energy resourses

8/16/2019 Energy Resourses

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Prof. M. Nurul IslamInstitute of Appropriate Technology

Bangladesh University of Engineering & TechnologyDhaka-1000 Bangladesh

E-!ail"nurul#iat$%uet$ac$%d

h" '(()*(+

,ell" 01)(-..../'

Prepared at the 52nd Senior Staf Course (SSC), organized

by Bangladesh Public Administration raining Center(BPAC), Sa!ar"#2$% (BPAC&Course&SSC"52&'$&2'#'"#5dated ##"'2"2'#')

25 February, 2010

Energy Resources & Governance Issues:Energy Resources & Governance Issues:Bangladesh PerspectiveBangladesh Perspective


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I-BAT,-22,+) Energy-10

)

1.0 Introduction2.0 Status o !a"s & Policies or Energy #evelop$ent

%.0 ational Energy Policy 'EP( o Bangladesh

).0 Revision o ational Energy Policy

*.0 Institutional Reor$s in Energy Sector +.0 Sta,eholders o ational Energy #evelop$ent

-.0 Energy Situation & uture Energy /i o Bangladesh

.0 he ra$e"or, o ational Energy Policy

3.0 /anage$ent 'Governance( o Energy Sector

10.0 Sustaina4le 5u$an Resources #evelop$ent

11.0 he 6ay or"ard

12.0 7haracteristic eatures o Bad Practices

Energy Resources & Governance Issues:Energy Resources & Governance Issues:Bangladesh PerspectiveBangladesh Perspective


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*

Abundant Reserves of Energy Resources may not be Able to Ensure

Energy Security and Sustainable Economic Growth in the Absence of

Good Governance. As an OPEC Member igeria has been E!"orting more than #$$ million

barrels of Petroleum "er year. Per ca"ita income %S& '$$ in ()'*

decrease to %S& +$$ in *$$$, "er ca"ita G- increased to %S& )+$ in

*$$#. -n early *$$$ there was "ro"aganda for the e!"ort of gas to /elhi via a

"i"eline 01angladesh was floating on gas2 on the basis of fictitious gas

reserves. 3ater on from *$$4 country has been suffering due to

shortage of gas.

Since *$$5 there is "ro"aganda for sustainable e!traction of coal fromPhulbari Coal 1asin by o"en cut mining method 0by a foreign

com"any2 with o""ortunity to e!"ort #46 of e!tracted coal. -n *$$) Government has a""roved PSCs with two -OCs with "rovision

of e!"ort of '$6 of gas.

1.0 Introduction


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.

/ue to assured su""ly of energy 0from local and im"orted sources2

China and -ndia have been maintaining high economic growth on a

sustainable basis. Present energy crises has resulted due to lac7 of attention of all

"revious governments 01P8Awami 3eague81P8Careta7er2 Ma9or causes of energy "roblems:

0a2 3ac7 of e!"erience

0b2 ;re character,

0g2 Corru"tion,

0h2 Politici=ation of the system. Energy crisis cannot be solved instantly. -t re


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+

(.( Sustainable ?uman /evelo"ment Economic Growth Social @ustice Environmental Sustainability

ow and in ;uture ears 3ongBterm /evelo"ment

(.* Energy Security > Other Related Security -ssues Energy /emandEnergy Su""ly 0Energy Security2 Energy /emand D Energy Su""ly 0Energy Crisis2

Energy Security > ;ood Security Energy Security > Environmental Security Energy Security > Economic Security

(.+ Security > /evelo"ment -ssues in 1angladesh

/emocracy > SocioB"olitical Stability /emocratic Reforms > Economic Growth Promoting the Rule of 3aw. Res"onsiveness rans"arency > Accountability. Good Governance > Energy Security


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(

1.) 8aths o 8ice as per 9rticle 1) o the 7onstitution toEnsure the Rule o !a"

;President


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2.0 Status o !a"s and Policies or Energy #evelop$ent

he 7onstitution o Bangladesh

o 9rticle 1+: Provide Electricity in Rural 9reaso 9rticle 1)%: State 8"nership o /ineral Resourceso 9rticle 1)*: 9gree$ent's(


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/

*.$ Status of 3aws and Policies for Energy /evelo"ment

he Rules and Regulations

he Mines > Mineral Rules ()5' 0Revised2 he Production Sharing Contract 0PSC2 ()'5 ())# *$$' he Environment Conservation Rules ())# he Public Procurement Regulations *$$+ he Public Procurement Rules *$$'

Sectoral > SubBsectoral Policies are E!"ressed -ntent of

Government, ot 3egally 1inding li7e 3aw.

o ational Environment Policy ())*

o -ndustrial Policy ()'5 ())( ())) *$$* *$$4

o Petroleum Policy ())+o ational Energy Policy ())5 All the 3aws of 1angladesh from ('+5B*$$' have been Published by

Government in +' Folumes htt":88www.bdlaws.gov.bd 0released on *5B($B*$$'2


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'

%.0 ational Energy Policy 'EP( o Bangladesh'9pproved in 133*< Pu4lished in 133+(

7o$ponents o ational Energy Policy '133+(:3 onARene"a4le Energy Policy 'GSB@

Petro4angla@ BP7@ !ocal & oreign PrivateSectors(.

