Solar more attractive, costs less than furnace-based electricity: experts

Renewable energy has become an even more attractive option for energy independence as per kilowatt-hour (kWh) cost of solar is now even less than the fuel cost of furnace-based electricity, experts highlighted at an event on Sunday.

In the 2021-22 fiscal year, per unit generation cost of furnace oil-based electricity was Tk17.18, while renewable energy cost was Tk13.96 and coal-fired electricity was Tk13.22, Md Abul Kalam Azad, former principal secretary said. 

"It means solar can replace the operation of furnace-based power during the day time and save money on costly imported fuel oil," he said at a webinar titled "Present Energy Crisis – Way Forward for Bangladesh" organised by the Bangladesh Energy Society (BES). 

"Unfortunately, deployment of solar has not been as expected," added Azad, also the president of the BES.  

To speed up solar projects, he suggested that as the private sector could not take the risk due to the scarcity of land, the public sector should shoulder the responsibility in a public-private partnership. 

Emphasising the issue of land, Power, Energy and Mineral Resources Affairs Adviser to the Prime Minister Tawfiq-e-Elahi Chowdhury said solar energy could be made competitive if agricultural land was not used.  

Chowdhury, the chief guest of the event, suggested using low-lying land and the river banks as an option, adding the government was already examining the feasibility of solar projects in such areas.

Speakers at the programme also said initiatives should be taken to generate solar power in the medium term in public and private places designated for coal power plants. 

It is said that up to 3,000 megawatts of solar power will be available.

Regarding the exploration of own gas resources, Tawfiq-e-Elahi Chowdhury said even after drilling 50 wells in the last 10 years, no major success was found. 

"Still, efforts on the ground continue. Preparations are also underway for offshore oil-gas exploration. But there are doubts about how much success will be achieved and whether the changing global context will attract international oil companies. 

"As a result, the construction of LNG import infrastructure is ongoing to keep the wheels of the economy running."  

Special guest Professor Mohammad Tamim said, "Energy security will not be ensured with our own gas and coal. Therefore, LNG [liquefied natural gas] must be imported." 

He also expressed hope that the volatility in global fuel prices would not last. 

"Bangladesh needs to take a long-term energy supply plan with caution," he said. 

Managing Director and Chief Executive Officer of EnergyPac Power Generation Ltd Humayun Rashid said entrepreneurs are interested in the efficient use of energy. But high tariffs are hindering the industries from becoming energy efficient. 

The government should give tariff concessions for efficient use of energy, he said. 

President of the Bangladesh Independent Power Producers Association Imran Karim said the 30% duty and VAT is behind the high price of electricity production from furnace oil. 

He said if the duty-VAT is withdrawn, the production cost of furnace oil-based electricity will be lower than that of imported coal. 

"There is no alternative to increasing our own fuel supply to avoid the pressure of high fuel prices," he added. 

Director of Summit Group Mohammed Faisal Karim Khan said LNG is the fuel of the future. 

"Considering the country's gas-dependent structure, the LNG import infrastructure needs to be expanded. In the future, this infrastructure can be converted to import ammonia and hydrogen," he added. 

International Energy Consultant engineer Khondker Abdus Saleq said if the system loss of gas is brought down to 2% from the current level, it will be possible to save 250-300 million standard cubic feet per day of gas, which can be supplied to industries to boost production.  

Vice President of BES and former chairman of the Bangladesh Power Development Board ASM Alamgir Kabir chaired the programme, which was moderated by former chairman of Bangladesh Energy Regulatory Commission Monowar Islam.

Energy experts and Bangladesh University of Engineering and Technology  Professor Mohammad Tamim and Additional Secretary (Operations) of Energy and Mineral Resources Department S M Zakir Hossain participated as special guests. 

The summary of discussion and closing speech was presented by Managing Director of Electricity Generation Company of Bangladesh and member of BES Major General Moin Uddin (Retd).