Monday, 17 January, 2022

Bangladesh invites foreign investment in clean energy

The country has an investment potential of $63bn in green energy sector

  • Special Correspondent
  • 30 November, 2021 12:00 AM
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Bangladesh invites foreign investment in clean energy
Prime Minister’s Power, Energy and Mineral Resources Affairs Adviser Dr Taufiq-e-Elahi Chowdhury speaks at a technical virtual session of the International Investment Conference-2021 at a hotel in the capital on Monday.

Bangladesh invites foreign investors to invest in the country’s clean energy sector as the government expects $63 billion in power transmission and distribution.

“Bangladesh is moving towards a dynamic power sector keeping in mind the decreasing price of renewable energy and decarbonisation technologies,” said State Minister for Power and Energy Nasrul Hamid on Monday.

He was presenting the keynote speech at a business session on the final day of Bangladesh Investment Summit organised by Bangladesh Investment Development Authority (BIDA).

Prime Minister’s Energy Adviser Dr Tawfiq-e-Elahi Chowdhury chaired the session titled “Power and Energy: Charge Ahead” held at a hotel in Dhaka.

The session was moderated by Bangladesh Independent Power Producers’ Association (BIPPA) president Imran Karim.

It was attended by International Finance Corporation (IFC) regional head of Industry, Infrastructure and Natural Resources Isabel Chatterton, Summit Group chairman Muhammed Aziz Khan, Sembcrop’s South Asian chief executive officer Vipul Tuli, ADB country director Edimon Ginting, Chevron Bangladesh president Eric M. Walker and Acwa Power of KSA executive director on gas to power business development Ayad Al Amir.

Nasrul Hamid said, “Bangladesh will require $50 billion investment on renewable, cross border and nuclear power option in electricity generation side as it has already closed plans for producing electricity from 10 coal-fired power plants having combined capacity to generate 8450MW of electricity.”

He said the government will also require another $8 billion for smart grid with modern technologies to handle intermitting renewable energy. “The amount will be used to reduce system loss in the sector,” the state minister said.

“Besides, additional $5 billion will be used for distribution system,” he added.

Nasrul Hamid said this is the second largest emitter of carbon gas after transport sector.

“So we want to overcome it through introducing 40 percent renewable energy by 2041,” he said.

Prime Minister’s energy adviser Dr Tawfiq-e-Elahi Chowdhury said, “Natural gas will be transitional fuel in electricity generation during the next 15-20 years. However, the government plans to generate 40 percent from the renewable sources.”

He said the government might consider hydrogen fuel introducing a pilot project.

Chevron Bangladesh President Eric M. Walker said the company has a plan to expand capacity at the existing gas fields in the country.

He said the Chevron now contributes 50 percent of the locally produced natural gas in Bangladesh.

ACWA Power of KSA executive director Ayad Al Amir said, “Bangladesh is one of the lowest carbon emitters in the globe.”

He appreciated the government’s decision to scrap the proposed 10 coal-fired power plants.

ACWA Power of KSA is interested to set up a gas-fired power plant in Chattogram, Amir added.