3 Petroleu$ Policy '9pproved in 133%('Petro4angla@ BP7@ I87@ Private Sector(.

3 Po"er Policy 'BP#B(3 Rural Electriication Policy 'REB(

3 Rene"a4le and Rural Energy Policy 'a4sence oinstitution(.

Private Po"er Generation Policy 133+3 acilitated Participation o IPPs


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10

.$Revision of ational Energy Policy

o Com"rehensive Review of Performance of EP ())5 has been made

u" to *$$'. Many /raft Fersions of ational Energy Policy are Available: /raft ational Energy PolicyB*$$ 0Modifications of EPB())52 Marginal

Gas ;ield /ev. Procedure to 3egali=e -HO /eal. /raft ational Energy PolicyB*$$5 0o data on demand su""ly of

energy2. Renewable Energy Policy has been a""roved by the Government

0Promoted by Power /ivision2 on *+B(*B*$$' and Published in Ga=etteon $B$(B*$$).

/raft Coal Policy 0Fersion ( to Fersion '2: /ebate on E!"ort > o

E!"ort of Coal O"en cut > %nderground Mining 0*$$4B*$$#2. Cabinet Advised 0on (+B$'B$'2 EMR/ to Revise 'th Fersion. 3ac7 of ca"ability to form an -ntegrated ational Energy Policy

Consisting of All y"es of Energy Sources 0coal "etroleum naturalgas hydro renewable nuclear "ower2 to Ensure Energy Security.


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11

4.$ -nstitutional Reforms in Energy Sector

In 133@ /8PE/R #ivided in to "o #ivisions:

3 Energy & /ineral Resources 'E/R( #ivisiono 5ydrocar4on Dnit@ 9ttached to E/R #ivision.o Petro4angla a State 8"ned 7orporation.o 7orporatiation o Petro4angla 7o$panies 'Governed

under 7o$panyFs 9ct 133)(.

o In 2000@ B9PE ransor$ed to Eploration &Production 'E&P( 7o$pany.

o Participation o International 8il 7o$panies 'I87s( Po"er #ivision. Po"er 7ell@ 9ttached to Po"er #ivision.

Dn4undling & 7orporatiation o so$e BP#B Dnits. Participation o Independent Po"er Producers 'IPPs(. BER7 Esta4lished in 200%.


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1)

5.$ Sta7eholders of ational Energy /evelo"ment

• Prime Minister Ministers 3egislators Politicians,

• 1ureaucrats /evelo"ment Planners,

• Commissioners of Energy Regulatory Commission,• Ambassadors ?igh Commissioners /i"lomats,

• 1iBlateral > Multilateral /onors,

• -nvestors 0-OCs -PPs2,

• -nvestment 1an7ers 0A/1 -/1 7;I I1 etc.2,

• Energy Managers Service Providers,• A""liance Manufacturers and Promoters,

• Academics > Researchers,

• 3egal Professionals 03awyers2,

• 3aw Enforcement Agency Personnel,

• @udiciary,• Consumers Pros"ective Consumers > onBconsumers,

• Civil Society,

• MassBMedia. 1iasness of a Particular Grou" of Sta7eholder for a Particular y"e and8or

Com"onent of Energy may Affect Energy Security of the Country.


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1*

#.( -m"ortance of Energy in Economic /evelo"ment

Energy for Survival > Economic Growth

• Per ca"ita energy consum"tion of 1angladesh is one of

the lowest in the world. Ma9or "ortion of Energy is

Consumed for Subsistence 0e.g. coo7ing lighting heating etc.2 >

Small Portion for Economic Growth 0e.g. agriculture industry

trans"ort commerce etc2. 0-n develo"ed countries higher

"ro"ortion of energy is consumed for economic growth

and smaller "ro"ortion for subsistence2.

-ncrease in Per Ca"ita Commercial Energy Consum"tionis ecessary to -ncrease Per Ca"ita Gross ational-ncome 0G-2.

-.0 Energy Situation & uture Energy /i o Bangladesh


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1.

Per 7apita GI in DSH in 200)

P e r 7 a p i t a 7 o $ $ e r c i a l E n e r g y i n , g 8 E

i n 2 0 0 )

-.2 Per 7apita 7o$$ercial Energy and Per 7apita GI

3 Per 7apita 7o$$ercial Energy 7onsu$ption o Bangladeshis ery !o". #ue to #ependence on onAco$$ercial Energythe Position o Bangladesh is 8 the 7orrelation 7urve.

3 Increase in Per 7apita 7o$$ercial Energy 7onsu$ption isecessary to Increase Per 7apita GI.


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1+

P e r 7 a p i t a 7 o $ $ e r c i a l E n e r

-.% Per 7apita 7o$$ercial Energy 7onsu$ption &Per 7apita GP

Source: Saghir & 8FSullivan 200+

/irect Correlation between "er ca"ita Energy Consum"tion > "er ca"ita G- u" to ($$$ 7goE

"er ca"ita Energy Consum"tion


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1(

-.) Per 7apital 7o$$ercial Energy 7onsu$ption &5u$an #evelop$ent Inde '5#I(

P e r 7 a p i t a 7 o $ $ e r c i a l E n

Source: Saghir & 8FSullivan 200+

/irect Correlation between "er ca"ita Energy Consum"tion > ?uman /evelo"ment -nde! 0$.#2

u" to ($$$ 7goE "er ca"ita Energy Consum"tion


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1

otalJ%1.-/8E ;Per 7apitaJ22+,g8E>

Rene"a4le Energy 'Bio$ass & 5ydro( J *%.-K

onARene"a4le Energy 'G@ 8il@ 7oal( J )+.%K

Pri$ary Energy Supply o Bangladesh in 200* '#ependency on Indigenous & I$ported Energy Sources(

