Panchayet Habib

The interim government left office after leaving the power and gas sectors in a disastrous condition due to unplanned activities. The current government has taken various positive initiatives to make the country’s most important power and energy sectors dynamic, ensure supply according to demand, and maintain stability. The government is taking multifaceted measures to overcome the fragile situation created by previous unplanned activities and former Power Adviser Fouzul Kabir Khan’s alleged efforts to benefit certain quarters, as well as to reduce consumers’ suffering.

The government’s major measures include strictly curbing irregularities in the power sector to prevent wastage, increase generation and ensure transparency. Efforts are underway to import gas and electricity from multiple sources to maintain a normal energy supply. Precautionary measures are also being taken against misleading propaganda that could create instability. Long-term and realistic plans have been formulated to repair the fragile infrastructure of the power sector.

Prime Minister Tarique Rahman has conveyed to the people that the government is making every effort to address the country’s power and energy problems. The crisis in the power and energy sectors was created by previous unplanned decisions. The current government is making its utmost efforts to protect the country and its people from this crisis.

The 1,200-megawatt coal-fired power plant at Matarbari in Maheshkhali, Cox’s Bazar, and the 20-megawatt solar power plant at Alikhali in Teknaf—two projects involving fossil fuel and renewable energy—are playing an important role in supplying electricity to the national grid. The Rampal Maitree Thermal Power Plant has ranked first in terms of generation for supply to the national grid. During this period, it has also ranked first among independent power producers (IPPs).

The daily demand for gas in the power sector is more than 1 billion cubic feet, while only 700 million cubic feet is being supplied. As a result, electricity generation from gas-fired power plants has declined by at least 2,000 megawatts. All gas-fired power plants in the country are generating 3,589 megawatts, although their total capacity is 10,000 megawatts. Oil-fired power plants are generating around 2,000 megawatts, despite having a generation capacity of more than 5,000 megawatts.

Except for Adani, power generation at the Barapukuria, Barishal Electric Company, Matarbari, Payra, Rampal, S Alam Group’s SS Power and RNPL plants has declined due to coal shortages and mechanical problems. One unit of the Payra plant remained shut until Sunday evening and was restarted that night. As a result, although Payra has a capacity of 1,320 megawatts, it generated 710 megawatts.

The India-Bangladesh Maitree Power Plant has weak mechanical capacity. Therefore, its two units are generating 1,165 megawatts. Despite an increase in the price of coal for SS Power, its two units are generating 1,163 megawatts against a total capacity of 1,320 megawatts.

It was reported that, at the end of the ousted government’s tenure, the country’s average daily electricity demand was around 14,000 to 16,000 megawatts. A total of 125 power plants had been constructed. The Awami League government invested at least $15 billion in the power sector over the past 15 years. It also had plans to invest another $24 billion between 2021 and 2030. However, these investment plans were primarily aimed at increasing generation capacity or constructing power plants.

The huge financial pressure on the current BNP government’s subsidy system has resulted from increased theft, wastage and exploitative expenditure in the power sector during the fascist government’s tenure. Previously, the BNP government was in power from 2001 to 2006. At that time, the electricity tariff for consumers using up to 100 units was increased from Tk 2.15 to Tk 2.50. Meanwhile, the tariff for consumers using 301–400 units was reduced rather than increased. For this category, the per-unit electricity price was reduced from Tk 3.30 to Tk 3.

At that time, the BNP government faced obstacles in power generation due to pressure from some environmental groups and an Indian company. Since the Awami League came to power in 2009, electricity generation has increased by 188 percent. During the past decade and a half, electricity prices have been increased 14 times.

At the consumer level, the Power Division raised electricity prices the most in 2023. In January of that year, electricity prices were increased twice by 5 percent each, followed by another increase in February. Then, in February this year, electricity prices were increased by another 5 percent.

Under the ongoing lending programme, the International Monetary Fund (IMF) had imposed a condition on the recently ousted Awami League government to gradually withdraw from subsidies in the power sector when providing loans. Although the power sector’s generation capacity increased over the past decade and a half, electricity prices also rose at an unprecedented rate.

A decision by the interim government brought 31 projects worth nearly $6 billion to a standstill. After coming to power, the BNP government is trying to revive the projects. In September 2024, the interim government cancelled the letters of intent (LOIs) for the projects, citing an interpretation of a High Court verdict. As a result, projects with the potential to generate 3,287 megawatts of electricity faced uncertainty, creating concern among domestic and foreign investors.

According to the report, the power and energy crisis was created during the interim government’s tenure due to various unplanned activities and benefits being provided to certain quarters. Former Energy and Power Adviser Fouzul Kabir Khan was responsible for the sector during that period. The gas, electricity and energy crisis began during his tenure, and he allegedly appointed his own people to important positions in the power sector.

