The government plans to stop using natural gas for electricity generation after 2011, as it faces shortages of fossil fuel..
At present 85 percent of electricity is produced by natural gas. Because of the gas shortage, Tamim suggested use of coal as a fuel for electricity generation.
Bangladesh has five coal fields with more than 2.55 billion tonnes of reserves, officials said. "To meet the 300 times more demand for electricity we will require to invest up to $10 billion over the next 20 years," Tamim said. He said entrepreneurs from Bangladesh will be allowed to invest 51 percent in state-run plants to modernise them, which will help to raise power generation by at least 2,000 MW.
The reserves of natural gas are depleting fast and the country is now facing up to 150 million cubic feet (mmcfd) of gas shortages every day," said Jalal Ahmed, chairman of Petrobangla, government oil and gas agency.
Only 30 percent of Bangladesh's more than 140 million people have access to electricity, he said.
"The present per capita electricity consumption is 117 KWH (kilo-watts hour), nearly 6 percent of the world average," he said. Because of old plants, Bangladesh on average can produce only 3,200 megawatts (MW) of electricity, against an installed capacity of 5,200 MW, officials said.
"Over the next 20 years as we plan to become a middle income country by raising our economic growth to at least 10 percent from 6 percent now, the country will have to produce about 13,000 MW," Tamim told a meeting attended by senior officials, business leaders, representatives of development partners and energy experts.
Natural gas is the prime feedstock for producing fertiliser, vital to raise grain production to ensure food security in the country. Also government plans to open its power sector to private investment to help it out of a long-running and deepening crisis, official said.
"A policy is being finalised to give private sector full support, which will enable them to invest even in the state-run power plants and make then more productive," said M. Tamim, special assistant to the chief of Bangladesh's caretaker government, responsible for power, energy and mineral resources.
Bangladesh has five coal fields with more than 2.55 billion tonnes of reserves, officials said. "To meet the 300 times more demand for electricity we will require to invest up to $10 billion over the next 20 years," Tamim said. He said entrepreneurs from Bangladesh will be allowed to invest 51 percent in state-run plants to modernise them, which will help to raise power generation by at least 2,000 MW.
The reserves of natural gas are depleting fast and the country is now facing up to 150 million cubic feet (mmcfd) of gas shortages every day," said Jalal Ahmed, chairman of Petrobangla, government oil and gas agency.
Only 30 percent of Bangladesh's more than 140 million people have access to electricity, he said.
"The present per capita electricity consumption is 117 KWH (kilo-watts hour), nearly 6 percent of the world average," he said. Because of old plants, Bangladesh on average can produce only 3,200 megawatts (MW) of electricity, against an installed capacity of 5,200 MW, officials said.
"Over the next 20 years as we plan to become a middle income country by raising our economic growth to at least 10 percent from 6 percent now, the country will have to produce about 13,000 MW," Tamim told a meeting attended by senior officials, business leaders, representatives of development partners and energy experts.
Natural gas is the prime feedstock for producing fertiliser, vital to raise grain production to ensure food security in the country. Also government plans to open its power sector to private investment to help it out of a long-running and deepening crisis, official said.
"A policy is being finalised to give private sector full support, which will enable them to invest even in the state-run power plants and make then more productive," said M. Tamim, special assistant to the chief of Bangladesh's caretaker government, responsible for power, energy and mineral resources.
Weekly Economic Times
13/07/08
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