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Bangladesh bank approved unlimited loans for power producers

Industry: Energy & Power, Power
Economic Tag: Bank

Bangladesh Bank recently permitted banks to exclude private sector power producers from the single borrower exposure limit when giving loans for the purchase of raw materials such as fuel oil.

Under the single-borrower exposure limit, banks may not lend more than 25% of their capital to a single person, firm, or business group. The ban, however, will not apply to independent power producers (IPPs) for running their plants. Banks must comply with the new rule until December of this year.

The Bangladesh Independent Power Producers Association (BIPPA) wrote a letter to the central bank governor, demanding that enough dollars be made available for power plants to import heavy fuel oil. According to the letter, the IPPs will require around $250 million each month from March through June of this year to acquire heavy fuel oil (HFO).


Source for more details:

The Daily Star



Source for more details:

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The demand for electricity rising by 100MW per day

March 15, 2023

The State Ministry of Electricity, Energy, and Natural Resources said that electricity demand is increasing by roughly 100MW each day. They are doing everything they can to control the problem.

According to power sector sources, the country may face more than 3,000MW load-shedding this Ramadan due to increased demand for electricity. Despite having a capacity of more than 25,000MW, the country can only generate roughly 12,000MW due to primary fuel shortage.

Due to the recent currency issue, the government was forced to suspend diesel-based power generation. In terms of renewable energy, the government plans to add 1,000MW of solar electricity to the national grid within a year.


Source for  more details:

The Business Post

Solar energy might save Bangladesh $1 billion yearly

March 15, 2023

The US-based National Bureau of Asian Research (NRB) discovered that  Bangladesh could reduce its annual LNG and diesel imports cost by more than one billion dollars by rapidly expanding its 2,000 MW solar power capacity and replacing all diesel-run irrigation systems with solar electricity.

According to the report, replacing diesel-fired irrigation systems with solar-powered systems and adding 2,000 MW of solar power capacity for daytime applications might help reduce 5.58 million tonnes of CO2 emissions each year.

Electricity generation from rooftop systems presently costs Tk. 5.25 per kWh. Hence, as compared to the cost of grid electricity, industries can save 40% on per-unit electricity costs during the day. Similarly, utility-scale solar could generate electricity at Tk. 7.6/kWh, or 14% cheaper than the Bangladesh Power Distribution Board’s (BPDB) average electricity generation cost in FY 2021-22.



Source for more details:

The Business Post

Russia eager to export LNG to Bangladesh

March 15, 2023

Russia offered to supply liquefied natural gas (LNG) to Bangladesh during the two countries’ intergovernmental commission online conference. The offer comes at a time when Bangladesh has been trying to purchase LNG from the foreign market to meet the expanding domestic natural gas demand.

Authorities claimed that after hiking natural gas taxes by up to 178.88% in February, Bangladesh has increased LNG imports, particularly from the spot market. It intends to purchase a total of eight LNG cargoes in April, a 14.28% increase over March.

Six of these LNG cargos will be delivered by long-term suppliers Qatargas and Oman Trading International (OTI), with the remaining two coming from the international spot market. The country will need an estimated US$450 million to import more LNG to meet rising fuel demand in industry and power plants.


Source for more details:

The Financial Express

Zakat Fund Might Help in Ensuring Security of the Needy: Experts

March 14, 2023

In a meeting hosted by the Center for Zakat Management (CZM), a non-profit organization, on the final day of the two-day Zakat Fair 2023, Abdul Awwal Sarker, a former Executive Director of Bangladesh Bank (BB), stated that the integration of financial institutions’ CSR (corporate social responsibility) funds and Zakat funds could play a critical role in ensuring social security for the country’s underprivileged section. He said that there is also room to investigate the possible benefits of the two funds’ collaboration, given both seek to achieve similar goals.

A few of speakers, however, believe that establishing a link between the two funds is unnecessary since it would pose issues. Dr Salehuddin Ahmed, the former central bank chief, suggested separate management of the two funds, referring to an instance of improper use of CSR funds.

CZM Chairman Niaz Rahim, former NBR Chairman Dr Abdul Mazid, Chief Executive Officer of CZM Dr Mohammad Ayub Miah and Member Secretary of the fair organising committee AMM Nasiruddin were present, among others.


Source for more details:

The Financial Express

The Indo-Bangla Friendship Pipeline is ready to open

March 13, 2023

The 130-km Friendship Pipeline between Bangladesh and India, which will transport gasoline or diesel, is ready for opening. The pipeline, known as the Indo-Bangla Friendship Pipeline has 126.57 km in Bangladesh and 5 km built in India.

According to official sources, On March 18, the 131.57-km cross-border pipeline will be formally inaugurated via video conference between Indian Prime Minister Narendra Modi and Bangladeshi Prime Minister Sheikh Hasina. 

Under a 15-year government agreement with India, the BPC, the state agency in charge of marketing petroleum fuel under the Energy and Mineral Resources Division, has been carrying out the project, which entails importing between 250,000 and 400,000 tonnes of diesel from the neighboring country every year via a cross-border pipeline.


Source for more details:

The Business Post

Adani Power begins testing transmissions to Bangladesh

March 13, 2023

Power transmission from Adani’s 1,600MW coal-fired power plant in the Indian state of Jharkhand to Bangladesh began on March 9, although power tariff issues remain unresolved.

The power transmission was synchronized with Bangladesh’s national grid on a test basis, according to a Power Grid Company of Bangladesh (PGCB) Facebook status. More than 50MW of power from the Adani plant reached Bangladesh’s national grid via newly constructed transmission lines and substations.

The company stated that it developed a 134km 400kV transmission line from the adjoining Mankasha area to Bogura via Rohanpur. A 400/230kV substation was also erected in Bogura to enable power evacuation.


Source for more details:

The Business Post


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