The current government inherited a fragile situation in the country. “We have already started working to overcome the various crises. Plans are being formulated so that people can gradually be brought out of the gas, electricity and energy crisis,” the government said.

The government has set a target of generating 3,700 megawatts of electricity from renewable sources by 2030. Under the subsidy and incentive management allocation in the revised budget for the 2025–26 fiscal year, the government allocated Tk 2,067 crore for March.

In addition, after taking office, the current government has had to deal with various artificial crises, including those involving electricity and gas. Gas supply has already resumed in the capital and across the country. At the same time, load-shedding has also begun.

At an event at the Jatiya Sangsad last Saturday, Prime Minister Tarique Rahman said that the current power and energy crisis had resulted from various unplanned activities and from providing benefits to a particular quarter in the past. He said the government was making its utmost efforts to address the crisis in the energy sector. The crisis in the power and energy sectors was created by previous unplanned decisions, and the current government was making every effort to protect the country and its people from it.

Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud said gas supply from the Floating Storage and Regasification Unit (FSRU) had resumed after mechanical faults were repaired. He said the gas situation would return to normal soon. “Once transmission begins, the pressure in areas where it has fallen will gradually improve,” he said. Regarding load-shedding, the minister said that if there is not enough gas, consumers will not receive it, nor will power plants. “The power plants that have shut down will be restarted,” he said.

Energy expert, Consumers Association of Bangladesh (CAB) energy adviser and Dean of the Faculty of Engineering at Daffodil International University Professor Dr M Shamsul Alam said the expansion of renewable energy was facing discrimination. He said the electricity market was unequal and renewable energy had not been properly developed. “The market has been kept unequal, and the renewable energy market is being discriminated against,” he said. According to him, the biggest obstacle is government policy, while fossil-fuel-based power plants are being expanded through subsidies by giving them priority.

The country is currently experiencing some electricity shortages and load-shedding due to shortages of primary fuel and gas, a foreign-exchange crisis affecting coal and gas imports, reduced electricity supply from external sources including India’s Adani Group, and a sudden rise in electricity demand caused by the heat.

Reasons behind the power crisis:

Gas shortage: As most of the country’s power plants are dependent on gas, inadequate gas supplies have severely reduced electricity generation at these plants.

Coal shortage: Electricity generation at full capacity has been disrupted at several large coal-fired power plants due to coal shortages and regular maintenance work.

Generation shortfall and load-shedding: As generation is lower than demand, a shortfall is developing in the national grid, resulting in some load-shedding. Electricity cannot be generated at normal levels due to shortages of coal and gas. The reduction in electricity generation by India’s Adani Group has added to the problem. As a result, load-shedding has reached record levels.

The highest load-shedding recorded last week was 3,500 megawatts. However, at 3pm on Sunday, load-shedding stood at 3,671 megawatts. Overall, the Power Development Board (PDB) and all power distribution companies in the country are struggling to manage the situation. There are allegations that electricity is unavailable for as long as 10 hours a day and night in many areas.

PDB officials, speaking on condition of anonymity, said such a severe electricity situation had rarely been seen before. Although the month of Shraban is generally hot across the country, some degree of load-shedding is normally expected.

Plans are being made to shut down and restart the country’s one of the largest coal-fired power plants, Rampal. Due to mechanical faults and coal shortages, one or another of its units has been shut down 30 times over the past year. As a result, the government is in serious trouble over the Bangladesh-India Friendship Power Company (BIFPCL) at Rampal in Bagerhat.

The plant, built with a large amount of foreign loans, has deteriorated to such an extent that the State Minister for Power and the Secretary have expressed deep concern and anger. Recently, Power Secretary Mirana Mahrook asked Rampal plant Managing Director Ramanath Pujari about the reasons at a meeting. She said that if a plant operated in this manner, the government’s reputation would suffer.

The country has been experiencing widespread load-shedding for several months. During such a period, a major coal-fired power plant like Rampal is expected to remain operational. However, the Rampal plant has repeatedly shut down.

The 1,320-megawatt plant, consisting of two 660-megawatt units, was built at a cost of Tk 20,000 crore. The Power Division has become concerned over serious mechanical faults that emerged within three years of its commissioning. Bangladesh borrowed $1.6 billion from India’s Exim Bank to build the plant, and the country now has to repay that loan.

The 160-megawatt BR Power Gen plant in Sherpur and the 1,320-megawatt power plant jointly built in Patuakhali with Chinese financing by RPCL and Norinco Power International Company Limited (RNPL) have also been added to the country’s electricity generation system.

