When Prime Minister Sheikh Hasina spoke in the 26th United Nations Climate Change conference also known as COP26 on November 01, 2021, she stated that being the Chair of the Climate Vulnerable Forum (CVF) and the Vulnerable 20 Group (V20), Bangladesh has adapted multiple decisions to be able to produce 40 percent of its energy from renewable sources by 2041. Bangladesh has cancelled the construction of 10 coal based power plants worth 12 billion dollars of foreign investment. Bangladesh has also doubled climate related expenses in the last seven years.[i] While charting its path of economic and social development, Bangladesh is also working towards enhancing its capacities in energy production. While building partnerships with countries in the region, Bangladesh has also opted to partner with Russia on energy cooperation, especially in the natural gas production and nuclear power.
The Energy Sector in Bangladesh
Power generation in Bangladesh is usually from gas and oil sectors. Minor power production is from coal, water and renewable energy resources. Bangladesh is in the process of building its first nuclear power plant. The rest of the energy is imported from the neighbourhood or as Liquified Natural Gas (LNG).[ii] The government has publicly announced that it will be abandoning coal-based power generation.[iii]On June 27, 2021, Bangladesh government scrapped 10 major coal-fired power plants seeking to scale up its power generation from renewable energy resources. About 3.5% of the country’s power comes from renewable energy, a percentage the nation plans to boost to 40% by 2041.[iv]
The following table portrays the present power generation and government’s projected power generation in 2030.[v]
|
2021 |
2030 |
Installed Capacity (MW) |
25227 |
40000 |
Consumers (in millions) |
40 |
|
Transmission Lines (circuit kilometers) |
12744 |
28320 |
Distribution Lines (km) |
612000 |
660000 |
Grid sub-station |
26000 |
59000 (2024) |
Distribution loss |
8.73% |
|
Per capita generation |
514kwh |
|
Access to electricity |
95% |
|
(Power Cell: Ministry of Power, Energy and Mineral Resources (MPEMR), Govt. of Bangladesh)
Dated and inefficient power plants in the public and private sector are being identified and are being phased out. Presently, 38 power plants are under construction with a capacity of 14,115 MW and contracts for the construction of 20 more power plants with the total capacity of 2,961 MW have already been signed.[vi]
Currently, 20 gas fields are operational in Bangladesh with the supply of 2,300 million cubic feet gas per day (MMcf/d) against a national demand of 3,500 MMcf/d, a situation that prompted the government to import 600-800 MMcf/d Liquefied Natural Gas (LNG).[vii] Though new gas fields are periodically found throughout the country, there have been instances where, due to mismanagement, reserves from some gas fields got depleted. Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) have now been responsible in the exploration and drilling from gas fields either by itself or with joint collaborations.
Bangladesh-Russia Energy Cooperation
Russia has been mostly involved in collaborating with Bangladesh in the exploration and drilling of natural gases. In 2012 and 2015, Russian company “Gazprom EP International” and Bangladesh Oil and Gas Corporation “Petrobangla” signed a series of deals that have been involved in the design and construction of numerous wells in the gas fields in Bangladesh. In 2017, another agreement was signed between Gazprom EP International and BAPEX, a subsidiary of Petrobangla, to construct two prospecting and exploration wells on the Bhola Island in south of Bangladesh.[viii] Till date, the company has designed and constructed 17 appraisals[ix], exploring and constructing wells in eight gas fields.[x]
When Gazprom was tasked to drill 10 wells throughout the country in 2012, five of the wells were rendered obsolete due to an excessive flow of sand and water during the drilling. Soon after the incident, the task of drilling was taken over by BAPEX. Gazprom was again tasked to drill five more wells and these were successfully completed. Gazprom, later with BAPEX, carried out joint surveys to assess the gas reserves in Bhola. Gazprom also entered a Memorandum of Understanding (MoU) for exploring and extracting gas upon completion of the reassessment.[xi] The last MoU was signed on January 28, 2020 with Gazprom and BAPEX in gas exploration in Shahbazpur and Bhola North. The MoU was signed in the presence of the Prime Minister’s Energy Adviser Tawfiq-e-Elahi Chowdhury who later stated that though BAPEX, who discovered the oil fields and was capable to carry out the exploration alone, the collaboration with the Russian energy giant will decrease the amount of time for exploration.[xii]
