This is the finding of a new Asian Development Bank (ADB) report, which calls for the urgent expansion of interconnected and modernized grids—both to keep up with rising energy demand and to integrate intermittent renewable energy sources across the region.

The analysis, nevertheless, shows the region is at the forefront of a global energy transformation. According to the most recent data, clean energy investment in developing Asia grew more than 900 per cent since 2013 to reach $729.4 billion in 2023—comprising about 45% of global investment. While the People’s Republic of China (PRC) accounted for a majority of this investment, the PRC was joined by India and seven other developing regional countries where renewables exceeded 75 per cent of new national energy capacity addition in 2022.

The report, Energy Transition Readiness Assessment for Developing Asia and the Pacific, conducted in collaboration with the World Economic Forum (WEF), is ADB’s first to measure regional countries’ ability to transform their energy systems and uses a new readiness framework based on the WEF’s Energy Transition Index.

Although the PRC leads on most dimensions, the report concludes that Georgia, Malaysia, and Thailand have improved their regulatory frameworks to support a clean energy transition. Bangladesh, India, and Indonesia have led the region in expanding electricity access to over 1 billion people since 2010.

“The expansion of digitalized grid infrastructure is essential to integrate low-carbon electricity seamlessly into national power generation and transmission systems,” said ADB’s Energy Sector Senior Director Priyantha Wijayatunga in a press statement. “With Asia and the Pacific forecast to generate two-thirds of global energy growth by 2040, meeting this daunting power supply gap will require multidimensional efforts including strong policies, innovative technologies, and long-term financing.”

“This extensive analysis highlights opportunities and challenges developing Asian economies face in meeting their energy transition needs,” said WEF's Centre for Energy and Materials Head Roberto Bocca. “Reliable, affordable, and sustainable energy systems are key to supporting national and regional economic progress.”

The report finds that while differing national characteristics require countries to forge their own clean power trajectories, in-country connectivity and regional interconnections—such as in Central West Asia, Southeast Asia, and South Asia—can provide a universal boost to economic efficiency and power affordability. 

ADB’s Asia Clean Energy Forum in June will explore cross-border energy trading and other ways to ensure the powering of homes, factories, and transport systems in the region meet the needs of rapid urbanization and industrialization.

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—49 from the region.

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Dhaka, Bangladesh (BBN)

Under the relaxation, importers are now allowed up to 360 days instead of 180 days to settle the deferred payment for import of raw materials for power generation.

“To facilitate power sector industry, it has now been decided to enhance usance period up to 360 days from 180 days for import of raw materials in the case of power generating enterprises only,” a central bank notification said on Wednesday.

The Bangladesh Bank (BB), the country’s central bank, earlier permitted the import of industrial raw materials on deferred payment basis up to 180 days by industrial importers for their own use.

Talking to the BBN, a BB senior official said the central bank has relaxed the regulations for the benefit of power producers, particularly for those in the private sector.

He also expects that it will also help reduce pressure on the country’s foreign exchange market.

The latest move of the central bank came against the backdrop of higher import of fuel oils, particularly for power generation, that created extra pressure on the country’s foreign exchange market in recent months.

During the period from January 03 to May 06, the Bangladesh taka (BDT) depreciated by 60 poisha against the US currency in the inter-bank forex market.

The greenback was quoted at BDT 84.50 each in the market on May 06 as against BDT 83.90 on January 02 this year, according to the market operators.

On Wednesday, the US dollar was quoted at BDT 84.50 each in the inter-bank foreign exchange market, remaining unchanged from the previous level, they added.

The BB officials, however, said high sulfur fuel oil (HSFO), generally known as furnace oil, is being imported under the category of petroleum products as raw material for power generations, which also put pressure on the foreign exchange reserve.

“Foreign exchange pressure may ease now for the time being,” a senior executive of a leading private commercial bank (PCB) told the BBN explaining the possible impact of the relaxation.

Ultimately, accumulative payment pressure may go up for such relaxation, he added.

