ERC Starts Functioning Finally

Lately the Energy Regulatory Commission started functioning. The government on April 27 made appointment to the two Member posts of the ERC. The ERC Act passed in Parliament in March last year got effective also from the same day.
Former Petrobangla Chairman Md. Mosharraf Hossain and DESCO's Director (Finance) Md. Showkat Hossain were made Members of the ERC following recommendations of a selection committee. However fresh applications have been sought for the Chairman post as the government found that the selection committee headed by former Caretaker Administration Advisor M Hafizuddin Khan did not follow the criterion properly.
Appointment to the third Member of the ERC will be made after one year so that the four-year tenure of all of the Commission does not end altogether.
As there was pressure from the donors for early commissioning of the ERC, observers said, though belated, the appointment will give the government some relief in seeking aid for the energy sector in the Bangladesh Development Forum meeting in early May.
However, sources concerned said the functioning of the ERC started only on paper as still there is no separate office and officials or employees for the commission. State-run Petrobangla was asked by the Energy Ministry to provide some space for the ERC Members so that they can begin initial works. The Petrobangla provided a room without any furniture and even condition of doors and windows of the room is not well at all. Ministry officials however said the ERC will get a separate office shortly. The Members will also start appointment of officials and employees for full functioning of the commission.


Life-Sketch of Md. Mosharraf Hossain

Born in 1940 in Sirajganj, Md. Mosharraf Hossain graduated in Mining Engineering from the University of Engineering and Technology in Lahore, Pakistan,
During 1964, after a brief stay in University of Engineering and Technology (now BUET) in Dhaka as a Lecturer in the Metallurgy Department, he joined the then East Pakistan Industrial Development Corporation (EPIDC) as an Engineer assigned to the development of gas and mineral resources.
He joined the Planning Commission in 1973 as Deputy Chief in the Power & Natural Resources Division. In this capacity, his assignments related to the oil, gas and mineral sector with special reference to policy formulation, identification, preparation, processing for approval of development projects, arrangement of funds for implementation and later on monitoring the progress of the selected projects.
During 1975-76 he obtained MSc Engineering degree in Mineral Production Management from the Imperial College, London.
From 1981 he started working in Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) as a Director looking after assignments for short, mid and long term planning of the oil, gas and minerals sector, implementation of development projects and guiding the commercial operations of companies dealing in mining and natural gas.
Hossain worked as the Chairman of Petrobangla from April, 1996 to May 2001. He was also the Chairman of the Board of Directors of state owned gas production, transmission, distribution and mining companies.
As an experienced professional Mosharraf Hossain worked as an independent consultant to the World Bank, Asian Development Bank and a few other international bodies.

He represented Bangladesh in various international seminar, symposiums and conferences abroad. As a recipient of gold medals for his outstanding performance in the subjects of his choice in the university and also for his contribution to energy sector in the country; he always showed keen interests in gas and mining projects in Bangladesh. Being author of a number of publications, he occasionally contributed to different newspapers in Bangladesh. Since publication of Energy & Power, country's first and only magazine in the sector, Mosharraf Hossain contributed a number of articles for the fortnightly.


Life-Sketch of Md. Showkat Hossain

Fellow of the Institute of Chartered Accounts of Bangladesh (ICAB) qualified in 1979 and then joined Bangladesh Petroleum Corporation (BPC) and left the oil sector in late 1999.
Lately he was the General Manager (Accounts & Finance) of the corporation. During this period, he worked with Eastern Refinery Limited (ERL) and Jamuna Oil Company Limited (JOCL) and also as Head of Accounts & Finance Division and Company Secretary.
In between 1981 and 1988, he worked for NCR Corporation, a computer giant in USA, in its Middle East and Africa Regional Head Office in Bahrain and Cyprus.
Showkat Hossain attended a number of workshops and seminars on different aspects of Energy Regulatory Commission in Sri Lanka and Nepal sponsored by the USAID.
He is a widely traveled man and father of one son and one daughter.


