Leading energy experts and industry leaders have called on the government to intensify oil and gas exploration to reduce energy costs and bolster business competitiveness.
The appeal was made during a seminar titled “Predictable Energy Pricing and Supply Stability,” organized by the Dhaka Chamber of Commerce & Industry (DCCI) on December 7, 2024.
Power and Energy Adviser to the interim government Muhammad Fouzul Kabir Khan was present as the chief guest.
Key Discussions and Recommendations
Dr. Mohammad Tamim, Professor of Petroleum and Mineral Resources Engineering at BUET, emphasized the impracticality of long-term energy pricing beyond three to five years.
He underscored the need for domestic gas exploration to stabilize prices, warning that Bangladesh’s reliance on energy imports will grow. He suggested long-term contracts or hedging systems for LNG imports and advocated for increasing LNG storage capacity.
Highlighting inefficiencies, Dr. Tamim noted that at least 5% of natural gas is lost due to system inefficiencies, equivalent to 130 mmcfd, and that only 40-45% of the country’s energy generation capacity is utilized—well below the standard of 60%.
He also urged leveraging rooftop spaces for renewable energy and recommended surface coal mining after feasibility studies.
Dr. Badrul Imam, Honorary Professor at the University of Dhaka, criticized the lack of exploration efforts despite significant natural gas potential. He stressed that prioritizing domestic gas exploration would yield long-term benefits.
Dr. Ijaz Hossain, Dean of Engineering at BUET, called for greater collaboration between the government and the business community to prevent unilateral energy price hikes.
He highlighted the impact of currency instability and inflation on energy import costs and advocated for utilizing underutilized lands for solar energy projects.
Industry Perspectives
Ashraf Ahmed, President of DCCI, stressed the importance of uninterrupted and affordable energy supply for sustaining Bangladesh’s industrial growth.
He noted that energy consumption has quadrupled in the past two decades, reaching nearly 45 million tonnes of oil equivalent (TOE).
Ahmed urged a balanced approach to local production and energy imports while advocating for streamlined land allocation processes for solar power projects.
Imran Karim, Vice Chairman of Confidence Group, highlighted that Bangladesh imports 62-65% of its energy. He called for simplified taxation in the energy sector and a focus on efficient utilization, suggesting that energy production capacity usage should rise from 40% to at least 60%.
Barrister Shahwar Jamal Nizam pointed out challenges in making renewable energy projects bankable due to land scarcity. However, he identified unused barren lands as a viable solution for solar power projects.
Md. Nurul Aktar, President of the Bangladesh Solar & Renewable Energy Association, emphasized the need for energy efficiency, citing that 15% of electricity is wasted, with rates as high as 30-40% in some sectors. He proposed mandatory rooftop solar installations and energy audits every two years.
Government Commitments
Chief Guest Muhammad Fouzul Kabir Khan revealed plans for open bidding processes in gas procurement and solar energy projects to ensure transparency.
He announced a phased plan to drill up to 100 gas wells and indicated that funding for solar projects would shift towards asset- and cash-flow-based lending.
The government is also set to advertise 40 solar power plant projects, with land allocation facilitated for investors.
The seminar concluded with a unanimous call for enhanced domestic energy exploration, efficient energy usage, and regulatory reforms to ensure energy stability and support industrial growth.
Senior officials and industry leaders, including DCCI Vice Presidents and former office bearers, also shared their insights during the event.
