The finance minister has proposed to allocate Tk 28,051 crore for the power and energy sector in the new fiscal year, up by 5.84 per cent from Tk 26,502 crore in 2018-19.
By next year, each upazila of the country will have 100 per cent access to electricity, AHM Mustafa Kamal said in his budget speech.
To accelerate oil and gas exploration and extraction, new bidding rounds will commence after the approval of the model production sharing contract, both for offshore and onshore.
Finance Minister Budget speech 2019-20 (Partly)
Power and Energy
Bearing in mind the slogan of Hon’ble Prime Minister Sheikh Hasina for ensuing electricity in all households, the government has set targets to generate 24,000 megawatts by 2021, 40,000 megawatts by 2030, and 60,000 megawatts by 2041 respectively. To meet the demand of
electricity in short, medium and in long term, the projects for generation,
distribution and transmission are in different phases of implementation.
The benefits of these initiatives are already visible. Currently, the power
generation capacity has increased to 21,169 megawatts, and we have
succeeded to provide access to electricity to approximately 93 percent of
population. Besides, projects for construction of 53 power plants with
capacity to generate 14,202 megawatts of electricity are underway.
Alongside signing contracts for the establishment of 18 new power plants
with a capacity to generate 5,801 megawatts of electricity is in progress
(LOI and NOA has been given). It is expected that the plants will begin to
function shortly. Moreover, invitation for tender for 7 power plants with a
capacity to generate 1410 megawatts of electricity is in process. Plans
have been taken to establish 17 power plants with a capacity to generate
19,650 megawatts of electricity in the near future. Besides, there are plans
to generate extra electricity through BMRE of the existing old power
Enhancement of Energy Security and Energy Efficiency 109. In order to ensure energy security and sustainable energy supply system, we have plans to reduce the use of fuel to 15 percent by 2021 and to 20 percent by 2030. Fuel diversification has been adopted as a strategy to reduce dependency on natural gas for electricity generation and for energy security. The present government has implemented various projects to set up coal based power plants as an alternative for natural gas. Some
mega projects are being implemented at Paira, Moheshkhali and Materbari
classifying these areas as power hub. We selected these areas considering
the land availability, transport facilities and load centers. The mega projects that are worth mentioning include 1,320 megawatts Maitree Super
Critical Thermal Power Plant, Rampal, 1200 MW Ultra Super Critical
Coal Project, Materbari and Payra 1320 MW Thermal Power Plant
Project. Steps have been taken to establish 10,000 megawatts coal based
power plant at Moheshkhali through Joint Investment. Besides the natural
gas and coal based power plants, setting up of a nuclear power plant at
Rooppur with a power generation capasity of 2,400 megawatts is in
progress. In order to import Liquefied Natural Gas (LNG), an alternative
to indigenous natural gas, to ensure energy security in the country, two
Floating Storage and Regasification Unit (FSRU) with a daily capacity of
1000 million cubic feet have been installed, which currently adds around
650 million cubic feet LNG daily to the national grid.
110. Power system master plan 2016 is targeting about 9000 MW
installed capacity by 2041. Under this long term plan Bangladesh
government is working with neighbouring countries for regional and subregional cooperation. As a result, power is being imported from India
since 2013. A Memorandum of Understanding (MOU) has been signed
between Bangladesh and Nepal for bilateral cross border trade of
electricity and negotiation is going on to import 500 MWs of electricity
from an IPP. The signing of an MOU between Bangladesh, India and
Bhutan to import hydro power from Bhutan is underway.
Renewable Energy and Energy Savings System
There are targets to generate 10 percent of the total electricity from
renewable sources by 2020. In order to promote electricity generation at
the roof-tops of private buildings using solar home system, a “Net
Metering Guideline” has been prepared. Steps have been taken to install
solar sytem panels at the rooftops of all educational institutions.
Expansion of Power Transmission and Distribution System
Our government has taken a series of actions in the last two terms
to improve the transmission infrustructures and to support the additional
generation capacity of the nation. As a result, the total transmission line
has now increased to 11 thousand 493 circuit kilometers and the
distribution line to 5 lakh 8 thousand kilometers. To ensure uninterrupted
power supply, the government has been implementing a plan to install
28,000 circuit km. transmission lines and 6 lakh 60 thousand km
distribution line through different projects by 2030. By next year, each
upazila of the country will have 100 percent access to electricity.
Oil and Gas Exploration Program and Expansion of the Distribution
We have undertaken short, medium and long term plans to explore
and extract unexplored gas and oil in land and sea areas. By now, the
excavation work of 24 oil wells has been completed by BAPEX. After
gaining new maritime boundary from India and Myanmar, Production
Sharing Contracts (PSCs) have been signed with international oil
companies for 4 offshore blocks to explore oil and gas in the sea areas of
Bangladesh. To accelerate oil and gas exploration and extraction, new
bidding rounds will commence after the approval of the model PSC for
both offshore and onshore.
114. I propose an allocation of Tk. 28,051 crore for the Power Division
and the Energy and Mineral Resources Division in FY2019-20, which was
Tk. 26,502 crore in FY2018-19.