Russia is also currently constructing a two-unit nuclear power plant at Rooppur, in Pabna district of Bangladesh. An Inter-Governmental Agreement (IGA) between the Government of the People’s Republic of Bangladesh and the Government of the Russian Federation on Cooperation concerning the Construction of a Nuclear Power Plant in Bangladesh was first signed on November02, 2011.[xiii] Later, Russian state nuclear corporation Rosatom, the Ministry of Science and Technology of the People’s Republic of Bangladesh and the Department of Atomic Energy of the Government of the Republic of India signed an MoU on March 1,2018, on cooperation in the implementation of the Rooppur Nuclear Power Plant (NPP) construction project in Bangladesh. The Memorandum set a framework for the interaction of the Russian Contractor, Indian and Bangladeshi experts in the implementation of works related to the project. The parties, in particular, will cooperate in the field of personnel training, exchange of experience and consulting support. Indian companies can be involved in construction and installation works, the supply of materials and equipment of a non-critical category in the interests of the project.[xiv]
The plant will consist of two power units with Russian-designed (Water-Water Energetic Reactor) WWER reactors[xv] with a capacity of 1,200 MW each. The units constructed as per this project are related to the nuclear units of the “3+” generation with improved technical and economic indicators and the most modern reliability and safety requirements.[xvi]
On March 17, 2020, an agreement was signed between Russian state nuclear corporation Rosatom Director General, Alexey Likhachov and Prime Minister Sheikh Hasina. The agreement caters to assist in the operation, maintenance and repair of units 1 and 2 of the Rooppur plant on a long-term basis, as well as to supply the equipment, expendable materials, spare parts and to provide training for maintenance crews in the course of plant operations. This, according to Rosatom, will enable it to carry out maintenance, operational support and repair of the Rooppur plant throughout its entire life cycle.[xvii]
Along with the signing of the above agreement, another contract was signed between Russian fuel company Tvel and the Bangladesh Atomic Energy Commission for the supply of nuclear fuel. This contract will be valid till the end of the life of both the nuclear power units.[xviii]
Construction of the two units has continued even during the lockdown during the pandemic and the project is expected to be completed on time.Prime Minister Sheikh Hasina inaugurated the reactor pressure vessel installation work of the plant on October 10, 2021.[xix] The first of the two units of the 1,200-megawatt project will be launched in 2023 and the second in 2024.[xx] However, Rosatom DG Likhachev recently stated that if required, the timeline of the project may be adjusted. More than 20,000 Bangladeshis are working on the project, while local companies have been given jobs under sub-contracts.[xxi]
The NPP remains to be one of the important of the 10 mega projects that has been decided by the government to achieve its Vision 2041[xxii], which would have a substantial impact on the economy and wellbeing of the Bangladesh population, making a projection that it will raise Bangladesh’s GDP by 4 percent.[xxiii] These signature projects, if properly managed, will successfully address Bangladesh’s infrastructure deficiencies, transport crises, and power shortages in a sustainable manner.[xxiv]
In the Vision 2041 document, there has been a mention of the construction of another nuclear plant in south of Bangladesh. While meeting Rosatom State Atomic Energy Corporation Director General (DG) Alexey Likhachev at Ganabhaban (PM’s official residence) in Dhaka on October 11, 2021, Prime Minister Sheikh Hasina requested Russian support for building second NPP in the southern region of Bangladesh, which Rosatom agreed to and expressed their desire to continue supporting the Bangladesh power sector.[xxv] PM Hasina also requested Rosatom for giving proper training to Bangladeshi technicians so that they can maintain appropriate security measures in the Rooppur NPP.
Russia’s role in the exploration and drilling of gas and the construction of NPP’s in Bangladesh has ushered in a new phase of strengthening bilateral relations. It should be noted that Russian companies were the first foreign companies who were allowed to collaborate with Bangladeshi gas exploration and drilling agencies. Both the countries will be celebrating fifty years of diplomatic relations on January 25, 2022, and through these last five decades have been able to build strong military, social, economic and cultural bonds, cooperation in the energy sector has opened up new vistas of cooperation, development and partnership.