Indigenous Energy 'Bio$ass@ 5ydro@ G( J%.*K

I$ported Energy '7oal@ 8il( J1+.*K

9pproi$ate 7ost o I$ported EnergyJH1. 4illion

-.* Energy Situation & Energy /i in Bangladesh


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1/

Pri$ary 7o$$ercial Energy Supply o Bangladesh in 200* '#ependency on Indigenous & I$ported Energy Sources(

'otalJ1).-/8E( ;Per 7apitalJ10*.2,g8E>

Indigenous 7o$$ercial Energy '5ydro@ G( J+).+K

I$ported 7o$$ercial Energy '7oal & 8il( J%*.)K

9pproi$ate 7ost o I$ported Energy JH1. 4illion

7ost saved due to use o indigenous energy JH%.24illion

-.+ Energy Situation & Energy /i in Bangladesh


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1'

-.- uture 'Indicative( Energy /i o Bangladesh

-ncrease in Per Ca"ita Energy Consum"tion to -ncrease PerCa"ita G-.

Share of -m"orted Petroleum ;uels will -ncrease. Share of onBrenewable 0;ossil ;uels2 Energy will -ncrease. Consum"tion of RE 0Coal Oil Gas2 Contribute to Green ?ouse

Gas 0G?G2 Emission. Share of raditional Renewable 01iomassfuels2 Energy will

/ecrease. Share of Conventional Renewable 0?ydro"ower2 Energy will

/ecrease. Share of ewBRenewable 0Solar PF Iind "ower2 Energy in Power

Generation will -ncrease but contribution will be very small.

Renewable Energy Policy indicated that 46 of Renewable Powerby *$(4 > ($6 by *$*$ Jseems unrealisticK

/ue to echnological ;inancial GeoB"olitical > EnvironmentalReasons 3imited Pros"ect for uclear Power.


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)0

E788/I7 'G#P( GR865

PR8=E7E# EERGL #E/9# '#o$estic@9griculture@ Industry@ 7o$$ercial@ ransport@ Po"er(

EERGL SDPP!IES

I#IGE8DS EERGLS8DR7ES 'RE@ 7oal@ 8il@ G@

5ydro@ 8ther RE(

I/P8RE# EERGLS8DR7ES '7oal@ 8il(

EERGLB9!97E

EERGL78SER9I8

Energy #e$andJEnergy Supplies'Energy Security(

.0 he ra$e"or, o ational Energy Policy

Energy #e$and M Energy Supplies 'Energy 7risis(


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)1

Energy or Sustaina4le Econo$ic Gro"th;#evelop$ent o Energy Inrastructure>.

Energy eeds o #ierent Nones & SocioAEcono$ic Groups ;#evelop$ent o EnergyInrastructure>.

8pti$u$ #evelop$ent o Indigenous EnergySources ;Increase Indigenous Energy Supply>

Sustaina4le 8peration o Energy Dtilities;Institutional & Policy Reor$s>.

Rational Dse o Energy Sources ;Energy7onservation and Eicient Dse>.

.1 84Oectives o ational Energy Policy oBangladesh '133+(


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))

Environmentally Sound Energy /evelo"ment JProtection >-m"rovement of EnvironmentK.

Public > Private Sector Partici"ation J-m"lementation StrategiesK.

(Additional Objectives Included in Draft NEP of 2004)• Electricity to all by *$*$ J/evelo"ment of Power -nfrastructuresK

• Rational Energy ariff JPolicy ReformK

• Regional Energy Mar7et JPolicy Reform > -nfrastructure/evelo"mentK

%ltimate Ob9ective of EP is to Ensure Energy Security on aContinuing 1asis with /ue Attention to EnvironmentalSustainability.

-ndigenous Energy Resources Provide 1est Energy Security. -t was declared in Awami 3egue Election Manifesto to reach Power

Generation Ca"acity to *$$$$MI by *$*( > be 7nown as a /igital1angladesh 0which would re


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)*

• -OCs O"erate ) PSCs in (( 1loc7s 0out of *+ 1loc7s2.

• -OCs /iscovered + Gas ;ields 0Shangu Maulaviba=ar 1ibiyana2 with total recoverable reserve of +.*' C;.

• 1APEL transformed to a E>P Com"any with 4 Gas ;ields * 1loc7s0'((2 1loc7s with -OC > @FA with -HO.

• (( Com"anies 0) gas com"anies > * mining com"anies2 of

Petrobangla O"erate %nder Com"anys Act.• Power Generation by -PP 0;oreign > 3ocal2.

• Se"arate Com"anies of 1P/1 for Power Generation ransmission> /istribution.

• 1PC Ensures Petroleum Su""ly /uring -rrigation.

• 1ERC Established in *$$ under 1ERC Act *$$+.4 1ERC has Started ma7ing decisions on Energy 0"etroleum gas

electricity2 ariffs from *$$' in "lace of Government Administered

ariffs.

