CPD: Law on the Suspension of the Rapid Power and Energy Supply

The law is due to expire on October 10 this year

The Center for Policy Dialogue (CPD) on Sunday called for the repeal of the Speedy Supply of Power and Energy (Special) Act 2010, which is due to expire next October, in the interests of the country’s electricity and energy sectors.

“We assume that if this continues, this would create room for corruption, reduce the scope for competition and increase the lack of transparency in the project implementation process,” said Dr.

The law is set to expire on October 10 this year, he added.

The virtual seminar entitled “Power Sector in the National Budget for FY 2021-22: Perspective on Allocative Priorities & Reform Agenda” was organized by the CPD under the chairmanship of its Chairman Professor Rehman Sobhan.

It was presented by the energy expert and BUET teacher Professor M. Tamim, the chairman of the Sustainable and Renewable Energy Development Authority (Sreda), Mohammad Alauddin, the general director of Power Cell Mohammad Hossain, the IDCOL managing director Mahmud Malik and the president of the Bangladesh Independent Power Producers Association (BIPPA) Imran. held Karim.

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The Executive Director of the CPD, Dr. Fahmida Khatun moderated the discussion.

Moazzem said the law was passed in 2010 that targets special needs.

“But Bangladesh’s energy and power sector now needs to move from ’emergency management’ to ‘market-led’ management and improve its transparency, accountability and efficiency,” he added.

He found that the electricity and energy sectors received an allocation of Tk 27,484 billion, with electricity receiving Tk 25,398 billion and energy Tk 2,086 billion, with 62% of the focus on generation.

“We now need a shift in allocation more to transmission and distribution of generation,” he said.

The CPD proposed increasing the budget allocation for renewable energy and said that financial incentives in this sector should be further expanded.

“Foreign direct investment (FDI) in renewable energy should be facilitated by making the domestic business environment favorable, including business profitability and risk reduction,” added Moazzem.

“The electricity sector should be made competitive and all types of tenders should be carried out under an open tendering system in order to maintain transparency,” he said.

Dr. M. Tamim said there was a huge gap between what the government said about generating capacity and the real-world scenario.

“Our actual deliverable capacity is 14,000 MW, while the maximum generation capacity is 18,000 MW,” he said, adding that the statement about the 23,000 MW was political propaganda.

He said Bangladesh should adopt its own model based on appropriate technology to address its energy problem rather than following another country’s model.

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Mohammad Alauddin said the government is preparing a delta plan that sets the country’s renewable energy target at 30,000 MW by 2041.

Mohammad Hossain said the government is now trying to shift its focus on developing transmission and distribution lines from its current focus on generation.

CPD chairman Professor Rehman Sobhan asked why many power plants were still in operation that should have been shut down in the meantime.

He also urged speakers to find out how much of the overcapacity is due to the failure of distribution.

In the closing remarks, Dr. Fahmida Khatun suggested that an uninterruptible power supply is vital, otherwise it will affect production costs and the efficiency of the industry.

“The CPD will continue its efforts to promote green growth and clean energy initiatives in the country, taking into account Bangladesh’s long-term commitments,” she added.

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