot happen? What should be done forachieving this?

In my opinion, lack of finance and ab-sence of appropriate planning are the

reasons for this not happening. Properattentions were not given to transmis-sion and distribution when all the impe-tus were directed towards generation.Repairs were only carried out undercompulsion during forced outages. De-mand side management was the mainfocus of power system management.

Bangladesh now comfortable surplus ingeneration though there exist constraintsin transmission and distribution. It hasnow been possible to launch necessaryworks in transmission and distributionfor injection of additional investment.The scattered locations of industries inthe past also created problems forpower transmission and distribution.The decision for bringing all new clusterof industries in special economic zoneswould facilitate upgrading transmissionand distribution infrastructure inplanned manners.

The government had a plan to take outindustrial sector in phases from relianceon off-grid captive power generation.But this could not be started even.Rather industries in new areas are re-questing for gas for captive power gen-eration. The reason for this is lesser costof captive power than grid power. Doyou think that it will be possible to takeour industries back to grid power ifquality uninterrupted power supply tothem can be ensured?

We have to work on win-win pricingformula for attracting industries to gridpower. We cannot bring industries backto grid power from captive generationuntil price is made comparable andcompetitive. The unit cost of grid poweris Tk 7.00. The cost of the same for cap-tive even taking the present gas price isTk 5.00. It will matter little if the priceadjustment is not made even after ensur-ing quality uninterrupted grid powersupply to industries.

For some special nature 24/7 industries,captive power generation would con-tinue to remain essential. They will needcaptive power as stand by source in ad-dition to grid supply. Japanese investorsat Araihazar have been given facilitiesfor captive power generation. But BPDBwill set up the station and operate. Butfor all other new industries, grid powersupply should not be compromised.Otherwise, all investments of distribu-tion utilities for ensuring quality uninter-rupted power supply would run the risksof not getting the return.

There are talks of stalling all baseloadpower plants in the pipeline on excuseof surplus power generation capacity

44July 16, 2020

In my opinion, lack of financeand absence of appropriate

planning are the reasons forthis not happening. Proper at­

tentions were not given totransmission and distributionwhen all the impetus were di­

rected towards generation.Repairs were only carried out

under compulsion duringforced outages. Demand sidemanagement was the mainfocus of power system man­agement. Bangladesh now

comfortable surplus in gener­ation though there exist con­straints in transmission anddistribution. It has now beenpossible to launch necessaryworks in transmission anddistribution for injection ofadditional investment. The

scattered locations of indus­tries in the past also created

problems for power transmis­sion and distribution.

now. What is your opinion?

Such suggestions are not right, I believe.The present spinning reserve is littleover 30%. But that cannot be a justifi-able reason for stalling all baseloadpower plants in the pipeline. 40% of ourgrid connected power generation isnow liquid fuel based. These plants canbe gradually retired with the phasedcommissioning of the baseload powerplants. That will assist in reducing thecost of generation. We have observedthat the cost of generation reduced dur-ing the pandemic even after paying ca-pacity charges to the idle liquid fuelbased power plants as the demand de-pleted. This is encouraging.

Some experts are suggesting for aban-doning some large imported coal basedpower projects under implementationand going for LNG instead. What areyour views?

Please note that oil price after crushingto all time low for shutting down eco-nomic activities for the pandemic im-pacts have started peaking again. Priceof LNG also depleted. But I do not be-lieve price of gas and LNG would re-main at the present level for a long time.But coal still has huge reserve worldover though many countries have cutdown its use for environmental con-cerns. Coal price in the global marketwould remain stable for at least 100years. But there is no such guarantee foroil and gas.

When Bangladesh planned furnace oilcontingency power plants, the price wasTk 26 per liter but by the time the plantcame into operation, the price grew toTk 50.

The power distribution utilities have amajor role in the implementation of thegovernment Road Map for ensuring ef-ficient use of energy by the domestic,commercial and industrial consumers.What is DESCO doing for achievingthis? What are your plans for achievingit?

DESCO has not yet started working forensuring efficient use of energy. But thisis in our vision. For this, the governmenthas to do many changes in its existingpolicy including introduction of star rat-

ing of appliances. Before providing anynew connection, there must be thor-ough checking whether the consumerensured for efficient use of energy. Wewill start working for encouraging con-sumers for efficient energy use underconsumer relation management pro-gram in future. Gradually, we will de-velop this into a precondition for gettingnew connection.

Power distribution utilities have a signif-icant role in expanding contribution ofrenewable energy in the fuel mix. Theexample is India. What is the plan ofDESCO for expanding renewable en-ergy portfolio?

DESCO is pondering how through innova-tions and introducing rooftop solar power,utilization for industries to enhance thecontribution of renewable energy.DESCO has started setting up Supervi-

sory Control and Data Acquisition(SCADA) system for central monitoringof operation and customer services.When it will come into operation? Whatadditional benefits consumers wouldget from it?

The installation works of SCADA will becompleted by 2021. It will be possiblemanaging the power system digitallywhen it comes into operation. It will bepossible ensuring better customer serv-ices. On the other hand, DESCO hasstarted working for GIS mapping of itsentire distribution system. When thiswork will complete, it will be possibletaking instant decision on customers’application for new connection. Thiswill be another forward step for advanc-ing the customer services for DESCO.

45July 16, 2020

MAN Energy Solutions has com-pleted the expansion of the

‘Sund’ power plant near Tórshavn, theFaroese capital, and successfullyhanded the plant over to local energysupplier, Elfelagið SEV.

With this, four MAN 9L51/60 engineshave been successfully integrated intothe islands' hybrid energy-system andwill complement the existing powerstation with an additional 37 MWpower generation, as well as districtheating capacity.

To supply electricity to the almost52,000 islanders, SEV relies on an in-telligent combination of renewable en-ergy sources, storage solutions andpower-plant engines to ensure grid sta-bility.

Danish power-plant specialist,Burmeister & Wain Scandinavian Con-tractor A/S (BWSC), was primarily re-sponsible for construction of the Sundpower plant, which is the largest of theFaroe’s three engine-driven powerplants.

Besides these, SEValso operates other,hydroelectric powerplants as well as sev-eral wind farms andenergy-storage solu-tions. In this way, allavailable resourcesof the islands can beoptimally used forpower supply.

MAN Completes Power PlantExpansion in Faroe Islands

Report

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