The Centre for Policy Dialogue yesterday proposed a three-step pathway for energy transition under the interim government that would holistically reform Bangladesh’s energy sector.
The think-tank proposed an initial 100-day plan where the interim government would announce key priorities, followed by significant reforms over the next six months.
The reforms would include abolishing certain acts, implementing new policies such as energy audits, renewable energy laboratory and centralising databases on pricing and investment.
The CPD identified four critical acts and policies that need to be revised immediately to ensure competition, efficiency, transparency and accountability in the power and energy sector.
These are the Quick Enhancement of Electricity and Energy Supply Act, the Bangladesh Energy Regulatory Commission Act, the Renewable Energy Policy and the Integrated Energy and Power Master Plan (IEPMP).
“These acts and policies were initiated to benefit vested interest groups in the sector,” said Khondaker Golam Moazzem, research director of CPD, while presenting the keynote paper at a media briefing titled “Power and Energy Sector Reform Agenda for the Interim Government”.
Under the Quick Enhancement Act, the government awarded public works to conglomerates without issuing any tender notices.
“No public procurement rules were followed under this act. The faulty procurement and bidding process of the major power projects such as the Adani deal, Payra and Rampal power plants cost us an additional Tk 35,000 crore.”
Moazzem also called for an international audit of all companies under the ministry of power, energy, and mineral resources to uncover anomalies and corruption from the past government.
“There was no transparency in the information available in this sector. Companies provided different information to different authorities, and all details were kept top secret during the Awami League-led government. All deal documents should be made public.”
The data on power generation cost, power purchase tariff, efficiency level, plant factor, fuel cost, capacity payment, date of contract expiration, and oil and LNG import costs must be updated regularly on the respective websites.
CPD emphasised the need for all government activities to be conducted under the Public Procurement Act 2006 and Public Procurement Rules 2008.
They urged the government to review all procurement and bidding processes of power plants, phase out inefficient and quick rental power plants and prioritise the identification and assessment of renewable energy resources.
Additionally, CPD recommended forming a probe body to identify anomalies in pre-paid meters and restructuring the power, energy and mineral resources ministry to empower the Sustainable and Renewable Energy Development Authority (SREDA) as the sole authority for implementing upcoming energy transition issues.
In the final phase, spanning 12 to 36 months, CPD suggested the government prioritise investment in advanced grid technologies, modernise grid infrastructure and shift focus from LNG imports to domestic gas exploration.
“The past government has made Bangladesh Energy Regulatory Commission a toothless authority,” Moazzem said.
The laws were amended to adjust gas and electricity prices without holding a public hearing multiple times a year.
Without the process, there are two types of problems: it creates a non-transparent market and frequent tariff changes discourage investors.
In the IEPMP, the government had projected faulty energy and power demand, the keynote paper said.
Besides, the policy paper incorporated hydrogen and ammonia co-firing with carbon capture and storage systems, which is a ‘false solution’ of energy transition.
CPD demanded the review of the market-based pricing formula saying the formula has anomalies. “We need to get rid of subsidy-based power and energy but under a transparent process.”