'.* Achievements of ational Energy Policy of 1angladesh

/uring last (+ years 0())5B*$$)2


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).

• o -nde"endent Minister for MOPEMR 0Prime Minister Advisor StateMinister2.

• o -nstitutional Setu" to Provide Continuing Policy Su""ort to PolicyPlanners and /ecision Ma7ers.

• o Political Consensus for 3ongBterm Energy SecurityN

• o Gas E!"ort in Election Manifesto but desired to e!"ort gas after

election victory.• hird Round of 1idding 0in ;eb. *$$'2 too7 "lace without Assessment

of E!"eriences of ;irst Round 0())+B())52 > Second Round 0())5B*$$(2. here is "rovision to e!"ort '$6 of gas in third bidding round.

• ecessary to Enact 3aw for o E!"ort of Energy 0Gas > Coal2 to

Ensure Energy Security.• Mr. Rashed Hhan Menon MP introduced a "rivate members bill in the

Parliament on ('th ;ebruary *$($ im"osing a ban on e!"ort of mineralresources in both crude > "rocessed form for ne!t 4$ years.

'.+ Constraints > 1arriers to -m"lement EP


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)+

).$ Management 0Governance2 of Energy Sector

/ynamic ational Energy Policy According to ;ramewor7. Sustainable Energy Security:

• /ynamic Action Programs for Medium > 3ongBerm EnergySecurity are Re /evelo"ment of Energy Sector. -m"rovements in Energy 0"rimary energy > "ower2 Efficiency.

1alanced /evelo"ment of Energy Su""ly Chains0e!"loration "roduction transmission distribution2.

1alanced /evelo"ment of Electricity Su""ly Chain'generation@ trans$ission@ distri4ution(.


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)(

).( Environmental /imensions of Energy Security

As "er Environment Conservation Act > Rules it is mandatory tounderta7e E-A > "re"are EMP for all the develo"ment "ro9ects of

energy sector through out the fuel cycles > for the lifecycle ofthe "ro9ects.

Some e!am"les of energy security and environment are"resented below.

o Energy Security > 3ocali=ed Environmental /egradation

/eforestation and /egradation of Soil.

egative -m"acts Harna"huly ?ydro"ower Pro9ect.

egative -m"acts Coal Mining Pro9ects in Coal one.

• Energy Security > /is"ersed Environmental Problems.

Mitigation of -ndoor Air Pollution.

Reduction of Emission of Green ?ouse Gases.


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)/

3.1.2 Energy Dse & 7li$ate 7hange

• According to -PCC -ncrease in Global Mean Surface

em"erature of Earth by (.4 to 5 degree centigradebetween ())$ > *($$. Ihich will cause rise of Sea 3evel.

-PCC is Awarded obel Peace Pri=e in *$$# with Algore.

• Hyoto Protocol ())#: 1inding Commitments for

-ndustriali=ed Countries to Reduce their G?G Emission 46below ())$ 3evel by the ;irst Commitment Period 0*$$'B

*$(*2.

• ;ollow u" Actions of 1ali Conference 0held in /ec. *$$#2 to

Reach Agreement for PostB*$(* "eriod by *$$).• COP (4 Meeting held at Co"enhagen in /ecember *$$)

without any decision.

• e!t Meeting to be held in Me!ico in *$($.


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)'

1330 'yoto( 133 2000 2002

#escription on


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*0

3.1.) Energy Dse & 7li$ate 7hange

o So$e People 9rgue that Bangladesh should Etract 7oal at aaster Rate '4y 8pen 7ut /ining /ethod & Eport the Etra

Quantity( to 9void uture Restriction on 7ar4on E$ission.3 In 200*@ Etraction o 7oal in 7hina: 21*0/illion onsC DS9:12*0 /illion ons & India: )+0 /illion ons.

3 hese hree /aOor 7oal Producing & 7onsu$ing 7ountrieshave Plan to Etract and use o 7oal at a 5igher Rate at leastor the et %0 Lears '6orld Energy 8utloo, 200-(.

o Per 7apita 7ar4on #ioide E$ission o Bangladesh is ery !o"'0.% tone per year( in 7o$parison to 6orld 9verage '%.3 toneper year(. Per capita e$ission o car4on dioide cannot 4e acause o restriction on the rate o etraction & use o coal orBangladesh. 9rgu$ent to accelerate open cut $ining is$otivated to support vested interests.

o Bangladesh should plan to develop coal 4y appropriate $ining$ethods to $eet the energy de$and o the country or the net2* years on a sustaina4le 4asis. Rate o etraction o coal $ay4e gradually increased ro$ 1 $illion tone per year in 200* to10 /t


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*1

Government administered tariff fi!ation has resulted huge deficit for theutilities: 1PC u" to *$$#B$': 7. ('*'*# million 1P/1 u" to *$$'B$) :7. ($$#'$ million. Petrobanglas deficit u"to *$$': 7. ()$4$ million.

As "er PSC wellhead "rice of gas "roduced by -OCs varies between %S&*.#48MC; to %S& *.)(8MC; 07. ()+8MC; to 7. *$8MC;2. Effective wellhead "rice of -OCs gas may be about 7. ($48mcf.