*****
* Dr. Dhrubajyoti Bhattacharjee is a research fellow at the Indian Council of World Affairs.
Disclaimer: Views are personal
Endnotes
[i] “COP 26: National Statement by Prime Minister Sheikh Hasina”, Dhaka Tribune, November 2, 2021, https://www.dhakatribune.com/bangladesh/2021/11/02/cop-26-national-statement-by-prime-minister-sheikh-hasina accessed on November 12, 2021
[ii]Bangladesh imports LNG from Indonesia, Nigeria, Oman along with other LNG rich countries, Robert F. Ichord Jr., “Transforming the Power Sector in Developing Countries: Geopolitics, Poverty, and Climate Change in Bangladesh”, Atlantic Council, Global Energy Center, January 2020, p. 5, https://www.atlanticcouncil.org/wp-content/uploads/2020/01/Power-Transformation-Bangladesh-final-web-version.pdf accessed on October 28, 2021
[iii]Though no specific timeline has been mentioned, the plan to scrap coal based power generation is due to the rising price of coal and due to the effects it makes on the climate. Khondaker Golam Moazzem, “CPD Webinar on The Power Sector in the National Budget for FY2022: Perspectives on Allocative Priorities & Reform Agenda”, Center for Policy Dialogue, Dhaka, June 20, 2021
[iv]Naimul Karim, “Bangladesh scraps plans to build 10 coal-fired power plants”, Reuters, June 28, 2021, https://www.reuters.com/article/us-bangladesh-energy-climate-change-coal-idUSKCN2E410Haccessed on October 28, 2021
[v]Khondaker Golam Moazzem, “CPD Webinar on The Power Sector in the National Budget for FY2022: Perspectives on Allocative Priorities & Reform Agenda”, Center for Policy Dialogue, Dhaka, June 20, 2021
[vi]Khondaker Golam Moazzem, “CPD Webinar on The Power Sector in the National Budget for FY2022: Perspectives on Allocative Priorities & Reform Agenda”, Center for Policy Dialogue, Dhaka, June 20, 2021
[vii] “Energy-starved Bangladesh discovers new gas field worth over $148 mn”, Business Standard, August 10, 2021, https://www.business-standard.com/article/international/energy-starved-bangladesh-discovers-new-gas-field-worth-over-148-mn-121081001811_1.html accessed on October 26, 2021
[viii]“Gazprom and Petrobangla sign Memorandum of Understanding”, Gazprom, January 29, 2020, https://www.gazprom.com/press/news/2020/january/article498760/accessed on October 26, 2021; “Bangladesh, Gazprom Ink Gas Pact”, Energy Intelligence, January 29, 2020, https://www.energyintel.com/0000017b-a7d9-de4c-a17b-e7dbc6460000 accessed on October 26, 2021
[ix]Role of appraisal is to provide cost-effective information that will be used for subsequent decisions (development). During appraisal, wells are drilled to collect information and samples from the reservoir and other seismic survey be acquired in order to better delineate the reservoir.
[x] Bangladesh-Russia Bilateral Relations, Embassy of the People’s Republic of Bangladesh, Moscow, Russia, https://bangladeshembassy.ru/bilateral-relations/ accessed on October 26, 2021
[xi] Md. Saidun Nabi, “Gazprom tasked with exploring gas from Bhola”, Dhaka Tribune, February 15, 2020, https://www.dhakatribune.com/bangladesh/dhaka/2020/02/15/controversy-as-gazprom-tasked-with-exploring-gas-from-bhola accessed on October 28, 2021
[xii] Md. Saidun Nabi, “Gazprom tasked with exploring gas from Bhola”, Dhaka Tribune, February 15, 2020, https://www.dhakatribune.com/bangladesh/dhaka/2020/02/15/controversy-as-gazprom-tasked-with-exploring-gas-from-bhola accessed on October 28, 2021
[xiii] Bangladesh-Russia Bilateral Relations, Embassy of the People’s Republic of Bangladesh, Moscow, Russia, https://bangladeshembassy.ru/bilateral-relations/ accessed on October 26, 2021
[xiv]“Russia, Bangladesh and India sign memorandum on trilateral cooperation in the implementation of the Rooppur NPP construction project”, Rosatom, March 01, 2018, https://www.rosatom.ru/en/press-centre/news/russia-bangladesh-and-india-sign-memorandum-on-trilateral-cooperation-in-the-implementation-of-the-r/ accessed on October 27, 2021
[xv]Water-water energetic reactor (WWER) is a series of pressurized water reactor designs originally developed in the Soviet Union, and now Russia. WWER is associated with a wide variety of reactor designs spanning from generation I reactors to modern generation III+ reactor designs.