Meanwhile, higher import of fuel oils pushed up the overall import expenses during the July-March period of the current fiscal year (FY), 2018-19.

Import of petroleum products, including liquefied natural gas (LNG), soared by 25.43 per cent to $2.81 billion in the first nine months of FY ’19 from $2.24 billion in the same period of the previous fiscal, the BB data show.

“The existing upward trend in fuel oil import may continue in the coming months following diversified use of the gasoline products, particularly for power generation,” another central banker explained.

Currently, nearly 45 power plants, out of a total of 129 plants across the country, are now running on such fuel oil.

And the central bank is continuously providing foreign currency support to the banks for settling import payment obligations as per commitments.

As part of the support, the BB sold $30 million to two state-owned commercial banks (SoCBs) directly on Wednesday for marking payments particularly for fuel oils and the Rooppur Nuclear Power Plant (NPP).

A total of $2.24 billion has been sold since July 01 of the current fiscal year (FY), 2018-19, to the commercial banks as part of BB’s ongoing support, according to latest official figures.

The demand for the US currency is gradually increasing, mainly due to higher import payment pressure, particularly for import of intermediate goods, capital machinery for power plants, fertilizers and fuel oils.

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Solar panels. file photo: Shutterstock

Dhaka, Bangladesh (BBN) - The World Bank (WB) has approved $185 million to add up to 310 Megawatt (MW) in renewable energy generation capacity and mobilize private sector participation to meet the growing demand for electricity in Bangladesh.

The support for the Scaling-up Renewable Energy Project will increase installed capacity of renewables through piloting and expanding investments in key market segments.

It will build the first 50 MW phase of a large scale solar panel energy park in the Feni district, which will be implemented by the Electricity Generation Company of Bangladesh (EGCB), according to a WB press statement.

Currently, the share of the total installed renewable energy in grid supply is only 1.5 percent and has significant potential for scaling up.

The project will help provide better access to cleaner electricity as well as air by avoiding burning fossil fuels. It will help cut emissions by 377,000 tons of carbon dioxide equivalent a year.

“Bangladesh is well on its way towards becoming an upper middle-income country with about 80 percent of the population having access to grid electricity. It also has one of the most successful off-grid renewable energy programs in the world, providing electricity to another 10 percent of the population,” said Dandan Chen, World Bank Acting Country Director for Bangladesh and Bhutan.

“This project will help expand renewable energy generation capacity. By leveraging all sources of finance, the expanded renewable energy sector is ready to push the country’s growth trajectory further,” the Acting World Bank Country Director noted.

The project will help mobilize up to $212 million from the private sector, commercial banks and other sources of financing and establish a dedicated Renewable Energy Financing Facility to provide credit to developers of both rooftop solar photovoltaics (PV) and large-scale solar PV projects.

The project will support the Infrastructure Development Company Limited (IDCOL) with development of the Financing Facility and provide resources to the Sustainable and Renewable Energy Development Authority (SREDA) to build market capacity and develop a pipeline of renewable energy projects.

“The power sector in Bangladesh has grown rapidly with maximum generation capacity increased from a little over 4,000 MW in 2009 to more than 20,000 MW in 2018,” said Jari V”yrynen, World Bank Team Leader for the Scaling-up Renewable Energy Project.

“A strong collaboration between the public and private sector will help not only lower carbon emissions, but also meet energy demand,” added the official.

The $185 million credit also includes a $26.38 million loan and a $2.87 million grant from the Strategic Climate Fund (SCF) of the World Bank’s Climate Investment Funds (CIFs).

The credit from the World Bank’s International Development Association (IDA), which provides concessional financing, has a 30-year term, including a five-year grace period, and an interest rate of 1.25 percent with a service charge of 0.75 percent.

The SCF loan is on Scaling-up Renewable Energy Program (SREP) Loan terms and has a maturity of 40 years, including a grace period of 10 years.

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Dhaka, Bangladesh (BBN)- United Power Generation & Distribution Company dominated the Dhaka Stock Exchange (DSE) turnover chart last week that ended on Thursday.

