Dhaka,  Friday
01 November 2024

Energy Conundrum

Country relies on coal import amidst abundant reserves

Jannatul Ferdushy

Published: 02:57, 10 January 2024

Country relies on coal import amidst abundant reserves

Photo : Messenger

While the country possesses abundant, high-quality coal reserves, the current stance of the energy ministry does not involve immediate plans for its extraction from mines. Compounded by financial constraints, the government has encountered difficulties in settling the expenses associated with imported coal.

Experts observe a governmental preference for importing various energy sources rather than tapping into domestic coal reserves. This contradicts the master plan, which outlines ambitions to generate 11,500 MW of power from coal by 2041.

Over the past decade, significant investment has been made in establishing coal-based power plants within the country. Nevertheless, there has been a notable absence of initiatives to extract approximately 7,823 million metric tonnes of coal reserves stored in five mines domestically.

Officials from the Energy Division emphasise the necessity of political decisions to address sensitive matters such as coal mining.

The future projections indicate that by 2041, the electricity demand is estimated to reach 50,364 MW. In response, there's a call to augment production capacity by 74,300 MW, representing a 47 percent surplus over the anticipated demand.

The projected power generation capacities for various sources by the year 2050 are as follows: 11,500 MW from coal, 6,700 MW from oil, 29,300 MW from gas and LNG, 4,800 MW from nuclear power plants, 1,000 MW from hydropower, 20,000 MW from wind, 6,000 MW from solar, 11,200 MW from hydrogen, and 5,000 MW from ammonia, with an additional 15,700 MW being imported.

Professor Dr. Shamsul Alam, an energy expert, told The Daily Messenger, “The government could have adopted a scientific approach to extracting domestic coal for power generation. Instead, the inclination towards importing coal has been observed."

 Dr. Alam stressed that if coal were extracted and utilised while safeguarding the environment and preserving people's rights, it would alleviate the pressure on coal imports.

According to the outlined master plan extending until 2050, an estimated expenditure of $179 billion is anticipated in the energy infrastructure sector. Of this amount, approximately $4 billion will be required for investment in the LNG and gas infrastructure sectors.

Alam highlighted the government's strong inclination towards importing various forms of energy at considerable costs, citing a lack of enthusiasm for domestic oil and gas exploration and production. He lamented the absence of significant progress over the last decade in exploring and extracting oil and gas from sea reserves.

He further emphasised that the electricity and energy sectors have not progressed as intended due to misguided policies and corruption among government officials right from the outset.

Contrarily, Secretary for the Power Division, Habibur Rahman, remarked that Bangladesh is projected to enter the realm of developed nations by 2041. He defended the current plan, stating it was formulated in accordance with prevailing circumstances and economic conditions.

Habibur also pointed out that several large coal-fired power plants in the country were established in collaboration with Japan, China, and India. However, he expressed concerns over mounting debts incurred by these power plants amidst financial crises.

Habibur also noted that there is an absence of government plans to exploit domestic coal resources.

According to information provided by the Energy Division, the country has identified five coal fields with substantial reserves, totaling approximately 7,823 million metric tons. The abundance of coal in these reserves presents a viable opportunity to fuel multiple power plants across the nation.

The Barapukuria Coal Mine located in Parvatipur, Dinajpur, discovered in 1985, boasts a total of 410 million metric tonnes of coal reserves. However, it is estimated that only 170 million metric tonnes can be extracted from this mine by the year 2030.

Another significant coal reserve exists in the Dighipara coal mine, discovered in Dinajpur in 1995, which holds approximately 706 million metric tonnes of coal.

The Phulbari coal mine in Dinajpur, discovered in 1997, is reported to contain reserves amounting to 572 million metric tonnes of coal. Petrobangla, the state-owned energy company, has projected that around 90 million metric tonnes of coal can be extracted from this mine over the next three decades.

In addition to the previously mentioned coal mines, another significant discovery occurred in the Khalaspir area of Pirganj, Rangpur, back in 1989. This mine is estimated to hold potential reserves of approximately 685 million metric tonnes of coal.

Furthermore, the Jamalganj coal mine, discovered in 1962 in Joypurhat, possesses a substantial coal reserve with an estimated extraction potential of about 5,450 million metric tonnes.

Recent developments have seen the closure of two major power plants in the country, Payra and Rampal, due to a fuel crisis due to shortage of dollars. To mitigate this crisis, the government has taken steps to ensure the provision of coal and LNG to sustain these plants, along with the Matarbari power plant.

Petrobangla Chairman Zanendra Nath Sarker highlighted the gas shortage in the country, necessitating the need for imports. He mentioned ongoing exploration activities while emphasising Bangladesh's increased reliance on regular imports of LNG and coal from the international market.

Officials from Petrobangla echoed similar sentiments, expressing concern over the government's growing dependence on imports due to the challenges faced in procuring fuel from domestic sources. They stressed the importance of prioritising the significant coal reserves within the country amid this situation.

Messenger/Disha