Budget 2021-22Power and energy sector allocation to increase by Tk 726 crore

The allocation for the power and energy sector has been raised by Tk 726 crore in the budget for fiscal 2021-22.

The new amount is proposed at Tk 27,484 crore , up from Tk 26,758 crore in 2020-21.

Finance Minister AHM Mustafa Kamal proposed the allocation while unveiling the national budget in parliament on Thursday.

He mentioned that the country’s power generation capacity, including captive and renewable energy, has increased to 25,227MW as of May 2021.

He claimed that through integrated development of production, transmission and distribution system, 99 per cent of the total population of the country has been brought under the electricity coverage.

Mustafa Kamal pointed out that 38 power plants with a capacity of 14,115 MW are under construction, and contracts have been signed for the construction of another 20 power plants with a capacity of 2,961 MW to meet the growing demand for power in Bangladesh.

Besides, 6 power plants with a capacity of 650 MW are in the process of tender, and construction of 33 power plants with a capacity of 15,019 MW has been approved, he added.

“Due to the strict measures taken by the government, the system loss in electricity has reduced from 14.33 percent to 8.73 percent,” he said.

The mega-projects in power generation include the Rampal 1,320 MW coal-based Maitri Super Thermal Power Plant project, Matarbari 1,200 MW Ultra-super Critical Power Plant project and Rooppur 2,400 MW nuclear power plant project. The 1,320 MW thermal power plant at Payra has started commercial production.

At present, 722 MW of electricity is being generated from renewable energy, he said adding that solar and wind power plants are being installed to generate 10 per cent of the total electricity demand from the renewable energy.

The finance minister said the government is working to lay all distribution lines and substations underground in the metropolitan area to modernise the power system.

There is a plan to increase the number of transmission lines to 28,000 km and the number of distribution lines to 6.60 lakh km by 2030.

“We expect that through the implementation of these projects, it will be possible to meet the growing demand for transmission and distribution of electricity throughout the country.

About the energy sector, the finance minister said that an average of 600 to 700 million cubic feet of natural gas is being added to the national grid daily by import of liquefied natural gas (LNG).

To re-gasify the imported LNG, two floating LNG terminals with a total capacity of 1,000 million cubic feet have been set up at Maheshkhali in Cox's Bazar district with a capacity of 500 million cubic feet each, he said.

In addition, to increase the supply of LNG, initiative was taken to set up a land-based LNG terminal with a capacity of 1,000 million cubic feet per day in the Matarbari area of Cox's Bazar district.