BDRunner, Sept 11:-
Bangladesh is increasing its electricity imports from India to meet growing demand. At the same time, the country is expanding its oil-based power generation.
The move is being taken due to gas shortages and the need for repairs or maintenance of coal-fired power plants, Reuters reported, citing industry officials and analysts.
A report by the news agency stated that India’s electricity primarily reaches Bangladesh through Adani Power’s coal-fired power plants. Electricity imports from India increased by 70 percent in the seven months to July this year. Most of the growing demand is being met by Adani’s power.
Natural gas met two-thirds of the country’s electricity demand in the decade to 2020. However, to mitigate the infrastructure challenges and costs associated with that gas, emphasis is being placed on increasing electricity imports and boosting the production of coal-fired power plants.
Adiba Aziz Khan, director of Bangladesh Summit Power, told Reuters that it is a matter of cost savings. Gas is needed for the fertilizer industry, where cheap electricity is available from other sources, including fuel oil.
Summit Power operates a dozen power plants using gas and fuel oil.
On the sidelines of the APEC summit, Adiba Aziz said there was a shortage of gas for power generation. Power generation from gas “may not be seen in the future.”
Reuters quoted a Bangladesh Power Development Board (BPDB) official as saying that many gas-fired power plants were not running at full capacity due to pressure-related technical faults. Coal-fired power plants have also experienced production declines due to maintenance or repair shutdowns.
The official, who spoke on condition of anonymity, told Reuters that the government had little choice but to act. The government had chosen to import to prevent blackouts, and Adani had enough power.
BPDB authorities did not respond to a request for comment, Reuters reported.
According to government data, the amount of electricity imported rose from 9.5% of total demand to 15.4% in the first seven months of this year. Fuel oil-based power generation increased from 11.9% to 12.6%.
Shafiqul Alam, a Bangladesh-based analyst at the Institute for Energy Economics and Financial Analysis, said that electricity demand has increased since March. That is why the government has had to increase imports and production of oil-fired power plants.
On the other hand, power generation from gas has decreased from 46.8% to 43.9%. Coal-based power generation has also reduced from 30.1 percent to 26.2 percent.
According to Kepler, an analytics firm, LNG imports in Bangladesh have increased by 24 percent in the seven months to July. Yet, according to government data, gas-based power generation has decreased by 1.2 percent.
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