Power and energy sector likely to get Tk804b allocation in next two fiscal years

The government has set a target to allocate Tk804 billion for the power and energy sector in the next two fiscals as it attaches top priority to the sector, aiming to transform the country into a developed one.

Of the total amount, Tk383 billion will be allocated for 2024-25 fiscal year while Tk421.3 billion for 2025-26 fiscal year.

The government has also formulated short, medium, and long-term plans to ensure sufficient power generation, transmission and distribution capacity.

"With the target of transforming Bangladesh into a developed country by 2041, the government has put the highest emphasis on the power and energy sector," an official document said.

The document titled 'Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)' said during the last one and a half decades, power generation capacity has increased to 27,361 MW (including captive and renewable) from 4,942 MW.

It mentioned that the transmission and distribution lines increased to 14,672km from 8,000km, and the distribution lines increased to 6,28,562 km from 2,60,000km.

In line with the target of the 8th Five Year Plan for generating 10% of total electricity through renewable energy, the current capacity of such power generation stands at about 900 MW.

Besides, the document said, 26 solar power plant projects with a total capacity of 1,149 MW are being implemented by the government.

"Besides, 2570 solar irrigation pumps with a total capacity of about 50 MW as well as 6 million solar home systems for people living in off-grid regions have already been established," it added.

To meet the growing demand for energy, various programmes on both the production and supply sides have been implemented.

The official document said that since 2009 around 19 gas exploration wells have been drilled and daily gas production capacity has increased by 984 million cubic feet.

In addition, it said that the government has taken initiatives to complete the drilling of 46 more exploration wells by 2024 which may add 618 million cubic feet daily gas production capacity.

At the same time, initiatives have been taken to construct several LNG terminals which will enhance LNG storage re-gasification daily capacity by 2,500 million cubic feet.

Aiming to ensure cost efficiency in power and energy sector, the government emphasises the construction of a regional pipeline for inter-country fuel transport and regular price adjustment of fuels based on international market price.

The government also emphasised the capacity expansion of fuel refineries, installation of prepaid meters for both electricity and gas, and domestic gas exploration through both onshore and offshore surveys.

"Besides, energy efficiency and system loss reduction will also be on the priority list," it said.

State Minister for Power, Energy and Mineral Resources Nasrul Hamid has recently said the system loss in gas distribution segment has been brought down to 7.5% now from a 22% two years before.

The system loss in electricity distribution has dropped to 7.6% in Bangladesh. The system loss was 44% during the Jatiya Party-led government, and 22% during the BNP-led government.