Iellhead "rice of gas "roduced by ational Com"anies 01G;C3 SG;32is arbitrarily fi!ed 7. #.$'8MC;. 1APEL: 7. *48MC;. Arbitrarydecisions to fi! low wellhead "rice for national gas has made the countrymore de"endable on costly gas "roduced by -OCs > short of gas su""ly

by national gas com"anies. o S/ > FA on -OCs gas. S/ > FA on national gas (**.*6 of cost of gas. Ieighted average "rice of gas fi!ed by 1ERC from (st August *$$): 7.

(*(.48MC;.

1ERCs tariff fi!ation has created a ta! free Gas /evelo"ment ;und of 7.5$$$ million8year to be s"ent for E!"loration > Production of gas.

).* Rational ariffs for Sustainable O"eration > /evelo"ment


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*)

-n Se"tember *$$' 1ERC has a""roved increase of bul7 electricity tariff by (56

through "ublic hearing 0for the first time in 1angladesh2. -n recent months Government has increased "rice of Petroleum fuels > again

decreased due to decrease of "rice of crude oil in -nternational Mar7et.

Energy 0oil natural gas > electricity2 ariffs should be ;i!ed by 1ERC on the1asis of Economic Rational to ensure sustainable develo"ment.

).+ -m"rovements in Energy Efficiency Good "otential to im"rove efficiency in each and every ste" of energy > "ower

su""ly chains starting from "roduction to use. his im"ortant managementissue is not easily understood by the "olicy "lanners and decision ma7ers.

Possibilities of harnessing efficiency including energy use should be assessedand im"lemented with all seriousness.

%se of com"act florescent lam" 0C;32 > light emitting diode lam" 03E/32 have

been increasing.


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**

). Sustainable /evelo"ment of 1iomassfuels

1iomassfuels 0traditional renewable energy resources2 su""ly about

4$6 of total "rimary energy need of the country mostly consumed

in rural areas > in some urban areas. -n future the share ofbiomassfuels in total energy su""ly will gradually decrease due to

increasing use of commercial fuels.

ree "lantation "rograms underta7en > "romoted by the

/e"artment of ;orest are insufficient to maintain regenerative

su""ly of biomassfuels. Simultaneous attentions are to be given by

the energy "lanners to underta7e energy efficient "ro9ects >

substitution measures to reduce their demand.

Renewable su""ly of biomassfuels will able to meet a "art of total

energy need. 1enefit of se


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*.

).4 Sustainable /evelo"ment of atural Gas 0Cont...2

atural Gas: *+ gas fields Proven 0G--P2 was: *$.'C;

Proven recoverable reserve "as: (.)'C; Production u" to @une *$$): '.+)C;

Reserves as on @uly *$$)

Remaining Proved 0(P2 Reserve5.4)C; Remaining "robable reserve: 4.*(C; /eduction of gas reserves of Hutubdia > Shahba="ur gas

fields would further reduce the availability of $.4(*C; gas.

Remaining "ossible reserve: #.5)C; Remaining "roved 0(P2 reserved u" to *$(( Remaining "rovedQ"robable 0*P2 Reserve u" to *$(4 Remaining "rovedQ"robableQ"ossible 0+P2 reserve u" to *$()


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*+

).4 Sustainable /evelo"ment of atural Gas

*P reserve for short and mediumBterm "lan

+P > ; 0et to find from undiscovered resources2 for longBterm e!"loration "lan. More e!"loration to estimate reserves from +P to *P to (P. More

e!"loration to find new gas fields from ;: '.tcf 0)462 > +(tcf

04$62

E!"loration in offshore areas by -OCs through PSCs hird Round 1idding in Offshore Area 0*$$'2 with Provision of

E!"ort of '$6 of atural Gas. E!"loration in onshore area should be reserved for 1APEL.

Provide sufficient fund to 1APEL 0 wells8year2. ;ormed APEL 01APELQ1G;C3QSG;32 to strengthen national

E>P ca"abilities. Provide Economic wellhead gas "rice to APEL 0cost Q *46

rate of return2.


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*(

).5 Sustainable /evelo"ment of Coal 0Cont...2

• otal Coal Resources in 4 ;ields: ++$$ Million tonnes.

• @amalgan9 Coal 0($4+Mt2 not E!tractable 1ecause of ?igh /e"th 05$B

((4'm2.• otal inBsitu coal resource in Coal ;ields: **#Mt.

• Proved inBsitu reserve: ''Mt.

• 1ara"u7uria Coal /e"osit: +$+Mt. %nderground Coal Mine in O"eration

with /esign Ca"acity: ( Mt "er year. Actual Production $.4 Mt "er

year.• Phulbari Coal /evelo"ment Pro"osal Submitted by Asian Energy

Cor"oration 0AEC2 : otal Reserve 4#*Mt. E!tractable Reserve by

O"encast Method: #4Mt Over a Period of +4 ears 0 (4Mt Per ear2.

• Hhalas"ir Coal /e"osit 0(+Mt2: A Consortium of Chinese and

1angladeshi Com"any Pro"osed to /evelo" Coal ;ield by %nder GroundMining Method * Mt Per year.

• /ighi"ara Coal 1asin 0(4$Mt2: Petrobangla has a""lied for E!"loration >

/evelo"ment 3icense.

E i ti & P ti 7 l N B l d h


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*

5halaspir

6a!algan7

hul%ari Barapukuria

Dighipara

Eisting & Prospective 7oal Nones o Bangladesh

E8isting ,oal

9one :1) Basin;

rospective ,oal 9one


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*/

).5 Sustainable /evelo"ment of Coal 0Cont...2

Salient ;eatures of /raft Coal Policy 0#th version2 submitted on ' @an. *$$'

• Coal Policy is an -ntegral Part of ational Energy Policy.

