Japanese investors welcome govt's move to adopt integrated energy master plan on renewable, advanced tech

Welcoming the government's move to adopt an integrated energy and power master plan that emphases renewable and advanced technology such as hydrogen and ammonia, Japanese investors said they have the same vision as Bangladesh.

Japanese companies expressed interest in implementing the Bangladesh government's energy development plan along with local companies.

Speaking at a session at the summit on "Bangladesh-Japan Economic Relations for the next 50 Years – for the Industry Upgradation of Bangladesh" held on Sunday at a city hotel, Shinichi Nagata, general manager at the Sumitomo Corporation Dhaka Office, said, "We would like to work together with the Bangladesh energy sector to contribute further development of the country."

According to a presentation at the summit, the upcoming integrated energy and power sector master plan is projecting a power generation capacity for Bangladesh by 2041 which is quite higher than the existing one's projection.

Besides, the plan has no indication of reserve margin reduction that has become a major financial threat for the power sector.

As per the latest draft of the upcoming Integrated Energy and Power Master Plan (IEPMP), 74,253MW power generation capacity is projected by 2041, which is 14,253MW higher than the projection of the existing master plan.

Currently, the reserve margin of the power generation capacity is around 40.43% and in the draft master plan, which is set to be finalised by August, it is calculated at 38.46%, the presentation underlined.

In the 2022-2023 fiscal year, the Bangladesh Power Development Board faced a loss of Tk31,008 crore for payment for the reserve capacity, primary fuel price hike and devaluation of local currency against dollar.

Presenting the draft plan, Shah Md Helal Uddin, additional Secretary of the power division, said the sector would need around $102billion by 2041 and $180 billion by 2050 to build the projected capacity.

Referring to the fuel mix for archiving the projected target, Shah Md Helal Uddin said nuclear, renewables and advanced technology like hydrogen and ammonia combined will produce around 30% which is now 3%  and the share of liquid fuel based generation will cut down to 32% to 3.3% in 2041.

Shinichi Nagata, general manager at the Sumitomo Corporation Dhaka Office, echoed that renewable energy technology like ammonia and hydrogen is the future of Bangladesh.

The Japan External Trade Organization (JETRO) organised the summit on the occasion of Japanese Minister of Economy, Trade, and Industry (METI) Nishimura Yasutoshi's visit to Bangladesh.

Bangladesh needs to accelerate development of the terminal facility to receive Liquefied natural gas (LNG) as its local gas reserve is decreasing, which is necessary for sustainable energy transition and sustainable economic growth, Shinichi Nagata added.

"Besides, we need to continue development of renewable energy under consideration of how renewable energy can be applied for the future of Bangladesh," he said.

Myung Ho Lee, country representative of the Mitsubishi Corporation Dhaka Branch Office, said, "It is a reality that you have to use coal and gas by working hard to increase solar power, wind and other clean energy.

"Therefore, it is very important that the national master plan should be a very realistic and achievable master plan rather than a beautiful one. So that, we Japanese companies together with Bangladesh companies can apply needed programmes for the further hydrogen and ammonia project," he said.

Yoshiro Kaku, chief representative of the New Energy and Industrial Technology Development Organization (Branch Office in India), expressed his company's interest to be the first one to implement an ammonia project in Bangladesh.

The New Energy and Industrial Technology Development Organization started a study in March 2022 in order to achieve 20% liquid ammonia co-firing and higher co-firing ratio up to 100%, single-fuel firing at the Adani Power Mundra Coal Fired Power Plant.

Among others, Taisuke Shimazaki, general manager of the Toshiba Energy System & Solution Corporation (Bangladesh Office), spoke at the session.