'Electricity Price Will Go Up'

Ahmed Kaikaus, Principal Secretary to the Prime Minister of Bangladesh, said the price of electricity would go up. He said that so far no country in the world has been able to reduce the price of electricity. Bangladesh is in transition; growth will be more. Therefore, there is no need to slow down the pace of power generation, but to increase it. However, we need to be affordable to reduce costs.

He made the remarks at a virtual meeting hosted by Forum for Energy Reports Bangladesh on Saturday (August 28). FERB Chairman Arun Karmakar presided over the webinar titled Power Demand in Bangladesh: Established and Supply Capacity.

Speaking on the occasion, Ahmed Kaikaus said that it is not true that the capacity payment for electricity is high due to high production capacity. Because there is a huge gap between planning and reality. Development partners also suggest over-planning. Over-planning was done from the power department. In the current situation, Bangladesh has no problem with over-planning. 

The keynote address was delivered by Professor Dr Tamim, Dean, Faculty of Engineering, Bangladesh University of Engineering and Technology (BUET).

He said the performance of electricity has been good in the last one decade. In power generation, he said, go for a two-, five- and ten-year plan. At the same time, he said that the target of 30 to 40 per cent power generation from renewable energy should be achieved by 2050.

He said an additional 3,500 megawatts of electricity is required in summer. This demand decreases in 4-5 months in winter season. You have to plan keeping in mind this gap between hot and cold. It would be helpful for investors to decide what percentage of electricity prices will increase in a year. LNG should be given importance in power generation. LNG needs to be imported as soon as possible. If there are three big coal-based projects, the oil-based ones will be left out.

Power Secretary Habibur Rahman said that now instead of importing electricity, everyone thinking of inter-country electricity trade. Regional power exchanges can be established. If this is done, I will be able to buy electricity with less notice. In Bangladesh, electricity remains in winter, it can be sold to others. The power secretary demanded to invest in the power sector for a few more years. He said the issue of engagement with the private sector in terms of performance, whether in the distribution or not, is now being considered.

Also at the webinar, Power Development Board Chairman Belayet Hossain, Power Cell Director General Mohammad Hossain, Rural Electrification Board Chairman Moin Uddin, Power Grid Company Managing Director M Golam Kibria, Dhaka Power Distribution Company (DPDC) Managing Director Bikash Dewan, Dhaka Electic Director Kawshar Amir Ali, President of Independent Power Producers Association (BIPPPA) Imran Karim and others were present.