• A Public Sector Organi=ation 0CoalB1angla2 will be res"onsible for overall coaldevelo"ment. Coal 1angla may establish @oint Fenture Agreement 0@FA2 with

local "rivate sector and foreign Public Sector > Private Sector Organi=ation0s2.

-n -ndia all Coal Mines have been ationali=ed in ()#+. Currently )46 of otal

Coal Production is Managed by Public Sector Organi=ations.

•

@oint venture "artner must be selected through com"etitive bidding. o%nsolicited Pro"osal can be considered.

• otal Coal Re underground mining

method2 are insufficient to meet re


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*'

3.+ Sustaina4le #evelop$ent o 7oal '7ont...(

• E!traction of Coal is to be Matched with 3ocal /emand.

• Mandatory Mine Mouth Power Generation.

• Co7ing coal will have to be converted to co7e for local consum"tion.E!cess co7e may be e!"orted.

• O"erationali=ation of -ns"ectorate of Mining

• %" dating of Environment Conservation Rules ())# for Mining

• Enactment of 3aws to Return Ac Polytechnic

3evels will be Strengthened.

• Allow commercial e!traction of coal by underground method.• o commercial e!traction of coal by o"en cut mining method until

successfully e!"erimented by Coal 1angla in a "ilot area 0within

1ara"u7uria Coal Mine2.

3 + Sustaina4le #evelop$ent o 7oal '7 (


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.0

3.+ Sustaina4le #evelop$ent o 7oal '7ont...(

?ydroBgeological 0($$B(4$m a


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.1

3.+ Sustaina4le #evelop$ent o 7oal

-nitially Coal 1angla should be given res"onsibility tounderta7e a "ilot "ro9ect on o"en cut mining to assess thefollowing: -m"acts on environment due to drying of mine. heoretical 0Com"uter model2 > actual study on reB

in9ection of water in a

biological reclamation2 > return to the owners. Effectiveness of rehabilitation measures.

Social im"acts. Motivation of local "eo"le through training > discussions.

-f the result of "ilot study found successful o"en cut miningmay be allowed on commercial basis.

Ado"tion of Clean Coal echnology for ;uture.


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.)

).# Problems with E!traction of Peat

(#$ Million ons Peat /e"osit 0+ to 4 feet thic7 layer 4 to #

feet below agricultural land2 in Madari"ur > Hhulna Area.

egative im"acts due to loss of agricultural cro"s >

mor"hological changes of land is higher than the "ositiveim"act of e!tracted "eat.

Commercial e!traction is not feasible due to technoB

economic environmental > social reasons.


43/58


.*

).' Sustainable /evelo"ment of Renewable Energy

-nfrastructure /evelo"ment Com"any 3imited 0-/CO32 hasim"lemented successful "rogram for the "romotion of solar PF with

"artici"ation of Grameen Sha7ti 1RAC ;oundation Shri9oni

1angladesh MSS Coast rust and Some other GOs wor7ing at the

field level. -/CO3 have also underta7en a "ro9ect on "romotion of

biogas technology at household level.

Establish $. million solar home system in rural areas with ca"acity of((MI. -;R/ of 1CS-R im"lemented "ro9ects on "romotion of biogas

technology > im"roved stoves on intermittent basis.

Sustainable Energy /evelo"ment Agency 0SE/A2 should beestablished for Promotion of Renewable Energy /evelo"ment >

Efficient Energy %se Programs. he "rocess of establishing SE/A

has bee continuing for last ( years.

) ) C i i A f - > E f E


44/58


..

).) Continuing Assessment of -m"ort > E!"ort of Energy

Energy -m"ort 0Reduce energy im"ort bill2• Petroleum -m"ort will -ncrease,• Reduce Petroleum -m"ort by "romoting CG in rans"ort.

• Coal -m"ort will /ecrease with the -ncrease of 3ocal Coal Production.• PGC1 has signed agreement with -ndian Power Grid Com"any 3td. for im"ort

of *4$MI electricity from -ndia tentatively from @uly *$(*.• 3ow Pros"ect of -m"ort of Electricity from 01hutan e"al2. 1ecause of -ndias

eed for Electricity.• Possibility of Gas -m"ort 0if new gas not discovered2 via "i"eline and8or as

3G should be considered seriously. Energy E!"ort would Affect Energy Security 0"rovision of gas e!"ort from

offshore areas2.• -ncrease local use of Coal, o Coal E!"ort.• /evelo" Ca"acity to Purchase -OCs Share of Gas through ariff

Rationali=ation.• Phasing of Coal /evelo"ment > -OCs E!"loration Corres"onding to 3ocal

/emand of Coal > Gas to Avoid E!"ort Pressure. 1ill submitted in the Parliament to ban e!"ort of energy for ne!t 4$ years

should be enacted to ensure energy security


45/58


.+

At entry level com"etent "rofessionals should beRecruited on a regular basis.

raining Program for Energy Managers Should be

/evelo"ed > -m"lemented on a Continuing 1asis to-m"rove the Ca"ability of the Professionals Ior7ing

at 3ower Medium > ?igher 3evels of Management of

/ifferent Energy Organi=ations.

