Power and Energy Adviser Fouzul Kabir Khan has assured the public that load shedding during the upcoming summer months will remain at a manageable level.
Addressing a seminar titled "Energy Crisis: Way Forward" at Bidyut Bhaban in the capital on Saturday (26 April), Khan acknowledged that while power outages are inevitable, efforts are underway to ensure minimal disruptions.
"I won’t say there will be no power outage this summer, but load shedding will remain within a tolerable level. There will be no significant difference between urban and rural areas in terms of power supply," he stated.
The government plans to increase power generation to 18,000 megawatts (MW) during peak demand, up from the current 16,000 MW. To meet additional demand, the government intends to import more coal and liquefied natural gas (LNG).
Adviser Fouzul Kabir Khan also highlighted the improvements made since the interim government took charge, citing a significant reduction in overdue payments to power companies.
"When we assumed office, the power sector was in a disastrous state. We have cleared most of the overdue payments," he said, noting that the initial overdue amount of around $3.2 billion had been reduced to $600 million, with expectations that it will be fully cleared by the end of the fiscal year in June.
To manage these payments, the government diverted funds from less critical projects, and Khan admitted that delayed payments had raised production costs.
Addressing the issue of gas exploration, Adviser Fouzul Kabir Khan clarified that the government had taken measures that could be completed within its tenure.
On electricity prices, he revealed that negotiations were ongoing with coal-based power plants, with the Matarbari plant’s rate of Tk8.44 per kilowatt-hour (kWh) set as a benchmark.
"We are questioning why their prices differ by Tk3-4 instead of the expected Tk0.30-0.40," he added.
Regarding system loss reduction, Khan promised visible progress by next June.
He also commented on the recent gas price hike for new industries, explaining that it was based on the marginal cost.
In the keynote address, energy expert Ijaz Hossain traced the origins of Bangladesh’s energy crisis to 2019, when gas production began to decline and oil replaced gas, increasing the government’s subsidy burden.
He noted that local gas production had fallen from 2,786 million cubic feet per day (mmcfd) in 2019 to 1,800 mmcfd, and recommended aggressive production measures, including the exploration of at least ten wells per year.
Hossain also projected that Bangladesh would need to import 2,600 mmcfd of LNG after 2030 and build two new floating storage and regasification units (FSRUs) to meet future demands.
Dr Shamsul Alam, energy adviser to the Consumers’ Association of Bangladesh, pointed out that the country is shifting towards becoming an LNG-importing nation, with domestic gas’s share expected to decrease from 75% to just 25% by 2030.
Dr Golam Moazzem, research director at the Centre for Policy Dialogue, called for a new energy policy with a clear transition plan, warning that ongoing LNG deals with Qatar and the US could jeopardise long-term renewable energy goals.
