Managing Energy Crisis in Bangladesh
By Sayed Javed Ahmad
Those of us who are living in Bangladesh are victims of energy crisis. It is unfortunate that as a nation we have not been able to resolve this problem even after thirty eight years of our independence. Governments come and go and this issue remains a struggling issue.
By 'energy crisis' we are mainly referring to natural gas and electric power shortages. In this discussion we would try to reflect on some possible solutions that might work for us.
Bangladesh is one of those countries that still allow natural gas to be used at homes for cooking un-metered on a flat rate. In most countries cooking at home is done on electric stoves. Bangladesh is also one such country that allow natural gas to propel car engines. Although this is an economical fuel alternative for cars, but we are using up huge natural gas resources everyday in cooking and commuting.
On the other hand, we do not have enough electric power supply on our national grids. As a result, this shortage not only hampers our comfort at home, but also takes a toll on our economy when the industrial machines are on rest directly effecting out national gross national product (GNP) and gross domestic product (GDP).
In order to keep our industries going we are taking up extra cost in investment on installation of back power supply equipments like the instant power supply (IPS), uninterrupted power supply (UPS) and Generators, etc. This extra investment in our power infrastructure eventually adds up to our production costs through capital and maintenance costs. Luckily, due to cheap labor these extra costs are covered in our markups reducing our profits significantly. But we may not enjoy this 'cheap labor' advantage for long as the inflation pressure is causing the wages to go up significantly as well every year. In experience we have seen that all the nations that started out as a source of cheap labors are no longer cheap. Their standard of living has gone up.
It is primarily government's responsibility to ensure uninterrupted power supply in our national grids. But since our government is unable to meet the demands they are welcoming the private enterprises to come in to establish private power generating enterprises, which is a good move. But unfortunately, due to too much of control and restrictions the interested entrepreneurs in this sector are not been able to perform. Many of us think that it would be better if the government opens the door to the entrepreneurs to establish power factories without any regulations whatsoever! However, the basis of the generation of power should be tackled properly. We do not want to burn out or use up our natural resources like the natural gas, coal or timber to generate electric power. Instead, the entrepreneurs should look into the possibility of small regional based hydro power projects to meet the demands as well as explore other power related technological breakthrough like wind and solar power.
The government could design and develop a program to engage the private enterprises to join the power club by dividing the national power needing areas into regions based on geographic conditions. For instance, a hydro power station that is capable of producing power from water currents and waves on river or sea surfaces (or from underwater currents) could be established in a region where a river is flowing. In high altitude areas wind power stations could be established. And in other region solar power could be a viable option. In bordering districts, we could consider requesting our neighboring countries (India, China and Myanmar) to help us out by selling us some units of their power engine if they are in a position to spare. This segmentation strategy would reduce total dependence on foreign power supply or even on our main national power supply. This is basically 'grow as you need' based strategy that could work wonders for us if applied.
On some simple conditions, like - the project should be environment friendly, the cost of production should be affordable by the subscribers in the region, must be open to local employment, etc could be there so that no one is afraid to get into a deal. Utility companies are normally profitable and stable; therefore many entrepreneurs would take interest in this business.
By separating the main power supply into commercial and residential at source, the total distribution of power could be regulated ensuring continuous and uninterrupted power supply to the dependent industries. Stealing and looting of power should also be addressed and stopped completely by imposing huge penalties and punishments if caught.
It is better to stay in dark at homes, not watch TV and go to bed early than shutting down our industries that generates revenues for all of us through profits, wages and taxes. It is better that we convert our cars into electric cars and not use natural gas and petroleum fuels polluting our environment. It is even better if we leave our cars at home and use public or company transports reducing traffic jams in our over crowded streets.
Ensuring uninterrupted electric power supply would result in following benefits:
1. We could stop using natural gas for cooking at home and use electric ovens and stoves instead.
2. We could recharge our electric cars 24/7 with much cheaper cost compared to gas and fuel.
3. We could use the remaining gas reserve in electricity production contributing to our national grid.
4. We could reduce our dependence on oil imports and free up our foreign currency reserves for other developmental projects like building roads and highways for better supply chain management (SCM).
Exploration of coal may not be suitable for Bangladesh as it carries some environmental and ecological risks like fracture of land surfaces due to underground hollow, etc. So it is better to leave them underground as they are. Besides, we do not have much coal reserves anyways! If we ever get lucky to explore our own oil reserves then the fuel coming from there could entirely go to our power productions. Because it the 'power' that we really need, which is the driving force no matter how it is transformed.