($.$ Sustainable ?uman Resources /evelo"ment 0?R/2


46/58


.(

($.$ Sustainable ?uman Resources /evelo"ment 0?R/2

Considering the com"le! > technical nature of different

factors affecting the decision ma7ing "rocess in energysector S"ecial Ior7sho"s > Seminars on different as"ectsof ational Energy Policy should be organi=ed "eriodicallyfor the Policy Planners and /ecision Ma7ers of EnergySector > other related sectors.

3ac7 of ational Ca"ability in ?andling ;/- Pro9ectPro"osals. ecessary -nstitutional Arrangements shouldmade to /evelo" Ca"abilities to Assess ;/- Pro9ects.

Se"arate 1udget Allocation should be Made for ?R/ forEnergy Management.

11 0 h 6 d '1(


47/58


.

11.0 he 6ay or"ard '1(

1angladesh located in the most energy deficit region 0Asia

Pacific2 of the Iorld. Should try to meet longBterm energysecurity based on indigenous energy sources 0atural Gas

> Coal2.

he country has ade develo"ed in synchroni=ation with

demand.

Political consensus re


48/58


./

Pre"are /ynamic > -ntegrated ational Energy Policy.

Enact 3aw to 1an E!"ort of Energy 0atural gas > Coal2. One Minister should be res"onsible for MOPEMR.

Change the ame of the Ministry from Ministry of Power Energy >

Mineral Resources to Ministry of Energy > Power.

Reduce Corru"tion on Priority 1asis 0Ensure Good Governance2.

/emand Management of Power in a Planned Manner. Give Subsidy for ;uel used in -rrigation.

Establish APEL by Merger of 1APEL 1G;C3 SG;3.

Establishment of APEL will be more 1eneficial than forming @oint

Fenture Agreement with the -OCs 01APELB-HO @FA2.

Activate the PSCs of Second Round of 1idding.

O"timum /evelo"ment of all -ndigenous Energy Resources -ncluding RE.

11.0 he 6ay or"ard '2(

11 0 h 6 d '%(


49/58


.'

Give Priority Attention to Re"air > Maintenance Pro9ects. Consider /evelo"ment of uclear Power %nder 3ong erm

Pers"ective. Sustainable /evelo"ment of Energy Su""ly Chain. Sustainable /evelo"ment of Electricity Su""ly Chain. Rational ariffs for Energy . S"ecial Pro9ects to Su""ly Energy in Energy /e"rived Areas 0gas

su""ly to Ra9shahi > Hhulna /ivisions2. S"ecial Pro9ects to Su""ly Energy for the Poor. Encourage PublicBPrivate Partici"ation for Energy Sector

/evelo"ment. Ca"acity /evelo"ment through raining 0governance issues have

become 7nowledge intensive2. Strategies for Energy -m"ort. Strategies for Electricity -m"ort. Ensure Environmental Sustainability. Continue -nstitutional Reforms to -m"rove Management Efficiency.

11.0 he 6ay or"ard '%(

12 0 7h t i ti t B d P ti '1(


50/58


+0

7ontinuing pressure ro$ vested interested

groups to eport natural gas and coal 4ysacriicing energy security.

/anipulation o procure$ents 'tenders(.

Dnsolicited proposals su4$itted duringpolitically unsta4le period & pursued or longAti$e.

Dnsolicited oers ro$ oreign investors areaccepted giving undue incentives 4y the na$eo creating good i$age or the country.

12.0 7haracteristics eatures o Bad Practices '1(

12 0 7haracteristics eat res o Bad Practices '2(


51/58

I-BAT,-22,+) Energy-10 +1

12.0 7haracteristics eatures o Bad Practices '2(

Pu4lic sector enterprises are as,ed 4y the Policy

Planners & #ecision /a,ers to $a,e Ooint ventureagree$ents '=9s( "ith oreign co$panies 'so$e areineperienced(.

9$4assadors o oreign 7ountries sign as "itness

to these contracts and they are ound to Pu4licly!o44y in avor o Speciic ProOects.

oreign Pro$oters Bring 5o$e 7ountry Political!eaders '/e$4er o legislative 4ody@ /inisters@ 5ead

o the Govern$ent( or !o44ying.


52/58

I-BAT,-22,+) Energy-10 +)

• Offer Consultancy to Get %ndue ;avour

• 1ear e!"enses of foreign tri"s with family

• 1ear e!"enses of Childrens ?igher Education

• Organi=e "ermanent residency

• A""oint Retired 0Senior2 Government Officers 0e.g. Ministry ofEnergy > /e"artment of Environment2 for 3obbying.

• A""oint Prominent 3egal Professionals from two ma9or"olitical "arties to settle their dis"utes with the government fortheir not so legal deals.

• Mobili=e Su""ort of MassBMedia in ;avor of their Pro9ects.

• S"read -ncorrect -nformation > /ata through MassBMedia.

• -ntimidate Government Officials Partici"ating in egotiations >Ma7e 1ad 1ehavior with them if they Contest /uringegotiation Process.