Rampal generated a record 8,126 million units of electricity in the last fiscal year, compared with 5,424 million units in the previous year. The PDB purchases all electricity generated by the Rampal plant and distributes it to different parts of the country.

The cost of electricity generated by the plant is more than Tk 14 per unit, while the government sells it for Tk 11 per unit. The remaining amount is provided as a subsidy. Under the agreement with the government, Rampal receives a monthly capacity charge like other private power plants even when it does not generate electricity.

Currently, 12 Indian nationals, including Rampal plant Managing Director, Chief Financial Officer (CFO) and Head of Plant, are working at the facility. On January 24 this year, nine Indian officials, including the CFO and General Manager (GM), left the plant for India without obtaining permission. This created difficulties for the authorities concerned. Later, the government did not accept them back, and India’s NTPC subsequently sent other officials.

The plant is jointly owned, with 50 percent held by India’s National Thermal Power Corporation (NTPC) and 50 percent by Bangladesh’s Power Development Board (PDB).

The PDB said electricity could not be generated at normal levels due to coal and gas shortages. The reduction in electricity generation by India’s Adani Group has added to the situation. As a result, load-shedding has reached record levels.

The highest load-shedding recorded last week was 3,500 megawatts, but at 3pm on Sunday it reached 3,671 megawatts. Overall, the PDB and all power distribution companies in the country are struggling to manage the situation. There are allegations that electricity is unavailable for up to 10 hours a day and night in many areas.

PDB officials, speaking to Inqilab on condition of anonymity, said such a severe electricity situation had rarely been seen before.

According to data from the Power Grid Company of Bangladesh (PGCB), electricity demand stood at 16,059 megawatts at 3pm on Sunday, while supply was only 12,388 megawatts. At 5pm, supply increased slightly to 13,000 megawatts. Even then, load-shedding stood at 2,967 megawatts.

According to the PDB, Adani’s electricity supply had suddenly fallen by half. During normal peak hours, it supplies 1,600 megawatts, but at 5pm on Sunday it supplied only 815 megawatts.

Adani told the PDB that it was unable to transport coal due to adverse weather conditions, causing its coal stockpiles to decline. As a result, it had reduced electricity generation. However, the PDB could not verify how accurate the information was.

Apart from Adani, electricity generation has declined at the Barapukuria, Barishal Electric Company, Matarbari, Payra, Rampal, S Alam Group’s SS Power and RNPL plants due to coal shortages and mechanical problems. One unit of the Payra plant remained shut until Sunday evening but was reportedly restarted that night. As a result, although Payra has a capacity of 1,320 megawatts, it generated only 710 megawatts.

The Bangladesh-India Friendship Power Plant has weak mechanical capacity, so its two units are generating 1,165 megawatts. Despite the increased price of coal for SS Power, its two units are generating 1,163 megawatts against a generation capacity of 1,320 megawatts.

The daily demand for gas in the power sector is more than 1 billion cubic feet, while only 700 million cubic feet is being supplied. As a result, electricity generation from gas-fired power plants has fallen by at least 2,000 megawatts.

At 5pm yesterday, all gas-fired power plants in the country generated 3,589 megawatts, although their total capacity is 10,000 megawatts. Oil-fired power plants are generating around 2,000 megawatts, despite having a generation capacity of more than 5,000 megawatts.

Due to the gas shortage, generation has fallen by at least 2,000 megawatts. Coal shortages and other factors have reduced generation from coal-fired plants by at least another 1,000 megawatts compared with normal levels. In total, the main generation shortfall is around 3,000 megawatts.

On July 21, a fire broke out at the floating LNG terminal operated by US company Excelerate Energy, reducing gas supply by 510 million cubic feet per day. As a result, a gas crisis emerged across the country. Industrial establishments and power generation were particularly affected, with production falling significantly.

After repairs, the terminal partially resumed gas supply on the night of August 5. At 6pm on Sunday, the country’s two floating terminals supplied 757 million cubic feet of gas, compared with the previous supply of 1.1 billion cubic feet. If everything goes according to plan, Excelerate Energy may resume full gas supply after 11pm on Monday. However, this is not certain. If it does, the country’s total daily gas supply could rise to 2.65 billion cubic feet.

Shamsul Haque Sharek, reporting from Cox’s Bazar, said the coastal region of Cox’s Bazar has now emerged as an important center of the country’s energy economy, in addition to being a major tourist destination. The 1,200-megawatt coal-fired power plant at Matarbari in Maheshkhali and the 20-megawatt solar power plant at Alikhali in Teknaf—two mega projects involving fossil fuel and renewable energy—are playing a unique role in ensuring uninterrupted electricity supply to the national grid.