[xvi] “Russia, Bangladesh and India sign memorandum on trilateral cooperation in the implementation of the Rooppur NPP construction project”, Rosatom, March 01, 2018, https://www.rosatom.ru/en/press-centre/news/russia-bangladesh-and-india-sign-memorandum-on-trilateral-cooperation-in-the-implementation-of-the-r/ accessed on October 27, 2021
[xvii]“Russia and Bangladesh expand nuclear cooperation”, World Nuclear News, March 18, 2020, https://world-nuclear-news.org/Articles/Russia-and-Bangladesh-expand-nuclear-cooperation accessed on October 26, 2021
[xviii] “Russia increases support for Bangladesh's Rooppur nuclear plant”, Nuclear Engineering International, March 19, 2020, https://www.neimagazine.com/news/newsrussia-increases-support-for-bangladeshs-rooppur-nuclear-plant-7830228 accessed on October 26, 2021
[xix] “PM Hasina seeks Russia’s support for building a second nuclear power plant”, Dhaka Tribune, October 11, 2021 https://www.dhakatribune.com/bangladesh/2021/10/11/pm-hasina-seeks-russia-s-support-for-building-a-second-nuclear-power-plant accessed on October 27, 2021
[xx]Pathik Hasan, “Bangladesh Benefits From Nuclear Cooperation With Russia – OpEd”, Eurasian Review, October 12, 2021, https://www.eurasiareview.com/12102021-bangladesh-benefits-from-nuclear-cooperation-with-russia-oped/ accessed on October 27, 2021
[xxi] “PM Hasina seeks Russia’s support for building a second nuclear power plant”, Dhaka Tribune, October 11, 2021 https://www.dhakatribune.com/bangladesh/2021/10/11/pm-hasina-seeks-russia-s-support-for-building-a-second-nuclear-power-plant accessed on October 27, 2021
[xxii]Making Vision 2041 A Reality: Perspective Plan of Bangladesh 2021-2041, General Economics Division (GED), Bangladesh Planning Commission, Ministry of Planning, Government of the People’s Republic of Bangladesh, March 2020, http://oldweb.lged.gov.bd/UploadedDocument/UnitPublication/1/1049/vision%202021-2041.pdf accessed on October 27, 2021
[xxiii]Some of the mega projects amongst the 10 mega projects are Padma Bridge and Rail Link, Metro Rail, Chattogram-Cox’s Bazar Rail Link, Rooppur Nuclear Power Plant, the Coal-Fired Power Plant of Matarbari and Rampal, and the Payra Sea Port. Rejaul Karim Byron, Dwaipayan Barua, “Total debt to GDP hit a 13-yr high at the end of FY2020-21”, The Daily Star, October 13, 2021, https://www.thedailystar.net/news/bangladesh/news/borrowing-send-economy-roaring-2197081 accessed on October 27, 2021
[xxiv]Kazi Mohammad Jamshed, “Making Sense of Bangladesh's Investment on Megaprojects: Development or Delusion?”, Sri Lanka Guardian, October 6, 2021, http://www.slguardian.org/2021/10/making-sense-of-bangladeshs-investment.html accessed on October 27, 2021
[xxv]“PM Hasina seeks Russia’s support for building a second nuclear power plant”, Dhaka Tribune, October 11, 2021 https://www.dhakatribune.com/bangladesh/2021/10/11/pm-hasina-seeks-russia-s-support-for-building-a-second-nuclear-power-plant accessed on October 27, 2021