Sayed Javed Ahmad
E Mail : javedahmad@yahoo.com
Chief Operating Officer
Central Depository Bangladesh Limited
www.cdbl.com.bd
By 'energy crisis' we are mainly referring to natural gas and electric power shortages. In this discussion we would try to reflect on some possible solutions that might work for us.
Bangladesh is one of those countries that still allow natural gas to be used at homes for cooking un-metered on a flat rate. In most countries cooking at home is done on electric stoves. Bangladesh is also one such country that allow natural gas to propel car engines. Although this is an economical fuel alternative for cars, but we are using up huge natural gas resources everyday in cooking and commuting.
On the other hand, we do not have enough electric power supply on our national grids. As a result, this shortage not only hampers our comfort at home, but also takes a toll on our economy when the industrial machines are on rest directly effecting out national gross national product (GNP) and gross domestic product (GDP).
In order to keep our industries going we are taking up extra cost in investment on installation of back power supply equipments like the instant power supply (IPS), uninterrupted power supply (UPS) and Generators, etc. This extra investment in our power infrastructure eventually adds up to our production costs through capital and maintenance costs. Luckily, due to cheap labor these extra costs are covered in our markups reducing our profits significantly. But we may not enjoy this 'cheap labor' advantage for long as the inflation pressure is causing the wages to go up significantly as well every year. In experience we have seen that all the nations that started out as a source of cheap labors are no longer cheap. Their standard of living has gone up.
It is primarily government's responsibility to ensure uninterrupted power supply in our national grids. But since our government is unable to meet the demands they are welcoming the private enterprises to come in to establish private power generating enterprises, which is a good move. But unfortunately, due to too much of control and restrictions the interested entrepreneurs in this sector are not been able to perform. Many of us think that it would be better if the government opens the door to the entrepreneurs to establish power factories without any regulations whatsoever! However, the basis of the generation of power should be tackled properly. We do not want to burn out or use up our natural resources like the natural gas, coal or timber to generate electric power. Instead, the entrepreneurs should look into the possibility of small regional based hydro power projects to meet the demands as well as explore other power related technological breakthrough like wind and solar power.
The government could design and develop a program to engage the private enterprises to join the power club by dividing the national power needing areas into regions based on geographic conditions. For instance, a hydro power station that is capable of producing power from water currents and waves on river or sea surfaces (or from underwater currents) could be established in a region where a river is flowing. In high altitude areas wind power stations could be established. And in other region solar power could be a viable option. In bordering districts, we could consider requesting our neighboring countries (India, China and Myanmar) to help us out by selling us some units of their power engine if they are in a position to spare. This segmentation strategy would reduce total dependence on foreign power supply or even on our main national power supply. This is basically 'grow as you need' based strategy that could work wonders for us if applied.
On some simple conditions, like - the project should be environment friendly, the cost of production should be affordable by the subscribers in the region, must be open to local employment, etc could be there so that no one is afraid to get into a deal. Utility companies are normally profitable and stable; therefore many entrepreneurs would take interest in this business.
By separating the main power supply into commercial and residential at source, the total distribution of power could be regulated ensuring continuous and uninterrupted power supply to the dependent industries. Stealing and looting of power should also be addressed and stopped completely by imposing huge penalties and punishments if caught.
It is better to stay in dark at homes, not watch TV and go to bed early than shutting down our industries that generates revenues for all of us through profits, wages and taxes. It is better that we convert our cars into electric cars and not use natural gas and petroleum fuels polluting our environment. It is even better if we leave our cars at home and use public or company transports reducing traffic jams in our over crowded streets.
Ensuring uninterrupted electric power supply would result in following benefits:
1. We could stop using natural gas for cooking at home and use electric ovens and stoves instead.
2. We could recharge our electric cars 24/7 with much cheaper cost compared to gas and fuel.
3. We could use the remaining gas reserve in electricity production contributing to our national grid.
4. We could reduce our dependence on oil imports and free up our foreign currency reserves for other developmental projects like building roads and highways for better supply chain management (SCM).
Exploration of coal may not be suitable for Bangladesh as it carries some environmental and ecological risks like fracture of land surfaces due to underground hollow, etc. So it is better to leave them underground as they are. Besides, we do not have much coal reserves anyways! If we ever get lucky to explore our own oil reserves then the fuel coming from there could entirely go to our power productions. Because it the 'power' that we really need, which is the driving force no matter how it is transformed.
Sayed Javed Ahmad
E Mail : javedahmad@yahoo.com
Chief Operating Officer
Central Depository Bangladesh Limited
www.cdbl.com.bd
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