SAFEJ Meeting

Experts Emphasize Closer Regional Cooperation

South Asian region has immense energy potentials -- the hydropower of Nepal and Bhutan, gas potentials of Bangladesh and a huge demand in India provide a unique opportunity to make energy the vehicle for growth to alleviate extreme poverty from the region.
At a regional meeting of South Asia Forum for Energy Journalists (SAFEJ) -- which is in the process of being formed -- organized in Kathmandu on April 26-28 by the United States Energy Association (USEA) and funded by the United States Assistance for International Development (USAID), experts called for closer cooperation to form the regional grid.
Dr Janak Lal Karmacharya, Managing Director of the Nepal Electricity Authority (NEA), presenting his paper at the seminar, said that regional integration is cheaper in this Indian subcontinent. “The trans border interconnections would cost less than US$ 40 million,” he said. He added that a meeting has been called by India in October this year to discuss the possibility of forming a regional grid.
“ASEAN grid is already a reality and even China is said to be showing willingness to buy power from Myanmar. Therefore, in case a regional grid is formed in this region and interconnected with the ASEAN one, we are going to have a major Asian grid covering half of the humanity. Although this concept appears far-fetched at present, everybody understands this is the future,” said Dr Karmacharya.
Despite its potentials, political controversies and conflicting interests have bogged down the region. “We must first differentiate between water-sharing and hydropower development. Water sharing involves rivers that are, in turn, attached with sovereignty -- and therefore they are bound to have political connotations. However, hydropower development is not consumptive and should, therefore, be free of such controversies,” Karmacharya said.
But first, a conducive environment needs to be created for realizing all such potentials. Mere harping on the potentials would not suffice.
Realizing the importance of media in disseminating energy-related information to the people of this region and thereby helping in the promotion of regional cooperation, a SAFEJ has been envisaged. Bangladesh and Nepal has already formed their national chapters of energy journalists. A 7-member delegation of Forum for Energy Reporters Bangladesh (FERB) took part in the meeting. Forum for Energy Journalists of Nepal (FEJON) has just recently come into being. Journalists of India and Sri Lanka have also initiated formation of similar forums.
“Media is a major tool in the present day world. They can really help in the regional cooperation and induce prosperity in this region by making use of the existing potentials for alleviating poverty,” said Shreedhar Samudrala of USEA.
“One of the objectives of this workshop is to bring together the journalists of this region to help them understand the regional issues from broader perspective,” said Ericka Monger, senior program coordinator for SARI/Energy, USEA.
Regional integration is of vital importance to Nepal as it has been trying to harness its potentials of over 40,000 MW of hydropower for export purposes. As its next-door neighbor India is one of the fastest growing economies of the world with astronomically rising energy demand, Nepal can sell its excess power. “By 2025, India will need additional 100,000 MW of hydroelectricity. So, they will also need to increase cooperation with neighbors like us who can provide them power,” said Dr. Karmacharya.
Besides, Nepal will also need to induce more investment in the power sector to fulfill its own domestic demand. At present only around 20 percent of the population have access to electricity. The per capita energy consumption is very low at around 60 kwh. Therefore, it makes sense for Nepal to go for regional integration to be able to fulfill its domestic demand as well as earn money through exports. Sanjaya Dhakal


“Erratic Power Supply may Hit FDI Flow”