• ransfer to less im"ortant "ositions

12.0 7haracteristics eatures o Bad Practices '%(

8 i ti I l d ith P d ti i i & #i t i4 ti t l G


53/58

I-BAT,-22,+) Energy-10 +*

Petro4anglaB8G/7

'8verall /anage$ent(

Eploration &Production

'B9PE (

Production'BG7!@SG!(

rans$ission 'G7!(@ rans$ission & #istri4ution'BGS!@ G#7!@ =G#S!(@ #istri4ution 'PG7!(

#istri4ution'RPG7!(

Ep. & Prod.'I87s(

Energy #ivision5ydrocar4on Dnit

BER7

8rganiations Involved "ith Production@ rans$ission & #istri4ution o atural Gas

/anage$ent o Gas lo" Syste$/anage$ent o Gas lo" Syste$


54/58

I-BAT,-22,+) Energy-10 +.

g y

BG7!7airn7hevron

B9PE' E & P (SG!

=G#S!/ar,eting 7o$pany

G#7!/ar,eting 7o$pany

PG7!/ar,eting 7o$pany

BGS!/ar,eting 7o$pany

Gasrans$ission

7o$pany!td.

78SD/ERS 78SD/ERS78SD/ERS 78SD/ERS

i,o

Production 7o$panies

#istri4ution o Petroleu$ Products


55/58

I-BAT,-22,+) Energy-10 ++

rganizational Structure o Po*errganizational Structure o Po*er


56/58

I-BAT,-22,+) Energy-10 +(

SectorSector

+eneration

ransmission

istribution

P86ER #ISI8/inistry o Po"er Energy & /ineral

ResourcesBER7 Po"er 7ell

Po"er #evelop$ent Board 'BP#B(9shuganO Po"er Station 7o. !td. '9PS7!(Independent Po"er Producer 'IPP(Rural Po"er 7o$pany !td. 'RP7!(

Po"er Grid 7o$pany o Bangladesh 'PG7B(

Po"er #evelop$ent Board 'BP#B(#ha,a Electric Supply 9uthority '#ES9(#ha,a Electric Supply 7o. '#ES78(

6est None Po"er #istri4ution 7o.Rural Electriication Board 'REB(Palli Bidyut Sa$ity 'PBSs(

CF of Prof M urul -slam 0Continued2


57/58

I-BAT,-22,+) Energy-10 +

CF of Prof. M. urul -slam 0Continued2

Professor M. urul -slam graduated in Chemical Engineering from 1%E in ()5#.

?e 9oined as a lecturer in Chemical Engineering /e"artment 1%E in ()5'. ?e

obtained Ph./. degree from %niversity of ewcastle u"on yne %H in ()#+. ?e was a""ointed as a Professor of Chemical Engineering 1%E in ()'+. ?e was

a""ointed as a Research Professor of the -nstitute of A""ro"riate echnology

0-A2 1%E in ())$. ?e has served as the /irector of -A for (* years during

()''B*$$#.

-n ()'( Professor M. urul -slam wor7ed as a Panel Member of %S ational

Academy of Sciences 0AS2 on Renewable Energy echnology. he "anel re"ort

was "ublished by AS as a boo7.

?e coBedited a boo7 on 'Rural Ener! to "eet Develo#$ent Needs% Asian &illae

A##roaces' in ()' "ublished from %SA. ?e coBedited two boo7s on TRural

Ener! !ste$s and Rural Ener! PlanninT "ublished by Asian and Pacific

/evelo"ment Centre 0AP/C2 Huala 3um"ur Malaysia in ())+ and ())4

res"ectively. ?is boo7 on TEner! Proble$% anlades Pers#ective (in anla)T

was "ublished in /ecember *$$(.

CF of Prof. M. urul -slam 0Continued2


58/58

0 2

-n ())$ Prof. -slam wor7ed as a member of Energy as7 ;orce constituted by the government of

1angladesh the re"ort was "ublished in a boo7. /uring ())+B)4 he wor7ed as a member of

ational Energy Policy ;ormulation Committee. he Government A""roved the /raft ational

Energy Policy 0EP2 in ())4 and was Published in a Ga=ette in ())5.

-n ())5 he wor7ed as a member of ational Committee on formulation of Pricing Policy of atural

Gas. /uring *$$(B*$$* he Ior7ed as a Member of atural Gas /emand Reserve and Resources

Committee Constituted by the Government. /uring *$$(B*$$5 he wor7ed as a member of Energy

Advisory Committee of the Energy and Mineral Resources /ivision.

/uring *$$4-*$$5 Prof. -slam wor7ed as the convener of the Committee to assess the ;easibility

Study Re"ort and Scheme for /evelo"ment of Phulbari Coal Pro9ect submitted by Asia Energy

Cor"oration 01angladesh2 Pty 3td. ?e wor7ed as a Member of the Coal Policy Review Committee

of the Energy /ivision in *$$#.

/uring *$$4B*$$' Prof. -slam wor7ed as a /irector of the Management 1oard of 1angladeshPetroleum E!"loration and Production Com"any 3imited 01APEL2. /uring *$$#B*$$' Prof. -slam

wor7ed as a /irector of the Management 1oard of Sylhet Gas ;ield 3td. 0SG;32.

/uring *$$'B$) Prof. -slam wor7ed as a /irector of the Management 1oard of 1angladesh Gas

;ield Com"any 3td 01G;C32. /uring *$$#B$) Prof. -slam wor7ed as a Member of

Governing 1oard of SAARC Energy Center 0SEC2 -slamabad Pa7istan.

energy resourses

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