Structured budget for Bangladesh energy, energy sector needed: CPD

The Center for Policy Dialogue (CPD) recently stated that the budget for the power sector in Bangladesh does not provide the required allocation for sustainable power development and energy transition and therefore a structured budget for the sector is needed.

The advisory team placed emphasis on proper planning, allocation, implementation and monitoring for both energy sustainability and transition.

The Center for Policy Dialogue recently stated that the power sector budget in Bangladesh does not provide the required allocation for sustainable energy development and energy transformation and therefore a structured budget for the sector is needed. The budget includes measures such as promoting coal and setting unnecessarily ambitious targets for energy demand, he said.

The latest budget includes measures such as promoting coal and setting unnecessarily ambitious energy demand targets, which run counter to the energy transition and sustainable development, according to a CPD study whose findings were recently presented at a dialogue organized by a think tank in Dhaka.

“The power sectors face challenges that require careful fiscal, budgetary and policy planning in the generation, transmission, distribution and domestic transportation of gas,” said CPD Research Director Khondaker Golam Moazzem.

He called for a reduction in overcapacity by ensuring that the budget reaffirms the government’s commitment to phasing out old, obsolete and expensive fuel-fired power plants at the end of their terms.

To curb load-shedding, he stressed that the budget should increase funds to drill more gas wells to meet the targets. Increasing domestic gas production is key to meeting energy demand and reducing dependence on external sources.

Moazzem also called for the acceleration of renewable energy projects. Public investments in the production and transmission of renewable energy, including the development of a smart grid system, require urgent attention.

He said the target of drilling 48 wells by 2025 would not be achievable unless the priority was to switch from importing liquefied natural gas (LNG) to domestic gas exploration. More gas well rehabilitation projects need to be undertaken to meet the daily gas demand of 2,000 mmcf/d for domestic gas.

He said heavy reliance on imported LNG could increase Bangladesh’s vulnerability to global price fluctuations and political issues between countries.

He stressed the need for targeted allocation to complete transmission and distribution (T&D) projects and develop a smart grid system.

He called for strategic budget allocation for the energy transition. He said the non-climate change budget of 92.42% in FY2025 should not be used to promote fossil fuel energy production.

Instead, part of this budget should be devoted to phasing out fossil fuel power plants. Increasing the percentage of the total budget allocated for this purpose is crucial to breaking the coal lock in the power sector, he added.

Fiber2Fashion Information Desk (DS)