Thomas J Donohue, President and Chief Executive Officer, United States Chamber of Commerce has said that the existing irregular power supply in the South Asian region might affect foreign direct investment flow in the region.
Addressing a seminar on 'Power Trading in South Asia Today', organized by the US Chamber of Commerce's South Asia Regional Energy Coalition in New Delhi, Donohue highlighted that only increasing levels of power trade between the South Asian countries and within India, itself, could address the anxieties of US corporations about making further investments in India.
Commenting on the correlation between stable power supply and FDI, Donohue said: "I know what it takes to attract significant business investment in any region -- it takes energy. If companies cannot be assured of a stable and affordable power supply, they will not come."
"I meet hundreds of leading American CEOs every year and I can tell you there is growing interest in the markets and economies of South Asia," he added.
Experts at the seminar highlighted that India represents the single largest power market opportunity in the region and is the key player for facilitating expanded power trading in South Asia.
However, India's growing deficit in electricity generation capacity coupled with an inadequate transmission system and inefficient distribution network has continued to erode the financial viability of state electricity boards. These impediments adversely impact the economic development in the country, experts at the seminar said.
Aimed at improving multilateral relations for sharing energy resources between the countries of the subcontinent -- India, Bangladesh, Nepal, Bhutan and Sri Lanka -- the seminar brought together interested private investors, developers, independent power producers, government officials and regulatory bodies.
In addition, current low exchange volume (about 2.5 percent of total energy generation) with surplus power generation in the eastern region and the deficit in other regions and existing seasonal surpluses in almost all regions presents an abundant opportunity for short-term trading due to existing demand diversity in the region.
Nepal and Bhutan have excess hydroelectric capacity that can be used to offset some of India's electricity shortfall. Bangladesh, on the other hand, could benefit from immediate imports of electricity from India to the western part of the country to be offset in part by exports from future gas-fired power plants in eastern India, speakers at the seminar stated.
The deliberations between the participants at the seminar aimed at accomplishing the following objectives:
-- Educated the potential investors and IPP developers on how to enter India's emerging power trading market.
-- Identify key suggestions and solutions for facilitating greater regional energy cooperation in the future through trading of surplus electricity.
-- Motivate regional business councils and SAREC members in India, Nepal, and Bangladesh to be more actively engaged in promoting greater regional electricity trading.
The South Asia Regional Energy Coalition is a business forum through which public and private sector stakeholders can discuss and influence regional energy policy and reforms throughout South Asia.
It is funded by the US Agency for International Development's South Asia Regional Initiative for Energy Cooperation and Development (SARI/Energy) program.


EPAB Launches in a Bright Note

EP Report

Extensive exploration for new gas find and development of existing gas fields on top priority basis must be taken to overcome the impending energy crisis. This was unanimous view of the speakers of the seminar on “Prevailing Energy and Power Scenario in Bangladesh: Problems and Remedies.”
The seminar was organized by newly formed Energy Professionals Association of Bangladesh (EPAB) an association of the alumnae of Bangladesh Energy Training Program of IIE/USAID.
Iqbal Hossain Mahmood MP, State Minister for Power Division attended the meeting as guest of honor. Petrobangla Chairman SR Osmany and BPDB Chairman Syed Abdul Mayeed presented Key note papers. EPAB President Dr MAK Azad presided over the seminar also addressed by USAID's Senior Energy Advisor Bruce McMullen and Masood Malik of IIE and EPAB General Secretary Saleque Sufi.
The keynote papers stated the present situation of gas and power indicating the problems and limitations. It was pointed out that substantial amount of investment was essential to augment power generation, expand transmission and distribution to achieve “Power for all by 2020.” The present age old highly inefficient power plants require to be phased out with fuel efficient modern power plants. It appeared that almost 90 percent of power generation is gas based. Lack of exploration and development activities of gas sector has made demand – supply situation extremely critical and vulnerable. IOCs and Petrobangla must work hand in hand to augment gas production and reserve base in the shortest possible time to remove the current impasse.
Various chronic problems of energy sector like high system loss and huge accounts receivables were also elaborately discussed. Speakers in general and guest of honor in particular recommended reward and punishment for good and bad works of the officials.
State Minister for Power Iqbal Hassan Mahmood also emphasized objective reporting by the energy journalists. He thought that at this critical stage energy journalists must drive deep into the crux of the problems, identify the actual reasons of inefficiency, mismanagement and corruption through analytical reports and objective criticism.
Bruce McMullen considered that energy professionals of Bangladesh have requisite experience, capacity and commitment to bail out the energy sector from current uncertainties. He said that introduction of ERC will give further impetus to ongoing reforms of gas and power sector to reap good harvest. He assured of all possible help and assistance to EPAB in its effort to utilize the knowledge and experience of trained professionals in capacity building.
Eng. Saleque, General Secretary of EPAB expressed optimism that the forum of energy professionals would contribute in a disciplined and coordinated manner with thoughts, ideas and efforts through seminars, workshops and round table discussions to supplement and complement government efforts in overcoming the prevailing problems and impediments to achieve coveted targets.