Market analysts said investors continued to show their buying appetite on United Power shares as the company posted modest earnings growth in July-December period.

The company’s earnings per share (EPS) (separate) rose 15.18 percent to BDT 5.31 for July-December. The EPS (separate) was BDT 4.61 for July-December, 2017.

The company reported its consolidated EPS of BDT 7.69 for July-December, 2018.

The financial performance of the United Power for July-December and October-December, 2018 were disclosed on the website of the Dhaka Stock Exchange (DSE) on Sunday last.

According to statistics from the DSE, about 7.88 million shares of United Power were traded, generating a turnover of BDT 3.16 billion, which was 7.67 percent of the DSE’s total turnover.

The week’s total turnover on the DSE stood at BDT 41.19 billion last week, registering a decline of 20.33 percent over the week before.

The power generation company’s share price closed at BDT 408.50 on Thursday, the last trading day of the week, gaining 4.40 percent over the previous week.

The United Power, which was listed on the DSE in 2015, disbursed 90 percent cash and 20 percent stock dividend for the year ended on June 30, 2018.

The company’s paid-up capital is BDT 4.70 billion, authorised capital is BDT 8.0 billion and the total number of securities is 479.08 million.

The sponsor-directors own 90 percent stake in the company, while institutional investors own 5.43 percent, foreign investors 0.13 percent and the general public 4.44 percent as of December 31, 2018.

Bangladesh Submarine followed next, with shares worth BDT 1.83 billion changing hands, followed by Khulna Power with BDT 956 million, Gramemenphone BDT 752 million, Premier Bank BDT 751 million and Monno Ceramic BDT 707 million.

Sonar Bangla Insurance was also included in the top 10 turnover chart with shares of BDT 707 million changing hands, followed by Meghna Petroleum BDT 605 million, Singer Bangladesh BDT 602 million and Bangladesh Shipping Corporation BDT 570 million.

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File photo: Moneycontrol

Dhaka, Bangladesh (BBN)- The Asian Development Bank (ADB) and the government have signed agreements for $350 million in loan and $7.5 million in grant for a project to develop two power lines in support of Bangladesh’s national target of electricity for all by 2021.

Kazi Shofiqul Azam, Secretary, Economic Relations Division (ERD), and Manmohan Parkash, Country Director, ADB, signed the agreements on behalf of Bangladesh and ADB, respectively, at a ceremony in Dhaka on Monday.

In addition to a $350 million ADB loan, the assistances comprise a $7 million grant from the Japan Fund for the Joint Crediting Mechanism (JFJCM), which will finance new high-technology energy efficient conductors.

Another $500,000 grant from the Republic of Korea e-Asia and Knowledge Partnership Fund (EAKPF) will promote socially inclusive growth with gender equality.

“Bangladesh’s power sector has rapidly grown in recent years, but more investments are needed to meet the rising electricity demand in a fast-growing economy,” said Country Director Manmohan Parkash.

He also said the project will promote business expansion, and create employment opportunities for local communities, including poor and socially disadvantaged people in southern and western zones of Bangladesh.

The Southwest Transmission Grid Expansion Project builds on ADB’s previous work in the Bangladesh power sector, including the recently approved Rupsha 800 megawatt Combine Cycle Power Plant in Khulna, to address deficiencies in the transmission system through providing more efficient power transfer to the load centers of the southern and western zones.

The project will develop a 126 kilometer (km)-long 230 kilovolt (kV) transmission line from Barisal to Faridpur; and a 104 km-long 400 kV transmission line from Bogra to Rohanpur, along with substations, transformers, and associated extensions and connections.

The new transmission lines will introduce to Bangladesh a new type of high temperature conductor to allow more power transfer at lower energy losses.

These have less resistance to power flow, higher power transferring capacity, and operate more reliably in tropical weather. In addition, the use of these conductors also helps to minimize right-of-way requirements.

The project is also contributing to climate change mitigation, since the new conductors reduce carbon dioxide emissions compared to conventional transmission conductors that are used in Bangladesh.

