Citing his recent experience in dealing with the country’s bureaucracy, Energy Adviser Dr Fouzul Kabir Khan said he feels like fighting with his own shadow.
"I am fighting with my own shadow, even though I was part of this bureaucracy," he said while addressing a seminar titled ‘Predictable Energy Pricing and Supply Stability’ at the Dhaka Chamber of Commerce and Industry (DCCI) in the city on Saturday.
Fouzul Kabir mentioned that state-owned Petrobangla has sought clearance from the Planning Ministry to waive the mandatory feasibility study provision for implementing drilling projects at different onshore gas fields.
"This feasibility study needs to be conducted by a third party, which requires one year for gathering necessary data about a field. We didn’t want to bypass the feasibility study, but all the data is available with Petrobangla, and it should be handled within the organization itself," he said.
Fouzul Kabir also pointed out that if a year is needed for the feasibility study, how can the job be completed quickly? "This is a time-buying tactic, and we should raise our voices against such a time-consuming provision."
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The DCCI organised the seminar with its president Ashraf Ahmed in the chair. Eminent energy expert Prof Dr M Tamim made a presentation on the topic.
Former BUET Prof Dr Ijaz Ahmed, Dhaka University Prof Badrul Imam, head of corporate affairs at Bangladesh Steel and Re-rolling Mills (BSRM) Saumitra Kumar Mussuddi, and president of the Bangladesh Solar and Renewable Energy Association Eng Nurul Aktar also addressed the seminar.
Reiterating his plans, Dr Fouzul Kabir said that the government would no longer allow independent power producer (IPP) plants in the private sector with a 100 percent off-take guarantee by the government.
"The government will provide a maximum of 10-20 percent guarantee to purchase electricity from these plants. Instead, the government will encourage the private sector to set up merchant power plants, where they can choose their own buyers for electricity," he noted.
Fouzul Kabir said that investors in merchant power plants would be allowed to use the transmission and distribution facilities to sell their electricity to their buyers. "The IPP model in power generation is outdated, and no country is following this model anymore," he added.
Dr Khan also mentioned that the government will float an open tender next week for setting up 40 solar power plants in the private sector. The advertisement for the tender will be released gradually.
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"From now on, all doors will be open at the power and energy ministry, and you businessmen will not need to come to the ministry for any persuasion... No personal relationships will be needed to secure a contract. Only competitive offers will determine the outcome," he said.
Dr Tamim said that many power plants had agreements with the previous government to purchase electricity at 17-18 cents per kilowatt hour in solar power. He suggested renegotiating these deals.
Daytime electricity consumption should be met with solar power, and there must be supply and demand-side management, while markets should not be allowed to remain open beyond certain hours.