Solar Energy Celebrates 50th Anniversary

Fifty years ago, two Oregon scientists stood on the wide, green lawn of Bell Labs headquarters in New Jersey to announce the world finally had a way to turn sunlight into electricity.
Daryl Chapin, an electrical engineer, and Gerald Pearson, a physicist, joined chemist Calvin Fuller on April 25, 1954, to demonstrate the first practical solar cell made of silicon -- later to become the prime ingredient in computer chips.
But it had taken more than a century since French experimental physicist Edmund Becquerel discovered the photovoltaic effect in 1839 before the process that converts light into electricity could be commercialized with the technology developed by the Bell Labs trio.
"An amazingly simple-looking apparatus made of strips of silicon showed how the sun's rays could be used to power ... a transistor radio transmitter carrying both speech and music," the original press release from Bell Labs said.
Chapin and Pearson were both graduates of Willamette University in Salem, which awarded them honorary doctorates for their work in 1956. Their research with Fuller built on the theories about the photoelectric effect that won the Nobel Prize for Albert Einstein in 1921.
The trio were originally searching for a solution to battery problems within the Bell telephone system when they created a solar photovoltaic cell capable of generating enough power from the sun to run electrical equipment.
"It was a modest application at first -- they were just trying to power a small radio," said Alice E. White, director of integrated photonics research at what is now Lucent Technologies Bell Labs.
A half century later, solar cells power everything from wallet calculators to the Mars Rover.
They have also significantly reduced the cost of energy as the technology has been refined.
"At the time, manufacturing costs were over $1,700 per watt. But costs fell to $20 per watt by the 1970s and are now about $3 per watt," said Christopher Dymond, solar specialist for the Oregon Department of Energy.
In addition, a little reverse engineering has made photovoltaic cells essential to the Internet.
By reversing the process and converting electric signals into light, data and other types of communication signals can be carried over high-capacity fiber optic lines that link high-speed networks.
"The Internet backbone wouldn't be possible without fiber optics switched with photodetectors," said Adam Grossberg, a Bell Labs spokesman. EP Desk


Kerosene Price Likely to Rise

The government is contemplating to raise the price of kerosene by 17 percent to equalize its price with that of diesel, which, officials claim, will help check fuel adulteration. The revised kerosene price -- Tk 20 instead of present Tk 17 per liter -- is likely to be effective from May 1. Sources concerned said that the decision is now under active consideration of top level of the government to check the unscrupulous traders' practice of mixing kerosene with diesel.
Officials at Energy and Mineral Resources Division said that the price hike would not only help reduce the adulteration of diesel with kerosene, it would also substantially bring down the loss of around Tk 270 crore a year. Besides, they said, it has been a long-standing demand of the petroleum dealers and different associations.
The government fixed diesel price at Tk 20 a liter on January 6 last year but the price of kerosene remained unchanged. As a result, the demand for kerosene increased sharply as dishonest traders mixed it with diesel.
Officials at Bangladesh Petroleum Corporation (BPC) said 52,738 tons of kerosene, on an average, was sold per month from 2000 to 2002. But the quantity rose to 62,970 tons a month in 2003 because of the increased price of diesel. Even in January this year, 74,701 tons of kerosene were sold.
However, despite the rate of Tk 17 per liter fixed by the government, the retail price of kerosene averaged at Tk 25-30 in different places over the last couple of months. The reason is that the dishonest traders stockpiled kerosene for mixing it with diesel creating a crisis in the open market.
Earlier the government tried to check the adulteration by coloring kerosene. From July 1 last year, the government launched blue-colored kerosene in the country. But it could do a little in checking the evil practice.