This climate change mitigation accounts for $93 million of the investment, comprising $86 million from the ADB loan and $7 million from the JFJCM grant.

Under the EAKPF grant, the project will enhance capacity, particularly emphasizing inclusive development and gender equality, through a university program relevant to the energy sector, supporting 50 university students, of which at least 40 per cent are women; and 30 staff from Power Grid Company of Bangladesh Limited, of which at least 30 per cent are women.

The project is due for completion in June 2023.

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File photo: Moneycontrol

Dhaka, Bangladesh (BBN)-The Asian Development Bank (ADB) is set to provide US$500 million loan to develop a state-of-the-art 800-megawatt (MW) power plant in Khulna.

The fund will also be used for power transmission facilities along with associated connections to natural gas, according to the ADB.

The government signed agreements with the ADB on Thursday in this connection.

Muhammad Alkama Siddiqui, additional secretary of the Economic Relations Division (ERD) under Finance Ministry and Manmohan Parkash, country director of the ADB, signed the deals on behalf of their respective organizations, at a ceremony in Dhaka.

The total cost of the project is $1.14 billion, with the Islamic Development Bank contributing $300 million in co-financing and the government contributing $338.5 million.

The project is due to be completed by the end of June 2022, the ADB added.

“This megaproject builds on ADB’s strong and sustained presence in the power sector of Bangladesh,” Mr. Parkash said in a statement.

The ADB country director also said it will use the latest proven combined cycle technology, which offers the highest efficiency to convert gas to electricity.

“This will be a state-of-the-art power plant using the latest zero-liquid discharge technology, making it the first of its kind in Bangladesh,” he noted.

Highlighting benefits of the project, Mr. Parkash also said it will provide additional electricity supply to about 300,000 consumers, create new jobs, and stimulate business expansion.

This environment friendly project will significantly improve energy security and enhance availability of efficient and cleaner energy, according to the ADB country director.

To supply gas to the Rupsha power plant, the project will construct 12 kilometers (km) of gas distribution pipelines, the ADB said in its press statement.

It will also finance construction of a 230-kilovolt switchyard and 29 km of high capacity transmission lines to transfer generated electricity to the national grid.

The project will also help in institutional strengthening of the executing agency, the North-West Power Generation Company Limited, by implementing a modern enterprise resource planning system, and providing training for implementation and operation of the system.

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Tetsuji Nakagawa, senior vice-president of the infrastructure business division of Mitsubishi Corporation; Muhammed Aziz Khan, chairman of Summit Group, and Russell Stokes, president and CEO of GE Power, hold each other's hands after signing a MoU at the Sonargaon hotel in Dhaka on Wednesday. Tawfiq-e-Elahi Chowdhury, energy adviser, and Nasrul Hamid, state minister for power, are also seen. Photo: Collected

Dhaka, Bangladesh (BBN)- Bangladesh has signed two separate agreements involving US$7.4 billion to generate 6,000 megawatts of electricity largely from liquefied natural gas.

The deals signing ceremonies were held at Sonargaon Hotel and Bidyut Bhaban in the capital respectively on Wednesday.

The projects include 6,000-megawatt (MW) liquefied natural gas (LNG) fired power plant at Moheshkhali in the country’s southeastern Cox's Bazar district.

American conglomerate General Electric Company (GE) inked one memorandum of understanding (MoU) with the state-run Bangladesh Power Development Board (BPDB) for implementing projects worth $4.4 billion, including a 3,600-MW LNG-based power plant, an associated LNG import terminal, and necessary infrastructure under a joint venture (JV).

Bangladesh’s Summit Group, Mitsubishi and GE signed a preliminary agreement at an event held in the capital's Sonargaon hotel to invest $3 billion to establish five power plants, two LNG terminals and one oil terminal.

These projects include a 2,400-MW combined cycle power plant, two units of on-shore LNG terminal having a total capacity of 380,000 cubic metre, oil terminals having 100,000 tonne capacity, and another 300-MW furnace-oil based power plant under a JV.