At Matarbari in Maheshkhali, on the coast of the Bay of Bengal, an ultra-supercritical coal-fired power plant with a total capacity of 1,200 megawatts has been built, consisting of two 600-megawatt units. Built under the Coal Power Generation Company Bangladesh Limited (CPGCBL), the plant is currently supplying up to approximately 1,150 megawatts of electricity to the national grid every day, which is currently the highest supply according to national grid demand.

However, the biggest challenge for this massive plant is ensuring an uninterrupted supply of coal. Around 10,000 tonnes of coal are required every day to keep the two units operational. The continuity of generation at the plant depends on coal imports, international market prices, shipping and port management, and technical maintenance. At the same time, as a coal-fired plant, environmental and ash-management issues are also extremely important.

On the other hand, one of the country’s largest solar power plants has been established in the Alikhali area of Hnila Union in Teknaf. Using approximately 87,000 solar panels to convert sunlight into electricity, the plant generates 20 megawatts of electricity. The electricity is directly connected to the national grid and reaches consumers in different parts of the country.

A major advantage of solar power is that it does not require the burning of coal, gas or oil. Therefore, it creates a significant opportunity to reduce dependence on fuel imports while also reducing carbon emissions. However, as it depends entirely on sunlight, generation stops at night and declines somewhat during cloudy weather or rainy days.

The presence of the large baseload coal-fired power plant at Matarbari and the solar power plant at Teknaf has elevated Cox’s Bazar to a special position on the country’s energy map. On the one hand, large-scale uninterrupted electricity generation through fossil fuels and, on the other, the use of environmentally friendly renewable energy—this combination is making a major contribution to the country’s future energy security.

S M Shamsur Rahman and Amanul Haque Nantu, reporting from Bagerhat, said the Rampal Maitree Thermal Power Plant is continuing to generate electricity at almost full capacity even during the peak period of the country’s electricity demand. Its two units are playing an important role in maintaining stability in the national grid and ensuring uninterrupted baseload electricity supply to the industrial and residential sectors.

As part of its recent continuous generation, the plant has reached the milestone of generating more than 700 million units of electricity in a single month for the fifth time. General Manager (GM) of Bangladesh-India Friendship Super Thermal Power Company Tariqul Islam said around 800,000 tonnes of coal had been unloaded over the past two months and the plant currently has a stock of around 200,000 tonnes of coal, which will ensure uninterrupted electricity supply during the upcoming month of Ramadan.

The plant, operated using advanced ultra-supercritical technology and maintaining improved environmental standards, is further strengthening the country’s energy security.

Riyadul Islam Riyad, reporting from Banshkhali in Chattogram, said that despite disruptions in electricity generation elsewhere, the 1,320-megawatt SS Power Plant in Banshkhali is regularly supplying 1,250 to 1,300 megawatts of electricity to the national grid.

The plant’s Chief Coordinator, Engineer Md Faizur Rahman, said the plant had been generating electricity continuously at full capacity for the past three months. However, despite the power plant operating at full production, severe load-shedding has been occurring in Banshkhali and surrounding areas.

Md Atikur Rahman, Deputy General Manager (DGM) of the Banshkhali Zonal Office of Palli Bidyut Samity-1, said local residents were not receiving the full benefit because all the electricity generated is directly supplied to the national grid and there is no grid substation near the plant.

M A Jalil Sarker, reporting from Dinajpur’s Parbatipur, said that of the three units of the country’s only large coal-fired Barapukuria 525-megawatt thermal power plant, only two units are currently managing to generate electricity. The desired level of generation is not being achieved due to mechanical faults and the lack of overhauling and maintenance.

The plant is currently supplying 220 megawatts of electricity to the national grid, leaving a shortfall of 150 megawatts. Chief Engineer Abu Bakkar Siddique said Units 1 and 3 are partially operational, while Unit 2, which has been shut down since 2020, may be brought back into operation after repair work is completed.

Zakir Hossain, reporting from Patuakhali, said three power plants in Patuakhali district—the Payra Thermal Power Plant (1,320 megawatts), RNPL Thermal Power Plant (1,320 megawatts), and Payra United Power Plant (150 megawatts)—have a combined generation capacity of 2,790 megawatts.

However, as the electricity generated is supplied directly to the national grid and then rationed from there, local residents of Patuakhali are regularly suffering from load-shedding.

Meanwhile, Payra Thermal Power Plant’s Plant Manager Engineer Shah Abdul Hasib said that due to navigability problems at Payra Port, mother vessels cannot berth directly at the jetty. Therefore, coal has to be transported from Kutubdia by lighter vessels. Although this increases both generation costs and the time required, the plant currently has around 200,000 metric tonnes of coal in stock.