ARTICLE
Challenges of Energy Sector
 
Saleque Sufi

The caretaker government deserves appreciation that it could successfully launch load management initiative through shutting down shopping malls and markets during evening peak hours effective from 7pm. This move will save at least 250MW electricity and may facilitate cutting down load-shedding to some extent. The shop owners' association and businessmen also deserves full sympathy as they realized the necessity and responded generously. This is only one of the various actions that are required to confront the inevitable energy crisis in the ensuing monsoon. Active support of all the stakeholders is essential to combat the serious crisis and save the economy and commerce from the probable adverse impacts. Everyone must realize that in these hours of critical time of national life austerity is essential. Misuse and illegal use must stop by any means. People will spontaneously cooperate any sincere efforts of the government to save energy for appropriate use.

Energy can be saved in many different ways. We have records of power consumption in various regions of last summer. We know for sure how much power is consumed in various suburbs of major cities at different hours of the day. Similar records must be available for various growth centers and industrial hubs. Records must be also there about captive generation and capacities of captive generators. Based on these information, reliable and authentic load management can be worked out. Spare power from captive generation can be made available for national grid for peak saving and contracts can be inked without delay.

We have to be very rational in utilization of power this summer. All kinds of extravagant illumination and festivities must be effectively controlled. The unnecessary misuse of air conditioners must be stopped. The use of air conditioners in government offices may be strictly controlled. In government and semi-government offices even mid-level officials have AC in their offices. Sometimes the senior government officials compel the agencies and corporate bodies to install ACs in the office and residence although they are not entitled to it. These consume huge amount of energy. In power constrained areas of the city these cause overloading of transformers. If we make inventory control audits of various sector corporations and the companies we will find how ministry officials and senior executives have misused the entitlements and plundered resources. But for the sake of energy conservation let us take out all the ACs from office and houses of those who are not entitled. Where ceiling fans are available the AC option may not be used at all. 

The elite clubs in Dhaka and Chittagong are also major consumers of power in the cities. Can we arrange that these clubs are open on weekends only for the crisis period from mid-March to end-September. If these clubs want to remain open other days let these operate after 10pm. If the businessmen can readily respond to close business at 7pm, the club goers must accept the austerity measures. All neon signs of advertisement must remain disconnected during peak hours. The streetlights in city and municipality areas must also be used rationally. We are at war and we must remain united to fight against energy crisis.

It is highly unlikely that any new generation is possible in the next couple of months. But all-out efforts must be made to bring the under maintenance units to operation and keep these going. This may restore 500-700MW. Sufficient spare parts must be in the inventory to manage new mechanical troubles as and when those crop-up. Authorities must remain vigilant against any subversive activities. All the power sector key point installations must be kept under strict surveillance.

Barge-mounted and trailer-mounted plants and other contingency measures are costly options. But if we can really arrange about 800-1000MW in 6-9 months we must go for a crash program. But things must be done in a transparent way. Some local private sector people now have experience of power generation business. They may be relied upon for small power plants. By any means we should try to add 1000MW new generation by December 2007. In the meantime contracts for large plants must be concluded. A few days back a Bangla daily reported that the government is contemplating setting up a power hub in Nabiganj beside Bibiyana gas field. I do not know whether proper feasibility study has been carried out. But plants here can have easiest access to reliable gas supply. If evacuation of power from national grid is a problem new transmission line can be built if we can produce 1500-2000MW here. But these will take 3-5 years. This may be a good idea. Bibiyana can supply 250-300MMCFD steadily for the economic life of these plants. The power produced can be used as base load. This will also relieve the already congested gas grid from evacuating additional gas from Bibiyana. Based on the new power hub the Moulvibazar, Habiganj and greater Sylhet region can be a new industrial hub.

Similar to above if the coal basin of Dinajpur and Rangpur is properly exploited some coal-based power plants can change the face of the neglected region. Bangladesh in a decade cannot only come out of power deficit but also turn into a surplus, and capable of power trading. It may sound over-enthusiastic now. But please make policies transparent and facilitate power giants to invest in an enabling environment together in joint venture with local investors. A proud nation like Bangladeshis will attain the status of emerging tiger after 5 years of good governance.

The drive against energy pilferage and theft should be vigorous and persistent. The corrupt officials of energy companies must get exemplary punishment. Electricity Act and Gas Act must be very stringent. Energy bill defaulters should also be blacklisted and exposed to the media. System loss saving will generate enough cash for the energy companies to pay due remunerations to the honest and competent professionals, run business and undertake proper customer service. Utility services in energy may be disinvested in a disciplined manner. It is not understood why public limited companies cannot let out its share to local stock exchanges. Private shares will generate capital, bring transparency and accountability. The hostile trade unionism must come under strict control. Just to give an example, Titas Gas does not have any elected CBA for several years. Whenever any government comes, some corrupt unionists take control and let loose terror and anarchy. Some trade unionists in Titas run the affairs. Authorities are made to be dictated. It is going on for years and everybody knows it. But none could cure. Similar, if not worse, situation prevails in BGSL, JGTDSL and other gas companies. Some known godfathers of gas sector trade unionists must be brought under law.

Another area of corruption in gas sector is the construction business. It is true that some local companies has developed the skills of construction but they have also conspired with corrupt officials of the sector to monopolize the business. Professional ethics have been divorced all together. Professional development is needed for local companies. So syndication and monopolizing must be stopped. Competition should be fair and transparent. Why local companies cannot participate in open international tenders and compete with genuine regional companies? For all major large gas infrastructure projects in future, there should be international tender with provisions for local participation. The inspections for quality control of important gas pipelines and stations must be more intensive and should preferably be done by third party. 

The capacity of the gas companies have depleted over the years and these days senior project officials prefer to stay safe in Dhaka away from project site most of the time. Mistakes can be buried with pipelines but the operators have to pay through noses at a later date. The process of engagement of contractors by international companies should also be reviewed as the consequent costs are recovered from the government. So the government has every right to scrutinize the selection process. If government agencies undertakes audit of the IOC expenses, many anomalies and scandals might be found.

Some well-known faces very often in several seminars come up with lofty ideas. Do they believe those? Did they practise those in their time in the sector? One should only preach what they believe or believe what they preach. Ironically, some of them spearheaded the energy sector when several misdeeds were committed. One ex-chairman of a corporation who was responsible for letting out Petrobangla owned Jalalabad Gas Field to Occidental and moving ahead the controversial Barapukuria Coal and Madhyapara Hard Rock Mining Projects is now very vocal against foreign energy companies. Another gentleman who flew to Dubai to negotiate the controversial deal with Scimitar for leasing Haripur Oil field now preaches doctrine very often. In the present state, the public sector energy companies do not have capacity to explore and exploit our energy resources. It will take several years to attain capacity. But keeping the control with Energy Regulatory Commission why we should not let local and foreign private sector deploy their resources to develop our energy sector on a fast track. What have we gained from hundreds and thousands of seminars and unnecessary arguments. We have severe power deficit while the gas sector is underperforming. Capacities of BAPEX, GTCL, TGDCL have depleted. Coal is lying underground. Titas gas field is leaking. Can our theoreticians come up with positive pragmatic solutions?

Please do not pay heed to what the so-called experts preach. We do not have time to experiment. We need crash program to salvage the sector. But we should be alert to the extent that none should fish in muddy water.