Summit will be the majority owner of the project, which is considered the largest private sector foreign direct investment (FDI) in Bangladesh, while Mitsubishi and GE will own the remaining.

On the other hand, BPDB will be the lead partner having 51 per cent equity, while GE will have 30 per cent equity, according to officials.

The remaining 19 per cent equity will be provided by another strategic investor for implementing the 3,600-MW power plant and associated facilities.

“This is one of the biggest investments in the private sector in Bangladesh,” said Nasrul Hamid, state minister for power, energy and mineral resources.

The state minister, in his speech, also said Bangladesh will engage private sector in electricity transmission to meet the country's growing need.

“The project will use the world's most efficient and environment-friendly technology and the LNG terminal will use cutting-edge technology so that there is no boil-off, utilising all the gas for electricity generation,” Muhammed Aziz Khan, chairman of Summit Group, said.

Currently, more than 90 percent people have access to electricity, said Tawfiq-e-Elahi Chowdhury, energy adviser to the prime minister, at the event in Sonargaon hotel.

“Hopefully, all of the people in Bangladesh will come under electricity coverage by next year,” he noted.

US Ambassador to Bangladesh Marcia Stephens Bloom Bernicat were the special guests at the functions.

The US ambassador said her country is proud, as Bangladesh has chosen GE, the global leader in its field, to implement the projects here.

The US is the largest source of FDI, the largest consumer of Bangladeshi goods, and it is pleased to be associated with the country's progress, she noted.

"In partnership with Summit Power, our technology enables unprecedented levels of efficiency to strengthen Bangladesh's power generation," GE Power President and Chief Executive Officer (CEO) Russell Stokes explained.

He also said GE Power is navigating customers through an energy transformation with a complete portfolio of fuel choices and innovative technology.

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Rooppur nuke plant in Pabna

Dhaka, Bangladesh (BBN)- Bangladesh Atomic Energy Regulatory Authority (BAERA) granted a license to Bangladesh Atomic Energy Commission (BAEC) for construction of Unit No. 2 of Rooppur Nuclear Power Plant, following the Russian design.

The license confirms the safety of the design for construction as well, a press statement said.

The license was formally handed over at a ceremony held at the Pan Pacific Sonargaon Hotel in the capital Dhaka on Sunday.

The selected design for Rooppur NPP is based on VVER-1200 reactors, having its prototype at Novovoronezh NPP-2 of Russia.

This is an evolutionary GenIII+ design which entirely meets all international safety requirements, it added.

"ASE (Atomstroyexport) Engineering Company as the General Contractor performs all obligations related to the construction of the Rooppur NPP,” said Valery Limarenko, Head of the Engineering Division of Rosatom State Corporation.

“Currently, the construction of the first power unit is under way, and we are taking necessary preparation of pouring of first Concrete into the slab of reactor compartment of power unit No. 2.”

Construction of Rooppur NPP Unit 1 started in November, 2017.

Currently, the works on construction of the walls and reinforcement of the reactor building and the foundation slab of the auxiliary reactor building are being performed, while soil stabilization works for the evaporative cooling tower and others have already been commenced.

The Rooppur NPP construction is performed based on the Russia-Bangladesh Intergovernmental agreement on cooperation in the area of NPP construction in the territory of the Bangladesh, signed on November 2, 2011.

On December 25, 2015 General Contract for designing, construction and commissioning of 2 NPP power units each of 1200 MW capacity and based on VVER-reactors was signed in Dhaka.

Atomstroyexport, a concern of ASE Group of Companies, which itself represents the engineering division of Rosatom State Corporation signed the deal as the General Contractor.

Rooppur NPP is under construction at the Ishwardi Upozilla on the bank of river Padma and 160 km from the capital city of Dhaka.

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Solar panels. file photo: Shutterstock

Dhaka, Bangladesh (BBN) - The World Bank (WB) has approved $55 million to expand use of clean renewable energy in rural areas of Bangladesh where grid electricity cannot reach easily.

This additional financing to the Second Rural Electrification and Renewable Energy Development (RERED II) Project will install 1,000 solar irrigation pumps, 30 solar mini-grids, and about 4 million improved cookstoves in rural areas.

The project, including the additional financing, will enable about 10 million people living in villages, shoals, and islands to access electricity and use energy efficient cookstoves. These interventions will help the country reduce carbon emissions.

The credit from the World Bank’s International Development Association, which provides grants or zero-interest loans, has a 38-year term, including a six-year grace period, and a service charge of 0.75 percent, according to a WB statement.

“We are proud to be helping Bangladesh increase access to clean electricity through solar power. Today, the country has the one of the world’s largest domestic solar power programs, covering 14 percent of the population,” said Qimiao Fan, World Bank Country Director for Bangladesh, Bhutan, and Nepal.

“Building on its success in using solar energy to provide electricity in rural areas, this financing will also scale up other clean renewable energy options.”

The project has already built 10 solar mini-grids in remote areas, including islands and shoals to provide grid quality electricity. This additional financing will help construct another 30 solar mini-grids. These will provide about 28,000 connections to households and businesses, including small and medium-sized enterprises.

The financing will also help increase use of solar irrigation pumps, a low-cost technology that is well suited to the country’s flat terrain and abundant sunshine. This switch from diesel pumps will decrease greenhouse gas emissions and save foreign exchange by reducing the government’s subsidy on diesel imports.

“In Bangladesh, indoor air pollution causes thousands of deaths per year, mostly women and children. Traditional cookstoves used in rural areas is a major contributor to this,” said Amit Jain, World Bank Team Leader for the project.

Since 2002, the WB has been helping the government expand renewable energy programs. In the energy sector, the WB has ongoing support of over $1.6 billion in Bangladesh covering generation, transmission, distribution, and renewable energy.

Additionally, on February 27, 2018 the Green Climate Fund (GCF) Board has approved an additional $20 million to support the energy efficient cookstoves project, which is their first approved cookstoves project.

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File photo: Moneycontrol

Dhaka, Bangladesh (BBN)- The government of Bangladesh on Tuesday signed two financing agreements totaling $515 million with the World Bank (WB) to help expand electricity transmission network.

The $450 million Enhancement and Strengthening of Power Transmission Network in Eastern Region Project will improve reliable electricity supply and reduce load shedding in the eastern region, covering greater Cumilla and Noakhali and part of greater Chittagong, according to a statement, issued by the WB in Dhaka.

About 275,000 households and 16,000 agricultural consumers will get new electricity connection.

The project will build 13 new substations and rehabilitate an existing one in the country’s eastern part.
These will also help integrate renewable energy and new generations into the grid. The project will build one 230 kV transmission line through greater Cumilla and four short distance 132 kV lines in Cumilla and Noakhali areas.

“In recent years, the government has significantly increased power generation. But, only investing in power generation is not sufficient, unless that is supported by improvement in transmission and distribution,” said Qimiao Fan, World Bank Country Director for Bangladesh, Bhutan, and Nepal.

“By supplying uninterrupted power to Mirsharai Economic Zone, port, airport or other key economic facilities, the project will help unlock private sector growth.”

On the other hand, The $65 million Insurance Sector Development Project (ISDP), also signed on the same day, will help strengthen the regulatory and supervisory capacity of the Insurance Development and Regulatory Authority (IDRA), and the country’s two state-owned insurance corporations—Shadharan Bima Corporation and Jiban Bima Corporation—through modernizing their systems and business practices.

It will also help enhance the capacity of the Bangladesh Insurance Academy to become a reliable resource for training, and research, and thereby address the severe lack of insurance professionals.

“The 7th Five-Year Plan includes a vision for providing electricity to all as well as improving the insurance coverage,” said Mahmuda Begum, Additional Secretary, Economic Relations Division of Bangladesh. “Both projects will contribute to creating more and better jobs, and boosting growth.”

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